Author: ian

Compiled by: Luffy, Foresight News

Recently, I have heard many unfortunate stories from investors: returns have plummeted sharply, or even lost everything. But don't lose hope, since you have made profits before, you can do it again. I have had similar experiences, so I want to share some thoughts on how to bounce back.

Treat trading as a game

Do you remember the first time you entered the fantasy world of "Elden Ring", and were brutally defeated by the Tarnished Sentinels more than a dozen times before figuring them out? Do you remember the feeling when you finally reached the Platinum rank after being stuck in the Bronze rank for several months?

After experiencing countless "rug pulls", you finally earned your first 5x return on a Memecoin. After months of hard work, you received your first generous airdrop. These moments were filled with a surge of dopamine and a sense of achievement!

Take a break from the hustle and return to real life

If you are currently feeling depressed due to investment losses, you may want to hit the pause button. Return to your real life, spend more time with your family and friends. Maintain a regular routine, eat healthily, exercise vigorously, and revitalize your body and mind. Treat these seemingly unrelated daily activities as side quests to improve yourself. Just like in a game, completing side quests well can greatly enhance your character attributes, allowing you to tackle the main challenges more confidently.

You should know that the market never lacks opportunities, as long as you remain sharp and prepared, you will be able to capture them again. But the prerequisite is that you have a healthy physique and a clear mind.

Return to the "battlefield" with a strategy first

When you have adjusted your state and are ready to return to the investment "battlefield", don't rush in. Before starting, write down all the mistakes you made in the last round and develop a plan, formulate a risk management framework that you must follow.

A qualified framework should include rules for asset allocation, risk exposure, and most importantly, profit-taking rules. I have witnessed too many investors, as soon as they made some profits, were driven by greed to rashly reinvest the profits into high-risk new projects, resulting in a futile effort. Remember, only by safely pocketing the profits, converting them into fiat currency, and using them to repay debts or express gratitude to your family, can that truly be your wealth.

Travel with a team

If you don't have a team yet, find or create a small core discussion group of high-quality people you can trust. Solo gaming is cool, but going through the challenges with a skilled, diversified team is even better and more fun.

Resource management

Now that you are rejuvenated and have a plan, how do you start? In every game, you need resources to snowball towards victory.

In "Age of Empires", you have wood, food, stone, and gold; in "League of Legends", you have gold, mana, etc.; in chess, you have pieces and time. In investment trading, your capital and time are your resources.

In my view, there are two ways to balance these resources when you're starting over or stuck in an investment dilemma:

1. Extreme Maximization Mode

You work in the Web3 field, ideally at a fund or research institution. This allows you to be immersed in this "game" 24/7. The intensity is high, and your dedication is also high. You're always online, browsing Twitter and Telegram in your spare time. Your life revolves around cryptocurrencies. Insider information will be privately messaged to you, and opportunities will arise every now and then.

You level up quickly because you're always at the forefront, but it's also very tiring. It's easy to exhaust your energy. If you accidentally don't make time for your side quests (like returning to real life and maintaining health), you're likely to fall into a narrow-minded trap. This is the typical trade-off of extreme maximization.

2. Balanced Mode

If you can only invest a much smaller amount of time in this "game", then choose this mode. You may have a Web2 job (which is your forte), or a non-research/investment job in the crypto field. You won't be browsing Twitter all day, nor will you be hanging out in Telegram or Discord channels.

That's fine! The operation frequency is low, but it can continuously generate resources. You can still win like the turtle in the fable of the tortoise and the hare.

You won't be anxious about every market trend change. You have time to look at problems from a macro perspective, make more confident decisions, and avoid emotional outbursts. You may choose to simply invest in mainstream cryptocurrencies on a regular basis, and outperform the average retail trader. If you wish, over time, you will be able to provide financial support for yourself to transition to the Extreme Maximization mode, so that you can achieve exponential growth in the later stage.

Find your motivation

On the long journey of investing, you may want to ask yourself from time to time: why did you get into this field? Is it for financial freedom and more choices in life? Or is it to prove yourself? Regardless of the answer, one day when your account balance soars, you will suddenly realize: this "game" of investing has become integrated into your life, becoming a career that you continuously love and pursue.