The current situation of the vast majority of contract players

Some friends who tried contracts accidentally tasted some sweetness, thinking they knew how to operate. As we all know, the market changes in the crypto world are unpredictable, and it is not something that can be understood by a few operations, especially for novices. The volatile market every day is incomprehensible, and they get lost in the vortex of the market.
Specifically, it is reflected in chasing rising prices and selling with bearish market, always going long at high points and going short at low points; after multiple such trades, my funds are gone and my mentality is shattered. At this time, I am unwilling to accept it, watching the market fluctuate every day. I originally said I wouldn't trade anymore, but I feel like the market is following my thoughts, so I want to trade, thinking of earning back the principal, and trying to make a big profit with the little capital left. As a result, the more I invest, the more I lose, and I am getting deeper and deeper into it and can't extricate myself.
What should we do when we are defeated by investment?
The market in the crypto world is fair to everyone, and those who can really grasp it have to rely on their own abilities.
To invest, the first thing you need to defeat is yourself!
Investment is a path of practice, and tempering is not just about technique, but more importantly, mentality. The factors that affect mentality change, Jin Yu summarizes into the following two points:
1. Fund Management
Good fund management is the foundation of maintaining a stable trading mindset.
Investors with a large amount of holdings are like pedestrians carrying a heavy burden on their shoulders. Any slight obstacle on the road is enough to make them fall. The fundamental reason is that their holdings have become a burden to them, exceeding their capacity to bear. So, why do investors engage in transactions beyond their capabilities? Because the desire for profit prevents them from correctly evaluating themselves, and they have fallen into the trap of profits. Under the temptation of profit, they can no longer see the trap of losses. The trap of losses is usually hidden in the dark, while profits shine brightly. When investors enter the market with large holdings, they will immediately discover that there are traps of losses everywhere. Their good intentions before entering the market are instantly shattered by the market's fluctuations, and they will find that the market is far from as gentle as they imagined. At this point, the desire for profit has become their disaster, and the large amount of holdings has become a huge burden. The psychological problems caused by improper capital management begin to surface.
2. Correct Understanding of Losses
Refusing to accept losses is the root cause of a bad trading mindset.
Loss is a normal phenomenon in trading, and it is inevitable. Profits and losses are like the left and right feet of a person, and successful gains are composed of profits and losses. Profits and losses make up trades, and no one can separate the combination of profits and losses. There are no trades in the market that only have profits or losses. The key issue is that the majority of investors treat losses as wrong trades, thinking that they are wrong when they incur losses, and thus continuously demand accurate analysis to predict the market in order to reduce the number of stop losses. However, the market cannot be predicted at all. Investors who view losses as mistakes will never be able to overcome their fear of market uncertainty. The uncertainty of the market keeps investors in a state of constant apprehension, hesitating to enter and exit positions, and being even more hesitant to set stop losses. Even with good capital management, they will not dare to effectively execute trading plans due to fear of making mistakes, thus missing out on trading opportunities.
What is a loss?
To truly understand the meaning of these two words, there is a quote from a teacher named Yuan: 'If your plan accuracy can be guaranteed, if your stop loss is reasonable, then the stop loss within the plan is not called a loss, but rather a pullback in an upward trend, just a pause on the way to achieving profit target.'
Loss is simply the cost of trading profits and is the normal cost of seeking profit opportunities. Any profit must come at a cost, and this applies to any industry. Loss is a normal phenomenon. Loss does not mean you are wrong, but only means that the cost of your profit has increased. Investors who see loss as a mistake will lose confidence in trading because losses occur frequently. The loss of confidence is the fundamental reason for a bad trading mindset. Those unwilling to accept losses are inevitably those who demand accurate predictions of the market. They are always afraid of making mistakes, and the fear of making mistakes will inevitably lead to a bad mindset. Making mistakes is not scary; what's scary is not sticking to what is right. It is impossible to accurately predict the market, which can lead investors into a dilemma between desires and reality, making it difficult to maintain a balanced mindset. Right and wrong cannot be judged based on gains or losses, but should be judged based on the quality of gains or losses. If the market goes against you and you stop the loss, it does not mean you are wrong, but rather it shows that you are right. However, if the market goes in your favor and you only make a small profit, it may seem like you have gained, but in reality, you are truly wrong! Only by treating losses as the cost of finding profit opportunities can you not fear losses and accept them calmly. Only by being able to accept losses calmly can your trading mindset remain stable despite the market's uncertainty.
The 'cultivation' process of most investors has to go through three levels:
When entering the market for the first time: like a newborn calf not afraid of tigers, jump in immediately when seeing a big market, regardless of whether it hits a new high or low, always feel that there is an opportunity to make money. However, without understanding the exit and survival skills, often after a hard period of settlement, only a small amount of money is earned.
2. Seasoned Traders After Some Time in the Market: They are cautious and indecisive, guessing the market's ups and downs, worrying about gains and losses, chasing highs and selling lows, engaging in complicated trades, disregarding trading plans and targets, and being stubborn and self-righteous. This period is the most painful, and whether they can achieve success depends on whether they can overcome their own 'inner demons'. During this period, they lose more than they win. They feel like they have reached the end of the road and are on the verge of giving up with just one breath left.
After the third enlightenment: after searching for him thousands of times, he finally found the 'path to victory' that suits his own operation. At this time, he no longer enters and exits randomly, but attacks and defends in a disciplined and regular manner. He loses the money he should lose, pays all kinds of costs he should pay, and earns the money he should earn. Looking back, the goal is already nearby.
Whether you can achieve success or not depends on whether you can overcome the "demonic obstacle". When investing, the first thing to conquer is yourself! Never take action in greed, fear, and ignorance!