Soul adhesive bandage: How to regain confidence and start again after the encryption battlefield?

Author: ian

Compiled by: Luffy, Foresight News

Lately, I have heard many unfortunate stories from investors: significant profit retracement, or even losing everything. But don't lose hope, since you have been profitable 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 still remember the first time you stepped into the fantasy world of "Elden Ring", and suffered more than ten times from the "Kite" tree sentinels before figuring them out? Do you still 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 made your first 5x profit on a Memecoin. After months of hard work, you received your first generous airdrop. These moments are full of dopamine rush, so fulfilling!

Temporarily leave the hustle and bustle, return to life

At this moment, if you are feeling down due to investment losses, it's better to press the pause button first. Return to real life, spend more time with family and friends. Maintain regular daily routines, eat healthily, exercise vigorously, and let your body and mind regain vitality and energy. Consider these seemingly unrelated daily activities as sideline tasks for self-improvement. Just like in a game, by doing well in sideline tasks, the protagonist's attributes will greatly increase, allowing for a more composed response to main challenges.

Be well aware that the market never lacks opportunities, as long as you stay sharp and prepared, you can capture them again. But the premise is that you have a healthy body and a clear mind.

Return to the 'battlefield', strategy first

When you adjust your state and prepare to return to the investment 'battlefield', don't rush to charge. Before you start, write down all the mistakes you made in the last round and make a plan, establish a risk management framework that you must follow.

A qualified framework should include fund allocation rules, risk exposure rules, and most importantly, stop-loss rules. I have witnessed too many investors who, just as they have made some profits, are driven by greed to hastily reinvest the profits in high-risk new projects, often ending up with nothing. Remember, only by safely pocketing the profits, converting them into legal tender, using them to repay debts, and showing gratitude to family, can it truly be your wealth.

Traveling with the team

If you don't have a team yet, find or create a core communication group, with a smaller scale and members who are high-quality talents you can trust. It's cool to pass the game alone, but it's better and more fun to pass it with a skilled and diverse team.

Resource Management

Now that you are energized and have a plan, how do you get started? In every game, you need resources to roll the snowball and eventually succeed.

In 'Age of Empires', you have wood, food, stone, and gold; in 'League of Legends', you have gold, mana, and so on; in chess, you have pieces and time; in investment trading, your funds and time are your resources.

In my opinion, there are two ways to balance these resources when you start over or get into investment difficulties:

1. Ultimate Maximization Mode

You work in the Web3 field, ideally at a fund company or research institution. This keeps you immersed in this 'game' 24 hours a day. The intensity is high, the commitment is high, you are always online, and your spare time is spent browsing Twitter and Telegram. Every aspect of your life revolves around cryptocurrencies. Insider information is sent to you via private messages, and opportunities arise frequently.

You level up quickly because you're always on the cutting edge, but it's exhausting. It's easy to burn out. If you don't make time for your side quests (like returning to real life and staying healthy), you can easily get stuck in a narrow vision. This is a typical trade-off between maximizing to the extreme.

2. Balance Mode

If you can spend much less time in this 'game', choose this mode. You may have a job in the Web2 field (that's your expertise), 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.

It's okay! The operation frequency is low, but it can continue to generate resources. You can still win like the tortoise 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 issues 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, outperforming ordinary retail traders. Over time, if you are willing, you will have the ability to provide financial support for transitioning to the ultimate maximization mode for yourself, enabling snowball-like growth in the later stage.

Find your motivation

On the long road of investment, it may be helpful to ask yourself from time to time: Why did you enter this field? For financial freedom, to have more choices in life? Or to prove yourself? Regardless of the answer, when one day the numbers in your account rise, you will suddenly realize: investing in this 'game' has already become part of life, becoming a career of continuous passion and relentless pursuit.