I have unknowingly spent almost 15 months in the crypto world, experiencing two cycles of bull and bear markets, going through countless liquidations, during which I learned a lot from many senior Zhima hosts. I have also been constantly reflecting and learning myself. I feel that I have finally stepped into the threshold of short-term trading. Previously, I could only be considered a gambler, not a trader. I believe the key difference is recognizing the weaknesses of human nature—greed, attachment, and anger—and gradually overcoming these three flaws.

Greed is human desire. It makes people naturally seek profit and avoid harm: when experiencing floating losses, most people hold onto losing positions, waiting for the market to reverse, or even add to their positions to average out the losses (which is why many can profit for many days but get liquidated in a single day). When in profit, people often worry about a retracement, wanting to secure gains, but such actions usually result in smaller profits and larger losses. The fundamental reason is that the desire to avoid harm makes people reluctant to close floating positions, believing that as long as they haven't closed, the loss hasn't occurred, and they hope for a market reversal (which is often the least likely at that moment). Greed makes people think that floating profits are already their money, and fear of a retracement causes them to take profits prematurely, missing out on larger market moves later.

The simplest and most direct way to avoid greed-driven behavior is to set take-profit and stop-loss levels. Once a position is opened, it should not be changed—either take profit or cut losses (how to set good take-profit and stop-loss levels is related to the subsequent obsession). But to overcome greed, one must stay rational and judge the market from an absolutely objective perspective. We follow the market, not the direction of our own positions.