What a coincidence, in my trading journey, I have hit rock bottom at least 3 times,

The first time was in early 2017, at the beginning of the bull market, on a day when BTC once again broke through $1000,
I lost the gains of the previous few years in one afternoon,
Even including the part I was proud of at the time: “In the 2014 bear market, I could make ten times profit by doing oversold rebounds, I must be a genius, right?”
The second time was around November 18, 2018, I initially wanted to bet on a short-term rebound,
but ended up holding on to my position.
The third time was on March 12, 2020, most of my on-exchange positions were forcibly liquidated at low levels.
All three involved significant overall losses + profits made in between <20%

When I mention plans to share methods during these lows,
I also want to share my personal insights on

“How a person can survive when falling into the bottom, and then get back up”
and the methods involved.

It may not apply to everyone, but it should provide some inspiration.

1.
Find and cultivate interests unrelated to “economics, making money.”

If our discussion of “falling into the bottom” is from the perspective of economy and earnings,
then cultivating hobbies that don’t demand high economic requirements early on,
can very likely become a “safety net” support when facing ultimate risks.

If a person’s interests and survival will,
depend entirely on having a lot of money,
then any economic downturn could very likely break that person’s bottom line in all aspects, leading to irreparable consequences.

Such interests can be refined or popular,
including humanities, entertainment, sports, technology, lifestyle, nature, etc.
Any small happiness interests that allow long-term exploration and bring joy and spiritual satisfaction are valid.

In “Xian Ni,” Wang Lin abandons all cultivation to become a mortal and re-enters society,
not to immediately climb back in cultivation, but to carve wood and sculpt...

My situation is that I have loved computer games and movies since childhood,
so I clearly remember during my lowest point, I told myself:
“Even if I become poor in the future,
there will still be constantly new games, movies, and TV shows in this world,
as long as I stay healthy and alive, I can gain spiritual richness from them,
and it won’t cost much.”
This “contentment with the lowest bottom line” mindset
helped me avoid extremes and maintain a healthy mentality during the lows.

On the other hand, the more severe the bottom, the more you need spiritual healing and recovery,
at this point, interests that don’t demand high economic input,
are the best way to repair and distract yourself with unwavering support.

1.1
Similarly, these interests can also prevent “going astray” when you reach a peak.

Only after experiencing the cycle of
“peak on paper → fall into the bottom” in a bull market climax,
can you truly understand:
During the peak, I entered an “obsessed” state,
completely lost sight of “what I really need,”
focusing only on the numbers on the account and luxury wish lists.

Those cultivated interests that are low-cost but enrich your spirit,
can remind you:
My contentment doesn’t necessarily require that level of money.

Lacking such interests,
makes it easier to be led solely by increasingly larger numbers.
A somewhat inappropriate but helpful analogy:
A greedy official taking risks,
one with small interests might think, “A few ten thousand yuan of greed is enough,”
(because many small joys in life are more worthwhile than riskier gains)
while an official with no small interests might only be interested in bigger numbers.

If rushing to chase “money that’s not really necessary,”
causes you to lose “the truly necessary money,”
that’s the most regretful.

On the other hand, I agree with a saying:
Money beyond what’s needed for survival,
before being transformed by personal interests and tastes,
is just a number.
Cultivating such interests early on is both a mental safety net when you have no money,
and a guide to “spend money wisely and understand how to spend.”

2.
Once the bottom has occurred, unless you completely exit the game, don’t “skip this calamity.”

For example, starting with 10, reaching 100 at the peak,
and then falling back to 5 without taking profits.
If you continue at this point, you usually consider two options:
A. Continue with the 5, or at most top up to the original 10
B. After experiencing 100, feeling that continuing from 5 is too slow or unsatisfactory, quickly add a large amount of funds to continue

I am most grateful that I always chose option A during my lows.

The long-term result of profit and loss is actually a more objective and truthful assessment of your real skill level.

If 10 becomes 100, then takes profit from 30 to 70, then drops to 5,
you can consider your skill level as “able to handle 35,”
because the objective reality is, you took away 30, and still have 5 left.
Not that fleeting 100.

If funds go from 10 to 100 and then back to 5, with no profit-taking in between,
there’s no need to think much—this indicates your true level is “able to handle 5,”
and the 100 is irrelevant.

This is also what people call “mean reversion”:
Over time, the numbers reflect the true fair value more accurately.

10 to 100 and back to 5, with no profit-taking,
indicates a major flaw in your system—large issues with profit and loss sources.
If you suddenly add a large amount of funds or borrow to invest during this short period,
it’s like trying to “skip the calamity” that came at a huge cost,
skipping the opportunity to repair your vulnerabilities and understand yourself better.
This also reflects your current state:
Lacking the necessary fear, reverence, and respect for your own problems,
then next time, the “calamity” will come back to find you again.

It’s like playing a game, where someone gives you a high-rank account,
not an account you earned yourself to maintain the rank,
using this account, your rank will naturally
“mean revert” to your true skill level.

Only by playing from a low rank to a certain level and maintaining it,
can you truly gauge your mastery of control and the growth or reduction of your capital,
and ensure both are synchronized and mutually validated.
The reason I still play in the crypto market,
is because in this market,
not only is the “mean reversion” downward very fast,
but the opportunities and speed of upward “mean reversion” are much more than you might imagine.