Based on the chapter framework of "Cognitive Driven: Achieving Something Very Useful for Others," combined with the professional characteristics of virtual money traders, analyze from two main dimensions: "Mindset" (value, identification, psychology) and "Technique" (strategy, tactics, execution):
Part One: The Mindset to Accomplish Something
Chapter One: Value - The key to changing oneself is to create value.
1. Copy vs Convert Virtual Money traders need to go beyond the linear model of "time for money" (conversion) and shift to a strategy that is "replicable" for exponential growth. For example: - Automated Trading System: Quantitative strategies (such as arbitrage models) can be repeatedly applied to different market cycles. - Knowledge Output: Transforming personal insights into replicable value products through analysis reports and trading signal subscription services.
2. Altruism is self-interest. - Traders need to provide real value to others, such as risk warnings (like leverage liquidation cases) and market interpretations (the impact of policies on coin prices), rather than simply promoting trading courses. - Long-term value is reflected in helping investors avoid irrational decisions (such as FOMO chasing up), establishing a sustainable profit model.
3. Passive Socialization and Awareness of Works - Introverted traders can establish industry influence through in-depth research reports, on-chain data tools, and other works, replacing ineffective social interactions. - For example, release open-source code on-chain analysis tools to attract institutional cooperation rather than actively marketing.
Chapter 2 Identification - Everything Starts with Belief
1. Identification positioning upgrade - Transitioning from "speculators" to "market liquidity providers" or "risk managers", for example: - Market makers earn profits through spreads, rather than betting on directional fluctuations. - After the re-identification, more focus is placed on long-term survival skills such as position hedging and volatility control.
2. The Power of Language - Avoid absolute statements (e.g., "Bitcoin will definitely break 100,000"), and instead use probabilistic thinking: "Current data supports a 60% probability of upward movement, with a stop loss set at X." - Use positive language to guide behavior, such as "I have not yet mastered cross-chain arbitrage" suggesting future breakthroughs, rather than "I cannot do it."
Chapter Three Psychology - Clearing Emotional Barriers on the Path to Success
1. Overcoming negative preferences - Traders can easily amplify losses (for example, a single liquidation negates the entire strategy), so a review mechanism needs to be established: attributing a single failure to specific parameter errors (such as an excessively high leverage ratio), rather than self-denial.
2. Beyond Binary Opposition - Market is not simply divided into "bull" and "bear": - There are still structural opportunities in a bear market (such as staking yields and options volatility arbitrage). - Compatible with multiple strategies (such as trend following + anti-fragile positions), adapting to complex markets.
3. Accept without "one-time solution" - Technical iterations (such as ZK-Rollup scalability) require continuous learning and avoid relying on a single strategy (for example, an arbitrage model effective in 2021 may fail due to MEV).
Next: Techniques for Accomplishing a Task
Chapter 4 Strategy - Methods and Paths
1. Cognitive Drive: Long-termism Framework - Understand the mechanism: Learn about blockchain consensus mechanisms (such as PoS reward distribution rules) to avoid blindly following trades. - Seeking Meaning: Viewing transactions as "optimizing global capital efficiency" rather than pure profit-seeking, enhancing resilience.
2. The power of writing it down - Transaction Log: Records the decision-making logic of each transaction (e.g., "Reduce ETH due to expectations of interest rate hikes by the Federal Reserve"), identifying cognitive biases. - Emotion Management: Write down the feelings of fear during a downturn, objectify emotions to avoid impulsive actions.
3. Lower expectations and practice deeply - Set reasonable return targets (such as an annualized 30% instead of doubling), and avoid high leverage gambling. - In-depth practice: specialize in on-chain data analysis (such as identifying the flow of funds in exchanges), not just superficial learning.
Chapter Five Strategy - Environment and Multidimensional
1. Environmental Design - Physical environment: Reduce interference (such as turning off unnecessary market notifications). - Information Environment: Filter out noise (such as Twitter pump groups) and focus on core variables like on-chain data and Federal Reserve policies.
2. Multidimensional Competitiveness - Cross-border Integration: Field Empowerment Trading Case Machine Learning Training Price Prediction Models (e.g., LSTM) Behavioral Finance Identifying Market Sentiment Cycles (Greed and Fear Index) Compliance Knowledge to Avoid Regulatory Risks (e.g., SEC Litigation Targets)
Chapter Six: Accomplishment — Doing is the highest level of growth
1. Goal Awakening - Value Validation: The objective must meet the principles of "replicable, altruistic, and cross-border"; for example: - Invalid target: "This year's profit 1 million" - Effective goal: "Develop low-barrier on-chain tools to help 100 users avoid MEV attacks."
2. The Journey of Success - Edge of Comfort Zone Training: - Beginner: First simulate to verify that the strategy win rate is >60%, then trade with real funds. - Advanced: Small amount real account testing of new strategies (such as option combinations), gradually increasing positions. - 7-year cycle thinking: specialize in one field in each stage (e.g., focusing on DeFi derivatives from 2025 to 2032).
Conclusion: A top-notch life is about creation.
The ultimate value of a virtual money trader is not a luxurious life, but rather the promotion of ecological progress through the creation of industry solutions (such as anti-MEV tools and compliant trading frameworks), achieving professional vitality through altruism. As stated in the book: "In your life, you should at least actively accomplish something that is very useful to others" — for traders, this means using their professional skills to safeguard the asset security of ordinary investors.
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Based on the chapter framework of "Cognitive Driven: Achieving Something Very Useful for Others," combined with the professional characteristics of virtual money traders, analyze from two main dimensions: "Mindset" (value, identification, psychology) and "Technique" (strategy, tactics, execution):
Part One: The Mindset to Accomplish Something
Chapter One: Value - The key to changing oneself is to create value.
1. Copy vs Convert Virtual Money traders need to go beyond the linear model of "time for money" (conversion) and shift to a strategy that is "replicable" for exponential growth. For example:
- Automated Trading System: Quantitative strategies (such as arbitrage models) can be repeatedly applied to different market cycles.
- Knowledge Output: Transforming personal insights into replicable value products through analysis reports and trading signal subscription services.
2. Altruism is self-interest.
- Traders need to provide real value to others, such as risk warnings (like leverage liquidation cases) and market interpretations (the impact of policies on coin prices), rather than simply promoting trading courses.
- Long-term value is reflected in helping investors avoid irrational decisions (such as FOMO chasing up), establishing a sustainable profit model.
3. Passive Socialization and Awareness of Works
- Introverted traders can establish industry influence through in-depth research reports, on-chain data tools, and other works, replacing ineffective social interactions.
- For example, release open-source code on-chain analysis tools to attract institutional cooperation rather than actively marketing.
Chapter 2 Identification - Everything Starts with Belief
1. Identification positioning upgrade
- Transitioning from "speculators" to "market liquidity providers" or "risk managers", for example:
- Market makers earn profits through spreads, rather than betting on directional fluctuations.
- After the re-identification, more focus is placed on long-term survival skills such as position hedging and volatility control.
2. The Power of Language
- Avoid absolute statements (e.g., "Bitcoin will definitely break 100,000"), and instead use probabilistic thinking: "Current data supports a 60% probability of upward movement, with a stop loss set at X."
- Use positive language to guide behavior, such as "I have not yet mastered cross-chain arbitrage" suggesting future breakthroughs, rather than "I cannot do it."
Chapter Three Psychology - Clearing Emotional Barriers on the Path to Success
1. Overcoming negative preferences
- Traders can easily amplify losses (for example, a single liquidation negates the entire strategy), so a review mechanism needs to be established: attributing a single failure to specific parameter errors (such as an excessively high leverage ratio), rather than self-denial.
2. Beyond Binary Opposition
- Market is not simply divided into "bull" and "bear":
- There are still structural opportunities in a bear market (such as staking yields and options volatility arbitrage).
- Compatible with multiple strategies (such as trend following + anti-fragile positions), adapting to complex markets.
3. Accept without "one-time solution"
- Technical iterations (such as ZK-Rollup scalability) require continuous learning and avoid relying on a single strategy (for example, an arbitrage model effective in 2021 may fail due to MEV).
Next: Techniques for Accomplishing a Task
Chapter 4 Strategy - Methods and Paths
1. Cognitive Drive: Long-termism Framework
- Understand the mechanism: Learn about blockchain consensus mechanisms (such as PoS reward distribution rules) to avoid blindly following trades.
- Seeking Meaning: Viewing transactions as "optimizing global capital efficiency" rather than pure profit-seeking, enhancing resilience.
2. The power of writing it down
- Transaction Log: Records the decision-making logic of each transaction (e.g., "Reduce ETH due to expectations of interest rate hikes by the Federal Reserve"), identifying cognitive biases.
- Emotion Management: Write down the feelings of fear during a downturn, objectify emotions to avoid impulsive actions.
3. Lower expectations and practice deeply
- Set reasonable return targets (such as an annualized 30% instead of doubling), and avoid high leverage gambling.
- In-depth practice: specialize in on-chain data analysis (such as identifying the flow of funds in exchanges), not just superficial learning.
Chapter Five Strategy - Environment and Multidimensional
1. Environmental Design
- Physical environment: Reduce interference (such as turning off unnecessary market notifications).
- Information Environment: Filter out noise (such as Twitter pump groups) and focus on core variables like on-chain data and Federal Reserve policies.
2. Multidimensional Competitiveness
- Cross-border Integration:
Field Empowerment Trading Case
Machine Learning Training Price Prediction Models (e.g., LSTM)
Behavioral Finance Identifying Market Sentiment Cycles (Greed and Fear Index)
Compliance Knowledge to Avoid Regulatory Risks (e.g., SEC Litigation Targets)
Chapter Six: Accomplishment — Doing is the highest level of growth
1. Goal Awakening
- Value Validation: The objective must meet the principles of "replicable, altruistic, and cross-border"; for example:
- Invalid target: "This year's profit 1 million"
- Effective goal: "Develop low-barrier on-chain tools to help 100 users avoid MEV attacks."
2. The Journey of Success
- Edge of Comfort Zone Training:
- Beginner: First simulate to verify that the strategy win rate is >60%, then trade with real funds.
- Advanced: Small amount real account testing of new strategies (such as option combinations), gradually increasing positions.
- 7-year cycle thinking: specialize in one field in each stage (e.g., focusing on DeFi derivatives from 2025 to 2032).
Conclusion: A top-notch life is about creation.
The ultimate value of a virtual money trader is not a luxurious life, but rather the promotion of ecological progress through the creation of industry solutions (such as anti-MEV tools and compliant trading frameworks), achieving professional vitality through altruism. As stated in the book: "In your life, you should at least actively accomplish something that is very useful to others" — for traders, this means using their professional skills to safeguard the asset security of ordinary investors.