Recently, I was looking at some data showing that the daily liquidation amount in the crypto market has once again broken 20 billion. Looking at these numbers, I can't help but think—most of those traders who get liquidated, nine out of ten, are probably dead in their own "smartness."

I'm 38 years old and have been in the industry for 12 years. I've seen too many people, holding a screen full of indicators—MACD, RSI, Bollinger Bands—all turned on, making the candlestick chart look like a flight instrument panel. And then? One account after another gets wiped out.

On the other hand, some veteran traders keep their charts extremely clean, with just a few lines for buy and sell signals, steadily making profits year after year. What's the difference? They understand one thing—pursuing simplicity is not a lack of ability, but true wisdom.

**Complexity is a disguise for anxiety**

Why are people naturally averse to simplicity? Basically, it's cowardice. Afraid of missing any market move, they keep piling on conditions and adding filters, falling into the trap of "endless optimization." This isn't a trading system; it's a manifestation of psychological issues.

I've seen a very painful phenomenon—those screenshots of sudden wealth in social groups, like winning notification sounds from a casino. One look and you want to try it. But no one tells you that behind every successful trader, 999 people quietly give up. This is called probability illusion, compounded by survivor bias, which can easily confuse people.

**Four-question framework, that's enough**

I later realized that a true trading system should be as natural as breathing. It only needs to answer four questions: What is the current trend? When to enter? Where to place the stop-loss? What is the target price? That's it.

I determine the trend by looking at peaks and valleys. Are the peaks and valleys gradually rising? An uptrend. Gradually falling? A downtrend. Messed up? Range-bound market. Very straightforward.

As for what will happen tomorrow, honestly, I don't predict. I only do high-probability things—follow the trend when it's clear, set good stop-losses at key points, and let time do the talking.

This approach may sound too simple, but it's this simplicity that has kept me alive in this market for so long. It's also this simplicity that makes me feel quite at ease when I see the 20 billion liquidation figure.