After 10 years of investing in digital currencies, I have made tens of millions of dollars. Every penny of this money was hard-earned, and behind it are the lessons and experiences I have learned from my experience in the market. Today, I want to share these practical tips with you in the most practical way.
Do you often see people playing very well in the digital currency circle? In fact, many of them use methods that seem stupid, but they are really useful. However, this requires us to spend time studying and practice in actual combat.
You must remember the following dry goods:
First, don't follow the trend and buy at high prices. When the market is hot, everyone is excited, but you have to keep your cool. When others are not, it may be the time for you to find opportunities. When the price falls, it is a good time for you to quietly plan and buy at a low price.
Second, when investing in digital currencies, you need to be flexible. Don’t throw all your money in at once. You need to adjust according to market changes. The market changes quickly, so you need to keep up with the pace and don’t let one position tie you down.
Third, if you operate with a full position, you are asking for trouble. A full position means that the risk is too great and you have no room for maneuver. There are many opportunities in the market, and a full position means that you have given up all other opportunities to make money.
The first four years of cryptocurrency trading were a history of blood and tears, with a huge loss of 80%. After learning from the painful experience, I summarized 10 iron rules, implemented them resolutely, and finally turned defeat into victory! Share this with all cryptocurrency traders, take it and you’re welcome.
Iron Rule 1: Always keep records: Try to record your feelings and operation details at the time, because words will not lie.
Only by recording and summarizing the facts can you find the direction for the next correct decision. To be honest, being able to personally experience and witness such a historical moment is a rare opportunity for growth.
In other words, this kind of experience is the only way for you to become a mature investor. As the saying goes, only by experiencing it personally can you have a bigger picture. In the investment process, "seeing is believing" is an illusion, but it is also the only magical power that can make people truly believe and accumulate cognition and experience. If you do not make full use of and absorb this historic experience, you will really live up to this precious opportunity.
Iron Rule 2: Never hold a full position. Whether in the cryptocurrency world or the stock market, truly mature investors will not choose to hold a full position all the time. Those extreme situations are bound to happen, especially in a market like the cryptocurrency world that is volatile due to black swan events. This is a seemingly simple principle, but it is very difficult to implement in practice.
Of course, you may have various reasons to buy a full position, such as a small amount of principal, or the target you just bought is about to rise. In any case, you will always be unwilling to let your money sit idle and have the urge to invest it at any time. I fully understand this feeling, but reality always teaches us a lesson ruthlessly.
Therefore, I decided to take out at least 15% of my position after the next wave of rise. I wanted to keep more, but I knew I might not be able to do so, so I took my time. After all, cultivation is not something that can be achieved overnight. This reserved fund will only be invested when the market drops by about 30%.
Iron Rule 3: Crash is the best test of human nature Crash is both a mirror and a touchstone of human nature. Just as most people can share happiness but find it difficult to share suffering, every crash not only causes the price of the currency to plummet, but also reveals the truth of human nature.
In the past, I have helped several people I have never met to make several times more money. Some people are grateful for this and even transfer coins to me to express their gratitude; while some people feel very good when they make money, but once they lose money, they put the blame on me.
This crash has made these differences even more obvious. Of course, I'm not stupid. After this, I know how to treat these people.
Iron Rule 4: Always buy only those coins that you can hold with peace of mind. To be honest, the reason why I didn’t panic this time is that over the years, whether buying coins or stocks, I only bought those that I thought would be completely fine even if I held them for more than 5 years. This has become a talisman that allows me to sleep peacefully.
Of course, I have to admit that the recent market fluctuations made me unable to resist and I bought some small currencies, but because the amount was small, I could accept it even if it went to zero, so I was not too panicked. I hope everyone can remember and follow this principle, so that you can avoid a lot of trouble and greatly improve the quality of life. Only by holding truly high-quality assets can you truly feel at ease.
Iron Rule 5: The Eternal Bull Market is in My Heart Another reason why I am not panicking is that I already have the confidence of $100,000 in my heart, so I am not afraid at all. I won’t say much about this. In this industry with so many elites and capital continuously invested for more than ten years, it is inevitable that it will change the world.
So, don’t scare yourself and worry about Bitcoin going to zero. If it was going to go to zero, it would have already gone to zero. Oh, by the way, if you are familiar with history, you will understand a basic truth: reformers of all ages are often the target of public criticism. Bitcoin has been sentenced to “death penalty” many times.
But what’s interesting is that Bitcoin still survives tenaciously, and it can even be said that it is getting better and better. This is enough to prove its strength. No matter whether it is the strongest government or the richest person in the world, it cannot really be defeated. This is exactly in line with Nietzsche’s famous saying: “What doesn’t kill me only makes me stronger.”
Iron Rule 6: Every sharp drop is followed by a sharp rise Looking back at the history of Bitcoin, every time there is a sharp drop of about 40%, there is almost always a strong rebound, usually between 20% and 30%, often in the short term (e.g.
The next day or the third day) will happen, so don't be afraid, enter the market bravely when others are panicking, believe in the laws of history, and don't be scared by the sudden drop in front of you.
Iron Rule 7: Stay away from contracts and leverage. On May 19, 600,000 people were liquidated, and I was one of them. Data shows that the liquidation amount reached 6 billion US dollars in just one hour, and the total liquidation amount in 24 hours was 18.3 billion US dollars. This fully demonstrates that leverage and contracts in the crash are a veritable "meat grinder"
If you use high leverage, no matter how much money you have, it will never be enough to lose. After this, I set a flag: my leverage and contract amount will never exceed 3% of the total principal.
In addition, the money earned from contracts is usually earned by luck, so you must enjoy it in time, because the money that is yours today may very likely become someone else's tomorrow.
Iron Rule 8: Don’t let news influence your investment decisions. When the market is going well, both your mind and media reports seem to be filled with good news. When the market is plummeting, all kinds of sensational news emerge in an endless stream, and usually appear one after another in a way that "makes the situation worse", leaving you with no chance to breathe until you throw away your last chips.
Therefore, when the market is extremely panic, never look at the negative news, it will not help at all. Remember the fourth principle we mentioned earlier - we always buy things that can be held for at least 5 years, so don't be led by the rhythm of others or bad media.
Another point is, when the market plummets, don’t read all kinds of panic messages in the group. Those small retail investors have already been scared out of their wits, and they just want to pull you into panic. Block them!
Iron Law 9: Believe in the power of cycles. The reason why the investment market is friendly to some people is that these people know how powerful the power of cycles is. As long as human beings continue to develop, the bull market will surely come after the bear market.
Every time I face a financial crisis, which one really makes me completely collapse even if I don’t mention the cryptocurrency circle, looking back at the modern history of mankind? Let alone the financial crisis
Even in the face of disasters like world wars that destroyed the physical world, people all over the world still redeveloped at an extremely fast speed.
Therefore, in the pro-cyclical period, you must have confidence. Submit yourself to the historical trend, patiently wait for the arrival of a good opportunity, and let the bullet fly for a while~
Iron Rule 10: Always respect the market and dare to blaze new trails. Market fluctuations will always be more dramatic than you imagine, whether it’s rising or falling.
For example, last week, when Ethereum reached 4,300, how many people were willing to sell?
(I sold half of it at 3500, but unfortunately I bought some altcoins later)? Now the price is back to around 30,000,
How many people dare to enter the market? This is one of the core reasons for successful investment: only by taking the path that others dare not take can you get excess returns!
Although this principle is very basic, in practice it is as difficult as a personal odyssey. In a bull market, everyone thinks that it is easy to speculate in cryptocurrencies, and buying any coin can increase several times or even dozens of times. When the market soars, everyone may truly understand the meaning of "keeping a coin is like being a widow."
I silently thought:
“Hold your Bitcoin! And Buy The Fucking Dip!
Hold on to your coins and never sell them at a loss, just like I raised my shield and started to bravely buy at the bottom. It feels really good, just like swinging a sword of counterattack at the whole world. After all, if you lose, it's only four years, but if you win, you will become a legend! On the road to creating legends, no matter whether the market goes up or down, the circle has never let us down.
These are the lessons learned from actual trading. Behind each one is a period of hard work. The purpose of sharing them today is to help you avoid detours. You must pay attention to them!
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