Let me start with myself. I am an old veteran who came from a rural background and accidentally entered the cryptocurrency world as an ordinary person. I have now reached an asset level equivalent to A8, achieving a certain degree of financial freedom. If I had not entered the cryptocurrency space, I might have relied solely on my parents' hard-earned savings to buy a small house and get married, living on a monthly salary of less than 10,000 RMB to barely make ends meet. Now, I can easily withdraw millions from my account and live a relatively comfortable life.
Staying in the cryptocurrency world for a long time is like entering a unique world of wealth, where people's money-making ideas seem to come from different dimensions compared to the outside world. Some people can earn $30 in just five minutes by following trades, equivalent to over 200 RMB. If calculated at this frequency, one could easily earn over 6,000 RMB in a month, which is the equivalent of a month’s hard work for many office workers.
To stand firm in this 'treacherous' cryptocurrency world, relying solely on luck is not enough; solid knowledge and skills are also necessary. Accurate technical analysis can help you capture subtle market changes; scientific capital management allows you to control risks amid market fluctuations; and forward-looking strategic planning can guide you to layout in advance and act in accordance with the trend. Only by integrating these skills can you navigate towards wealth in this turbulent market.
After ten years of ups and downs, I have grown from a novice to a successful investor; this journey has been full of challenges and growth. Here, I share some personal insights:
1. Common mistakes of retail investors: One common mistake among many retail investors is not being willing to cut losses when they are losing, yet closing positions too early when they are profitable. This behavior is like setting a time bomb for oneself, easily causing accumulated wealth to disappear in an instant.
2. Go with the trend: The core of investing is to go with the trend. When the market is in an upward trend, do not try to short it just because of a short-term pullback; it is akin to seeking your own demise. This is especially dangerous when using leverage.
3. Respect the market: The market's trends are determined by all participants and will not change due to individual will. We can only follow the market's rhythm, not attempt to change it.
4. Win rate does not equal profit: Many people believe that a high win rate means higher profits, but this is not necessarily true. The profitability of a trading system depends not on the win rate, but on how you handle each trade.
5. Not all bullish candles can bring profits: There are many seemingly attractive bullish candles in the market, but not every bullish candle can bring profits. Sometimes, impulsively entering the market will instead trap you.
6. Opportunities require patience: True experts are like excellent hunters; they are never impatient. Frequent trading in a volatile market makes it difficult to earn big money; only by patiently waiting for major opportunities can you hit the mark.
7. Flexibly use various trading methods: Besides buying, closing positions, reducing positions, and holding cash are also important trading strategies. Flexibly adjusting according to market conditions can better control risks and achieve profits.
8. Overcoming inner fears and greed: For retail investors with significant capital, the biggest enemies are often their own greed and fear. Stay calm and avoid making irrational decisions due to emotional fluctuations.
9. Long-term stability is the key: Many people become famous in the short term, but very few can maintain profitability for a long time. Investing is a marathon, not a sprint; pursuing stable and continuous profits is the right path.
10. Recognize reality: Understand that most people in the market are losing money; there are not so many so-called 'masters'. Therefore, do not be blindly confident, thinking you can easily beat the market.
11. Respect the market: Regardless of how much capital you have or how rich your experience is, we seem very small in front of the market. Always stay rational and treat every opportunity that seems to promise quick wealth with caution.
12. Correctly view profits and losses: Some trades may ultimately result in losses, but if the strategy and logic are correct, they are still valuable; conversely, some trades may be profitable simply due to luck, but may not be correct in the long run. The important thing is to learn from each trade.
13. Value risk management: While pursuing returns, it is more important to control risks effectively. Ensuring the safety of funds is essential for long-term survival in the market and continuous profit generation.
I hope these insights help you, whether you are a novice or an experienced trader, you can find inspiration from them.