From Novice to Expert: The True Words of a Cryptocurrency Tycoon
When I first entered the cryptocurrency space, I also went through the darkest moments of liquidation. Until I met a senior who turned 3,000 yuan into tens of millions in assets. The trading wisdom he revealed during a late-night conversation completely changed my investment trajectory. Below are six iron rules he earned with real money, especially the last one which uncovers the core reason for 90% of investors' losses.
Iron Rule 1: The Market Specializes in Subjective Assumptions
• The lesson of liquidating Bitcoin at 50,000 USD: Most people took profits too early in 2021
• Practical tip: Observe the K-line inverted during an uptrend; if the pattern does not allow for bottom fishing, one should not easily escape at the top.
Iron Rule 2: The Art of Capital Management
• Common mistake for novices: Going all in
• Expert strategy: Five-batch accumulation method (add to positions every time it drops by 15%)
• Classic case: The final returns of those who preserved five batches of funds during SOL's drop from 260 USD to 8 USD.
Iron Rule 3: The Essence of Breakthrough Trading
• Market misconception: The one-sided belief of "the danger of chasing highs"
• Data evidence: After breaking through historical highs, a hundredfold coin's average increase reaches 3-5 times.
• Exchange logic: The motives of market makers behind million-level listing fees.
Iron Rule 4: The Wealth Code of Cycles
• Real case: The strategy of turning 5,000 yuan into 1.7 million by a university student in 2020
• Core method: Dollar-cost averaging on platform coins in bear markets + capturing hot coins in exchanges during bull markets.
• Key understanding: Timing choice is superior to technical analysis.
Iron Rule 5: The Way to Break Indicator Traps
• Typical misconception: Mechanical use of indicators like RSI
• PEPE case: Overbought for 21 consecutive days yet increased 40 times
• Advanced skill: Combining contract position analysis when there is a divergence in volume and price.
Iron Rule 6: The Ultimate Test of Cognitive Evolution
Common characteristics of all successful traders:
1. Possess deep review capabilities
2. Courage to admit mistakes
3. Action power based on cognition
This is not gambling, but decision confidence built on a profound understanding of the essence of the market.
