Imagine starting with 1000, then turning it into 10,000, then into 100,000, and finally reaching 10 million. This is like a triple jump in life, each step making your heart race and blood boil. This is not just a simple numbers game; it represents a process of breaking through oneself and challenging limits.
To achieve this goal, you need three 'golden ideas'—that is, find three coins that can increase tenfold. This requires real skills, sharp vision, accurate judgment, and a bit of luck. Finding such opportunities is like digging up treasure; you must cherish it, operate it carefully, and try several times until you succeed.
Of course, it's easier said than done. The cryptocurrency world is unpredictable; today it's hot, tomorrow it might be ignored. So we need to keep our eyes sharp, learn more, observe more, like Vic, Banana, ID, Sui, Sol, Apt (these are just examples, don't go buying randomly), who knows which one might be the next big hit. But remember, investing requires using your brain, not just relying on feelings.
To join this exciting game, you need a big heart that can withstand the storms. Don't be afraid of challenges; if you feel you can't handle it, just jump in and pan for gold in this sea of digital currencies. But don't forget, risk and opportunity always go hand in hand. Rational investing is the key to steadily sailing towards wealth.
Retail investors, wake up! Poor position control makes any technical proficiency useless.
In investing, many retail investors often overlook a key factor—position control. There are actually very few retail investors who can truly master position control.
Making money is by no means reliant on luck, but rather on the long-term accumulation of experience and skills. If you cannot control your position well, you can really lose to the point of questioning life. Position control is the key to investment survival unless you are indifferent to liquidation. Especially with the recent market volatility, which can fluctuate more than 10,000 points in a single day, how many people's positions can withstand such shocks? Remember, you can only have a chance to profit if you survive in the market!
In trading, the importance of position control is no less than that of technical analysis. Even if your technology is excellent, if your position control is poor, everything is in vain. After opening a position, where should the strong liquidation line be set? Can each trade achieve a high risk-reward ratio? Is there enough room for replenishing the position? These questions are crucial.
Investing is not an overnight success; don't always think about getting rich quickly or making a big profit in one go. Position control is a long-term process; the money in the market is never-ending, but it's also very easy to lose everything.
Assuming you start with 100u of capital,
The first trade was done with a position of 10% (i.e., 10u), and after successfully taking profits, the funds grew to 130u.
In the second operation, I used 10% of the current funds (which is 13u) as the position, but this time I hit a stop-loss, causing the funds to drop to 117u.
In the third attempt, I used the same position ratio as the previous time (still 13u), and this time I successfully took profits, increasing the funds to 156u.
In the fourth investment, I increased the position to 16u (about 10% of the current capital), and once again achieved profits, ultimately reaching a balance of 204u.
When opening a position, always follow the strategy to manage your position:
For example, if the entry price is 2685 (using 10% of the funds), then increase the position when the price rises to 2695 (also using 10% of the funds). At the same time, set the stop-loss at 2705. For more aggressive operations, you can adopt a method of buying in batches, with each investment being 7% of the position. The advantage of this method is that it can provide a better risk-reward ratio, such as achieving a ratio of 1:1.5 or even 1:2.6.
When approaching the profit target, when there are about 5-10 points left, you can choose to close 70%-80% of your position, while increasing the stop-loss line by 5-10 points on the remaining part. If the price does not break this new stop-loss point, continue to hold; if it breaks without reaching expectations, gradually reduce the position, closing 70% of the position at each critical resistance level and adjusting the stop-loss position accordingly.
If you're lucky, you may significantly increase your total capital through 2-4 consecutive profitable operations. This method takes into account both risk control and maximizing returns.
I've been trading cryptocurrencies for nearly 10 years, relying on these 12 iron rules to trade professionally and achieve stable profits. If those who read this article can grasp its true essence and put it into practice, you can really undergo a transformation in the cryptocurrency world and change your fate!
Opportunities in trading are abundant, but capital is precious. Every trader should develop and refine a set of trading rules that suit themselves, making wiser decisions and improving their win rate after reflecting on past failures and successes.
Finally, if you are a short-term trader, in principle, you should only allow yourself to make four types of trades: first, large profit trades; second, small profit trades; third, break-even trades; fourth, small loss trades.
Setting a stop-loss is counterintuitive, but it is one of the most important principles in short-term trading.
In the cryptocurrency market, mindset determines success or failure.
In the cryptocurrency market, price fluctuations often leave people feeling anxious. Many investors hope to survive the bear market and recover their capital or even profit when the bull market arrives. However, very few can persist until the end. This path is far more challenging than imagined.
Two types of investors find it hard to go far.
Some people do not truly believe in the future of the cryptocurrency industry; they enter the market with a get-rich-quick mentality. Such investors often lack patience and find it hard to stabilize themselves amid market fluctuations, making it difficult to achieve long-term gains.
Some others invest non-disposable funds, making their emotions easily influenced by the market. A slight price correction can trigger panic selling, ultimately being eliminated by investors who truly have faith and can hold long-term.
How to overcome market fear?
Fear is a part of human nature; whether prices rise or fall, it can trigger anxiety. To reduce panic, beyond deeply understanding the industry, it is more important to improve the risk-reward ratio. This means:
Select high-quality projects, hold them long-term, and avoid letting short-term fluctuations affect your decisions.
Enhance off-market earning capabilities, allowing investment capital to be more abundant and reducing holding costs.
The traps of human nature and rational investing.
Investing seems simple, but behind it lies a test of human nature. Many people hope to increase their yield, but the market waits for no one. The most dangerous behavior is to be overly eager for quick gains, blindly increasing positions or even leveraging. Once the market reverses, it can easily lead to significant losses or even liquidation.
Therefore, before investing, one must think seriously: is this amount of money truly appropriate? Only by ensuring that the invested funds won't affect normal life can one remain rational amid market turbulence and avoid making wrong decisions due to emotional fluctuations.
The above is a summary of my 10 years of practical experience and skills in trading cryptocurrencies. It may not be suitable for everyone and requires each person to combine their own practice with these insights. As a trader, the most frightening thing is not having technical issues, but lacking awareness and falling into these trading traps without realizing it! There is no invincible trading system, only people who use trading systems invincibly! This is the truth; trading systems ultimately return to the individual!
Remember, while trading systems may not be absolutely perfect, those who use them can create miracles. The real challenge lies not in technology, but in the depth of understanding. Don't let trading traps blind you.
