In the vast ocean of virtual currency, I consider myself a seasoned sailor who has weathered many storms. From initially being cautious to now navigating with ease, every step has been filled with challenges and gains. Today, I am willing to share my trading insights and practical experience, hoping to light a lamp for you who are still exploring in the sea of coins.
Most people who first enter the crypto world are in the secondary market, and the two major plays in the secondary market must be deeply understood: spot +, contracts + (Note: contracts only for Bitcoin or Ethereum).
If it’s a small amount of money, or an amount that is not significant to you if lost, like 10,000 yuan (approximately 1,500 USDT), it’s recommended to take out 100 USDT, put it in a contract account, and then open positions with only 10% at 50-100 times leverage, using a position-by-position approach. If you have no understanding of trading, you can start using that 100 USDT based on your feelings, whether it’s a loss or a gain depends on luck. This 100 USDT is just for you to feel how worthless money can be. After losing this 100 USDT, you need to start learning technical analysis.
Any type of technical analysis is acceptable, or any indicator, even naked candlestick charts are fine. While learning, observe the success rate of the techniques you learned on the historical candlestick charts of the assets you are trading. When you feel you have a deeper understanding of candlesticks and indicators, then switch to using 100 USDT based on what you've learned to guide your trading. At this point, you will still experience both losses and gains, and in most cases, you may not be able to strictly follow what you learned. Regardless, you will soon lose the 100 USDT again, and next, you need to start learning trading psychology.
You need to improve your execution based on trading psychology, even using indicators and technical methods to judge market sentiment.
If your learning ability is sufficient and your execution is strong, you can now strictly execute the technical analysis methods you have learned.
Then you switch to using 100 USDT, at this point your chances of winning have greatly increased, but after some time, you still successfully lost this 100 USDT.
Next, you should learn some mathematical knowledge.
The biggest difference between trading and gambling is that the win rate and risk-reward ratio can be changed through subjective initiative.
Learning technical analysis, psychological analysis, and improving execution can increase your win rate, but the risk-reward ratio is the secret to making big money in contracts.
For example, if the lowest price of Ethereum in the hourly chart is $1300 within three days, and the price rebounds after multiple retreats to this point, then you seize the opportunity to reduce your position at a price of $1302, setting a stop-loss at $1295, and if the historical rebound reaches a maximum of $1389, if the market moves in your favor, it may even break the resistance level and surge to $1400+. At this point, your potential risk-reward ratio has already exceeded 1:10, which is definitely worth the risk.
The premise of capturing the risk-reward ratio is to strictly implement stop-loss strategies.
Contracts are the best test of human nature and endurance.
For spot trades, if the amount is too small, buying any spot is pointless. If you invest 10,000 yuan and a bull market comes, even if it rises tenfold, how much will you actually make?
It's not worth your effort at all. If time is limited, then you can randomly buy Bitcoin or Ethereum when the market is near the bottom. However, how many players in the circle actually want to make small money?
In the investment process, reasonable position building is the foundation for reducing costs and amplifying profits. How to build positions reasonably? What are the techniques for building positions?
Building positions in batches is an unbreakable principle. When it comes to building positions, investor friends often overlook a principle, which is to build positions in batches. They always feel that their funds are limited, and buying in one go is simple and convenient; of course, selling is also done in one go. Generally, such operations have inherent flaws; once a decision is made, there is no room for recovery.
If you build positions in batches, you may very well buy at a lower price, reduce your costs, while also capturing good 'prey.' Similarly, the principle applies to reducing positions, which can ensure substantial profits while controlling risks. Overall, building positions or reducing positions in batches is the way forward.
Benefits of holding:
1. Avoid the pre-judgment errors caused by 'false short' and 'false long.'
2. While controlling risks, lower the cost of building positions.
3. While controlling risks, ensure investment returns.
Of course, 'building in batches' also has its applicable range.
Building positions or reducing holdings should be based on stable market trends, excluding sudden situations like rapid rises, drops, or flash crashes.
"How to reduce losses in the crypto world? The practical experience of seasoned investors revealed!"
How do I reduce losses in the crypto world?
I have been in the crypto world for many years; I consider myself an old veteran, having experienced various major events like March 12, May 19, and black swan events, and I have fallen into many pitfalls, facing countless liquidations, but now I have fully revived!
Most fans in the crypto circle are in a losing state. In fact, in the crypto world, losses and gains are normal; the key is to maintain a good mindset. This market lacks nothing but opportunities to make money.
To make money in cryptocurrency, just remember two things:
First trick: Ambush the growth potential of valuable coins.
How to judge if a token is a valuable coin? It needs to be viewed from multiple dimensions:
Look at the sector: is it a hot track?
Look at the time of the coin: is it a new coin or an old coin?
Look at the market cap: it shouldn't be too large; under 1 billion is preferable, as there are more opportunities for doubling.
Look at comparable objects: are there any popular projects to benchmark? Look at the funding: is there money pushing from behind?
Look at the story: can the project's claims convince retail investors? For example, solving industry pain points.
Look at exchanges: projects that have been reviewed by large platforms are equivalent to having passed a preliminary filter.
Look at the plan: is there a clear roadmap?
Look at the ability to implement: just talking about plans is not enough; you must see if there are real application scenarios.
Check the team background: see if the founder is an industry veteran, not just a recent graduate.
Second trick: Follow the right people.
In the crypto world, information is money. Remember three phrases:
Better to follow the wrong big shot than to muddle through on your own: the experiences and information of big shots are far greater than yours.
Gossip can sometimes be more accurate than white papers: many insider information is more valuable than official documents.
Add a few reliable teams, they can be lifesavers at critical moments: many hands make light work, and information sharing is very important.
Key Reminder:
Key reminder: Don't be greedy, take profits: no matter how good the project is, if it rises 10 times, you should consider withdrawing.
Newcomers should avoid contracts: honestly buy spot, at least you won't lose everything overnight.
The money you have earned is real: the numbers on paper are just digits; don't take them too seriously.
Summary
In the crypto world, the key to reducing losses is to find valuable coins and follow the right people.
To ambush valuable coins, one should look at market cap, stories, exchange endorsements, implementation capabilities, and team backgrounds.
When following the right people, trust the experiences and information of the big shots; don’t mess around on your own.
Most importantly, don’t be greedy, take profits; newcomers should avoid contracts.
Remember, the money you have earned is real, while the numbers on paper are just illusions!
Why the advice of 'buy low, sell high' does not work in the cryptocurrency field!
We have all heard the saying: 'Buy low, sell high!' It sounds simple, right? But if it were really that simple, why are there still so many traders losing money?
The following are harsh facts—this advice is outdated and misleading. If you follow it blindly, it may ruin your investment portfolio. The reasons are as follows:
1. You can never accurately grasp the bottom or the top.
Wanting to perfectly grasp the market's bottom and top is purely a fantasy. Even the best traders find it difficult to consistently do this.
Example: When Bitcoin ($BTC) fell to $15,000, many people thought it would go lower. When the price reached $30,000, some hesitated, waiting for it to drop again. Now the price is close to $100,000, and they are still waiting!
Better strategy: Don’t try to predict the exact bottom; instead, use a dollar-cost averaging (DCA) strategy to gradually build your positions over time.
2. The volatility of the cryptocurrency market is too fast; this strategy is not suitable.
Unlike traditional markets, cryptocurrencies can rise or fall by more than 30% within hours. If you are waiting for the 'perfect low point,' the market may make you miss out on great opportunities.
Example: When the price of Binance Smart Chain token ($SOL) was $8, most traders ignored it, thinking it was 'dead.' A year later, its price exceeded $120. Imagine missing out on such a rise just because you wanted a lower entry point!
Better strategy: learn momentum trading—follow the trend rather than waiting for unrealistic lows.
3. Emotions can destroy your plan. 'Buying low' sounds good, but panic sets in when fear arises.
"Selling high" seems reasonable, but greed will make you hold on too long.
From tens of thousands to tens of millions! The following three points must be mastered ✅
First point: Don’t look at market comments after placing orders.
Because otherwise, there would only be one type of person in the market, either all making money or all losing money, which does not conform to market laws.
Perhaps seeing comments from others who exit the market will give you confidence that you will definitely make a lot of money, but when the direction is inconsistent, it feels particularly tense. Perhaps in such a tense mindset, you will make incorrect judgments and decisions!
Second point: Don’t lock positions after placing orders and losing money.
It takes great courage to set stop-losses. Many people will not admit defeat, thinking their direction is correct, because admitting defeat will lead to significant losses.
What’s even more troublesome is locking positions. Many people have experience with this: locking up, unlocking, and then locking again, if the price drops, they dare not go short for fear of it being difficult to rise again; if it rises, they dare not go long, worrying about what to do if it continues to rise.
Third point: Don’t easily add positions after placing orders.
Many people like to keep adding positions, charging forward with their orders.
When the direction reverses, remember not to add positions; wait for the next opportunity to build positions. If you keep adding positions, the stop-loss will inevitably move, and moving the stop-loss will only increase the loss on the position.
But have you ever thought about it? Such market sweeps usually indicate that the entry points for building positions were not grasped well or the stop-loss settings were inappropriate. Of course, if your trading plan is very comprehensive, appropriate position scaling is feasible. However, when you find that your trading plan has gone wrong, you must strictly stop-loss and exit.
A single profitable trade is worth a thousand words; it’s better to take a bold shot than to keep failing! Frequent operations are not as good as precise single trades; make every trade valuable.
All you need to do is find me, and I will prove that what I say is not false.
May our acquaintance begin with words, align with character, be trapped in technology, last in kindness, and ultimately depend on integrity.
Keep up with Jidong, use precise strategy analysis, and select with millions of dollars in AI big data to ensure you remain undefeated? The market has never lacked opportunities; the question is whether you can seize them. Following experienced people and the right ones allows us to earn more!
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