I made 42 million in the last bull market. Let me tell you about my experience of making my first pot of gold in the cryptocurrency world.
Female, born in 1990, graduated from university in 2012, went to work in Shenzhen, and entered the cryptocurrency circle in early 2016.
I currently have two houses and two cars in Guangzhou. I have no pressure to spend 100,000 yuan every month. Most of my other assets are in the exchange.
In fact, trading is an extremely boring thing. After a long time of doing it, you have passed the stage of excitement and are no longer in the stage of being surprised by some fluctuations.
1. [Staying up late] That is a basic operation. For our group, it is not called staying up late at all. It is a common occurrence. So you often see so-called genius traders with big bellies at a young age, looking ten years older. Fortunately, I still pay a lot of attention to appearance. After all, I make a living by my face. Hahaha~
2. [Stylish] It is not like what you imagine, it is just a life of feasting and revelry. Most of the time, it is just a casual state. Even if I go out to play, I cannot fully enter the state. A state called anxiety urges me not to stop, because there are too many people who trust us. Every trust is actually a kind of pressure for us, and pressure urges us to become better. Every day is not a feast and socializing, but an endless watch on the market, reading the news, and summarizing and reflecting. At least that's how I am. There are endless messages on the phone.
3. [Pressure] As for pressure? Haha, from the initial solution to the pressure problem to the current increase in the ability to withstand pressure. Someone asked why I always have to watch? Because the contract is mainly short-term, I basically look for the right opportunity. Then I answer various questions from others. I am still a very good person, haha, and the difference in points is still very large, those who understand will understand.
Finally, let me talk about my trading principles:
1 Say goodbye to feeling trading and respect market sentiment
2 Strictly set the stop loss level. The stop loss level should be determined by the market and the loss you can bear.
3. Stick to your original opinion and pay the price if you are wrong.
4 Trading is not about who earns more, but about who goes further.
Finally, I hope that all the guys who read this article can overcome their own human nature, because trading is a fight against human nature~
To summarize what I did well:
There is only one way to make 1 million by speculating in cryptocurrencies with 10,000 within a year: rolling positions + hoarding cryptocurrencies from big bulls!
Position management suggestions for everyone now:
1. For example, if you take out 30,000 U to make a contract, my suggestion is to divide it into 3 parts, 10,000 U each.
2. Use 1 of them to open a position each time, with a fixed amount of 10,000 U, and the increase in the amount of Bitcoin should not exceed 10 times, and the increase in the amount of Bitcoin should not exceed 5 times.
3. If you lose money, for example, you lose 1000U, you buy 1000U from outside. If you earn 1000U, you withdraw 1000U.
4. Make sure that every time you open a position in the recent period, you can guarantee a fixed position of 10,000 U.
5. Continue this way until you have earned 60,000 U from 30,000 U in this way, then increase each of your positions to 20,000 U.
The advantages are: First, split warehouse + low leverage can avoid exchange spikes that cause you to lose all your funds.
The second point is to avoid the problem of getting too addicted. If you get too addicted one day and lose everything, then at most 1/3 will be lost, and the rest will give you a chance to buffer.
The third point is to maintain a fixed position. You can maintain a relatively calm mentality when you are losing or making a profit, which can help you stabilize your mentality.
The martial arts secrets have been given to you all. Whether you can become famous in the world depends on yourself.
In the cryptocurrency world, if you want to make 12 million yuan from 10,000 yuan, there is only one way. If you want to be fast, that is rolling position +
The most risky method should also be divided into three times. In other words, you should give yourself at least three chances.
For example, if the total amount of funds in your account is 200,000, and the client allows you to lose 20% or 40,000 at most, then the most risky loss plan is: 10,000 the first time, 10,000 the second time, and 20,000 the third time. I think this loss plan is reasonable. Because if you do it right once out of three times, you can make a profit or continue to survive in the market. Not being kicked out of the market is a success in itself, and there is a chance to win.
2. Grasping the general trend of the market is much more difficult than shocks, because the trend is to chase the rise and kill the fall, and you need to have the determination to hold positions, and selling high and buying low is in line with human nature. The more in line with human nature, the less money you make in trading. It is precisely because it is difficult to do that you can make money. In an upward trend, any violent callback must be chosen to go long. Do you remember the probability I mentioned? So, if you are not on the bus, or you get off the bus, wait patiently, and if there is a drop of 10~20%, go long boldly.
3. Specify stop-profit and stop-loss targets. Stop-profit and stop-loss can be said to be the key to whether you can make a profit. In several transactions, we must make the total profit greater than the total loss. It is not difficult to achieve this. Just do the following: ① Each stop loss ≤ 5% of the total funds; ② Each profit > 5% of the total funds; ③ The total transaction winning rate > 50%. If you meet the above requirements (profit-loss ratio greater than 1 and winning rate greater than 50%), you can achieve profit. Of course, you can also have a high profit-loss ratio and a low winning rate, or a low profit-loss ratio and a high winning rate. Anyway, as long as the total profit is positive, the total profit = initial principal × (average profit × winning rate - average loss × losing rate).
4. Be careful not to trade too frequently. Since BTC perpetual contracts are traded 24 hours a day, many novices will trade every day. They would like to trade every day for 22 trading days a month. As the saying goes: If you walk by the river, you will get your shoes wet. If you trade too much, you will always make mistakes. After making mistakes, your mentality will become bad. Once your mentality becomes bad, you may act impulsively and choose "retaliatory" operations: you may go against the trend or hold a large position. This will lead to one wrong step and another, which can easily cause huge losses on the books, and these losses may not be recovered for several years.
A few points to note when rolling:
1. Be patient enough. The profit of rolling position is huge. As long as you can roll successfully a few times, you can earn at least millions of yuan. So you can't roll easily. You have to look for opportunities with high certainty.
2. An opportunity with high certainty refers to sideways fluctuations after a sharp drop, and then an upward breakthrough. At this time, the probability of moving in a trend is very high. Find the point of trend reversal and get on board at the beginning.
3. Only roll more and don’t take empty.
Emotions are the biggest obstacle to cryptocurrency trading. How can we control our emotions?
Graham, the mentor of "the father of value investing" and "the stock god" Buffett, once said: "Investors who cannot control their emotions will not make a profit from any investment."
In the cryptocurrency world, everyone likes to stare at K-lines and news flashes, hoping that their coins will rise. This process is affected by FOMO (fear of missing out) and FUD (fear, uncertainty, doubt), which creates a risk of making decisions based on emotions rather than facts. In order to reduce risks and avoid losing money in the cryptocurrency world, it is crucial to control emotions. The following guide is designed to help you avoid letting your emotions control your trading.
1. Make a plan
Before you start trading, it is important to clearly understand what your goals are for investing in cryptocurrencies. Before buying any coin, ask yourself the following questions:
1. Is your investment risk appetite suitable for the high-risk cryptocurrency world? Do you have other savings to leave yourself a way out? If not, the cryptocurrency world may not be a good place for you to invest.
2. Can you bear the risk of going to zero? It not only refers to the 99% drop in the price of the currency, but also the risk of losing assets due to hacking of exchanges and wallets.
3. Do you know the risks and volatility of the cryptocurrency world?
4. Do you want to speculate in the short term or hold for the long term?
2. Do your research
Before buying a coin, it is crucial to do background research on the coin and its underlying technology. Be sure to read the project's white paper, as many people buy coins without knowing anything other than the coin's letter code. While these two things won't guarantee a successful investment, they can help you better understand the coin you are buying.
Having a clear understanding of the project can reduce the interference of external market sentiment. If you buy a coin that you don’t understand at all and encounter false negative news in the market, would you not panic?
3. Choose the right exchange and wallet
Choosing the right exchange and wallet is to find out which exchange can help you achieve your goals according to your plan. If you want to play altcoins, then Binance is suitable for you, and Binance is the base camp of altcoins. If you want to play futures contracts, then OKEX and BitMEX are suitable for you. If you want to be a long-term investor, you can deposit the coins into a decentralized wallet and keep the private key.
The first thing to consider when choosing an exchange and wallet is security, which is the most important thing, because once a security incident occurs, your mentality will explode. Try the platform's login process first, the stricter the better. Check the news and reports related to the platform online for any risks, so that you can have a general idea of the risks in your mind and feel at ease when trading cryptocurrencies.
IV. Fund Management
You must know how much money you can invest in cryptocurrencies and stay within that limit. How much money you want to invest depends on your plan (see point 1 above). Cryptocurrencies are very risky, so you should only invest money you can afford to risk losing. Once you set this limit, stick to it. Don't decide to invest more money on a whim or because you are afraid of missing out, which is often the beginning of disaster based on past historical experience.
For a person who goes all in and leaves no way out for himself, the size of his position has already determined his IQ. It is difficult for people who go all in to be rational, and they are most easily affected by emotions, leading to wrong investment decisions, which often end in tragedy.
5. Set a stop loss point
Before entering the market, you must set a stop loss and strictly enforce it. If the price of the currency drops rapidly, setting a stop loss point can protect you from excessive losses. A stop loss order allows you to set a limit price at which you will sell the currency. Setting a stop loss point also helps to lock in profits.
For example, if you buy a coin at $10 per coin, you can set a stop loss order at $8. If the price of the coin drops significantly, the exchange will automatically sell your coins at $8. If the price of the coin soars to $20, you can change the stop loss order to $16. Most exchanges allow you to set a stop loss. This is not a method that will make you lose everything, but a stop loss can help reduce losses and lock in gains.
Stop loss is against human nature, because there are sunk costs. The more you invest and lose, the more reluctant you are to cut your losses. But in the high-risk market of the cryptocurrency circle, stop loss is extremely important. Look at the people around you, how many people are trapped.
6. Don’t pay too much attention to the market
Currently, the market fluctuations in the cryptocurrency market are extremely volatile, which is also what makes the cryptocurrency market attractive. The price of a coin can double several times in an hour, which creates opportunities for huge profits. At the same time, the price of a coin may be smashed in an instant like a roller coaster. Staring at the market will cause your blood pressure to rise, which will trigger an emotional reaction, leading to panic selling or buying high due to "fear of missing out".
Traders should stay away from the market, because the source of your greed and fear is the fluctuation of the market price. Not watching the market may help you control your emotions. Of course, day traders are an exception. They need to watch the market. If you are investing in long-term trends, there is no need to watch the market every day and be affected by the fluctuation of the market price.
Watching the market is a waste of life. Sometimes the farther you are from the market, the easier it is to make money, and the closer you are to the market, the easier it is to lose money.
7. Keep an investment diary
Write down your investment operation plan and how to punish if you violate it. Don't use spiritual repentance, it is recommended to use corporal punishment. For example, if you violate it today, you will be slapped 100 times. If you can't do it, then there is no other way.
8. Summary
Buying and trading coins can be exciting and potentially very profitable, but it also comes with risks and uncontrolled emotions. The market will always surprise you, and if you can’t control your emotions well, you will fall into impulse again and again, or ignore the risks and chase the rise passionately, and you will not be able to escape the fate of failure.
Although there are many methods of market analysis, the unchanging task for individual investors is to control themselves instead of being proficient in theory. Only by learning to control their emotions and responding to ever-changing situations can they open the door to financial freedom.
Can ordinary people participate in the cryptocurrency circle? Are there any strategies or methods to multiply a small amount of capital?
You can transfer a few hundred yuan to play in the cryptocurrency circle, but there is no chance in the stock market. You can see that the stock market is still at 3,000 points. The cryptocurrency circle provides opportunities for ordinary people to make a fortune. Whether it is on the chain or in the transaction, it does not mean that you can be a gambler. Trading is a professional thing and requires professional learning. You have to learn professional knowledge for several years in school, not to mention making money in the market. You can come in with a small amount of money to try to learn.
To make a transaction:
1. You must seize a big trend. (You cannot make big money if you are obsessed with buying low and selling high and do not follow the main rising trend. If you have this trading habit, you must change this trading path.)
2. Seizing the trend and increasing positions with low floating profits is the most suitable option for ordinary people.
3. There must be a stop loss when opening a position.
4. There are three situations for using rolling positions: choosing the direction of a new low in long-term volatility; breaking through the resistance support at the weekly and monthly level; and bottom fishing during a big drop in the bull market.
5. The market is boring most of the time.
6. Earn money and cash it out quickly to buy a house.
Trading requires patience and strategy
Don't be arrogant when you win, and don't be discouraged when you lose, as long as you don't play all in recklessly
A single blow-up or loss will not affect your long-term performance.
But a successful sudden wealth can directly realize your leap
The most interesting part of trading the market is:
Making money is random. I always feel that I am the one who makes money, while others are the ones who lose money.
When buying lottery tickets, even though the probability is so small, everyone thinks they will win;
When running a red light, although the probability is very small, everyone will think that it is not them who will be hit.
For most ordinary people, the path to multiply a small amount of capital by 5 times in a short period of time is
There are basically several opportunities to achieve 5-10 times of small capital in the short term: (I suggest you collect, like and follow me)
1. For short-term swings in high-volatility products, positions should also be heavy: In fact, it is similar to gambling on the size of the bet, and it depends mostly on luck. The chosen ones and talented players can really do it, but for ordinary people, it depends on whether they are lucky or not. The disadvantage is that with path dependence, the consequences are likely to be disastrous, and you will lose as much as you earn.
2. When encountering a big trend, increase the position with floating profit. For example, if the weekly line stands above MA20, double the base position, set a wider stop loss, increase by X%, add 0.Y times, and make a good stop loss order to ensure that you will not lose too much. As long as you are lucky and encounter a big trend, it is easy to go up. It seems simple, but it is not easy to hold the order just because there is profit and endure the profit drawdown, which requires practice.
3. Do things with high odds, and exchange time for money: make money by making money, doing KYC, guaranteeing various transactions, and even charging fees by becoming a teacher to guide orders. It is relatively simple to make money in a good market, just rely on time to do it slowly, and there is no retracement. If you have a principal of 10,000, you will probably be exhausted by making 10 times the profit from the secondary market. When the NFT and cottage market are good, you can make money by making money, and you may get it in one month without risk. However, this is essentially an arbitrage business model, not a snowball model. It is likely to make quick money in the short term, and the information gap and profit margin will be gradually leveled.
4. Follow the hot spots on the chain. When the market is good, there are many high-odds opportunities on the chain, which is suitable for short-term doubling of small funds, at least more reliable than secondary betting on long and short positions. However, it also requires high ability of people, who need to grasp the hot spots in time, master high-quality and timely information sources, and understand the gameplay of the project.
5. Study hard and work hard. If you don't have much money and want to get rich by clicking the mouse, it is not reliable for most people; for example, if you are a computer student, if you learn programming well, it is relatively easy to find a job with a salary of 300,000 or 400,000 yuan after graduation, which is better than your tens of thousands of yuan that you have to work hard every day. Find a good job, get a promotion and a raise, and you can get a sense of accomplishment in reality. I guess you will quit gambling, and you may make money faster and have a more down-to-earth life.
If you can't do all of these, just accept your fate and be an ordinary dumpling. It's also good to be poor.
However, once you have decided to go the trading route, you must throw yourself into the game, go all out, burn your boats, and act decisively. Only in this way will you have the opportunity to live out infinite excitement and infinite value in your limited life.
Lukewarm investment can only get mixed results
If each of us wants to make rapid progress in a niche area (financial trading), we need to find a coach at a cost.
That is to say, "the expert points the way."
Because some things are insurmountable bottlenecks and limits for you.
For the coach, it is just his basic skills. He is already very familiar with how to overcome this obstacle and is also familiar with your mental state at this moment.
Finding a teacher, learning from a master, and paying for learning are always excellent ways to break through cognitive barriers and real-life difficulties.
Ordinary people want to make money and trade in the bull market of cryptocurrency. What is the right way?
I have always emphasized that there are no ifs in the financial market, only results, and there is no hindsight.
Before the market develops, everyone hopes to be a strategist, and after it develops, everyone becomes a commentator.
There is a very serious phenomenon here, which is the mistake that most people make during the transaction:
Why do many people face illusions during trading? Illusions refer to fantasies, illusions, and conjectures, etc. They are unrealistic and untrue performances that have no real logical basis and no reliable support as conclusions.
Specifically, in the trading process, there is a lack of objective and rational attitude towards market trends.
For example, after buying, they start fantasizing about how much the price will rise. After being trapped, they are reluctant to cut their losses and leave the market, thinking that as long as they sell, the market will immediately reverse.
Another example is lying flat after being deeply trapped. It seems that you have a good mentality and can endure any loss. However, the essence is the lack of your own ability and the inability to effectively solve the problem. You are passively unable to solve the problem of loss and just give up. You also find a good reason and a way out for yourself.
Human nature is like this. We can be good to ourselves without limit, and we will always find suitable excuses to excuse our mistakes. But in the cryptocurrency circle, no one cares about these, no one will indulge us, and no one will care about our life or death. It is more about the law of the jungle. Only those who have the ability and the ability can survive, live long, and live well in this field.
When facing market trends, we must distinguish between truth and illusion, explore the development of market trends, make reasonable and well-founded analysis and judgment, and be absolutely rational and objective.
Only in this way, by constantly improving and polishing our own trading system that suits us, can we finally get the result we want in the cryptocurrency world.
It is not scary to have problems. What is scary is to choose to turn a blind eye to the problems, to avoid them, and not to break through and solve them head-on.
It is unrealistic and impossible to always hold on to the hope that the god of destiny will come to you next time.
It is difficult to make money in the financial market, but it is easy to lose money. The ways to make money are the same, but the reasons for losing money are varied and vary from person to person.
When trading in the cryptocurrency world, whether you are an old hand or a newbie who has just entered the circle, we all need to be honest with ourselves and not deceive ourselves.
The consequence of deceiving ourselves is that the market will give us the most intuitive feedback, which is losing money.
To be honest, it is very difficult to face your own problems, especially for those who have done relatively well in traditional fields. When they enter the cryptocurrency world, they will think that they can do it and are not that bad. But what I want to say is that many people who think they have good experience in traditional fields will not be able to adapt to the cryptocurrency world and they are all wrong.
We cannot control the external environment, nor can we change the market. This is an objective fact.
The only thing we can change is ourselves. All the results are caused by me.
Making money comes from losing money, and it is all learned and understood from successful people.
The path to growth is to constantly correct the probability of making wrong decisions and constantly improve through learning, reflection, and summarizing.
Sometimes we are just too good to ourselves and always find excuses and excuses for our mistakes.
Not learning from one's mistakes, not digging deep into one's own shortcomings, and not introspecting one's own lack of abilities.
This results in one being trapped in the cage of one's own cognition and unable to extricate oneself.
The market is the best teacher, and the results are the best proof. He who knows others is wise, he who knows himself is enlightened, he who conquers others is powerful, and he who conquers himself is strong.
Discovering problems and solving them head-on is the only way for us to survive in the long term by investing in the cryptocurrency world.
In terms of mentality, technology and strategy, we should improve wherever there are deficiencies, instead of relying on chance or luck.
Only in this way can we achieve better results in the field of cryptocurrency.
The truth behind why ordinary people in the cryptocurrency world cannot make money is that they do not have the ability to grasp the timing of entry and escape the top!
Many times, if we want to do something well or make a career successful, we must have the right time, place and people.
The same is true for investing in the cryptocurrency world. Whether we can make long-term, stable and continuous profits depends first on our cognition and ability.
The second thing is what I called timing. Timing is crucial to us. If you can make the right choice at the right time, your efforts will be twice as effective.
If the timing of the choice is wrong, not to mention whether you will get the results, even whether there will be any results is unknown.
The timing is still good at the moment, as many currencies have not yet been launched and are still in the early stages of a bull market.
If you can keep up now, at least you can still have some meat and drink some soup. If you miss the opportunity to make a layout now, you won’t even have any soup to drink later.
Don’t wait until the market has risen sharply and you can’t stand it anymore, and run in to take over the market again, and then come to ask me whether the market will continue to rise and whether you can add positions to lower the average price.
Time waits for no one. I can clearly see the future market trend and know what kind of result I will get after this bull market ends.
And you? I'm not sure.
I just hope that everyone can truly acquire wealth through their own abilities, rather than relying on imagination and luck, or even the unwillingness and competitiveness after suffering losses.
Originality is not easy, I am Black Cat, and I only share valuable content for retail investors every day! The soul has a way, and the currency has a technique. The above content is my experience in the market for ten years. I have achieved today's achievements after continuous summarization and reflection. It seems simple, but it is not easy to achieve unity of knowledge and action. I share it with you today, hoping to help the majority of currency people avoid detours!
