Newcomers entering the cryptocurrency world, how to master money-making skills?

In fact, all investment money-making skills are interconnected; the core is to build a reliable trading system +!

The trading system is very simple, just focus on a few key points.

I. First, it is the overall scale fund management rules +

1. Determine the market and the target.

Try to choose those with better liquidity/obvious differences;

2. Determine the trading scale.

What is the total amount of funds available for trading? How much is allocated to each target?

3. Management of scale adjustments.

How much does the withdrawal increase after profit and then drawdown in total scale? For example, after each new high in net value, withdraw a portion of the profit (fixed percentage)?

Does it increase additionally after a loss or?

II. Trading Strategy

1. The first step is to determine the stop-loss +.

All trading strategies start from the 'stop-loss range,' and then design the subsequent criteria. For example, what percentage of the trading scale should be lost each time when opening a position: 3%, 5%, 10%? Once fixed, it should remain unchanged as much as possible in the future. Systems without this step are incomplete, chaotic, and will definitely encounter major problems.

2. Determine the trading strategy model +.

Bull and bear trends? Bull and bear need to swing? Bull and bear riding the fence? Arbitrage for the middle?

3. Design position based on stop-loss, what is the maximum frequency for increasing/decreasing positions?

4. Opening and closing standards, this is the step we like the most and is the most common, of course, it is also the step with the lowest importance in the entire system. The standard content does not need to be perfect, just having it is enough.

5. Additional point: Consider whether the system has a unified stop-loss rule before re-entering the market?

III. Follow-up Work

1. Personally backtest + do 1-2 historical trading data points, if you don't understand code, you must use Excel + calculate each transaction one by one.

Present detailed and complete data on historical monthly average return rate, historical drawdown, win rate, profit-loss ratio, system fiat currency net value trends, target asset net value trends, and system target net value drawdowns.

This step is an important verification of whether the entire system is excellent and is also an important confidence guarantee for whether you can persist in systematic trading.

2. Real market verification, continuously refining mindset. Even historical

Data is very good, but the future may not develop similarly; it only provides the best and worst possible states for the system, allowing you to retain hope in the most difficult times.

IV. Cultivating the Art of Trading.

Some insights I've understood so far that can help adjust mindset:

1. Trading is the way of choice; there is loss and gain;

2. Trading is always a probabilistic event, giving up does not necessarily mean gaining;

3. Doing the right thing does not necessarily yield the right return, but it will definitely not ruin your fortune;

4. Trading is life, but it is not all of life.

Essential for beginners with zero foundation to get started, mature trading system methodology!

With 8 years of experience in the industry, the above cryptocurrency expert's wealth handbook is published and shared with friends in the circle!