I was fortunate to meet an old mentor who started with 10,000 and became worth over 100 million. He once told me what it feels like to understand trading, and now I have also gained that understanding. The greatest benefactor in life is not picking up money nor winning the lottery, but meeting someone one day who breaks your existing thinking and elevates your perspective, guiding you to a better stage. Life is the same; cognition determines wealth, and underlying logic determines the superstructure!
Before understanding, it’s as difficult as climbing to the sky; after understanding, it’s as easy as turning a hand. Many stock market experts find trading cryptocurrencies simple after enlightenment, while many retail investors believe that those who profit from trading cryptocurrencies have gone through countless hours of learning and losses to achieve it.
Although I can't be considered a top trader, I have been steadily profitable for 10 years. I am willing to share my trading mindset:
Second-tier experts rely on technology.
Third-tier experts rely on capital management.
Third-tier experts rely on concepts.
First-rate experts rely on psychology, while super experts rely on quality.
Ten similarities between buying cryptocurrencies and marrying a wife.
1. When marrying, choose someone you are satisfied with; don’t just pick anyone on the street! (When buying cryptocurrencies, have self-assessment and choose the best.)
2. Be sure to thoroughly check the background of your future wife, including her family (the person in charge of the cryptocurrency)!
3. You definitely won't marry a woman you don’t want to spend your life with! (Don't buy cryptocurrencies you don't want to hold for 3-5 years.)
4. After marrying, you must live with her day and night; whether you can have a chubby baby in the future, the genes are up to you! (How the profits turn out reflects your ability to choose cryptocurrencies.)
5. If your wife ignores you, you should understand why! (During declines, find the fundamental reason, firmly hold your coins, and don't forget your original intention. If she truly changes her heart, there's nothing you can do but cut losses.)
6. Don't have one-night stands; even if you hit a bad one out of ten times, you're done! (Don't have a blind gambling mentality in short-term trading.)
7. Don't always think about finding a little wife; in fact, one fierce tiger is enough to keep you busy! (Don't be distracted by external temptations.)
8. During festivals, you should still go visit your father-in-law (understand the internal situations of cryptocurrencies and grasp first-hand information).
9. After having children, you should educate them together with your wife. Don't leave all the tasks to teachers and schools! (Averaging down and trading according to the trend, combining fundamentals with trends.)
10. If a couple raises their children, earns money, and is filial to their parents, then you can retire! (As time goes on and profits increase, you can completely relax and hold your coins without worry, gradually taking profits in batches.)
Trading cryptocurrencies means simplifying complexity; do complex things simply and take simple things seriously. The principle is simple, and you’ll be closer to success!
In the past seven or eight years, my assets have grown by 30 million. After many trials and tribulations, I have accumulated valuable experiences. Here are some key insights I hope can inspire you:
1. Capital management is the key to success.
Divide your funds into five equal parts, using only one-fifth each time, while setting strict stop losses. Each order's loss should not exceed 10%, and total capital loss must be controlled within 2%. Even if you make five consecutive wrong trades, the total loss would only be 10%, but seizing one opportunity can easily recover the losses.
2. Follow the trend, never act against it.
When the market is declining, do not blindly buy the dip, as it may be a trap to entice more buying; patiently wait for clear signals.
When the market is rising, don’t rush to sell; it could just be a 'golden pit'. Buying at low prices is more reliable than catching the bottom.
3. Keep a distance from cryptocurrencies that spike rapidly in the short term.
Whether it's mainstream cryptocurrencies or altcoins, very few can sustain explosive growth. Most cryptocurrencies will enter a stagnation or correction phase after a surge. Don't hold any delusions about betting on low-probability events of skyrocketing prices.
4. Reasonably use technical indicators.
The MACD indicator is very useful: when the DIF line and DEA line form a golden cross below the 0 axis and break through it, consider buying; conversely, when a death cross forms above the 0 axis and heads downward, consider reducing positions.
Adding positions must be strategic: resolutely do not add positions when at a loss, only appropriately add positions when in profit, otherwise, it can lead to increasing losses.
5. Trading volume is the core of the market.
Pay close attention to low-level volume breakout situations, as this is an important signal for market initiation. Only trade cryptocurrencies that are in an upward trend, closely monitoring the 3-day, 1-hour, 4-hour, and 8-hour moving averages; when these moving averages turn upward, it usually indicates that the upward trend has been established.
6. Conduct reviews and adjust strategies.
Every time a trade is completed, a review must be conducted to reorganize the holding logic, and combine it with the weekly K-line trend to flexibly adjust the subsequent trading strategy.
Investing is a complex discipline, involving a comprehensive game of techniques, skills, mentality, and human nature. In this process, whoever has strong risk awareness, good risk management, and effectively implements risk control measures will be the final winner.
1. Funds without time constraints are a prerequisite for making investments.
Funds must be absolutely free and have no time limit. Having your own funds without interest pressure is a prerequisite for making investments.
2. Use market traps to win.
When you want to go long, a bearish trap is your best opportunity.
When you want to short, a bullish trap is your paradise.
3. Safety is the foundation for long-term survival in this market.
Avoid over-trading: (avoid frequent trading and overly large single trade margins).
4. The market is the best place to cultivate oneself; human greed, fear, and foolishness are showcased every moment in the capital market. Cultivating oneself in this big dye vat is the greatest benefit of the market.
To conquer the market is essentially to conquer your own greed, fear, and foolishness.
5. Not every trade will make a profit.
Every trade carries the risk of loss. Don't daydream; take making money seriously, and never let your guard down; focus on capital management.
6. Trading psychology is crucial. Maintain emotional stability when making money or losing money.
7. Successful trader mentality:
Not caring about money, accepting risks in trading and investment, equally accepting trades that make money and those that lose money, enjoying the process, not feeling deceived by the market; always seek to improve skills, and as skills improve, account profits increase.
Keep an open mind, treat different viewpoints equally, don't get angry, summarize each transaction; there’s no need to conquer or control the market. Have confidence and self-control, only take on risks you can bear, trade with your own funds, take responsibility for all trading results, stay calm during trading, have the ability to face reality, and don't care about the market direction, trade with the trend.
Can you turn 2000 into 30 million by trading cryptocurrencies? Let me talk about something practical!
The core idea is: rely on contract trading to amplify profits! But don't rush in, first turn this 2000 into 300 U (about 300 USD), let's take it step by step:
Step 1: Small capital snowballing (300 U→1100 U).
Take out 100 U each time to play, choosing the latest popular coins. Remember two things: ① Run when you double your money (for example, turning 100 into 200 and immediately cashing out) ② Cut losses if it drops to 50 U. If you're lucky and win three times in a row, you can roll it up to 800 U (100→200→400→800). But take profits when they are available! Play a maximum of three rounds, and stop when you earn around 1100 U. This phase relies heavily on luck, so don't be greedy!
Step 2: When you have more money, start using combination punches (starting from 1100 U).
At this time, split the funds into three parts to play different strategies:
1. Quick in-and-out type (100 U).
Only play with 15-minute fluctuations, like stable coins such as Bitcoin/Ethereum. For example, if you see Bitcoin suddenly surge in the afternoon, immediately follow the trend, earn 3%-5%, and get out. It's like street vending; small profits from many sales.
2. Buddhist-style regular investment (15 U per week).
Regularly invest 15 U per week to buy Bitcoin contracts (for example, if it’s currently 50,000 USD, you believe it can rise to 100,000 in the long term). Treat it like a piggy bank; don’t panic if it drops; wait for half a year to a year, suitable for those without time to monitor the market.
3. The main trend order (put the rest in).
When you spot major market movements, take decisive action! For example, if you find that the Federal Reserve is going to cut interest rates, Bitcoin may surge, and you can directly go long. But you must think ahead: how much to earn before you run (for example, aim to double), and how much to accept as a loss (maximum 20%). This requires reading news and understanding technical analysis; beginners should avoid recklessness!
Important reminder:
① Only bet a maximum of 1/10 of your capital each time, don’t go all-in!
② Every order must set a stop loss!
③ Play a maximum of 3 trades daily; if you're itchy, go play games.
④ Withdraw profits when you reach your target; don’t think about 'making another wave'!
Remember: those who rely on this method to turn things around are ruthless—ruthless to others and even more ruthless to themselves!
During trading, if you are trapped, how to recover?
Loss recovery, as a term in the crypto world, refers to selling cryptocurrencies when their prices rebound to near the buying price to recover funds. Learning to set traps is truly learning to hunt; learning to recover losses is truly understanding how to trade cryptocurrencies.
Below I will introduce methods for breaking free from losses, generally divided into two types.
1. Proactive loss recovery strategy.
1. Cut losses.
If you discover that buying was a serious mistake, especially if bought at the peak of an earlier surge, you must have the determination to cut losses quickly to protect your capital. The crypto market has many opportunities; as long as your capital doesn’t suffer a big loss, you can always earn back.
2. Currency exchange.
If the cryptocurrencies you hold are trapped and in a weak position with further downward potential, if you accurately judge that another cryptocurrency has significant upward potential and a stronger trend, you can decisively switch coins to offset losses from the old coin with profits from the new one.
3. Short selling.
When it is confirmed that you are deeply trapped and unable to cut losses, and if the market or a particular cryptocurrency has further downside potential, you can adopt a short-selling strategy by selling the trapped coin and buying back at a lower position to effectively reduce costs.
2. Passive loss recovery strategy.
1. Averaging down.
When the buying price is not high or you have strong confidence in the future market, you can use the averaging technique. However, ordinary investors can usually only withstand one or two rounds of averaging, so timing is crucial.
2. Lie flat.
In a situation where you are deeply trapped with full holdings, unable to cut losses or add positions, you can only wait passively. As long as it’s your own money, not borrowed or loaned, you can wait patiently. Never act emotionally and recklessly increase positions or cut losses blindly.
Summary of practical experience: the 'secret weapon' of trading strategies.
After years of struggling in the crypto world, I have accumulated some practical trading strategies. The following key phrases are crystallizations of personal practical experience.
Entry Section.
Test the waters in the crypto world, prepare to lead; enter steadily, refuse to rush.
Horizontal Trading Section.
When the price is low and horizontal, it's the right time to buy heavily; when the price is high and horizontal, decisively sell without hesitation.
Volatility Section.
Sell high, buy low; watch the horizontal market and reduce trading.
A horizontal market means using horizontal movements instead of dips; hold your assets tightly, and a surge may come at any second; during a rapid surge, be alert for a drop and always be ready to secure profits; during a slow decline, it’s a great time to slowly average down.
Buying and Selling Timing Section.
Don't chase highs, don't sell; don't dive, don't buy; if it’s horizontal, don’t trade.
Buy on bearish candlesticks, sell on bullish candlesticks; operate in reverse to stand out.
Buy when there's a big drop in the morning; sell when there's a big rise in the morning; don’t chase highs in the afternoon; buy after a big drop in the afternoon the next day; don’t cut losses on a morning drop; if it’s flat, take a break; seek to protect your capital when trapped, and avoid excessive greed.
Risk Awareness Section.
A calm lake may suddenly have high waves; there may be big waves ahead; after a big surge, there must be a correction, and K-lines may show a triangle for many days.
In an upward trend, look for support; in a downward trend, look for resistance.
Full position trading is a major taboo; being stubborn is unwise; in the face of uncertainty, know when to stop and seize the right timing to enter and exit.
Trading cryptocurrencies is essentially about trading mindset; greed and fear are the greatest enemies; be cautious about chasing highs and cutting losses, maintain a calm demeanor for comfort.
In addition to the key phrases, I have also organized several super practical trading methods that can benefit both beginners and seasoned players.
Fluctuation trading method.
Most market trends are in a state of fluctuation; using high sell and low buy within a range is the foundation for stable profits. Utilize BOLL indicators and box theory, combined with technical indicators and patterns to identify resistance and support. Follow short-term trading principles, and avoid greed.
Breakout trading method.
After a long period of consolidation, the market will choose a direction; following a breakout can lead to quick profits. However, you need precise judgment abilities for breakouts, maintain a steady mindset, and avoid greed or fear.
Unilateral trend trading method.
After the market breaks through, it will form a unilateral trend; trading according to the trend is key to profit. Enter during corrections or rebounds, and refer to K-lines, moving averages, BOLL, trend lines, etc. to use them skillfully for ease.
Resistance and support trading method.
When the market meets key resistance and support levels, it often faces obstacles or gains support; entering at this time is a common strategy. Use trend lines, moving averages, Bollinger Bands, parabolic indicators, etc., to accurately judge resistance and support levels.
Correction and rebound trading method.
After significant ups and downs, there will be a brief correction or rebound; seize the opportunity to profit easily. Mainly rely on K-line patterns for judgment; good market intuition can help you accurately grasp highs and lows.
Time-based trading method.
The morning and afternoon sessions have small fluctuations, suitable for conservative investors; although the time to profit is long, the market is easy to grasp. The evening and late-night sessions have large fluctuations, suitable for aggressive investors; quick profits can be made but with high difficulty, requiring strict technical and judgment abilities.
I hope these experiences and insights can help you. Remember, in the crypto world, the most important thing is to maintain a calm mindset and rigorous operational discipline. May you achieve success in your future investments.
Trading cryptocurrencies is akin to life; when you truly understand life, you also understand the crypto world. The principle is simple: knowing and doing must be unified to navigate smoothly and remain undefeated!
Having navigated the market for many years, I am well aware of the opportunities and pitfalls. If your investments are not going smoothly and you feel regret over losses, leave a comment saying 999! I will share my insights.
