Eight years of trading cryptocurrencies, starting from 30,000 to now over 20 million. I rely on a 50% position to steadily make profits, with monthly returns reaching 70%. I passed this unique secret to my apprentice, and he doubled his investment in three months. Since I'm in a good mood today, I’ll share these valuable insights with you, so remember to keep them safe!
1. Clarify the core of trading: Strategy and discipline. Trend is king: Always follow the market trend, use technical analysis to determine cycles, and avoid trading against the trend. Avoid blindly chasing highs and selling lows. Position management: Use a staggered trading approach and light position principle to avoid excessive losses on a single trade and ensure capital safety. Discipline execution: Strictly follow the trading plan, do not be swayed by market emotions, and persist in reviewing and adjusting strategies.
2. Risk management: Survival comes before profit. Stop-loss setting: Set a clear stop-loss point (e.g., 5%-8%) before each trade to protect the principal. Capital allocation: Investment in a single project should not exceed 5%-10% of total capital, maintaining diversification and balance.
3. Mindset determines success or failure: Control and cultivate emotions. Reject greed: Maintain restraint when in profit, set reasonable profit-taking goals, and avoid profit withdrawal. Accept losses: Losses are part of trading; the important thing is to learn from them and improve. Maintain rational analysis amidst volatility. Independent decision-making: Do not be swayed by market information; make decisions based on your own judgment and logic.
4. Extract practical experience: Avoid frequent trading: Reduce the number of operations, focus on high-quality opportunities, and lower transaction fees and the probability of mistakes. Review and summarize: After each trade, summarize gains and losses, optimize strategies, and avoid repeating mistakes. Pay attention to market sentiment: Judge short-term trends through community enthusiasm, market news, and capital flows. Learn and improve: Continuously learn technical analysis and market knowledge, and combine it with practical experience to form your own trading system.
5. Trading philosophy: From trading cryptocurrencies to investing. Long-term perspective: In a highly volatile market, holding quality cryptocurrencies is more likely to weather the cycles. Value judgment: Filter targets based on the project's fundamentals (such as technical strength, team, application scenarios) without blindly following trends. Steady victory: Do not pursue overnight wealth; focus more on steady appreciation, treating cryptocurrency trading as an investment rather than gambling.
Trading cryptocurrencies is a long-term practice. Only by continuously learning and accumulating can one establish a foothold in the market and achieve steady returns.
