Ten years ago, I entered the cryptocurrency market with 8000 RMB; from being liquidated and going to zero, I have now achieved financial freedom and make a living from trading. By 2024, my capital has multiplied by 50 times. If it weren't for two times when I withdrew funds for purchasing a house, the return could have reached 85 times.
Today, I will share my trading strategies and insights without reservation.
As the saying goes: 'Standing on the shoulders of giants can save ten years of effort.'
At the end of the article, I will summarize the most core trading experiences to help you avoid detours.
For those who are lucky enough to see this and want to improve their trading level, be sure to read carefully and consider saving it!
Let’s talk about those who make money first:
That’s definitely not a contract player; the contract players I know.
None of them are making money; even if they made money at a certain stage, the final result is still a total loss. The essence of contracts is gambling, making money through probabilities. Of course, this has a slightly better chance than betting on high or low, but it's basically similar. Those who make money from contracts usually do so by being part of contract communities and leading trades. They have long realized that contracts cannot make money, so they join contract leading communities, where experienced investors profit from inexperienced ones.
Here’s a piece of advice for those who want to recover losses or make money through contracts:
So many people who lose money stay in the cryptocurrency market just to break even, but the harsh reality is that most people cannot break even and cannot make money, especially those who want to recover losses through contracts are even more deluded. The few who make money through contracts are rare, and don’t fantasize about why you’re not that person. Honestly, if you think you can recover losses through contracts, you really aren’t cut out for it. No matter how much you lose, it’s the same; even if you go bankrupt, it’s impossible to recover losses through contracts. Therefore, I advise those who want to recover losses through contracts to quit contracts, in other words, quit gambling.
What should spot players do if they lose money?
First, if the losses are not too much, and the principal is still relatively large, meaning that the principal and the loss are balanced, then returning to break-even is relatively simple and easy, or it could be said that needing to multiply by five or less to break even is possible. But the most important point is the entry point.
And the selling point. If you belong to those who are trapped at high levels, it will be difficult. Most people can make money when a bull market starts or during the main upward wave of a bull market. Losing money happens when they don’t know how to unload. After unloading, during the main force distribution (unloading) phase, repeatedly entering the market at high levels leads to being harvested. Therefore, for retail investors, knowing where to sell is extremely important, but selling is not the most important thing.
The most important thing is that after selling, you can stick to being in cash and wait. This is something most people cannot do; it should be something that 95% of retail players cannot do, which is the fundamental reason for most people losing money. If you can sell at a relatively high point and remain unaffected by the analysts in the market, as well as by various positive news at high levels, and persist in staying in cash, then that is truly securing your profits, and that’s how you can actually make money.
To summarize the people who lose money:
1. A return to break-even within five times
2. You need to know how to sell.
3. You need to know how to go to cash.
Of course, the same goes for spot players; less than 5% of retail investors make money because the trading market is a battle against human nature: greed, fear, arrogance—very few can overcome these.
So who are the ones making money through trading?
Those who truly make money often only learn one trading strategy and can read the fundamentals. They buy when the market is consolidating at the bottom, hold on, and sell when the price has risen enough. They don’t pay too much attention to the news; they don’t randomly buy without understanding. However, when a bull market comes, any coin will rise.
In fact, many novices find it easier to make money in spot trading.
After more than ten years of trading cryptocurrencies, in the past two years, I used 100,000 to summarize and replicate trading methods in real markets. In two years, I made it to 48 million and successfully withdrew it to my Alipay balance!
After many struggles, I have summarized 8 iron rules. The content is not much, but the value is significant. If you feel there's no reason after reading, say whatever you want!
1. Divide your funds into five parts, and only enter one-fifth each time! Control a 10% stop loss; if you make a mistake once, you only lose 2% of your total funds. If you make five mistakes, you only lose 10% of your total funds. If you’re right, set a take profit of over 10%. Do you think you’ll still be trapped?
2. How to improve the win rate again? Simply put, it’s two words: go with the trend! In a downtrend, every rebound lures in more buyers, while in an uptrend, every drop creates a golden opportunity. Which do you think is easier to make money from—buying the dip or low buying?
3. Do not touch coins that have surged sharply in the short term, whether mainstream or altcoins; very few coins can make several main upward waves. The logic is that after a short-term surge, it is difficult to continue rising. When it stagnates at high levels, it won't be able to rise later and will naturally fall. It's a simple principle, but many still want to take a gamble.
4. You can use MACD+ to determine entry and exit points. If the DIF and DEA lines cross above the zero line, it is a solid entry signal. When MACD forms a death cross above the zero line and moves downward, it can be seen as a signal to reduce positions.
5. I don't know who invented the term 'averaging down', but how many retail investors have stumbled and suffered huge losses because of it! Many people keep averaging down as they lose more, and the more they average down, the more they lose. This is the biggest taboo in trading cryptocurrencies, putting oneself in a dead end. Remember, never average down when you're in loss; instead, average down when you're in profit.
6. Volume-price indicators are paramount; trading volume is the soul of the cryptocurrency market. Pay attention to breakout volume at low price consolidations and decisively exit during high price stagnations.
7. Only trade in coins that are in an upward trend, this maximizes the odds and saves time. When the 3-day line turns upwards, it indicates a short-term increase; when the 30-day line turns upwards, it indicates a medium-term increase; when the 84-day line turns upwards, it indicates a main upward wave; when the 120-day moving average turns upwards, it indicates a long-term increase!
8. Insist on weekly reviews, check if the holding logic has changed, technically review whether the weekly K-line trend aligns with your judgment, and if the direction has changed trend, adjust your trading strategy in a timely manner!
Over these two years, I have spent hundreds of days and nights researching various patterns and charts, summarizing simple and replicable trading methods. After thousands of trade practices, I have summarized 8 iron rules. The content is not much, but the value is significant. If you feel there's no reason after reading, say whatever you want!
1. Divide your funds into five parts, and only enter one-fifth each time! Control a 10% stop loss; if you make a mistake once, you only lose 2% of your total funds. If you make five mistakes, you only lose 10% of your total funds. If you’re right, set a take profit of over 10%. Do you think you’ll still be trapped?
2. How to improve the win rate again? Simply put, it’s two words: go with the trend! In a downtrend, every rebound lures in more buyers, while in an uptrend, every drop creates a golden opportunity. Which do you think is easier to make money from—buying the dip or low buying?
3. Do not touch coins that have surged sharply in the short term, whether mainstream or altcoins; very few coins can make several main upward waves. The logic is that after a short-term surge, it is difficult to continue rising. When it stagnates at high levels, it won't be able to rise later and will naturally fall. It's a simple principle, but many still want to take a gamble.
4. You can use MACD+ to determine entry and exit points. If the DIF and DEA lines cross above the zero line, it is a solid entry signal. When MACD forms a death cross above the zero line and moves downward, it can be seen as a signal to reduce positions.
5. I don't know who invented the term 'averaging down', but how many retail investors have stumbled and suffered huge losses because of it! Many people keep averaging down as they lose more, and the more they average down, the more they lose. This is the biggest taboo in trading cryptocurrencies, putting oneself in a dead end. Remember, never average down when you're in loss; instead, average down when you're in profit.
6. Volume-price indicators are paramount; trading volume is the soul of the cryptocurrency market. Pay attention to breakout volume at low price consolidations and decisively exit during high price stagnations.
7. Only trade in coins that are in an upward trend, this maximizes the odds and saves time. When the 3-day line turns upwards, it indicates a short-term increase; when the 30-day line turns upwards, it indicates a medium-term increase; when the 84-day line turns upwards, it indicates a main upward wave; when the 120-day moving average turns upwards, it indicates a long-term increase!
8. Insist on weekly reviews, check if the holding logic has changed, technically review whether the weekly K-line trend aligns with your judgment, and if the direction has changed trend, adjust your trading strategy in a timely manner!
Alright, that’s all for the story and practical content.
