With 10 years of trading market experience, I should have a say. I was born in 1990, 34 years old, with a net worth of over 50 million, of which about 42 million was earned from the 'crypto space'. I also incurred losses in the early stages, but I have made it all back!
I was born in 1990, full-time trading in cryptocurrencies, with assets in the tens of millions, withdrawing 100,000 from the crypto space each month, feeling no impact, living leisurely and freely, without deceit or intrigue, living the life I desire.
Every morning, I first take my child to school, then return to make breakfast. After eating, it’s around 9:00 AM, I turn on the computer and review yesterday's trades. Since the trading volume in the crypto space is low in the morning, I am usually busy at night. I take a short break in the morning, then review my trades and compile the trading records into my trading system. Reviewing trades is really important!
At around 4 or 5 PM, I usually go for a run in the park or woods, then pick up my child from school, return home, sometimes cook dinner, sometimes order takeout, and by the time I'm done, it's almost 7 or 8 PM; basically, the US stock market is about to open, and the crypto space starts to become wildly active! Just need to seize a few opportunities to make your daily target!
If there is little trading volume or a one-sided decline, lacking trading opportunities, participating in some trading circle activities or dining with friends is a good way to balance work and life; this kind of communication and socializing is important for me to expand my network and learn more about industry dynamics.
As a female trader, I face a busy trading market every day, but my daily routine is not just about buying and selling; there are many interesting things worth sharing, such as checking the latest market trends and economic news. This is an important step for me to understand the global economic situation and is essential for preparing for trades.
Then, I began analyzing various data and charts, studying market trends and price movements. This is crucial for making correct trading decisions. Sometimes, I act like a detective, carefully examining various clues and looking for potential trading opportunities.
In short, it’s about being free and easy.
How to establish your own trading system in the crypto space?
The purpose of establishing a trading system is to regulate and guide trading behavior, to view the market calmly and objectively, avoiding blind operations, and to achieve stability in profits.
There are several steps:
1. Cycle consistency: Choose a trading cycle (intraday, swing, trend) that suits your funds, time, and personality, and maintain consistency in the trading cycle.
2. Establish trading rules to form a trading loop: This includes: opening standards, closing standards, stop-loss, and take-profit.
3. Risk controllability: A key task of trading is risk control. This includes position size, capital management, stop-loss settings, etc., ensuring risks are controllable and within one’s tolerance range.
4. Testing and optimization: Use historical data and real-time calculation results to test and evaluate the effectiveness of the trading system, making necessary adjustments and optimizations.
5. Discipline and Execution: Follow the trading system, strictly implement your trading rules, and maintain discipline in trading.
In addition to the above steps, independent thinking, psychological management, and emotional control are also essential human factors outside the system.
Two additional points on the importance of trading systems.
In this bloody and cruel trading market, surviving requires addressing two main issues, as follows:
1. How to find non-random parts in highly random market price fluctuations.
2. How to effectively control one’s psychological weaknesses to enable rational decision-making.
The significance of establishing a trading system lies in defining our trading behavior, avoiding trades driven by emotions, and aiming to do things with a high probability.
The trading system should include several parts:
1. Target
2. Position
3. Direction
4. Entry Point
5. Stop Loss
6. Take Profit
Before any trade, you need to consider these several issues carefully. Each of these six points is very important, especially points 4/5/6, which are known to be quite complex for those with trading experience.
It requires long-term trading summaries to master. Watching tutorials will show very standard and beautiful signals. However, in actual trading, there will be many variations, noise, and less standard signals. At that point, should you enter or not?
Need to summarize on your own.
Many trading courses on the market can be judged by the above points, making it clear which are superior and which are inferior.
Above is a general outline; when actually establishing a trading system, the following points also need to be considered:
1. What is your principal amount?
2. Will these funds be used in the short term?
3. How much capital loss can you tolerate?
4. What is your expected return?
Considering the above points, think about capital management issues, whether to invest in short, medium, or long-term. What risks can you bear? Are you risk-averse or risk-seeking?
Continuing to share how to identify market momentum? Sunny Day shares the most professional information online (with illustrations).
Identifying market momentum is for distinguishing changes in the strength of bullish and bearish trends, recognizing strengths and weaknesses, thereby predicting future price movements in advance, following the strong side to trade and putting money in your pocket.
We can imagine the market K-line as a freely falling ball.
When market momentum is strong, it’s like a ball rapidly falling from a height.
When the market is weak, it’s like a ball encountering obstacles, which causes it to bounce back.
If a ball keeps falling and encounters more obstacles, it will continuously lose energy until it eventually comes to a stop.
It can be understood as the market's momentum gradually weakening, the price's downward trend gradually lessening, and the market entering a consolidation or sideways phase.
To initiate a new trend.
Using this metaphor and a case study, we can gain a deeper understanding of why recognizing market momentum is important!
Segments 1, 2, and 3.
You can clearly feel that the price is strongly moving downward.
Until point 4, the price is no longer moving down, not breaking the previous low, but instead moving upward, creating segments 5 and 6.
Thus, recognizing the changes in market momentum is to judge through K-lines, to know in advance when a falling ball will stop moving, indicating that there is nothing left to sell, and to follow the reversal points in the market, catching trends like segments 5 and 6, which we often refer to as 'escaping the top and touching the bottom', except we use a more scientific and evidence-based approach.
Now that we understand the principles, how do we learn to recognize momentum?
You just need to remember two words: Comparison.
I have categorized momentum into four types, with the last two being the most critical.
1. K-Line Momentum
2. Slope
3. The initiation and change of trend momentum.
4. Time and Space
1. K-Line Momentum
To learn momentum, we must learn to recognize K-line momentum, just as to learn characters, one must first learn Pinyin.
An overall trend is made up of several waves, each wave consists of individual K-lines, thus through the analysis of K-line formations, we can gain insight into the strength of local price movements.
K-Line Momentum Strength Chart
Long-bodied bullish and bearish candles, as well as hammers, generally have strong momentum; medium bullish and bearish candles have less momentum.
In contrast, small bearish and small bullish candles have relatively low momentum, and the balance of power in the K-line is in a state of equilibrium.
With this foundation, we introduce market trends; you will find that those medium and large bullish candles often represent a strong trend, and they are the movements we most want to see after entering a trade, as they lead to quick profits and a very pleasant holding experience.
2. Slope Momentum
Looking at the slope angle of the K-line is to be able to judge the price strength more quickly through the K-line trend.
I classify trends into four types.
Trend 1: Straight line with a large slope, relatively strong momentum.
Usually, when the price slope is steep, the K-lines are basically composed of medium and large bullish candles. When you see such a trend in real-time trading, it indicates that the buying power is very strong, which also means that the market direction is consistent and bullish.
Flat analysis of price behavior.
Trend 2: Straight line with a small slope, relatively weak momentum.
Combining with the previous case, one can clearly feel that the market trend momentum is weakening, with each segment being less than the last. In each segment, we also find that the K-lines are no longer composed solely of medium and large bullish candles, but are made up of medium and small bullish and bearish candles. This state warns us not to blindly go long at this moment; the bulls and bears have diverged, so we should hold onto our pockets, as future prices may see a pullback or reversal.
Adding flat analysis.
Trend 3: The price transitions from a straight line to a slanted line, and momentum weakens from strong to weak.
When you see that the price, which was originally composed of medium and large bullish candles, slowly turns into small bullish and small bearish candles, transitioning from a straight upward movement to a slanted one, it means that the market might soon have some turbulence, and the price may change direction and turn downward. At this point, we need to hold our money tightly and not blindly follow the market; wait for the price to give a clear direction before following.
Trend 4: Price transitions from a slanted line to a straight line, and momentum shifts from weak to strong.
The price initially consists of medium and small bullish and bearish candles and suddenly turns into medium and large bullish candles, also transitioning from a relatively weak state to a strong state, indicating that the market initially had bullish and bearish divergences; however, with the appearance of bullish candles, it proves that bullish momentum is stronger than bearish momentum, so when we enter the market, we must follow the side with strong momentum to make money.
These two points are more about understanding the principles of market trends, akin to learning Pinyin before recognizing characters.
Having learned Pinyin, it's time to start recognizing characters.
Before learning characters, you only need to remember two sentences: Compare rises with rises and compare falls with falls. Compare upward pullbacks with downward pullbacks.
Watch the following content with this phrase in mind.
3. Trend changes, divided into three major categories.
1. Trend Initiation
2. Trend Breakthrough
3. Trend continuation.
First type: Trend initiated from trading range.
Trends generally occur within trading ranges or are based on N-shaped breakthroughs.
Today, we won't discuss the trend initiation points in detail; instead, we will focus more on the momentum of trend initiation and continuation. Today is just a brief introduction to these two trend initiation points.
The first type: Trends initiated from trading ranges.
The price initiates a new trend after consolidating from the trading range; this is the first method of trend initiation.
The second type: Price bases the trend on N-shaped breakthroughs.
Continuously breaking through previous highs to form higher lows and higher highs is what we call a bullish trend.
We know where the trend originates, next we need to learn the momentum of the trend initiation, which is the main theme of today.
In the system class, when discussing price behavior at point 0608, I divided the momentum of trend initiation into four types, while also discussing what kind of trend they would follow in the future. Today, we will talk about four types of trend momentum, ranking them from strong to relatively strong.
The second type: Trend Breakthrough
The first type: Rapid market movements, indicating strength.
When we start to recognize the trend during a strong trend, the price is composed of medium and large bullish candles. We see in this picture that the trend of medium and large bullish candles rising straight up is the most powerful expression, which is the first type.
The second type: Small micro channels accompanied by the 20 moving average, indicating strength.
As we mentioned in the system class, when you see this small narrow channel on the chart accompanied by a 20 moving average support below, you cannot treat it as a bearish flag; it is a strong bullish indicator and ranks just below a rapid rise, making future price movements likely to accelerate.
The third type: Rapidly connecting through a channel, relatively strong.
When you see the price rapidly connecting to the channel, breaking through the area, and starting a new trend, it indicates that the price is transitioning from strong to weak, moving from a straight line to a slanted line. We mentioned in the system class that the price is likely to return to the channel starting point; waiting for the price to return near the channel starting point is our opportunity to enter.
Often, at the starting point of a channel, there are very good trading opportunities, and the risk-reward ratio is also quite favorable.
Flat Wood Analysis
The fourth type: Rapid connection through the channel, which indicates exhaustion of momentum.
When we see the price rapidly connecting to the channel and experiencing a rapid connection, we need to know that the price momentum is exhausted, and it may undergo complex adjustments or substantial pullbacks before continuing the original trend; this performance also warns us not to blindly go long.
Through these various trends, we can understand the changes in price strength through the K-line expressions and prepare plans to respond to the market, thus following the market.
The third category: Trend Continuation.
Having understood the momentum of breakthroughs, we need to know how trend continuation breakthroughs change prices.
At this point, you need to recall one of the two sentences I just mentioned: Compare rises with rises, compare falls with falls.
Upward
When we see the price pushing against the previous high every time, creating a bullish trend, but with the last push becoming less forceful, each segment is weaker than the last, it warns us that the price may need to pull back or experience a reaction, and we should not blindly continue to go long.
Downward
The downtrend is also similar; first, there is a rapid decrease, and then the segments become less effective, indicating that the downward force is weakening, which is the divergence we like to see, signaling that we can bottom-fish, right?
Just remember that previous statement: Compare rises with rises, compare falls with falls, and you can find the little tips for escaping the top and touching the bottom.
4. Time and Space
Time and space are generally used in trend pullbacks or reversal stars.
Then you can use the second sentence we mentioned: Comparing upward pullbacks and comparing downward pullbacks.
When you see that the current trend is upward, every push against the previous high is effective and strong.
We must determine whether the trend is a pullback or a reversal, which we can do by comparing time and space.
For example, during this trend increase, the increase was 6.3%, and it only took 12 hours.
This pullback only fell by 3.7% and took 24 hours.
By comparing time and space, we can see that this segment is still a strong bullish trend, and we should follow the market trend by going long.
The subsequent price trend is the same; there are only a few K-lines during the rise, but many K-lines during the pullback. Whether looking from time or space, it demonstrates strong bullishness.
The downtrend is the same, and I won't list them all. So, at this point, don’t you think learning momentum isn’t that difficult?
In summary, it comes down to two sentences: Comparing rises and rises, comparing falls and falls. Comparing upward pullbacks and downward pullbacks.
You can grasp the relationship between market movement and strength.
However, momentum is not the only key to judging market trends; more importantly, it serves as a warning or alert regarding price trend changes. Ultimately, we must look at the structure of price movements and the direction of changes to decide whether we can enter a trade.
Crypto space comeback secrets: How ordinary people in their 20s and 30s can cleverly operate and easily earn tens of millions!
After communicating with many fans, I found that there are many ordinary groups in the crypto space who are eager to seek profitable paths. Many people still feel confused about how to invest effectively in the crypto space.
First of all, we must clarify that investing in the crypto space is essentially a financial investment behavior. Our goal should be to achieve long-term stable profits, allowing our assets to appreciate over time through continuous effort. If we always hope for overnight wealth and frequently chase market fluctuations, this is no different from gambling and is not a wise investment decision.
In the crypto space, not only must we learn to wait for the right timing, but we must also have the ability to identify the size of opportunities. We cannot blindly trade with heavy or light positions; rather, we should flexibly adjust our positions based on the actual market situation and our risk tolerance. In most cases, we can choose small positions to trade, to accumulate experience and hone skills. When significant opportunities arise in the market, we should act decisively and increase our positions to obtain larger profits.
Taking rolling positions as an example, this is a trading strategy that should only be employed when there are significant opportunities in the market. We should not frequently roll positions to avoid increasing risks. Even if we miss some opportunities, there's no need to be overly regretful, as long as we can seize a few key opportunities, it’s possible to achieve massive asset appreciation. The leap from 0 to millions or even tens of millions can be achieved with just a few successful rolling operations, allowing ordinary people to join the ranks of the wealthy.
Rolling trading strategy and operation of small to medium-sized funds.
In the spot market, imagine that you only have $1000 today, and the current price of Bitcoin is $70,000. If you predict that Bitcoin will rise and decide to buy with this $1000, when the price rises to $76,000, your profit will be $600. However, since your initial investment is only $1000, even if the price rises significantly, your profit is relatively limited.
Although occasionally following some experienced analysts or influencers may yield some small profits, to achieve significant wealth growth, such strategies may not be sufficient. So for small to medium-sized funds, a more efficient strategy may be to utilize contract trading.
Taking Bitcoin as an example, if you predict its price will rise by 20% in a short time and continue for a period (e.g., 5 trading days), then through contract trading, you can use leverage to amplify your returns. For example, using 10x leverage, your $1000 will have a purchasing power of $10,000. When the Bitcoin price rises by 20% as you predicted, your contract gain will reach $2000, far exceeding your gains in the spot market.
But I must emphasize that while contracts have significant profit potential, they also come with higher risks.
Key points to note about the rolling position strategy:
Patience is paramount: The core of the rolling position strategy lies in waiting for the best opportunity, as once successful, the profits can be enormous. You need to look for highly certain opportunities, such as the market experiencing sideways fluctuations after a sharp decline, and be ready to decisively enter the moment it breaks upward.
Trend capturing: In the market, trend reversals often come with significant profit opportunities. You need to be sharp in detecting changes in trends and take decisive action. Remember, rolling positions can only exert their maximum power when the trend is clear.
Focus on bullish: In the rolling position strategy, it is recommended to focus on bullish markets, that is, only choose varieties with obvious upward trends for operations. This can reduce operational difficulty and increase success rates.
Rolling position risk analysis
Regarding the risks of the rolling position strategy, many people may hold a skeptical attitude. However, in reality, as long as operations are reasonable, the risks are controllable and even significantly lower than regular operations in the spot market.
Suppose you have 50,000 in funds; you can consider this as your profit principal. When the price of Bitcoin is 10,000, you can choose to use 10x leverage, but only open a position of 10%, using 5,000 as margin. This way, your actual leverage ratio is only 1x, setting a 2% stop-loss point. Even if the stop-loss is triggered, your loss is only 100, far below your expected risk.
If the market rises as you predicted to 11,000, you can continue to add positions following the same strategy, setting a 2% stop-loss. Even if the stop-loss is triggered again, your overall profit will still be positive. As the price of Bitcoin rises, you can gradually increase your position while always keeping reasonable stop-loss settings.
In the rolling position strategy, the key lies in reasonable position management. As long as you can manage your positions correctly and control risks, the rolling position strategy will bring you substantial returns. However, compound interest is not the core of the rolling position strategy; the real key lies in capturing the major trends in the market and achieving stable profit growth through reasonable position management!
The concept of rolling positions is essentially a conservative strategy; its essence lies in capturing the long-term trend of the market rather than blindly pursuing short-term profits. Risks often stem from improper use of leverage.
Whether using 10x leverage or 1x leverage, the key is how to use this tool to amplify returns while controlling risks. I personally prefer using two to three times leverage, as this ratio provides a certain amplification effect while maintaining sufficient capital safety. It’s important to understand that the choice of leverage is not directly related to the rolling position strategy itself but depends on individual risk tolerance and market judgment.
I have always emphasized that investments should be cautious; do not invest all funds in one market. In the crypto space, I recommend that investors allocate one-fifth of their funds for investment, with only one-tenth for spot trading and the remaining funds for futures trading. This way, the trading capital only accounts for 2% of the total funds, greatly reducing overall risk. Additionally, I always stress the importance of position management. Even when facing minor losses, we should not easily waver from our strategy.
For small capital players, it is more important to focus on medium to long-term investments rather than pursuing short-term windfalls. By holding quality potential coins for the long term and patiently waiting for their value to grow, this is a more stable and reliable path to wealth. Remember, true success comes from a deep understanding of the market and wise investment decisions, not just luck or short-term speculation.
Capital accumulation and wise management.
When you gradually accumulate a certain amount of capital, strategic investment choices become particularly important. Avoid overtrading contracts; remember, only use the money earned to make money, and maintaining stable profits is key to ensuring long-term wealth growth.
Spot trading and capital allocation are key components. Trading is not always filled with risks; through reasonable capital management, we can effectively reduce these risks.
Although luck is an undeniable factor in trading, achieving a profit of over ten million RMB in a year is already quite considerable. Even if luck is not on your side and the futures account incurs losses, the profits from the spot market are enough to compensate for those losses. The important thing is to ensure that the spot account remains profitable, so that even if there are fluctuations in futures trading, we have sufficient funds to cope.
For ordinary people, I suggest dedicating one-tenth of your spot position for contract trading. If you have 300,000 in spot, only take out 30,000 for contract trading. If there are losses in contract trading, you can replenish funds from spot profits. Through multiple attempts and practice, you may gradually develop a trading strategy suitable for yourself. But if you can’t find a method that works for you, then this field may not be suitable for you.
Core Strategy Analysis
For newcomers to the crypto space, it's easy to be confused by the complex analyses of K-lines from those influencers and big names. Technical interpretations in live streams, such as engulfing patterns or the emergence of morning stars, are indeed eye-catching, but for individuals, technical analysis is not a decisive factor.
In fact, in the crypto space, the key factors are position management, capturing market information, and assessing market sentiment. These elements influence the success or failure of investments far more than simple technical analysis.
Many fans also question why we don't charge like other communities. Our intention is simple. We are a group of experienced traders in the crypto space who formed this community because we believe that we are currently only at the early stage of a bull market. In the future, we may see Bitcoin reach 100,000, and we are waiting for this opportunity.
When good news comes from the market, we conduct comprehensive analysis to determine whether these messages are worth following. Once we decide to participate in the trading of a certain coin, how do we determine the buying point and manage positions? The answer is actually hidden within the market's emotions.
This dynamic of the market cannot be fully captured merely through simple K-line analysis or reading news. When you try to interpret the market through news, you often miss the opportunity. Therefore, our collaboration is actually a mutually beneficial relationship. When we all achieve financial freedom, we can gracefully say goodbye and pursue our travel dreams, enjoying the beauty of life.
