Entering the market from 50,000 to 100,000 to 302,000
In the third year, it reached 590,000.
In August of the fourth year, it reached 3.78 million.
In November, it reached over 7 million.
Until a few years ago, it was easy to withdraw 30 million in the cryptocurrency market.
During this period, I fell to rock bottom. At one point, it peaked at around 4 million. At that moment, I thought I could be considered a big player in the cryptocurrency market. I resolutely quit my job to focus on trading coins, even borrowing money to trade. However, reality gave me a harsh slap in the face. The financial crisis made me not only give back all my profits but also accumulate a mountain of debt, eventually forcing me to sell my house, and my wife and children almost left me.
That period was my darkest moment. In just a few months, I experienced a fall from peak to trough. But this also made me realize that my previous smooth sailing was not without a component of luck.
Therefore, I feel that if I really want to continue on the path of trading, I need to study diligently. In addition to understanding the basics, I should also analyze news and study technical indicators. If I do not conduct in-depth research and reasonably plan my investments, my funds will only be depleted. In the end, as a retail investor without any foundation, I will only joyfully enter the market and leave despondently.
Over the next three years, I cut off all contact with classmates and friends, stayed indoors, and worked tirelessly day and night to review my trades. When tired, I would sleep on the keyboard, and finally achieved financial freedom through trading coins.
Dignity only exists above high prices, and truth only exists within the scope of reliable data and analysis: My insights on trading coins.
1. The temptation of high points: How to respond rationally.
You must always believe that dignity only exists above high prices, and truth only exists within the scope of reliable data and analysis. In the market, cruelty coexists with opportunity.
When Bitcoin continuously breaks through new highs, I believe most people holding Bitcoin feel dignity and a sense of achievement during those rising moments. However, high points often carry greater risks. How do you know that the place you are standing is the highest point? Once the market rebounds, or if it rises even higher, can you really seize that so-called highest point?
Therefore, true dignity is not merely about reaching high points, but about how to rationally treat those high points and avoid blindly chasing highs. When the price reaches its peak, please learn to set appropriate profit-taking points to lock in profits promptly, avoiding missing the best selling opportunity due to greed.
Please do not concentrate all your funds on a few coins; you must learn to diversify your investments. Diversifying can reduce the risk of a single investment. Please maintain a long-term investment perspective; do not be misled by short-term highs, and focus on the long-term development potential and technical advantages of the project.
2. Truth only exists within the scope of reliable data and analysis.
The truth of the market is not always obvious. In this uncertain market, only by relying on reliable data and scientific analysis can we make wise decisions. Do not be misled by short-term fluctuations; instead, focus on long-term trends and technical indicators to maintain calm and rationality in a complex market environment.
(1) The importance of data.
In the world of cryptocurrencies, the importance of data is self-evident. To make money in this highly volatile market, you need to know the big news, new government policies, the latest developments of projects, and the general market sentiment as soon as possible. This information can truly help us see the direction of the market, determine which are real opportunities and which may be traps, thereby making smart choices to protect and increase our wealth. In other words, whoever masters useful and up-to-date data will have the advantage in this market. Remember, it is useful and up-to-date data. High-quality data is the basis for effective analysis; incorrect or incomplete data can lead to wrong conclusions, while timely data can reflect the latest market dynamics, and outdated data may cause you to miss the best trading opportunities.
(2) Scientific technical analysis.
Technical analysis plays a decisive role in our decision-making. Why do I say this? It is like wanting to know the weather requires a weather forecast to predict changes; similarly, checking candlestick charts, MACD, and RSI can help understand past market performance, assess whether prices are trending upward or downward, and whether there are signs of reversal. At the same time, it is also important to pay attention to changes in trading volume, as it can indicate the level of enthusiasm among market participants regarding price changes.
Only by relying on accurate data and scientific analysis can we make better decisions, reduce investment risks, and increase returns. If you do not pay attention to this, blind decisions often lead to failure. Before making decisions, be sure to think through whether you have done the technical analysis properly, whether you have grasped the information you hold. Only by ensuring that these preparations are adequate can you go further.
From confusion to stable profits: My insights on trading coins.
I firmly believe that dignity only exists above high prices, and truth only exists within the scope of reliable data and analysis. I too have been confused. Whenever I reach a high point, I start to panic: should I exit or continue to chase? This dilemma has almost made every trade less calm. However, over time, I gradually found a simple and stable method, which still brings me continuous profits today. You need not worry that you cannot learn it; if I can learn it, so can you.
First, select potential coins. We can place those with an upward trend within 10 days into candidates and exclude those that have shown a significant decline in the past three or four days. The purpose of this is to filter out coins that not only have upward trends but also show no significant short-term risks, while avoiding those that have entered a consolidation phase, thereby increasing the success rate of subsequent operations and reducing risks.
Secondly, use candlestick charts to only select coins that show a golden cross on the monthly MACD. The purpose of this is to ensure that the selected coins have strong upward momentum in the long-term trend. The MACD golden cross usually indicates the beginning of a new upward trend, which can further improve the accuracy of screening.
Finally, check the daily candlestick chart, focusing on the 60-day moving average. When the price of the coin pulls back near the 60-day moving average and a large volume candlestick appears, enter heavily. The purpose of this approach is to not only buy at a relatively low position, but also to increase the likelihood of rising. After entering, use the 60-day moving average as a standard; if above it, continue to hold. If the price rises more than 25%, sell one-third, and if it exceeds 50%, sell another one-third. When below it, exit immediately; do not hold onto false hopes, as protecting the principal is the most important thing right now.
The three steps above have been quite useful for me. Through these methods, I have also gained a lot. This is also why I can remain calm at high points and no longer panic blindly. I hope these experiences and methods can help you achieve better results in the cryptocurrency market.
In short, regardless of how the market fluctuates, maintaining dignity and seeking truth is the goal every investor should pursue. I hope every investor can remain rational in the cryptocurrency market, find their own investment path, not be swayed by short-term market fluctuations, and firmly walk the path to financial freedom.
Mistaking selling for washing out? Are you trapped? An article to distinguish between selling and washing out in the cryptocurrency market!
In the cryptocurrency market, facing the tides of the market, many people mistakenly view the main force's selling behavior as a washout. Originally entering the market with ambition, they ultimately end up with nothing. This painful lesson has led us to reflect deeply: how can we avoid repeating the same mistakes in the cryptocurrency market?
In the cryptocurrency trading system, selling and washing out are like twin brothers, often difficult to distinguish. They are both methods used by the main force to manipulate the market and can be accompanied by drastic price fluctuations. For ordinary people, accurately discerning the true intentions of the main force is undoubtedly a daunting challenge. We often can only guess based on clues from the market, while the main force can skillfully mislead us using various strategies.
So what is the difference between selling and washing out?
Characteristics of selling: When the main force prepares to sell, they do not place large orders on the sell side but instead place a large number of buy orders below, creating a false impression of a strong buy. However, at a certain price level above, it seems there are endless goods, and the transaction details often show many large sell orders frequently occurring, while buy orders appear weak, causing the price to continuously sink and struggle to rise.
Characteristics of washing out: Unlike selling, during a washout, the main force places large orders on the sell side, creating an atmosphere of heavy selling pressure. However, at key price levels, although the sell orders are massive, the buy orders are few but quick and frequent, allowing the price to stabilize and stop falling. After opening at the expected price, when the main force sees large sell orders, it absorbs them, alleviating the selling pressure above; when it sees large buy orders, it sells, creating turnover. This process of shaking out can clear floating chips.
During this phase, although large orders were frequently executed, the price remained in a balanced state, neither rising nor falling. The candlestick chart of the washout will show obvious layering, with certain key price levels being as solid as a fortress, difficult to break through. During declines, the trading volume does not expand, while during rises, the trading volume gradually increases. Accompanied by large fluctuations, although the trading volume lacks rules, it shows an overall decreasing trend, and the center does not shift downwards.
Comparison of selling and washing out: During a sell-off, the main force often reduces volume during declines and increases volume during rises. This is because they only want to use a small amount of chips to wash out, so retail investors do not pick up cheap chips. In contrast, during selling, they increase volume during declines and reduce volume during rises. The main force sells off chips quickly during declines; during rises, they only aim to attract retail investors to follow suit, resulting in smaller volumes.
When analyzing the trends of coins, we cannot be limited to candlestick charts but should conduct a comprehensive investigation from multiple aspects. Only in this way can we more accurately perceive the true state of the market and avoid being misled by the manipulation of the main force.
So how do retail investors make money?
Perhaps many people will say that short-term relies on technique and long-term relies on logic. In essence, short-term relies on emotion while long-term relies on value. Value itself is also emotional; just like Bitcoin can be speculated up to 70,000 and fall back to 15,000, it is not that Bitcoin's value has changed, but rather that market sentiment has changed. Bitcoin is still Bitcoin.
Thus, for long-term investment value, one must also understand market sentiment. As for short-term trading, the so-called candlestick techniques are a reflection of market sentiment. How the main capital draws candlesticks completely depends on the overall market sentiment, whether there is capital following the trend, and whether there is market heat. It can be said that what is seen and heard on the candlestick is what capital wants you to see, not naturally formed trading. The ultimate reflection of sentiment is trading volume.
Therefore, any rise or fall of cryptocurrencies is ultimately reflected in trading volume. Only with volume can there be price; without volume, it can only go downhill.
The first step for retail investors in combating emotions is to understand trading volume and only participate when there is volume. The principle is simple: volume indicates that capital is at work; no volume means that capital is abandoning cryptocurrencies in the short term.
Why do short-term traders speculate on hot topics? Because only when capital gathers can there be a possibility of making a profit, even with long-term bullish coins. Value investing also accompanies volume; during periods of low volume and consolidation, continuous observation is necessary. Retail investors need to combat emotions. Understanding trading volume alone does not solve problems; one must have their own trading principles.
The second step for retail investors in combating emotions is to set clear buy and sell conditions. Many traders buy and sell coins on a whim, buying when they want and selling when they want.
A buying point is basically when the cryptocurrency is about to surge; if you don't buy now, it will take off. A selling point is basically when the cryptocurrency is about to plummet; if you don't sell now, you will be deeply trapped. The emotions of chasing highs and killing lows are inherent, stemming from the drastic fluctuations in the market that lead to the collapse of retail investors' mindsets and emotions. To combat emotions, retail investors must stop buying and selling at will, clarify their buying and selling points, and decide in advance under what circumstances to buy or sell; they must have a clear principle.
The third step in combating emotions is to understand patience and the ability to let go. There is another aspect of the retail trading mindset that reflects human weakness: regret.
You will regret not selling at the time, leading to a drop in coin prices and incurring losses. You will regret not buying at the time, leading to a surge in coin prices and missing out. Retail investors need to learn patience; what they endure is the unrealized loss.
As long as the investment logic does not change, unrealized losses are something that must be accepted; it is one of the situations that will inevitably occur on the investment road. No one can buy at the lowest point. Retail investors need to learn to let go, and what they let go of is the missed opportunity.
As long as cryptocurrencies do not conform to your investment logic, even if the price keeps rising, you cannot follow the trend to buy; you must understand how to give up. Give up those increases that do not belong to your cognitive range.
Cold-blooded individuals are more likely to make money in cryptocurrency trading because it is the only way to survive in the market without emotions.
I hope this article can help everyone. In the cryptocurrency market, only through continuous learning and reflection can one become a true winner.
The process of understanding trading coins is the same, from seven losses to two break-evens and then to one profit, it is nothing more than being single-minded and not greedy for various profit models; by firmly adhering to this one trading system, over time, this system will become your cash cow.
