Learning is the solid foundation for success. In the turbulent waves of the cryptocurrency world, only continuous learning, honing skills, and understanding the essence of public information can one stand firm in this unpredictable field.
Looking back on my journey in the cryptocurrency world, it's been full of ups and downs. From an initial investment of 50,000 to making millions during the bull market; then from millions down to about 2,000, and now reaching a small goal of 1.1 million. Now, I am waiting for the next bull market to come, aiming to reach three small goals.
My method of trading cryptocurrencies is not complicated but extremely practical. In just one year, I turned my assets into eight figures. My secret is to only engage in one type of pattern; I decisively enter when I see an opportunity and refuse to trade without a pattern.
For the past five years, I have maintained a winning rate of over 90%, thanks to my patience and precise judgment.
Today, I will share the best practical advice with everyone:
The method of position management is to operate in batches.
Batching: It can be divided into equal batch and unequal batch.
First: Equal distribution, also known as rectangular trading method, means dividing capital into several equal parts, buying or selling in succession, with the same proportion of capital for each transaction. Usually, 3 or 4 parts are used. For example, buy 30% first, if it starts to profit, buy another 30%. If there is no profit, temporarily refrain from investing new funds. When the price of the cryptocurrency reaches a certain high point or the market changes, gradually reduce your position and sell.
Second: Unequal distribution, which means buying or selling capital in different proportions, such as ratios of 1:3:5, 1:2:3:4, 3:2:3, etc. Based on the proportions, forms can be divided into diamond, rectangle, hourglass types, etc., with the pyramid trading method being the most common.
Third: Compare using the same capital and position but different methods.
Pyramid: Buy 5 layers at 1000, 3 layers at 1100, 1 layer at 1200, average price 1055.
Inverted Pyramid: Buy 1 layer at 1000, 3 layers at 1100, 5 layers at 1200, average price 1144.
Equal share rectangles: Buy 3 layers at 1000, 3 layers at 1100, 3 layers at 1200, average price 1100.
When the price rises to 1200, the profits are: Pyramid 145, Inverted Pyramid 56, Rectangle 100.
When the price drops to 1000, the losses are: Pyramid +55, Inverted Pyramid -144, Rectangle -100.
For example: a certain cryptocurrency drops to 10 yuan, buy 20% of the position, then the price falls to 8 yuan, enter another 30%. At this point, the average cost is 8.6 yuan. If the market continues to drop to 5 yuan, enter another 40%, bringing the average to 6.5 yuan. If the price rebounds to 6.5 yuan, that means you break even. If it rebounds to 10 yuan, it’s equivalent to earning 3.5 yuan. But if you bought in fully at 10 yuan, when the price returns to 10 yuan, you just break even.
The curse of retail investors in the battle against market makers.
About the curse of buying and falling, selling and rising.
If you think about this problem from another angle, you will understand; it’s a very simple truth. If I am the dealer and I have built such a large team and invested so much money, my goal is to make money off you, not to help you make money. This is the main point. All actions revolve around this point. After secretly accumulating bottom chips for months or even a year, why would I want to take you up? Therefore, before the price rises, I must kick you off the bus.
How to push? Wash the market!
After lying low for a while, I obtained enough chips to control the market. The fate of the entire candlestick chart is now entirely in my hands. Controlling the candlestick chart is equivalent to holding the heart of retail investors. The candlestick is the rope; retail investors are a flock of sheep. Wherever I pull, you all follow, at my mercy. You say you won't easily be swayed, but you overestimate yourself. As long as you have humanity and desires, you cannot remain calm. Emotional fluctuations take just a moment, and buying and selling actions take only a second.
You won’t even have time to realize that your emotions are being manipulated. By the time you notice all this, you have already completed your buying and selling actions, which is precisely what I want you to do. When you think this coin will rise, others will think the same. Most people will think this way, so not only have you bought in, but others have bought in too. Once you all come in, can I still go up? If I rise and you all profit and run, who will take over?
So once you all follow in, I will wash the market until there are no more shaky hands left. Unless you uninstall the platform after buying, then I really can’t help it; but how many can actually do that? On the contrary, when no one thinks this coin will rise, when retail investors do not swarm in, and when previous retail investors have been washed out, that’s when I will start to rise, directly pulling up with a large bullish candlestick. Whether you chase or not, if too many chase, I will repeat the washing action; if not, I will just let it be.
So why wouldn't I continue to rise, allowing you to miss out? Therefore, the phenomenon of buying and falling, selling and rising is inevitable. It results from the actions of the vast majority of retail investors. This is a dynamic orientation. As long as it’s the 'majority of people', you will fall into this curse.
How to be among the few? The dealer hunts the retail investors, while we hunt the dealer. The cryptocurrency world is full of experts. When the dealer hunts the retail investors, they watch the show. When the dealer pumps the price, they follow the trend. When the dealer distributes chips, they run away.
Their common characteristic is: patience. Like a wolf, they keep their eyes on the prey, motionless. Knowing yourself and knowing your enemy ensures victory in a hundred battles. Understanding the enemy's movements allows targeted actions.
I believe the following picture is familiar to veteran traders, even deeply ingrained in their minds.
After seeing this picture, you might think, how could I be so foolish?
Don't believe it? Just open your trading records and you'll see. Why is it so difficult to put such simple truths into practice?
It's just human nature; trading is about human nature. Just a random example:
In the new drop on December 31, 2022, I didn’t make a new low; this is a signal of a bottom. It’s time to buy, and wait to sell in March 2024. It’s very simple and clear. When you see this, you might curse me, saying the candlestick has moved now. What if it hasn't moved?
Each complete candlestick is like a complete civilization; history does not repeat itself, but it keeps repeating.
If you foolishly think you can get rich overnight by trading contracts, using leverage of 10x or 100x, and want to trade dozens of times a day, then the candlestick chart you are facing will mean nothing to you; your money will eventually go to zero. Don't deny it; patience is a luxury for most retail investors.
The entire process shown in the picture took about a year. I would almost operate dozens of times a day, let alone over a year.
Of course, except for professional short-term traders. I admire short-term traders; they need not only patience but also keen insight. If you have nothing and rely solely on guessing, then you are gambling, and you are gambling against a dealer who can cheat. How can you not lose?
In the process of cryptocurrency trading, how can retail investors avoid the risk of losing money and make a profit?
Face and self-esteem are worthless, especially when one is in difficulty.
If you care about your self-esteem and face, you won't realize that you have problems. Even if you become aware of the problems, you may not be willing to face and accept the reality, which greatly hinders your personal growth.
The financial market never cares about these so-called surface things.
If you do not improve your self-awareness and professional skills, you will always face endless confusion and trouble.
Don't say you can't stand the current market correction; even when the market rises, you still won't be able to stand it. Every stage has its own set of problems.
If you don’t experience life, you won’t grow; without growth, how can you talk about success?
Making money has never been a simple task, especially in the financial market; achieving long-term stable profits is even more challenging.
In this field, those who can achieve results have undergone several transformations.
Those who believe that making money in the cryptocurrency bull market is easy either have a misunderstanding or ulterior motives.
Many friends who added me on WeChat after seeing my articles think I have a good mindset and ask why my mindset can be so good.
For me, pain, anxiety, greed, fear, and the fear of loss are all things I have experienced and have experienced enough.
In essence, trading should be a very smooth process. Prepare thoroughly before entering the market, align actions with knowledge during trading, and reflect and improve after trading.
Put all work upfront, think deeply, consider all bad and unbearable outcomes. If a small probability event or black swan occurs, do you have the capacity to bear the risk? Are you mentally prepared and have expectations for the worst outcome?
Truly achieving the mindset of 'gaining is my fortune, losing is my fate.'
If you can't, and if there are feelings of anxiety, fear, the fear of loss, greed, etc., then there must be something wrong. You either need to find the problem and solve it, or you are not suited for this industry, and you should exit to save yourself the trouble. Don't end up losing money while ruining your health.
The main issues faced during trading include: correct investment thinking and concepts, mindset, skills, strategies, fundamentals, capital dynamics, news influences, policy impacts, etc.
If you haven't realized what problems you have, I can help you. If you realize the problems but cannot solve them, I believe I can help you too.
All of this stems from our true desire to change.
Your own cause and effect can never be interfered with by others; only you can cross yourself.
Ordinary people wanting to make money in the cryptocurrency bull market require the right mindset and clear positioning!
Today, let’s tell a story, starting from the shepherd and the woodcutter. Whether it's good or not, my cultural level is limited, so I hope everyone will be forgiving!
It's about identity positioning; while the shepherd is chatting with you, they have already completed all the tasks and achieved the results they should have. By the time you wake up, you will find that you have accomplished nothing.
Not realizing this clear self-positioning is a limitation of awareness and thinking, which cannot be changed merely by effort.
It's like making the wrong choice and working hard for nothing.
Realizing this, choosing to turn a blind eye and not change is the action level. Aligning knowledge with action is truly difficult for each of us. Many set limits on themselves before even trying, telling themselves they can't do it, they don’t have money, they are too old, their education isn’t enough, they can’t learn, they are too busy, etc., all in an effort to find a way to convince themselves.
Without experience, there is no growth. People are inclined to seek benefits and avoid harm; this is a weakness of human nature. In essence, it is understandable. Each of us finds it difficult to overcome our own inertia, which is why there is such a huge gap between knowing and doing.
But to become strong, we must break through; otherwise, we will only end up being mediocre. The process of persisting, changing, and growing oneself is indeed very painful, as I have experienced it myself over the years.
What should we do if we want to change the status quo but must take action?
The fastest way to change yourself is to do the things you fear, the things you dare not do, the things you think you cannot do, and the things you feel are impossible. Do them immediately, take action first and then talk.
Money lost can be earned back, jobs lost can be found again, friends lost can be made again, love lost can be sought again. You were born with nothing, so why fear starting over? Water reaching an impasse becomes a waterfall; a person reaching an impasse is reborn. The middle of the mountain is always crowded; you must strive to see the summit.
The biggest detour in life is trying to take shortcuts.
Only when our mindset changes can it influence our daily actions. Ultimately, through actions, we can change the results we can achieve. Never dream of repeating the same actions every day and expecting to get different results than others, or even hoping to get better results than others. It's just that simple.
Of course, when using various technical indicators to analyze the market, you need to apply them flexibly, mastering one indicator or flexibly using multiple indicators based on your preferences and proficiency. Overall, trading is an art of thinking, highly practical, testing personal abilities and levels, and feedback is particularly fast. Your thoughts and decisions can quickly receive feedback and verification.
At the same time, due to the complex and ever-changing market conditions, it is impossible to copy others' experiences. More so, it tests the ability to adapt to changes in the market, making investment a very personal matter that requires you to spend a lot of energy and money to fill the gaps. Getting something for nothing or blindly trusting others is not advisable.
The above is a summary of my 10 years of practical experience and technology in cryptocurrency trading. It may not apply to everyone; each person needs to combine their practice with these summaries. As a trader, the most terrifying thing is not the technical problems you have, but your lack of awareness, falling into these trading traps without realizing it! There is no invincible trading system; only invincible users of trading systems! This is the truth; trading systems ultimately must return to the individual!
The road to success is not crowded; it's just that very few people stick it out.
I hope I can always see you in the cryptocurrency world in the future because I will continue to deeply cultivate in this field for the rest of my life.
No matter how diligent a fisherman is, he will not go out to fish in the stormy season, but will protect his boat. This season will eventually pass, and a sunny day will come! Follow me, and I will teach you both how to fish and how to fish wisely. The doors of the cryptocurrency world are always open; only by going with the flow can you have a flowing life.
