In the past few years, I grew my initial capital of 10,000 to 30 million, a journey full of trials and experiences. Here are some key insights I've summarized; I hope they inspire everyone:
1. Fund management is the cornerstone of success.
Divide funds into five parts, using only one-fifth each time, and establish strict stop-loss lines—each trade loss should not exceed 10% of total funds.
Control losses to within 2%. Even with five consecutive mistakes, the total loss would only be 10%, but once an opportunity is grasped, profits often easily cover losses.
2. Follow the trend, do not go against the flow.
· Do not rashly try to catch the bottom during a decline; most cases are traps to lure in buyers. Be patient and wait for clearer signals.
· During an upward trend, do not rush to sell; this may be a 'golden pit', and buying low is often more reliable than trying to catch the bottom.
3. Stay away from coins that spike in the short term.
Whether it's mainstream coins or altcoins, continuously soaring coins are rare; most will stagnate or even pull back after a surge. Do not hold onto the illusion of betting on miraculous spikes at high levels.
4. Make good use of technical indicators
· MACD is a practical tool: when the DIF and DEA lines cross above the 0-axis, consider buying; conversely, when they cross below the 0-axis, consider reducing your position.
· Replenishing positions must be done methodically: never add to a losing position, only add when in profit; otherwise, you may sink deeper.
5. Volume is the soul of the cryptocurrency market
· Focus on breakthroughs at low volumes; this is an important market signal.
· Stick to trading coins with an upward trend, observe the 3-day, 30-day, 84-day, and 120-day moving averages; an upward turn often indicates a confirmed trend.
6. Review and adjust strategies.
After each trade, a review must be conducted to re-examine the logic of positions and adjust operational strategies flexibly based on the weekly K-line trends.
I would like to share some iron laws of the cryptocurrency world:
1. Only participate in the market's irreversible upward trend.
"Only participate in the market's irreversible upward trend; the market is a fact, beyond doubt and challenge. Trends are irreversible, and as investors, we must dare to acknowledge mistakes, correct them at any time, reject uncertain markets, and act according to trends that even the big players must follow. We must understand the importance of following the trend."
2. Refuse frequent trading
Gambling houses are open 24 hours; there is no need to frequently open trades. There are many logics here regarding timing, trial and error, and position control. We advocate waiting like hunters for the perfect moment rather than randomly investing at the sight of prey.
3. Do not blindly trust technical indicators.
First, we must acknowledge that all technical indicators have their lag.
For instance, when the MACD indicator gives a buy signal, the coin has likely already risen, and at the moment of the crossover, you might just be the one left holding the bag!
4. Buy and forget about the cost price
When you short or go long, the cost price is irrelevant to any subsequent actions, as whether to sell depends on market trends, which has nothing to do with whether you are still in profit. If the pattern is good, continue holding; if the pattern deteriorates, reduce your position or even liquidate.
5. Participate with money you can afford to lose.
Using idle money to trade cryptocurrencies involves risks. Investors can increase their investment after mastering the tricks of profitable trading. Before that, it's essential to participate with funds you can afford to lose; borrowing money often leads to severe losses!
6. Ensure that when in profit, you cash out on time.
Without cashing out, everything is just a number. Cryptocurrency investors are like gamblers who have not left the casino; even if they temporarily earn a lot of money, they cannot be considered winners. Only when you extract cash from the market can you say you laughed last. In the cryptocurrency world, cashing out on time is a good habit.
I've traded cryptocurrencies for 10 years and earned 1.1 small targets. If you want to change your fate, you must try the cryptocurrency world; if you can't get rich in this circle, ordinary people will never have a chance. Recently, I had the fortune to drink tea with a big shot in the cryptocurrency circle and discuss the ups and downs of the market.
His words left me deeply shocked.
He once faced liquidation due to contracts made within three days, with losses reaching 50 million. This experience was undoubtedly a profound lesson for him.
Looking back on my own journey in the cryptocurrency world, it has been tumultuous. From an initial investment of 50,000 to making millions during the bull market; then back to over 20 million and now aiming for a small target of 1.1 million; now, I am waiting for the next bull market to come, aiming to reach three small targets.
My method of trading cryptocurrencies is not complicated, yet it is exceptionally practical. In just one year, I turned my assets into eight figures. My secret is to only trade one pattern; I decisively enter the market when I see the opportunity and firmly refrain from trading without a pattern.
For five years, I have maintained a win rate of over 90%, thanks to my patience and precise judgment.
As a veteran with ten years of cryptocurrency trading experience, I have weathered storms, traversed bull and bear markets, and standing firm in the cryptocurrency world relies entirely on these ten golden rules. They are the crystallization of wisdom from the trials of time! Please read carefully, reflect on yourself, and believe you will gain valuable insights!
Every word is a gem, each one worth savoring and digesting. Following these rules might help you avoid years of detours and multiply your wealth by millions!
Adhering to the iron laws of trading is a solid defense for protecting wealth and rationality.
"The smoke of battle never shows mercy to bleeding warriors; the world of trading is harsher than the battlefield—there are no medals, only the legends of survivors. When I watched countless traders fall to their own blades, I finally understood: the real weapon is not K-line tactics, but the survival iron laws etched in your bones."
[The First Commandment: The Hell of Positions] "Do you think heavy positions are a direct ride to wealth? No, that’s a roller coaster to hell! When leverage becomes a noose, even the most precise judgment can become a knot hanging on the gallows. Remember, the bell tolling for liquidation often starts the moment you press 'buy with all funds.'"
[The Second Commandment: The Curse of Exhaustion] "Caffeine at three in the morning won't save your account; red eyes cannot see the truth of the trend. Exhaustion is the most cherished poison of the market's devil; it will make you see stop-loss as take-profit and opportunities as traps. Remember, traders who collapse on their keyboards will never see the dawn of light."
[The Third Commandment: The Law of Advantage] "Trading without core competitiveness is like rushing into a hail of bullets unarmed. Ask yourself: if you could only explain your winning logic in one sentence, is it sharp enough? Simple enough? Fear-inducing enough for your opponents? If not, you're just a lamb waiting to be slaughtered at the gambling table."
[The Fourth Commandment: The Poison of Boredom] "Opening positions out of loneliness will lead to destruction due to greed. The market will not pay for your lonely fingers; it will only teach you what 'enduring loneliness' means through losses. A true hunter can turn a period of being out of the market into a sniping moment, making every trigger pull shatter the opponent's eardrums."
[The Fifth Commandment: Staring into the Abyss] "Revenge trading after significant losses is like throwing stones into the abyss and expecting an echo. The market will never pay for your blood and tears; it will only mock your weakness with deeper losses. Remember, when you stare into losses, losses are also staring back at you—until they drag you into the bottomless abyss."
[The Sixth Commandment: The Escape Route] "Every trade should have an escape route; stop-loss is not a shackle but a parachute. Before greed consumes reason, before fear distorts judgment, let the plan make the coldest decisions for you. Remember, a position without a contingency plan is like a single plank bridge over a cliff."
[The Seventh Commandment: Obsession Burns the Heart] "The market will never make way for obsession; your beliefs count for nothing in front of the market. When losses become the spark of obsession, failing to stop losses in time will burn you. Remember, trading is not a shrine of belief but a battlefield of reason."
[The Eighth Commandment: The Rearview Mirror Trap] "Focusing on profit and loss numbers while trading is like a driver staring at the rearview mirror. The past is a tombstone; the future is the battlefield. A true trader can keep their eyes fixed on the trend ahead, allowing every decision to penetrate the fog."
[The Ninth Commandment: Signal Filtering] "The market generates hundreds of thousands of noises every day; the real signals are hidden in the eye of the storm. Cultivate an iron will, let the bullet fly a little longer until you see the prey worth pulling the trigger on."
[The Tenth Commandment: The Tide of Trends] "Going against the trend is like using your body to block a mudslide. Smart money always stands on the side of momentum, harvesting the market with minimal resistance. Remember, true profit comes from the compound magic of following the trend."
[The Eleventh Commandment: The Fog of Value] "A decline is not a badge of value; it may be the death knell of value destruction. True value investing requires penetrating reports to see the spring of free cash flow, not picking up cigarette butts in a garbage heap."
[The Twelfth Commandment: The Discipline Canon] "Trading discipline is a sanctuary built with blood and tears. Every breach during emotional upheaval destroys your throne. Remember, a professional trader is not a genius prophet but a priest of rule enforcement. Plan your trades, trade your plans—this is the only path to redemption in the trading world!"
[Final Scene: The Battle Song Fades] "When the market closing bell rings, may these iron laws become your armor. Remember, trading is not a casino for overnight wealth, but the ultimate training ground of cognition and discipline. Only traders who engrave these iron laws into their DNA can traverse bull and bear markets and become eternal survivors in the market."
There are many common situations where emotions lead to losses. The following three are the most common.
1. Intra-day fluctuations.
When a coin experiences intra-day fluctuations, it often means the main forces are targeting retail investors. During the ups and downs, if retail investors buy in abundance, the coin price is likely to end with a significant drop; if retail investors panic and sell off, the coin price is likely to rise after the fluctuations.
2. Chase rising prices and kill falling prices.
Chasing rising prices and killing falling prices is also the most common emotion. Behind chasing rising prices and killing falling prices is the fear of missing out and the fear of getting stuck in losses.
The emotions of chasing rising prices and killing falling prices are also easily manipulated by the main forces. When more people chase rising prices, the main forces often find it easy to offload. In the morning, they might heavily entice buyers, and by the afternoon, they can let the price plummet to show retail investors, leading to a loss of over 10%. The main forces typically conduct a round of washing to panic retail investors into selling; it should be the trend that chases or kills prices, not the prices themselves. Retail investors' half-understanding makes them a meal for capital.
3. Bad news and good news.
Additionally, both bad news and good news will be exploited by the main forces. Bad news can suppress coin prices but can also be interpreted as bad news being fully priced in, leading to a significant price increase. Similarly, good news can push up coin prices or be used to raise prices for selling.
Thus, how to interpret good and bad news is dictated by capital. How capital operates is based on market reactions and retail investor actions. Retail investors panic, capital greedily buys in; when retail investors become greedy, capital immediately escapes. Utilizing emotions to harvest retail investors, capital truly executes this flawlessly, as if it were second nature.
These are the experiences I have summarized after years of struggling in the cryptocurrency world. I hope these principles and strategies can help you avoid detours and steadily accumulate wealth.
Success is not accidental; opportunities are also reserved for those who are prepared.$KAIA $HMSTR #山寨币ETF展望 #币安HODLer空投RESOLV
