Ten Years of Painful Lessons in Cryptocurrency Trading: Ten Rules to Help You Avoid Losing 1 Million!
Core Insights:
Cryptocurrency trading is not gambling; it's a game of knowledge monetization. These ten pieces of experience gained from ten years of pitfalls are bloody and heartfelt.
1. Small funds must wait for big opportunities
With a capital of less than 200,000, catching one major upward trend in a year is enough. Don’t learn from those gamblers who gamble with their entire capital every day; their graves are already three meters high.
2. Simulation trading is a mirror to reveal the truth
Making 100 profits in a simulation does not prove skill; losing real money once can make you question life. Start with simulation trading, practice until numb before moving to real trading; this is the basic operation for survival.
3. Positive news = signal to run
If you don’t sell on the day of significant positive news, you must run when it opens high the next day! The market maker is waiting for retail investors to take over; if you are a step late, you become the bag holder.
4. Holiday drop curse
Reduce positions to cash one week before the Spring Festival and National Day. Historical data shows that market liquidity dries up during holidays, with a drop probability exceeding 70%.
5. Mid to long term requires T trading skills
Keep enough cash, sell a bit when it rises, and buy back when it falls. Rolling operations can lower costs; holding without action will only lead to roller coasters.
6. Short-term trading only with active coins
Only the top 20 coins by trading volume are the battlefield; those “zombie coins” with few transactions a day are a death trap.
7. Only sharp declines lead to violent rebounds
Coins that decline gradually are like dull knives cutting flesh, but coins that crash more than 30% often rebound 15% within three days; this is a short-term opportunity to make money.
8. Stop-loss is a lifesaver
If you buy wrong, cut losses; do not fantasize about breaking even. Losing 1 million to 500,000 requires a 50% drop, but making 500,000 back to 1 million requires a 100% increase.
9. 15-minute K-line + KDJ
For short-term trading, focus on the 15-minute KDJ: buy when J value crosses above 20, sell when J value crosses below 80; this is 10 times more accurate than guessing blindly.
10. Master one trick to conquer all
Mastering one or two indicators like MACD golden cross and death cross, and Bollinger Bands' opening and closing is enough. Learning too many turns you into a “theory master, practical novice.”
Are you stuck? When to bottom fish? As always, if you're confused and don’t know what to do, click on my avatar to comment. I need fans, and you need references.