I have been trading cryptocurrencies for 10 years, and professionally for 6 years. Born in 1990, I am now in a phase where I can do as I wish. From 500,000 to 25,540,000, all because I diligently followed these disciplines and insights.
What truly changed my destiny was a day four years ago! Since then, I have reclaimed everything I lost!
At that time, I organized all trading records and looked through them many times. I felt mixed emotions; there were over 1,000 transaction records, with nearly 700 being losses and only over 300 being profitable. Overall, it was a significant loss with small gains. Over 200 were major losses, so overall, those years were a loss. Just looking at this trading record shows a huge problem. The first reaction is greed. I recall the situations when I had big losses, unwilling to take profits when I had gains, and unwilling to set stop-losses when I had losses; this basic reason led to significant final losses.
Some small losses are mostly due to unclear current thinking, lack of grasp, operating with luck, insufficient research, and blindly entering the market. After many instances, the cumulative loss becomes significant. Ultimately, it boils down to unclear or indecisive entry points. After summarizing, I found that the truly good entry points should be at the initiation of a price increase. Many unclear entry points occurred during range fluctuations when situations were unclear, leading to increased small losses, essentially boiling the frog in warm water, and by the time I realized it, it was already too late.
Later, I summarized, reflected, listed problems, thought a lot, and truly invested all my thoughts into it. Later, I diligently researched techniques and insights, summarizing them into my own methods, which I now use with ease!
Today, I also share with my fans, hoping it can help you. If you find it useful, remember to like and save it!
Having been through the rain, I want to hold an umbrella for everyone, heartfelt words ❤️
I once suffered a loss of 80%, doubted life for a while, but I didn’t give up. I fell down and got back up, continuously summarizing experiences, and now I have reached a point where trading cryptocurrencies supports my family. Today, I share 5 golden rules and 3 market suggestions. Although the content is short, it is highly valuable, so remember to save it.
In addition to the 5 rules mentioned above, here are some experiential suggestions for everyone to consider. After long-term market observation and summarization, I found the following points particularly important to avoid falling into pitfalls during operations.
Summary
I hope these 5 golden rules and 3 market suggestions can help your investment journey. Although the market is full of opportunities, its high risks cannot be ignored.
Maintain caution, control risks, and strictly follow discipline to move steadily in this highly volatile market and seize suitable opportunities.
Let’s seek our own opportunities in the cryptocurrency market together, avoid risks, and reap plentiful rewards.
How to avoid liquidation in the cryptocurrency contract market?
Liquidation in contracts is not a matter of luck, but a matter of operation. To survive in the market longer, remember the following points:
1. Low leverage + light positions, don’t gamble with your life.
Newbies should use 3-5 times leverage, and even experienced traders shouldn't recklessly use more than 10 times leverage.
Control your position to within 20-30% of total funds, so when a major market movement comes, you won’t get wiped out in an instant.
2. Set stop-losses, don’t hold onto losing positions, and run away when you're wrong.
Not setting a stop-loss equals waiting to die. Before opening a position, consider how to exit if you’re wrong. Generally, set stop-losses within 3-5% of the opening price.
If you’re wrong about the direction, admit defeat. Holding onto losing positions will only lead to greater losses and ultimately liquidation.
3. Keep an eye on the liquidation price; don’t let the system harvest you.
Contracts have a liquidation price, and being too close to this price point is like handing your life over to the market.
Funds are sufficient, appropriately add some margin, but don’t mindlessly increase positions, or it will lead to a rapid explosion.
4. If you incur losses, don’t get emotional; don’t add positions impulsively.
Wanting to recover losses leads to 99% of people suffering even greater losses.
Go with the trend, don’t fight against fluctuations or one-sided markets. Adding positions against the trend is basically giving away your capital.
5. Spot + contract, learn to hedge.
If you hold BTC or ETH for the long term, you can consider opening hedging positions:
Holding BTC, bearish in the short term? Open a short hedge to reduce losses.
Holding ETH, want to earn more? Take a moderate long position, but keep the position small, and leverage must be stable.
6. Stay away from meme coins, don’t touch high-risk assets.
Small altcoins are highly volatile, leading to liquidation in minutes, while mainstream coins (BTC, ETH) are relatively more stable.
In extreme market conditions (sharp rises and falls), avoid high leverage, or you’ll graduate directly.
7. Don’t go all in at once; entering in batches is safer.
Don’t go all in at once; build positions in batches and gradually increase. Even if the market fluctuates violently, there will still be room for adjustment, and it won’t explode directly.
Survive first, then you have the chance to turn things around.
The most feared things in contracts are over-leveraging, holding onto losing positions, and getting overly confident. Manage your position well, set strict stop-losses, and don't open leverage carelessly to avoid being crushed by the market.
In cryptocurrency investment, it's common for newcomers to chase highs and sell lows.
Faced with rapidly rising markets, feeling anxious and fearing to miss the chance to profit, the greedy heart takes control, leading to "chasing highs" and jumping in.
After chasing highs to buy, there are usually two outcomes:
The first scenario is buying halfway up the mountain. Later, an upward trend indeed occurred, but due to not being able to identify the top, I failed to escape at the peak. So even when I made profits, I didn’t understand how to cash out, ultimately riding a roller coaster of wealth.
The second scenario is buying at a high, which leads to being stuck. The market doesn’t rise as expected but instead falls sharply, ultimately forcing you to cut losses and exit.
But after exiting the market, I didn’t reflect on where I went wrong, so I continued a new round of chasing highs and selling lows, entering a vicious cycle.
"Chasing highs and selling lows" is a standard label for retail investors because they don’t understand the market, don’t know when to buy the dip, or when to sell at the peak. They rely on feelings, listen to news, and are driven by human greed and fear, continuously repeating this erroneous process. The root cause is ignorance leading to greed, and lack of clarity leading to fear.