The market is like an endless ocean, deep and bottomless; it can either accumulate like a mountain or sink like a stone. Whether you become a victim of the market or a standout in the market depends on your awareness. Here are some insights I would like to share with everyone:
1. Fund management+ is the cornerstone of success.
Divide your funds into five parts, using only one-fifth each time, and set strict stop-losses. Each trade should not exceed a 10% loss, and total capital loss should be controlled within 2%. Even with five consecutive mistakes, the total loss remains only 10%, but once you seize the opportunity, profits can often easily cover the losses.
2. Follow the trend; do not go against the current.
·Do not rashly catch the bottom during a downturn; most are traps for inducing excess buying. Patiently wait for clearer signals.
·Don't rush to sell during an uptrend; it may be a 'golden pit'. Buying low is often more stable and reliable than catching the bottom.
3. Stay away from coins that experience short-term surges.
Whether mainstream coins or altcoins, continuously surging coins are rare; most will stagnate or even pull back after a surge. Do not indulge in the illusion of betting on miraculous high-price surges.
4. Make good use of technical indicators.
·MACD+ is a practical tool: Consider buying when the DIF line and DEA line form a golden cross below the 0 axis and break the 0 axis; conversely, consider reducing positions when the death cross occurs above the 0 axis and moves downwards.
·Replenishing positions must be methodical: Never add to a losing position; only increase when in profit, otherwise, you may fall deeper into losses.
5. Trading volume+ is the soul of the cryptocurrency market.
·Pay attention to low-level volume breakthroughs; this is an important market signal.
·Persist in trading only in coins with an upward trend; a turn upwards often indicates a trend has been established.
6. Review+ and adjust strategies+.
After each trade, review and re-examine the logic of your holdings, flexibly adjusting your operational strategy in conjunction with the weekly K-line trend.
Here are some iron rules from the cryptocurrency world:
One, only participate in the irreversible upward trends of the market.
"Only participate in the irreversible upward trends of the market." The market is a fact that cannot be doubted or challenged; trends are irreversible. As investors, you must dare to admit mistakes, correct them at any time, refuse uncertain market conditions, and follow the trends that even the manipulators must comply with; understand the importance of following the trend.
Two, refuse frequent trading.
The casino is open 24 hours; there's no need to trade frequently. There are many logics such as timing, trial and error, position control, etc. We advocate waiting like a hunter for the perfect opportunity rather than recklessly investing as soon as prey appears.
Three, do not be superstitious about technical indicators.
First, we must acknowledge that any technical indicator has its lagging nature.
For example, when the MACD indicator issues a golden cross buy signal, in fact, the coin has already surged, and at the point of the golden cross, you may just be the one left holding the bag!
Four, buy and forget the cost price.
When you go short or long, your cost price has no relation to any subsequent actions because whether to sell depends on market trends, and has nothing to do with whether you are still profitable. If the formation looks good, continue holding; if the formation turns bad, reduce your position or even liquidate.
Five, participate with money you can afford to lose.
Use spare money to trade cryptocurrencies; investing carries risks. Investors can increase their investment after mastering the secrets of profitable trading. Before that, ensure to participate with money you can afford to lose; borrowing money often leads to heavy losses!
Sixth, withdraw profits on time if you have gains.
Without cashing out, everything is just numbers. Cryptocurrency investors are like gamblers who haven't left the casino; even if they temporarily earn a lot of money, they are not 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.
Each word is precious; every line is worth your careful consideration and repeated reflection. Following these rules may help you avoid detours and multiply your wealth by millions!
Following the iron rules of trading is a solid defense for safeguarding wealth and reason.
"The smoke of battle never shows mercy to bleeding warriors; the world of trading is harsher than the battlefield—here there are no medals, only legends of survivors. When I see countless traders fall under their own knives, I finally understand: true weapons are not K-line strategies, but the survival iron rules etched in the marrow of their bones."
[The First Commandment: Position Hell] "Do you think being heavily invested is a shortcut to wealth? No, it’s a roller coaster to hell! When leverage becomes a noose, even the most accurate judgment turns into a knot swinging on the gallows. Remember, the bell tolling for liquidation often starts the moment you hit 'buy all'."
[The Second Commandment: Fatigue Curse] "Caffeine at three in the morning won't save your account; bloodshot eyes can't see the truth of the trend. Fatigue is the most effective poison of the market's Satan; it makes you see stop-loss as take-profit and opportunity as a trap. Remember, a trader who collapses on the keyboard will never see the dawn's light."
[The Third Commandment: Advantage Principle] "Trading without core competitiveness is like rushing into a hail of bullets with bare hands. Ask yourself: If you could only use one sentence to explain your winning logic, is that sentence sharp enough? Simple enough? Enough to make opponents tremble? If not, you're just a lamb waiting to be slaughtered at the gambling table."
[The Fourth Commandment: Boredom Poison] "Opening positions out of loneliness will surely lead to demise due to greed. The market will not buy your loneliness; it will only teach you what it means to 'endure loneliness' with losses. A true hunter can transform the empty position period into a sniping moment, letting every trigger pull shatter the opponent's eardrum."
[The Fifth Commandment: Staring into the Abyss] "Revenge trading after a big loss is like throwing stones into the abyss and expecting an echo. The market will never pay for blood and tears; it will only mock your weakness with deeper losses. Remember, when you stare into the losses, the losses are also staring back at you—until they drag you into the bottomless abyss."
[The Sixth Commandment: Escape Route] "Every trade should have an escape route; stop-loss is not a shackle but a parachute. Before greed devours reason and before fear distorts judgment, let the plan make the coldest decisions for you. Remember, a position without a contingency plan is like a rickety bridge hanging 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 turn into the spark of obsession, failing to stop-loss in time will set you on fire. Remember, trading is not an altar of faith, but a battlefield of reason."
[The Eighth Commandment: Rearview Mirror Trap] "Trading while staring at profit and loss figures 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 front of the trend, letting every decision penetrate the fog."
[The Ninth Commandment: Signal Filtering] "The market generates hundreds of thousands of noises daily; true signals hide in the eye of the storm. Cultivate iron-like concentration, let the bullets fly a little longer until you see the prey worth pulling the trigger on."
[The Tenth Commandment: Trend Current] "To go against the trend is like trying to block a mudslide with your body. Smart money always stands on the direction of momentum, harvesting the market with the principle of least resistance. Remember, real profit comes from the magic of compound interest that follows the trend."
[The Eleventh Commandment: Value Fog] "A decline is not a badge of value; it may be the death knell of value destruction. True value investing requires seeing the spring of free cash flow through the reports, rather than picking up cigarette butts in a garbage heap."
[The Twelfth Commandment: Discipline Scripture] "Trading discipline is a sanctuary built on blood and tears, and every time you break the rules in emotional agitation, you destroy your own throne. Remember, professional traders are not genius prophets but priests of rule enforcement. Plan your trades, trade your plan - this is the only path to salvation in the trading world!"
[Finale: The Battle Song Fades] "When the market closing bell rings, may these iron rules become your armor. Remember, trading is not a casino for overnight wealth, but the ultimate training ground for cognition and discipline. Only traders who engrave iron rules into their DNA can traverse the bull and bear markets, becoming eternal survivors of the market."
There are many common situations of emotional cutting losses. The following three are the most common.
1. Market oscillation.
When a coin experiences internal oscillation, it is actually the main force taking aim at retail investors. During the ups and downs, if retail investors buy heavily, the price is likely to end with a significant drop; if retail investors sell heavily due to panic, the price is likely to rise after oscillation.
2. Chasing highs and killing lows.
Chasing high and killing low is also the most common emotion. Behind chasing high and killing low is the fear of missing out and the fear of getting trapped.
The emotions of chasing highs and killing lows can also be easily exploited by the main force. When many people chase high, the main force often finds it easy to sell off. The morning may see significant inducements, while the afternoon can result in major drops to show retail investors, leading to losses exceeding 10% in just one day. The main force just happens to wash the盘, causing panic sell-offs by retail investors; it should not be the coin price that chases highs and kills lows, but the trend. Retail investors' half-baked understanding makes them the prey in the game.
3. Negative and positive news.
One more point is that both negative and positive news will be exploited by the main force; negative news can suppress coin prices but can also be interpreted as 'all negative news has been released,' allowing for a significant price surge. Similarly, positive news can push prices up or can also be used for selling at a higher price.
So how to interpret positive and negative news is dictated by the funds. How funds operate is based on market reactions and retail operations. Retail investors panic, and funds greedily buy; once retail investors become greedy, funds immediately flee. Using emotions to exploit losses is something funds do exceptionally well, almost effortlessly.
I hope these principles and strategies can help you navigate the cryptocurrency world with fewer detours and steadily accumulate wealth.
Success is not accidental; opportunities are reserved for those who are prepared!