A big player who earned 40 million in ten years in the crypto space tells you what to pay attention to!
In fact, once you get the hang of trading cryptocurrencies, life feels like you've attained enlightenment!
Ten years ago, when I first entered the crypto space, like most retail investors, my profits and losses seemed to depend entirely on luck, and I couldn’t grasp any patterns. However, after spending a few years in the crypto world, through continuous learning and absorption, and with the constant sharing and guidance from mentors and senior traders, I slowly began to understand and develop my own investment system!
Today, I will share my trading strategies and insights with friends in the crypto community.
What method did I use to earn over 30 million in ten years!
The core is one sentence: Use contract trading to amplify profits! But don’t rush in; first, turn this 2000 into 300U (about 300 USD), and let’s take it step by step:
Step 1: Roll a small amount of capital into a snowball (300U to 1100U)
Take out 100U to trade, specifically targeting the latest hot cryptocurrencies. Remember two things:
① Run when you double your investment (for example, turning 100 into 200, immediately take profits) ② Accept a loss at 50U
Just cut your losses. If you're lucky, winning three times in a row can roll you up to 800U.
(100-200~400~800). But take profits when you see them! Play a maximum of three rounds, and stop when you earn about 1100U; at this stage, luck plays a big part, so don’t be greedy!
Step 2: When you have more money, start using combos (starting from 1100U)
At this time, split the money into three parts to play different strategies:
1. Quick In and Out Type (100U)
Specialize in 15-minute fluctuations, focusing on stable cryptocurrencies like Bitcoin/Ethereum. For example, if you see Bitcoin suddenly rising in the afternoon, immediately follow the trend, make a profit of 3%-5%, and then exit, similar to street vending—small profits but high volume.
2. Zen-style regular investment (15U per week)
Regularly invest 15U in Bitcoin contracts each week (for example, if it's currently $50,000, you believe it will rise to $100,000 in the long term). Treat it like a piggy bank; don’t panic if it drops; wait for half a year to a year—suitable for those who don’t have time to monitor the market closely.
3. Main Event Trend Trade (put the rest of your investment in)
Seize the major trends decisively! For example, if you find out the Fed is going to cut interest rates, Bitcoin might soar, so open a long position immediately. But you must think ahead: how much to earn before exiting (for example, doubling), and how much to accept as a loss (maximum 20%). This trick requires you to understand the news and technical analysis; beginners should not act recklessly!
Important Reminder:
① Bet a maximum of 1/10 of your capital each time, don't go all in! ② Set a stop loss for every trade!
③ Play a maximum of 3 trades per day, if you're itching to play, go play games ④ Withdraw when you reach your target, don’t think about 'making another wave'! Remember: Those who turn their luck around with this method are ruthless; they are ruthless to others and even more ruthless to themselves!
Whether in a bull market or a bear market, whether you are a novice just starting out or an experienced trader, as long as you make good use of these [11 iron rules for trading cryptocurrencies], making 30 times your investment in a month is not a fantasy!
Iron Rule 1: Signal Recognition for Trend Reversal
In a downtrend, if there are three or more consecutive bullish candlesticks rebounding, or if the bearish candlestick pullbacks in an uptrend do not exceed three consecutive bearish candlesticks, this is likely a warning signal for trend reversal, and must be closely monitored.
Iron Rule 2: Guidelines for Breakout Trading
In a fluctuating market, when volume increases and price remains stable, a major breakthrough often follows. In operation, one can buy on dips; when the two bullish volumes exceed the previous bearish volume, one can intervene in advance and seize the opportunity.
Iron Rule 3: Holding Strategy in Strong Markets
The strategy for holding assets in a strong market is simple: as long as the daily line does not break below the rising average line, hold firmly. Don’t be disturbed by technical indicators, especially in a high-level state of inertia, to avoid getting off too early.
Iron Rule 4: Candlestick Combination Analysis Techniques
A bullish candlestick combined with two doji candles usually indicates a continuation of the upward trend, which is a typical bullish price pattern; once discovered, one can actively follow up.
Iron Rule 5: Unconventional Market Psychology
The market often goes against the views of the majority. The smoke screens released by the major players and market tops often appear when everyone is optimistic, so it is crucial to maintain independent thinking and contrarian thinking.
Iron Rule 6: Key Points for Using the KDJ Indicator
When encountering consecutive large bearish candlesticks, when the J line of the KDJ is below -12, it means a short-term rebound is about to come. At this point, don’t rush to act; wait for the rebound to appear before making a judgment, to avoid blindly bottom-fishing.
Iron Rule 7: Key Characteristics of Breakout Candles
When breaking upwards, a bullish candlestick’s turnover rate around 8% is considered a healthy attack volume. If the turnover rate is too large or too small, it may trigger a pullback, which requires caution.
Iron Rule 8: Core Principles of Risk Control
Never operate with a full position; always leave some margin. Market risks are everywhere, and acting cautiously allows you to leave room for error correction and protect your capital.
Iron Rule 9: Essential Mindset for Emotion Control
When trading cryptocurrencies, maintain a calm and rational mindset, and treat market fluctuations correctly. Never let emotions influence your decisions; a stable mindset is essential for long-term success.
Iron Rule 10: The Path of Learning, Communication, and Growth
Don’t work in isolation; communicate and share with other traders. Even if the other party's opinion is wrong, it is valuable experience on your path to growth. Only by progressing together can we stabilize our position in the crypto world.
The above 11 iron rules are all verified by me with real money in the market. I recommend everyone to read them repeatedly and keep them in mind. I believe that as long as you use them skillfully, your trading skills will improve dramatically!
If you want to treat trading cryptocurrencies as a second career to support your family, you must seriously study this article; it will at least save you ten years of detours!
Opportunities are always present in the market; what matters is whether we have the patience to wait for opportunities during our trading operations. A sharp eye avoids getting swayed by minor fluctuations in the intraday price, leading to impulsive trades; by strictly executing our trading strategy in conjunction with the overall trend, we should have a reasonable trading system for when to heavily invest, when to lightly invest, when to short, and when to hold.
As a trading investor, there's a saying: A good fighter must not seek battle; true experts are not the type to be passionate every day, fully invested, and get uncomfortable with even a single day of being out of the market. Such people think they are experts, but they are usually the ones suffering losses.
Four Forms of Trading Volume Performance
1. Volume Decrease:
Volume decrease refers to a significant reduction in the trading volume of a particular cryptocurrency compared to a previous period. Volume decrease generally occurs during the mid-trend, and both volume-increasing uptrends and volume-decreasing downtrends are not true rises or falls. Market trading appears relatively light, with the majority having a higher consensus on the future market trend. It is generally derived as a concept of increase or decrease compared to the previous trading volume, and also includes concepts like horizontal volume decrease, vertical volume decrease, daily volume decrease, and stage volume decrease.
2. Low Volume:
Indicates that the trading volume presents a shape similar to a soil mound, with a gradual increase in trading volume reflecting a healthy upward trend. Low volume is an extreme manifestation of reduced trading volume, indicating that market trading is extremely light, with the volume reaching the lowest level in a long time, showing that the vast majority of people have a very high consensus on the future market trend. This is often due to very low market sentiment, extremely inactive trading, or prices being heavily controlled by major institutions, making it difficult for others to participate. Low volume can be divided into recent low volume, historical low volume, and stage low volume, which are generally evident on daily, weekly, or monthly candlestick charts, often appearing when the price is about to reach a medium- to long-term bottom.
3. Volume Increase:
Indicates a significant increase in trading volume compared to a previous period. It can be divided into horizontal volume increase and vertical volume increase. Horizontal volume increase refers to the comparison of the current trading volume with the previous adjacent trading volume, while vertical volume increase refers to the sustained increase in volume for the day, indicating not only active trading that day but also an increase in turnover rate. Volume increase is generally derived as a concept of increase or decrease compared to the previous trading volume and also includes concepts such as horizontal volume increase, vertical volume increase, daily volume increase, and stacked volume.
4. Excessive Volume:
Describes a very large trading volume for the day, with the maximum trading volume represented by one volume bar within an area. Usually indicates that the market trading activity is particularly high. Excessive volume is an extreme manifestation of increased trading volume, indicating that market trading is extremely active, with the volume reaching the highest level in a long period. This shows that there is a significant amount of disagreement among the majority, and the recognition of the future market trend is very low. Excessive volume can generally be classified into recent excessive volume, stage excessive volume, and historical excessive volume, which is clearly reflected in daily, weekly, or monthly candlestick charts.
By categorizing the relationship between volume and price in detail, there are six forms: increasing volume and decreasing price, increasing volume and stable price, increasing volume and increasing price, decreasing volume and decreasing price, decreasing volume and stable price, decreasing volume and increasing price; in addition, there are six special cases, such as no volume limit up (one-word board), no volume limit down, bottom breakout, low volume low price, high volume high price, etc. The highest realm of technical analysis - volume-price-time-space theory! Volume, price, time, and space refer to trading volume, transaction price, time span, and fluctuation space, which are the four basic elements of technical analysis. There are various technical methods, but they all revolve around these four aspects.
The essential characteristics of volume-price analysis can be roughly divided into four situations:
1. Price Increase, Low Volume: Indicates that bulls are dominant and have the recognition of bears;
2. Price Increase, High Volume: Indicates that bulls are dominant but bears have differing opinions, leading to varying levels of selling pressure;
3. Price Decrease, Low Volume: Indicates that bears are dominant and bulls do not increase buying pressure;
4. Price Decrease, High Volume: Indicates that bears are dominant but bulls do not agree, leading to varying degrees of support.
That's all for today; in the bull market phase, if you're really struggling in the crypto space, don’t force yourself; come find me to be your mentor, learn the latest information, strategize, embrace the bull market, improve your win rate, and say goodbye to being stuck at high levels.
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