After working in the cryptocurrency circle for a full decade, I have witnessed three bull-bear cycles. From the initial capital of 50,000 yuan, I have achieved financial freedom today.
During the 6 years of professional cryptocurrency trading, I have experienced ups and downs, from debt to wealth and freedom, and class transition. I have made money and lost money, and have tried everything from local dog trading, ICO, and mining. I have experienced countless pitfalls. It can be said to be a long-short game, but it is more like a management of mentality, with surprises and disappointments. It is a magical circle, a place full of charm. I have summed up countless operating methods and strategies. In the end, there is only one way to make money, that is simple and rough, buy in the bear market, sell in the bull market, and make a steady profit.
Core survival rules
Only use money you can afford to lose
Waiting for the moment like a cheetah
5x leverage is the golden ratio
Keeping the capital means keeping hope
Core strategy: high leverage + precise sniping + strict stop loss
1. Only trade BTC/ETH - high liquidity, few plug-ins, the battlefield of big funds is your opportunity.
2. Leverage starts from 20 times - 1000U becomes 20,000U with only a 5% fluctuation, but remember: set a stop loss when opening an order, and the margin call line is your bottom line.
3. Breakthrough chasing method - wait for a large-scale sideways breakthrough (more than 4 hours), and buy in instantly when the price breaks the previous high/low, and take advantage of the inertia of the market.
At the core of cryptocurrency trading, only those who have been educated by the market will understand
The core of trading is position management:
All trading activities must be conducted under proper position management
Make a lot of money when you are right
When you lose, you lose a small amount
This is a guarantee of stable growth of funds
Because people are always determined by their emotions.
No matter how much you say that your decision is rational
It must be dominated by emotions.
Your direction is subjective.
All technical indicators will have strong or weak tendencies due to your judgment
We make money in the market
Thanks to the market
It's not how strong we are.
It's because the market has given us a taste of sweetness
It's all about chance and discipline that makes us successful
The key is position management
The longer you live, the more likely you are to win.
This is a game of chance
It's not someone's cash machine.
The difference between speculation and gambling is the difference between discipline and animality
The violent rolling technique of 1000U to 20,000U: the ultimate way to turn small funds around and the three principles of position control
First warehouse 200U test water temperature - Don't go all in right away, keep enough bullets
Earn 300U and immediately withdraw the money - continue playing with the money from the market
Step-by-step profit harvesting - earn 30% by harvesting 1/3 first, then break through the previous high and then make a comeback
(My "pyramid method" can reduce the risk of liquidation by 80%)
The devil is in the details
Prime time strike: keep an eye on the US liquidity peak (9-12 pm)
Leverage locked at 3-5 times - no matter how tempted you are, you won’t cross the line
Trailing stop loss 0.5% - this is your life saver
(Last year, I used this method to earn 7 times the profit in 18 days on PEPE)
Attitude is everything
Your account has 3000U? Withdraw 1000U first! Remember:
The most terrible thing about a bull market is not missing out, but watching profits slip through your fingers.
Want to make a comeback with small capital?
It's not based on luck, but on the art of rolling positions!
When others are still hesitating, you have already snowballed your profits...
99% of people who want to make money in the cryptocurrency world usually go through three stages
The first stage is an experience journey, which often involves a small profit followed by a big loss, or losing all the money earned.
The second stage is to consolidate beliefs, gain some small gains, summarize experiences and lessons after getting in touch with new things, and then form your own rhythm.
The third stage is the moment when your destiny can really be changed. With strategy, timing, discipline, and a little luck, you may be able to earn considerable wealth.
Those who can return with a full load and retire successfully in the first stage are extremely rare. More people exhaust their capital and cannot reach the other side of success. It is already remarkable to be able to stay at the "poker table".
In short, everything seems good during an up cycle, and everything seems bad during a down cycle.
Therefore, when information comes in like a tide, it is most important to remain cautious and not impatient.
The more anxious you are to operate, the more you will lose. You should work hard to develop a good mentality, excellent discernment, and a high degree of concentration!
How to make 20 million yuan in a stupid way that is almost 100% profitable? These are the 7 iron rules I learned with my blood and tears
I finally realized that the dumbest method is often the most profitable. Today I will tear out my trading diary for you to see:
1. Night Battle Rules
During the day, the market is like a drunk dancing, with news flying around and dealers drawing lines. I open the trading software after 21:00 every day, when the K-line is clear and the direction is clear at a glance.
2. Avoid being overwhelmed when withdrawing money
Earn 1000U? Withdraw 300 to your bank account first. I have seen too many people go from earning 3 times to zero, and the difference is just the three words "wait a little longer".
3. Three-piece indicator set
MACD golden cross and dead cross
RSI Overbought Oversold
Bollinger Bands opening direction
Only take action when two of the three indicators resonate. This is a lesson learned with a tuition fee of 200,000 yuan.
4. The Art of Trailing Stop
When watching the market, I move the stop loss up 3% for every 5% increase, and always set a 3% hard stop loss before going to bed. This is how I managed to keep my account intact during the 3.12 crash last year.
5. Withdrawal day on Friday
Every Friday, I would withdraw 30% of my profits without fail, and the rest would be my battlefield funds. Over the past 8 years, the interest from the withdrawals alone would be enough to buy me a house.
6. K-line time and space rules
Short-term view 1 hour: two consecutive positive lines before considering
Sideways for 4 hours: Ambush near the support level
Remember: the market is three-dimensional, don’t look at the K-line in two dimensions
7. The Four Blood Commandments
Leverage more than 10 times = suicide
Touching altcoins = giving money to the dealer
More than 3 orders a day = a sign of losing control
Borrowing money to trade cryptocurrencies = no return
Seven ways to die from cryptocurrency speculation! Be vigilant in the bull market!
The virtual currency bubble has confused countless people, making them jump into it without hesitation. Some people even quit their jobs and invested all their fortunes in the cryptocurrency market, then recorded their cryptocurrency diaries online.
It is certain that people who just started to speculate in cryptocurrencies usually make a profit easily, and this feeling of making quick money makes people unable to stop, further stimulating their greed and the hope of making more wealth. However, even if the virtual currency bubble does not burst, speculators are still at great risk of losses. Below, let's take a look at the seven most common ways for speculators to "die"!
The first type: Death from buying at the bottom of the market
The sharp drop in the price of virtual currencies often becomes a touchstone for the greed of cryptocurrency speculators. Some cryptocurrency speculators are excited to see the market fall, and they are eager to buy at the bottom against the trend. However, they never thought that the so-called bottom is not the end, but a bottomless pit.
There may be more uncertainties and risks hidden under this pit, like a bottomless abyss. Once falling into it, bottom-pickers may fall into endless difficulties, buying again and again, and being trapped again and again.
It can be said that buying at the bottom of the market is one of the main reasons why many cryptocurrency speculators lose money. In the obvious downward trend of the market, some cryptocurrency speculators mistakenly believe that the price of virtual currency has been low enough to attract new speculators, and therefore should usher in a rebound.
However, the actual situation is often that the more you buy at the bottom, the greater the losses will be, until you can no longer bear the burden. Not only will the profits earned previously be wiped out, but the principal may also be completely wiped out.
Take the fluctuation of Bitcoin in 2013 as an example, it soared from tens of dollars to about 1,000 dollars, and then plummeted to more than 100 dollars. This roller coaster market has bankrupted countless cryptocurrency speculators.
The strategy of bottom-fishing can only be successful in a volatile or rising correction market, and at other times, such behavior is usually a shortcut to a dead end. This is exactly the importance of following the trend that we often talk about. Correct following the trend can succeed many times in a volatile market, while counter-market operations may face irreparable losses once they are wrong even if they are done correctly countless times.
The second type: Death by leverage
In the virtual currency bubble, some speculators tasted the sweetness and were eager to increase their investment to make more profits. However, since they had no extra funds on hand, they began to consider borrowing money or financing to speculate in cryptocurrencies, that is, increasing leverage.
At present, the general leverage ratio is 5 to 10 times, which means that speculators can borrow more funds for investment with limited principal. Taking 5 times leverage as an example, if the principal is 300,000 yuan, speculators can borrow 1.2 million yuan and then buy virtual currency with full position. Whether the price of virtual currency rises or falls, the profit or loss will be magnified 5 times. Specifically, if the price of virtual currency rises by 10%, the profit of the speculator will be 50%; conversely, the loss will also be magnified 5 times. This means that as long as the loss of the speculator reaches 20% of the principal, a liquidation will occur, and both the principal and the borrowed funds will be cleared. Usually, speculators will not use high leverage at the beginning, but start with a smaller leverage ratio. However, making money again and again will gradually make them relax their vigilance against risks, blindly believe that virtual currency will only rise and not fall, and eventually lead to them losing all their money. Taking 2017 to 2018 as an example, Bitcoin continued to break through important price barriers, reaching a maximum of $18,000. Many people increased the leverage ratio in the process, hoping that the price of Bitcoin would further rise to $30,000.
However, Bitcoin eventually fell from $18,000 to around $10,000, and leveraged traders were liquidated and suffered heavy losses. In short, this behavior is to see some traders get rich overnight, then chase short-term profits, and end up betting in the wrong direction.
The third type: Death by K-line chart
Cryptocurrency trading uses K-line charts. Although this knowledge comes from the stock market and futures market, the K-line charts of cryptocurrencies cannot be fully applied to the experience of the stock market and futures market. Due to various uncertainties, relying solely on charts to trade cryptocurrencies may lead to serious losses.
For example, in 2013 and 2017, the Chinese government cracked down on virtual currencies, causing virtual currency prices to plummet; in 2017, the South Korean government also took action to suppress virtual currencies, which also caused a sharp drop in prices.
In short, virtual currencies cannot be officially recognized by central banks of various countries, and lack of legal status makes them vulnerable to various policy shocks. Such shocks cannot be predicted in advance through K-line charts, so it is difficult to avoid falling into risks. In addition, there are illegal activities such as market manipulation and price manipulation in virtual currency transactions.
In the regular stock market and futures market, such behavior is expressly prohibited and regulated. However, virtual currency trading is in a relatively barbaric era, with all kinds of demons rampant. The role of K-line charts in this environment is relatively small, and it may even become a tool for demons to lure speculators.
The fourth type: dying from chasing the ups and downs
Due to the instability of the K-line chart and the lack of other more reliable buying and selling methods, most cryptocurrency traders tend to adopt the strategy of chasing up and selling down. As we all know, chasing up and selling down may bring huge profits in the short term, but in the long run, the probability of loss is greater.
In the stock market, the probability of long-term profit is about 10%, including some value investors. In the futures market, the probability of long-term profit is reduced to 1%. In contrast, it is more difficult to speculate in virtual currency. Although many current cryptocurrency speculators claim to have made certain profits, it is a high probability question whether the proportion of sustainable profits will eventually exceed 1‰, and most cryptocurrency speculators may eventually lose money in the market.
In addition, although some people realize the instability of chasing ups and downs and want to hold virtual currencies for a long time, human nature is inherently greedy and fearful. Fear of falling prices and greed for rising prices lead to inconsistency between actual operations and rational assumptions.
Only a very few people can overcome this nature and defeat greed and fear. However, most people keep repeating their mistakes, just like a goldfish's 7-second memory, and it is difficult to really change.
The fifth type: dying from not stopping losses
For some cryptocurrency traders, they firmly believe that no matter how much the price of virtual currency plummets, it will eventually rebound. They stick to the belief of holding on to it and not selling it, and even declare that they will not sell it even if they die. They can remain calm in the face of any plunge, and believe that miracles will always exist.
However, for some virtual currencies, not selling them even if you die may really lead to heavy losses. Take the Chinese currency as an example. It once fell from a high of 35 yuan to 0.5 yuan, and then collapsed and was suspected of pyramid selling and was sealed up, and 260 million yuan of funds were wiped out. It can be said that this is the most tragic way for a cryptocurrency speculator to die.
There are two main categories of cryptocurrency traders who are easily deceived: one is those who have just started cryptocurrency trading. Because they are ignorant and fearless, they have no idea how cruel this way of dying is, which leads to their funds being inexplicably consumed; the other is veterans who have been in the cryptocurrency circle for some time, have experienced many transactions, and have made some profits overall.
People have become accustomed to the sudden rise and fall of virtual currencies, and even see the sudden fall as an opportunity, becoming more and more daring, but they do not realize that there are many types of virtual currencies, and if you are not careful, you may encounter liquidation, collapse, etc. Many tokens have experienced liquidation due to policy crackdowns, and the previous rise has suddenly plummeted.
Type 6: Death from High-Frequency Trading
Many cryptocurrency traders are keen on high-frequency trading, that is, frequent buying and selling operations, seeking to obtain considerable profits through price difference gains. However, the final result is often a continuous loss. Why does this happen? Theoretically, if you earn 1% per transaction, as long as you make sure you make a profit once a day, the daily rate of return is 1%.
In one year, this would bring a profit of 365%, or even more, and if the compounding effect is taken into account, the figure is even more staggering. However, in reality, the goal of successfully trading once a day seems simple, but in practice it is an extremely difficult task.
This is because the price of virtual currency fluctuates greatly, short-term trading is difficult to accurately predict, and high-frequency trading leads to a decrease in the success rate. The decrease in the success rate will lead to more losses, and the increase in losses will affect the mentality of traders. The deterioration of mentality will further lead to more and greater losses, forming a vicious circle.
For example, imagine the consequences of frequently changing lanes on the highway. Almost everyone knows that such behavior will cause trouble sooner or later. The principle of high-frequency trading of virtual currencies is similar. In addition, high-frequency trading will cause more transaction fees, and the actual money earned may not cover these fees, which is a common problem.
Seventh: Death from blindly following the trend
Many cryptocurrency traders lack a deep understanding of virtual currencies. They just hear that they can make money and rush in. After getting in touch with them, they often blindly worship the opinions of some big Vs, such as Bitcoin will eventually become legal tender, the number of virtual currencies is limited and will not depreciate, and the future of the 21st century belongs to virtual currencies. This view is widely prevalent on social media such as Sina Weibo, Snowball, and Zhihu, forming some "spiritual leaders" who advocate cryptocurrency trading.
Many people believed it, some quit their jobs and some even sold their houses to borrow money to invest in cryptocurrencies. However, the end result was that they did not make any money, and their work and careers were wasted.
Take Li Xiaolai, a famous figure in the virtual currency circle, for example. He promoted the EOS token and helped it raise $185 million in just five days. However, EOS later issued a statement clarifying its relationship with Li Xiaolai, denying that he was a co-founder or director of the project, which was shocking. In order to enhance their own value, many virtual currencies will find big Vs to stand up, so that speculators will mistakenly believe that the virtual currency has strong technology, broad prospects, and will usher in a surge. Blind faith in the so-called promising future of so-called emerging virtual currencies for fictitious recommendations from big Vs is usually just a prelude to death.
(If you are still underwater and cannot see the market trend clearly, and if you are bullish, it will fall, and if you are bearish, it will rise, please follow my homepage and share the "fish" while giving "fish", so that your operation can be more perfect and become the sharpest blade in the market!)$SPK $RESOLV #美联储FOMC会议 #我的交易风格
