Trading coins is actually very bloody, with one earning, two breaking even, and seven losing.
This is the only unchanging truth in this market.
If brothers are currently in a phase of loss and confusion
And also, funds are within 500,000.
If you want to quickly open up the situation in the crypto space through short-term trades
Then please read this post carefully.
After reading, you will surely have an epiphany about the essence of trading.
1. Control desire, knowledge and action unite.
Everyone has greed, anger, and ignorance; when the market rises, they always want to earn more, and when it falls, they start to play dead, unwilling to admit defeat.
It's hard to break even, and then you become like a shepherd. In this market, if you have no principles, you will definitely be swayed by the manipulators and your own emotions.
My principle is to limit losses to no more than 5% of the principal each time; if profitable, at least 10-30%. Once the profit exceeds 20 points, I start to give back, ensuring that the transaction cannot lose out. Even if your win rate is only 50%, after 100 trades, your returns will reach 800%.
Is it difficult? The difficulty lies in human greed and fear, unity of knowledge and action.
2. Concentrate investments, learn to stay in cash.
The biggest pain point for retail investors: they can't stay in cash, they add to their positions during weakness, have little principal but too many coins, and stubbornly hold on to losses. Under 500,000, it's not advisable to hold more than 3 coins; above 1 million, it can be controlled at most 5 coins. Those large-level moving averages trending downwards, and coins that aren't strong and are not in the mainstream track should be removed. Admitting mistakes may require great courage for you, but recognizing your errors is the beginning of our success.
Those who can buy are apprentices, those who can sell are masters, and those who can stay in cash are the ancestors.
When the market is not good, you must be able to control your hands. And when you truly believe in something, dare to invest heavily. In fact, most of the profits in the investment market come from a few good coins.
My 60% capital position never exceeds 5 coins (BTC/SOLETH/BNB/Doge), even in a bull market. 20% is used to rotate leading coins during bull market sectors, and the remaining 20% is always kept in cash waiting.
3. Volume and price are the only indicators that do not deceive.
Returning to basics, mastering volume and price is enough to let you outperform 80% of traders.
A breakout with doubled volume often signals the entry of funds, generally indicating a big trend. 0.5 times volume indicates obvious contraction; a new high with reduced volume suggests a high degree of control by the main force, which can rule out the possibility of the main force offloading, making it very likely to profit in an upward trend.
If the coin's increase exceeds the previous day, and the volume ratio is less than 1, it indicates there is still considerable upward potential, and the probability of rising again the next day is very high. Conversely, if the volume is 1.5 times and it meets resistance at a certain level, it often indicates a peak signal. Researching volume must be accompanied by an understanding of price to grasp the fundamental dynamics of supply and demand.
4. A sharp drop is the touchstone for the coin's quality.
In a bull market, a sharp drop represents a buying opportunity and a good time to select coins. If the market crashes and your coin only slightly drops or doesn't drop at all, it clearly indicates that funds are clustering and refusing to fall. Thus, such coins can be held with confidence, and there will definitely be returns.
If the market crashes and your coin drops, but the next day the market rises and your coin skyrockets, it's likely that the main force is washing out during the market decline. For coins that are not strong, you can buy during a market crash and sell when the market rises, taking advantage of short-term rebounds.
5. Trend is king; follow the trend.
Once a trend is formed, it won't change easily. Novices die from bottom fishing, while experts die from trying to top-tick. The wisest choice is not to guess, predict, or assume, but to follow the trend. If you can't judge the trend, look at the moving averages. When all moving averages are aligned at a 45-degree angle upwards, it's hard to lose with such coins. If you're trading short-term, watch the 5-day moving average; as long as it doesn't break below it, it remains strong. The lifeline for a swing trade is the 60-day moving average. Coins in an uptrend often have at least a short-term opportunity when they first drop to the 60-day moving average.
6. Buy on divergence, sell on consensus.
This is similar to the previous Ethereum ecosystem; after Ethereum rises, there will definitely be differentiation because the main players want to profit when everyone is willing to take over, cashing out at high positions, so it is said to sell on consensus.
Buying on divergence and trading strong coins follows a principle: the strong get stronger. A coin can become a strong coin or a monster coin because it is favored by market funds. Once someone sells such a coin, more people will buy, and it often continues to rise, represented on the K-line as a reversal after an initial bearish candle.
7. The less smooth the trading is, the more you need to keep your composure.
Not everyone is qualified to walk a difficult road; only those who can withstand the pain of rebirth deserve the beauty of rebirth. So many people suffer big losses just like I did, struggling to find direction when I entered the market in '17. I am very grateful for this experience because I stood up, and I believe I won’t fall again. In fact, the more successful trading is, the more you should maintain a low profile. Before the first half of '17, my capital had also surpassed a million; I might not have much money, but I was high-profile. The result of being high-profile only leads to blind arrogance and a loss of risk awareness.
8. Why do I choose to trade? I was born poor and cannot die in poverty. I don't know how many people are like me, coming from rural backgrounds, wanting to change their fate. I made my first pot of gold in internet finance, and after getting into crypto in '17, it seemed tailor-made for people like us. It doesn't require socializing or bowing down; if you have the skills, it becomes your ATM. If you don't, then you bear the consequences of your expectations. The circle is very fair; of course, all breakthroughs and transitions are painful, but every failure is a step on the ladder to financial freedom.
"A general's success comes at the cost of countless lives." Trading coins is indeed very bloody, with one earning, two breaking even, and seven losing. Many experts I know in the crypto space study Buddhism. With each major market movement, whether up or down, we choose to release and donate. I know this is meaningless, but I seek a clear mind. If one day everyone succeeds, please remember to do something meaningful for society! To put it in a Buddhist way, this is cause and effect; to put it seriously, those who achieve must benefit the world!
A rose given to others has a lingering fragrance in your hand. Thank you for your likes, follows, and shares! Wishing everyone financial freedom by 2025!
Playing around in the crypto space is essentially a battle between retail investors and manipulators. If you don't have cutting-edge news or first-hand information, you can only be cut! If you want to plan together and reap rewards from the manipulators, feel free to join in; like-minded people in the crypto space are welcome to discuss together~
The martial arts secret has been given to you; whether you can become famous in the world depends on yourself.
These methods must be saved by everyone, read several times. Friends who find it useful can share it with more people trading coins around them. Follow me for more crypto insights. After getting rained on, I'm willing to hold an umbrella for the retail investors! Follow me, and together we will walk the path of crypto!
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