My personal experience in trading coins is that the end is not liquidation but wealth.
It’s not about being enthusiastic about trading coins, but rather being enthusiastic about making money, working hard to improve the living standards of oneself and family. The ways to make money in this world are merely a few.
1. Starting a company during overcapacity, pandemic restrictions, and fierce competition is equivalent to seeking death.
2. Starting a small food stall is possible, but good locations are hard to rent, and poor locations have no business. Street vendors are also an option, but can you really handle the life of eating and sleeping outdoors, covered in grease?
3. Self-media entrepreneurship is a crazy competition, there are more self-media fighting for traffic than there is traffic itself; those big influencers seem glamorous, but the hardships behind them are known only to themselves. For example, I answer questions sincerely, but it hardly earns me a few perfunctory likes.
4. Working is certainly fine; it is equivalent to having a high-level crisis (the boss) to bear it, but working can only give you a salary; can it give you wealth? It cannot. Of course, if you are a technical expert, a high achiever, or a sales champion, then it can.
However, 99% of the world's people are not.
Six years ago, I gave up a high-paying job in the eyes of friends and family to trade coins full-time, just because I had a flash of insight into the secrets within!
At this moment, in the spirit of helping others and oneself, I am publishing the valuable trading methods I have distilled; each one is a precious insight built from real experiences, understand and familiarize yourself with them to avoid four years of stumbling!
After years of struggles in the crypto world, I have summarized several classic sayings, hoping to help both new and old investors.
First, do not hold positions; the profits you bring back will eventually be returned to the market because of 'holding'.
Second, do not guess the top or the bottom; the profits you guess will eventually be returned to the market because of 'guessing'.
Third, do not guess the top or the bottom, because you might still be halfway up the mountain.
Fourth, do not rely heavily on news, as this is just 'guessing' the top and bottom.
Fifth, do not easily leave the market when in profit, as you may be running halfway up the mountain.
Sixth, do not get excited at seeing large red or green candles because they may just be a 'performance' for the retail investors.
Seventh, do not think that the market you see is the last wave; as long as your capital is still there, there will always be market opportunities.
Eighth, do not trade frequently; not only will it confuse you about the overall direction and increase the chances of mistakes, but it will also raise transaction costs, resulting in losses.
Ninth, do not go against the trend; if you are right, hold on tightly, and if you are wrong, run quickly.
Tenth, do not buy just because the price is low, nor sell just because the price is high; do not act rashly as long as the trend has not changed.
Eleventh, do not treat trading as your main occupation; do not stare at the market, as the time spent staring is inversely proportional to the profit.
Twelfth, do not blindly trust the opinions of others; in the end, only you are the most trustworthy.
Thirteenth, do not make major mistakes. Missing an opportunity is not a major mistake; making a wrong move is not a major mistake as long as you stop loss. Only high-leverage holding positions that ultimately lead to liquidation count as major mistakes. No matter how many times you were right before, making one major mistake renders all previous successes null; the compounding will be interrupted.
Fourteenth, to achieve something in the crypto circle, you must stay away from people who drain your attention. The ratio of such people is higher among the female demographic. Spending time with such individuals will only waste your time and energy, leaving you with nothing in the end.
Fifteenth, if you do not have sufficient understanding, even if you follow others' trades, you will not be able to make money, because countless facts have proven that the crypto market changes too quickly to keep up.
Trading coins without reviewing is futile, no matter how much money you have. While you have time, let me share four iron rules; only after understanding them can you trade coins profitably!
The recent market changes are unpredictable, and many opportunities are fleeting. 'When soldiers come, generals block; when water comes, earth piles' is a quality that a qualified person should possess. With ten years of experience in trading coins, I have summarized six iron rules of the crypto circle to share with everyone!
The only enemy on the road of trading coins is yourself. Investing is actually a high-threshold industry, but you only need a phone/computer, a phone number, and an ID card to enter the CEX cryptocurrency trading market; however, this does not mean you will make money. The cryptocurrency market is ultimately composed of people, and human greed, anger, ignorance, laziness, and doubt are all vividly expressed here.
01 About gambling and altcoins.
Playing with altcoins is gambling; holding Bitcoin is the right path. This is a very peculiar argument in the current market; dollar-cost averaging into Bitcoin is highly recommended by many big players, yet the early success stories of these big players are often inseparable from altcoins, even CX coins.
Listening to big shots promoting dollar-cost averaging into Bitcoin, then mindlessly starting down that path; isn't that gambling? Whether it is gambling or not has nothing to do with the coin itself; the essence of a gambler's mentality lies in ignoring the current trend and operating based on their greed, fear, and hope. For many, the crypto market is purely a big casino; in the A-share market, many also consider it a casino.
People who view the market with this mindset do not belong here; wouldn't it be better to have some fun in Macau? Viewing the market with a gambling mindset will inevitably lead to a miserable outcome. The moment you step into the market with a gambler's mentality, the net of karma has already ensnared you, and a tragic end has been predetermined; no matter how you struggle, it will always be a gamble on your life.
Returning to Bitcoin and altcoins, there are always those who belittle the altcoin community, but without the initial altcoin Ethereum, how could Bitcoin achieve its current success? Bitcoin, as the pioneer, and the subsequent altcoins have a symbiotic and complementary relationship rather than a competitive one. Bitcoin alone cannot unleash the full potential of blockchain; it needs altcoins to extend and expand. In comparison, for ordinary investors, high-quality altcoins are often a better choice because the odds are relatively higher.
However, there is a basic fact: in the long run, the growth rate that can outperform Bitcoin is rare. Of course, in any market and era, those who become legends are always a small number.
02 About contracts and technical analysis.
Like altcoins, contracts are also a double-edged sword. Futures contracts in the crypto world are essentially equivalent to a casino. I hadn't dealt with contracts before, and the external voices suggested that playing contracts was just giving away money, with various reports of people losing everything creating a massive misunderstanding about contracts. It wasn't until I started dealing with contracts earlier this year that I realized they are a very good tool.
The main criticism of contracts is liquidation, but this only depends on the person. I only invest a small part of my total capital in contracts, dividing the contract capital into 10 portions for operation, and always set stop-loss for each order. I haven’t made a profit, but after playing hundreds of rounds, I haven’t faced liquidation. Most people trade without a trading system; for example, when a reverse trend occurs, they have no stop-loss mechanism, but internally they feel anxious and expect a reversal. If you don’t get liquidated, who will?
Contracts as a tool are not inherently good or bad; it depends on the user.
Because I got into contracts, I had to delve into technical analysis. Like everyone else, I previously thought technical analysis was nonsense, just hindsight wisdom. It wasn't until I got involved myself that I realized it wasn't like that. Technical analysis is not about making predictions; that is nonsense.
The essence of technical analysis:
Technical analysis is essentially a translator; there are too many factors affecting coin prices in the market, and you do not know which factor has the greatest weight, but all these factors will form a definite result, which is the price. Technical analysis describes what is happening in the market through price, which is the value of technical analysis, a language that people can understand.
Technical analysis has brought me the biggest change: knowing how to avoid risks. For example, I recently bought an IEO coin that increased nearly 8 times. In the past, I would have either sold out in fear of heights halfway, losing out on later profits, or held on through the peak and got stuck. Now, this coin has dropped by half. This time, I used a simple long-short moving average system and discovered that this coin had shifted from a bullish to a bearish market in a larger timeframe, so I sold in time and preserved most of my profits.
People are easily influenced by external voices, leading them to reject or favor something they have never understood; this is a problem that must be changed.
03 About greed and fear.
Rejoice in external gains, mourn for personal losses. Prices rise due to revolution, fall due to scams; emotions are always the biggest obstacle on your investment path because they disrupt all your plans. In fact, many people have trading plans; as soon as the target price appears, they sell, and when the buying point appears, they buy. However, with emotions involved, the results often go against their intentions.
For example, during the 312 crash, many people said that their trading systems had already signaled to sell before 312, but due to the market's fervor and infinite expectations for Bitcoin's halving at that time, they didn't want to miss out on the big market, and greed took over completely. The 312 crash was the biggest retribution; infinite joy and expectation turned into infinite sorrow.
No trend is worth fearing or celebrating. If you are still fearful or surprised by any trend, it indicates that you are still being controlled by emotions, and you should continue to hone your skills in the current trend until all fear and surprise turn to dust.
How to eliminate greed and fear? The most common method is through continuous market washing. Here, I have a better and more convenient method—Zen contemplation.
I consider myself a half-hearted Zen enthusiast, meditating daily while pondering the question 'who is chanting the Buddha's name', but I have doubts and thoughts about who is truly chanting. This is the essence of contemplation, and this method can also be applied to various thoughts, such as 'who is initiating greed', and when you pursue it, you will soon have a question: where does this thought originate from? In fact, at this point, the current greed has already dissipated, and the same applies to 'who is in fear', 'who is happy', etc.
04 Summary
People can often develop an inexplicable aversion or affinity for something they have never understood. In terms of emotions, people are easily disturbed by external influences and can develop biases against fluctuations in K-line; yet the true voice of the market is always the present.
Investing is very similar to spiritual practice; through various methods, one refines their character and cuts through layers of confusion to comprehend the truth. Investing is a form of practice, and on this path of practice, your only enemy is yourself.
What are the five useless laws of trading coins?
What are the five useless laws of trading coins?
Should beginners trade spot or contracts?
The five useless laws in the crypto world:
1. Able to buy, but not able to hold heavily, is useless.
2 will heavily invest, unable to hold, useless.
3. Not selling after reaching the end of a bull market is useless.
If there is no heavy investment in trends, it is useless.
5. Holding a position in a trend that cannot be maintained is useless; the market can make you double countless times, but going to zero only takes once. Stability is the main theme.
Everyone envies seizing opportunities to become rich, but still, follow your own pace.
Seeing others make money, sometimes you think you can do it, but when you participate yourself, you might lose money. Analyzing after the fact is sometimes quite meaningless; being able to make a decision from that moment is the most important.
To know and act as one means that regardless of whether one is shorting or going long, whether right or wrong.
The development of a trading mindset is related to trading experience; practical trading can accumulate knowledge from other traders. To be good at trading, skills are not the most important factor. To be good at trading, skills are not the most important factor; skills can only get you in the door, and ultimately, the outcome is determined by your courage, mindset, and luck.
In this circle, it's not about who earns more or faster.
What matters more is who lives longer, who makes fewer mistakes.
Here, I warn new friends entering the market again: seeing those big players making money seems so easy, but you cannot see how many detours they have taken and the costs they have paid to succeed.
Then I fantasized about reaching others' levels in a short time, leading to a situation where I lost everything.
Let go of the idea of becoming rich overnight, or even the urge to achieve results quickly. Take one step at a time and learn.
If your mindset in trading coins is poor, even having millions can result in losing everything.
Trading coins is about mindset; the crypto market is a psychological game, a contest of intelligence among millions, and a fierce psychological battle.
The fluctuations in the coin market to some extent reflect the psychological changes of both parties in the trade; in a sense, trading is about psychological quality.
In the long run, the ultimate winners in the crypto market are mostly those with strong psychological qualities and a calm mindset. Initially, trading starts with curiosity and interest, then it becomes about technique, followed by unexpected insights, unique perspectives, judgment, wisdom, and ultimately about mindset and state.
"The most important thing in trading is mindset, second is mindset, and third is still mindset." Success lies in mindset, failure also lies in mindset.
During a certain period, the emotions of participants, their madness and rationality will play a decisive role in buying and selling in the crypto market.
Without good psychological quality and a peaceful mindset, it is difficult to become a big winner.
Sometimes market trends can only be understood clearly after the fact; why couldn't they be understood beforehand?
Why do you always incur losses?
Apart from technical reasons, you can also find causes in your mindset—when prices rise, you always want them to rise further, with greed replacing rationality; when prices fall, your mindset is unstable, always fearing further drops, with fear blinding your eyes.
Some people often waver between excessive confidence and lack of confidence, often making mistakes when overconfident and also making mistakes when lacking confidence, which may lead to a complete loss of faith.
Some say that a good mindset in trading is not to rejoice in rises, not to mourn in falls, not to celebrate in profits, not to grieve in losses. This sounds easy to say but difficult to implement; most people entering the crypto market are just ordinary beings. When they buy in the right direction, they are happy; when they buy in the wrong direction, they are troubled, which is human nature. The pursuit should be a kind of mental peace.
When you buy correctly, do not be blindly optimistic and lose yourself. When you buy incorrectly and lose money, do not be blindly pessimistic and disappointed, which increases psychological burden, leading to loss of judgment, compounding mistakes.
Maintain a good mindset; regardless of what happens, your mindset should not be affected. This adds a bit of calmness, reduces impatience, adds a bit of rationality, and reduces blind actions, keeping your mind clear and not influenced by market changes.
With a good mindset, there will be good results.
The crypto world is not as difficult as imagined. If you are also a tech enthusiast and are quietly studying technical operations, follow me and let the crypto market have no secrets.