is the only unchanging truth in this market.
If brothers are currently in a stage of loss and confusion,
and the capital is within 500,000,
If you want to quickly break through in the crypto space through short-term trading,
So please read this post carefully,
After reading, I believe you will have an epiphany about the essence of trading.
1. Control your desires; knowledge and action must be united.
Everyone in the world has greed, anger, and ignorance. When the market rises, they always want to earn a bit more; when the market falls, they start to play dead, unwilling to admit defeat.
It’s not easy to break even, and you directly become a cowherd. In this market, if you have no principles, you will surely be swayed by the market makers and your own emotions.
My principle is to limit each loss to no more than 5% of my capital, and if I profit, it should be at least 10-30%. Once I make a profit of over 20%, I start to take some back, ensuring that I cannot lose on that trade. This way, even if your win rate is only 50%, after 100 trades, your returns could reach 800%. Is that difficult? The difficulty lies in human greed and fear; understanding and action must be united.
Concentrated investment; learn to hold cash.
The biggest pain point for retail investors: not knowing how to hold cash, averaging down on weak losses, having little capital but many coins, stubbornly holding onto losses. Below 500,000, it’s advisable not to hold more than 3 coins; above 1 million, it can be controlled at most 5 coins. Those in a downward trend with large-scale moving averages should be eliminated; recognizing mistakes may require great courage for you, but acknowledging your errors is the beginning of our success. Those who know how to buy are disciples; those who know how to sell are masters; those who know how to hold cash are the ancestors.
When the market is bad, you must be able to control your hands. But when you truly see value, you must dare to go all in; in reality, most profits in the investment market come from a few good coins.
My 60% capital is never held in more than 5 coins (BTC/SOL/ETH/BNB/DOGE), even in a bull market. 20% is chosen in the bull market board.
Rotate leading coins, and keep the remaining 20% in cash, waiting.
3. Volume and price are the only undeceptive indicators.
Return to basics; mastering volume and price is enough to outperform 80% of traders.
A volume breakout often indicates capital involvement, usually leading to significant market movements. A 0.5 volume indicates a clear reduction in volume; a reduced volume with a new high indicates that.
A high degree of control by the main force can eliminate the possibility of them offloading; in an upward trend, there’s a high probability of making profits.
If a coin's increase exceeds the previous day and the volume ratio is less than 1, it indicates there is still significant upward potential, and the probability of rising again the next day is very high. Conversely,
If the volume is 1.5 times and it encounters resistance at a certain level, it often signifies a peak signal in the phase; studying volume must be paired with price.
Understanding the forces of long and short is grasping the fundamentals of volume and price.
A sharp drop is the touchstone for testing cryptocurrencies.
In a bull market, a significant drop represents a buying opportunity and is a great time to select coins. If the market crashes and your coin only slightly drops or doesn’t drop at all, it clearly shows there is capital support, refusing to decline. Therefore, such coins can be held with confidence; there will be returns.
If the market crashes and your coin drops significantly, but the next day the market rises and your coin skyrockets, this is very likely a sign that the main force is using the market's decline to wash out positions; the coin has good properties, and you can buy this type of coin when the market crashes and sell it when the market rises, taking short-term rebound profits.
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 catch the peak. 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 and sloping upwards at a 45-degree angle, it’s difficult for such coins to lose value. If you are day trading, you should watch the 5-day moving average; as long as it doesn’t drop below it, it remains strong. The lifeline for swing trading is the 60-day moving average; coins in an upward trend often have at least a short-term opportunity when they first drop to the 60-day moving average. Buy on divergence and sell on consensus.
This is similar to the Ethereum ecosystem before; when Ethereum rises, there will definitely be a differentiation because the main force wants to cash out when people are willing to take over, so sell on consensus.
Buying on divergence and focusing on strong coins has one principle: the strong remain strong. If a coin can become a strong coin or a hype coin, it must be because of the market.
the coins favored by funds; once someone sells these coins, more people will buy in, often leading to further increases, reflected in the K-line.
The formation is a bullish engulfing pattern.
The more difficult the trading situation, the more you need to remain calm. The tough road is not one everyone is qualified to walk; only those who can endure the pain of rebirth deserve the beauty of being reborn. Many people suffer huge losses just like I did; when I entered the space in 2017, I lost track of direction. I am very grateful for this experience because I stood up, and I believe I will not fall again. In fact, the better the trading situation, the more low-key one should be. Before the first half of 2017, my capital also exceeded a million; there was little money, but I was high-profile. Being high-profile only leads to blind arrogance and a gradual loss of risk awareness.
Why I chose to trade
I was born in poverty and cannot die in destitution. 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 involved in the crypto space in 2017, it seems tailor-made for people like us; it does not require socializing or bowing down. If you have the ability, it becomes your ATM. If you don’t, you must bear the consequences of your expectations. The crypto space is very fair. Of course, all breakthroughs and transitions are painfully challenging, but each failure is a step towards financial freedom.
"A general's success comes at the cost of countless bones."
Trading cryptocurrencies is indeed very brutal; one earns, two break even, seven lose. This is the only unchanging truth in this market. Many experts I know in the crypto space study Buddhism. In every major market movement, whether upward or downward, we choose to release life, donate, etc. I know this seems meaningless.
It’s righteous to seek smooth thoughts. If one day everyone is successful, remember to do something meaningful for society! To put it in a Buddhist way, this is cause and effect; to put it seriously, one should benefit the world when they succeed!
I wish every brother in the crypto space eventually transforms from short-term speculation to long-term positioning; this is not only a strategic adjustment but also a key sign of moving towards success and profit.
