Aoying also learned trading through the community.
Aoying stated that he was originally a product manager in the internet industry. In 2020, he was exposed to Web3 due to work, and began trading contracts in 2021. Initially, he invested small amounts (more than 10,000 RMB monthly salary, taking out 3,000 to 5,000 to trade), resulting in more losses than gains.
His learning path in trading is not that systematic. Like most viewers in front of the screen, he mainly learned through observing real-time traders, joining groups, and consulting trading logic. He did not systematically learn technical indicators, but instead built his experience through 'imitation, consulting, practical experience, and paying tuition.'
Trading is not about indicator games; it's about cognitive games.
Aoying believes that trading is not about indicator games, but about 'cognitive games' and psychological maturity. He was fortunate to successfully capture three waves of market conditions in 2024: AI coins, meme coins, and the 'second spring' of inscriptions. However, before that, his asset scale was always stuck at the threshold of several hundred thousand, until he seized the trend, paid off his debts, and had some surplus, then his trading journey gradually went smoothly.
As for how to adjust the mindset during the debt phase without affecting operations, Aoying expresses from a past perspective that everyone relies on hard endurance. The vast majority of significant losses occur because people are unwilling to cut losses. When in debt, trading has already transformed.
Extended Reading
Famous trader: Trading is an addictive behavior worse than drugs! Here are 2 steps to help you quit 80% of bad trades.
If you still don't execute your trading well and rationally implement take-profit and stop-loss, then you're not losing enough to feel the pain. Only when he lost everything after a significant downturn did he begin to treat every trade cautiously, executing each order honestly.
Aoying: Don’t be too superstitious about trading indicators.
He now tends to engage more in event trading. Before placing an order, he doesn't purely look at K lines. He first thinks about what the current market conditions are, and then determines how to perform intraday trading within those conditions, judging whether the current position is high or low. If the market is event-driven, he assesses whether that event-driven condition is sustainable. If it is not sustainable, he will short at critical positions.
He has also studied trading indicators: double moving average systems, EMA for moving averages, naked K, Fibonacci, wave theory, Dow theory, and various turtle rules, etc. He has almost studied them all. However, now apart from naked K, moving averages, and trading volume, he no longer uses other indicators. He believes that what can genuinely make significant profits still relies on one's own understanding. Indicators can only help you open positions a bit better, but they do not determine whether you can make big profits in the end.
He points out that various indicators' backtesting data show that in specific market conditions, the win rate may exceed 55%, but in non-specific conditions, it is far below 55%, even lower. For example, Bitcoin is currently in a volatile market; Bollinger Bands may still be useful, but they become completely ineffective in trending markets. So, don't be too superstitious about indicators.
What truly accumulates funds relies on logic, strategy, and execution.
In the small capital phase, many people get entangled in whether to take a gamble or be steady. Aoying believes that this does not need to be overly complicated. What’s more important is to develop a set of trading habits and styles that suit you. If this habit is correct, it can be sustained long-term; it becomes your own trading logic. He suggests that the actual leverage should not exceed five times. The lower the leverage, the more you can earn. The lower the leverage, the more you dare to invest and stabilize. When losing, you dare to cut losses; when earning, you dare to hold, thus forming a positive cycle. Slowly, leverage becomes smaller, and profits increase.
He believes that what truly makes capital flow is logic, strategy, and execution, not the level of leverage used. Leverage is decreasing, but capital is compounding. In the end, the true difference is made by understanding, not leverage multiples.
Aoying: Never be bearish on Bitcoin; it is a long-term advantageous asset.
Aoying is forever bullish on Bitcoin. He may choose to short under certain structures, but since MicroStrategy continuously bought Bitcoin, many institutions in the U.S. are now net buyers of Bitcoin daily. This has already determined that Bitcoin will not experience that kind of super crash any longer. He points out that in past bull-bear transitions, whether in long-term cycles or phase corrections, the amplitude has been basically over 25%. This round of market has already dropped from $110,000 to over $70,000, precisely reaching the lowest retracement line of past 'bull-bear transitions.'
He personally believes that Bitcoin still has the potential to continue rising in the future, but it will not be a one-sided surge. He thinks that if Bitcoin does not have a significant pullback, it may rise slowly in a volatile manner. Short-term, it is certainly not something to hold onto.
If you want to do long-term investment, you have to keep feeding yourself positive affirmations and constantly remind yourself: governments around the world are buying, institutions are buying. Even if the market drops, you have to grit your teeth and increase your position, willing to continue buying. Aoying believes that Bitcoin will be a long-term advantageous asset; as long as Trump is in office, it is unlikely that Bitcoin will experience particularly large downturns.
From a policy perspective, this is also the case, after all, this is one of the directions strongly promoted by the Trump administration. Aoying believes this is destined to be a long-term positive, though he is unsure if there will be a deep bear market later. However, a pullback of over 25% will still occur, which presents an opportunity to increase positions.
How can small capital turn around? Aoying advises not to be obsessed with the trading market.
For retail investors with small capital wanting to turn around, Aoying believes that if you have the ability to understand projects and comprehend crypto logic, he advises you not to gamble on volatility in the secondary market, but rather to directly participate in project construction. In other words, stop thinking about making money through coin price fluctuations. A combination of newcomers and small capital can first test their trading abilities; however, when truly wanting to increase positions, it is essential to wait until your capital grows, your understanding matures, and you have a clearer understanding of Bitcoin, Ethereum, and other things, and have a concept of market cycles before considering increasing operational scale.
Do not trade with debt; this is particularly important.
For small capital, it is advisable to participate more in the primary market and in the construction of projects themselves, especially those native blockchain projects.
Through these methods, first accumulate a certain amount of principal and understanding before considering entering the futures market for 'swing trading.'
When you have understanding, you will naturally lower leverage and stop engaging in aggressive operations like 10x or 20x. You will also learn to control nominal value and manage risk. This way, even when losing, you won't lose much, and the money you gain will be within your understanding.
Making money from contract trading has nothing to do with what courses you study.
Aoying states that the money made in the futures market often has little to do with what courses you take or what paths you follow. Many traders he knows have come from grassroots backgrounds. These people might not have any cognitive systems or strong learning abilities, but they certainly have some particularly outstanding strengths, such as persistence, courage, and a good sense of the market. They may not have learned much, but they have their own set of rules in trading, such as being particularly good at capturing a segment of the market, while at other times they control their hands and hold tightly to that segment.
Therefore, many people lose money not necessarily because their learning path is wrong. In a futures market characterized by high volatility and high leverage, everyone has to pay tuition. But the key is whether you have grown after these losses. If you can summarize lessons from your losses, then you actually haven't lost. But if after losing, you are left with the feeling of 'Forget it, I'm not suited for this market,' then it is advisable to exit, perhaps even never come back.
This market does not necessarily require trading to make money; you can also engage in arbitrage, making some low-risk, positive expectation ventures. Some friends he knows have better trading talent than him but cannot maintain their wealth. It's not that their skills are lacking; rather, it’s a problem with capital management. He believes that the most frightening aspect of trading is that it amplifies all your strengths and weaknesses. If your weaknesses are fatal, such as being overly aggressive or unable to control your hands, these flaws will directly ruin you, as human weaknesses are magnified to a deadly extent by the market.
What kind of personality is more likely to make big money?
Aoying believes that in terms of overall quality, one must have risk control ability and the ability to perceive market conditions. Especially when the most suitable market conditions appear, you must dare to place bets. Many skilled discretionary traders are just one flow: during a market cycle, they dare to bet and dare to rise, making one to three million easily.
Taking himself as an example, he also worries about missing the next round and continues to lose money. But great traders have one thing in common: 'Fast is fast.' In the most favorable market conditions, you must be decisive and not hesitate. Being decisive doesn't mean using 20x or 50x leverage; it means respecting and trusting your own judgment and then daring to execute. In this round of market conditions, he captured the most critical wave in just ten days, with Ethereum rising for four consecutive days. In total, over ten days, his position multiplied by two to thirty times.
This is what he means by: 'Fast is fast, slow is slow.' When the market comes, being hesitant means you've missed it. You must dare to put out capital that you can afford to lose and be willing to try and gamble. If successful, you will be the one sharing here. If not, you can continue to sit in the audience and listen. He feels that the most suitable personality for trading is: daring to judge, daring to act, and aligning knowledge with action. This is the most core quality.
This article is authorized to be reproduced from: (Chain News)
Original title: (From three thousand to forty million, the trading experiences of legendary cryptocurrency trader Aoying)
Original author: Neo
From three thousand to forty million! A legendary trader shares trading principles: how can small capital turn around? This article was first published in 'Crypto City'.
