In the crypto world, don't just look at those stories of making a fortune; the truth is that the vast majority of people are just retail investors paying tuition to the market with real money.
I've been in this for 10 years, stepped in pitfalls, blown up accounts, and also executed some great doubling trades. Today I've compiled these 10 hard-core experiences to help you lose 80% less of your principal. If you want to take fewer detours, I suggest you save this.
1️⃣ The only way for small capital: patiently wait for a major uptrend.
Is your principal less than 200,000? Don't think about frequently trading and cutting losses yourself. Remember: Position size is not a reflection of courage, but the key to survival. 30% cash is always your emergency kit.
2️⃣ Test and learn on a demo account; the shallower your understanding, the less you should rush into real trading.
Before putting real money on the line, you should at least have failed 100 times on a demo account. Otherwise, the market will eventually force you out with a liquidation. Cognitive anxiety can be deadly; don't pay an IQ tax with your money.
3️⃣ Don't fantasize that good news will continue to push prices up; that's a big mistake!
When heavily beneficial news lands, it's the beginning of the whales offloading. If you don’t run when it opens high, the rise will soon be swallowed back. The biggest difference between experts and retail investors is not hesitating when you can sell.
4️⃣ Don't fantasize about holiday market trends; they are just excuses to harvest retail investors.
Stop fantasizing about 'holiday red envelopes'; the data is clear: reducing positions 7 days before the holiday is the safest choice. During holidays, sentiment is strong, but the funding situation is weak, and the whales are just waiting to dump at the 'emotional peak.'
5️⃣ The core of long-term strategies: buy when prices drop, sell when they rise.
The long-term strategy for mainstream coins is very simple: add a layer of position for every 10,000 drop, and reduce immediately after a 50% rise. Don't be greedy; don't predict, just respond. If you can harvest a few waves, you've already won.
6️⃣ The standard for short-term coin selection: you must look at trading volume.
Coins with small daily fluctuations and low volume are just a waste of time. Focus on the daily trading volume TOP 100 + coins with intraday fluctuations > 15% — those are the ones with 'whales' and profit.
7️⃣ Market rhythm has logic: rebounds are faster after a sharp drop.
Not all declines are scary. Rapid drops rebound quickly, while slow declines are the most exhausting. Understanding the rhythm allows you to buy at the bottom; don't be fooled by the 'red and green candlesticks' that play with your emotions.
8️⃣ Remember: A 2% stop loss is the prerequisite for making more profit.
Only those who can control their losses are qualified to talk about profits. Holding on for dear life just once can wipe out three months of your hard work. Don't be afraid of 'cutting losses and taking a hit'; how much is your face worth in dollars?
9️⃣ For short-term trading, look at these two: 15-minute candlestick + KDJ.
Daily charts are too slow, and 1-minute charts are too chaotic. The 15-minute candlestick + KDJ golden and dead cross signals are precise and efficient. Short-term arbitrage relies on this combination to penetrate market rhythms.
🔟 The fewer technical indicators, the stronger: mastering 2 moves is better than learning 100 moves.
Don't trap yourself in a pile of indicators. Understanding 'support/resistance' and 'volume-price relationship' is enough for you to thrive in the crypto space. It's not about having many strategies, but about having usable ones.
Lastly, let me say this:
The crypto space is never short of opportunities to make money, but it's always lacking ways to survive.
If you happen to be exploring or in a loss phase and want to turn things around, come find me.