The truth about the crypto circle is like picking up money, and the principal of 100,000 can explode to 10 million in a year.
Entering the crypto circle, cultivation depends on the individual. Earning money is not about who comes first. Some people have made hundreds of times their investment, while others have been trapped or even lost their fortunes and become leeks.
I use my own personal experience to tell you how to constantly accumulate compound interest from a principal of 40,000 to 40 million in less than 2 years:
The first 10 million took the longest and was the most painful. The trading system was constantly reshaped and polished, taking a year and a half.
The second 10 million took three months.
The third 10 million took only 40 days.
The fourth 10 million took only 5 days.
75% of the funds were earned in the last six months.
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You may not even know how to play contracts (full of dry goods).
If you are losing money in contract trading, you need to read this article carefully if you want to turn losses into profits. Following the following six points will ensure that you can achieve profitability.
One: Learn to take profits and stop losses.
The market is changing rapidly, so you must learn to take profits and stop losses. It is not difficult to say, and it is not difficult to say. Taking profits controls your greed. A coin will not rise indefinitely, nor will it fall all the time. There are cycles, so taking profits is particularly important. Don't always worry about closing your positions too early and not eating the subsequent profits! You must remember that you can't earn all the money in the crypto circle, but you can lose all the money in your account.
Stop loss is giving up sunk costs, which is also very difficult. Don't always think about holding on to the order, and the market will reverse in the next second. Never think like this. If you are wrong, you are wrong. If you are wrong, you have to admit it. If you are beaten, you have to stand upright. Although cutting off your arms to survive hurts, it can really save your life. Two: Don't trade frequently.
A big taboo, don't always think about eating both long and short? Wake up, not many people can do it. Be content to eat one side. Another point is the handling fee. Low multiples are okay, but high multiples are uncomfortable. You lose 1~2 points of profit as soon as you open an order. You have to make sure that this order can make money, otherwise this order is meaningless, and all the profits are given to the dealer as handling fees!
Three: Learn to clear your positions.
When you can't understand the market, don't blindly open orders. At this time, you will say that it is uncomfortable to miss the market. Then I will ask you, is it more uncomfortable to miss the market or to lose money? It is no different from gambling to blindly open orders without understanding the market or grasping the direction!
Trading is about a probability advantage. No one can accurately predict whether it will rise or fall. The market changes too quickly. It can only be said that there is a high probability that it will rise or fall.
Four: Step by step.
Don't always think about becoming a big fat man in one breath, and haste makes waste!
The crypto circle will not make you rich suddenly. For example, if you use 100 as capital and open a 10x long position, the position is 1000. A one-point increase will earn 10 yuan, and a two-point increase will earn 20 yuan, which is enough for a breakfast, right? Now working in a factory is 15 yuan an hour. If you open three or four orders a day and the win rate reaches 60-70%, it is more comfortable than working in a factory.
Five: Never go all in with a heavy position
Never, ever go all in with a heavy position. Something unexpected will happen, such as the market rising as expected, and then suddenly turning sharply due to a major news event, and you happen to have not set a stop loss, then you are finished! So don't be in a hurry, be sure to enter the market with a light position, and be stable. The crypto circle is not short of market conditions, not short of opportunities, it will always be there, at least for the next 10 to 20 years, so don't be deceived by the illusions in front of you!
Six: Must be consistent in word and deed.
This is really difficult, and even I can't completely do it sometimes. It is difficult to grasp the weakness of human nature!
I used to be a leek. I didn't understand these most basic problems at first. I blindly opened orders at will and without planning! After being in the industry for a long time, you will know that the crypto circle can really change your destiny! The prerequisite is that you must have a state of mind far beyond others, the courage to show your sword, the decisiveness to stop losses in time, and the ruthlessness to cut off your arms to survive! Otherwise, you will never become the 1% of the destined people!
(A veteran's ten years in the crypto circle)
I have been struggling in the crypto circle for a full ten years. In that year when I was 28, I plunged into this market with tuition fees. I have personally experienced the panic of the 94 crash and the despair of the 312 black swan, and I have also witnessed the madness of the epic bull market in 2021. I was heavily in debt in the most difficult time, but today - 2025, my account has finally broken through eight figures.
These ten years have made me understand a truth: the crypto circle will always only have a few people who can continue to make money, and they all follow similar survival rules.
[Decoding Dealer Behavior]
Signal before the pull-up:
Slow decline and fast rise: The dealer is quietly absorbing chips.
Sideways shrinking volume: The main force is patiently washing the market.
Sudden volume breakout: Omen before the start of the main uptrend.
Characteristics of shipping:
Fast decline and slow rise: The dealer is distributing.
High-level volume and stagnant price: The main force begins to withdraw
Good news does not rise: the final shipping stage
[Volume Language]
Top volume: It may be a change of dealer, and the top may not be seen immediately.
Top shrinking volume: Liquidity dries up, danger signal.
Bottom volume: Pay attention to sustainability. A single day's volume may be a trap.
Breakout volume: The probability of a true breakout exceeds 70%.
[Application of Emotional Cycle]
The essence of the crypto circle is a consensus game. I have summarized the four stages of emotion:
Doubt period (time to build a position)
Mania period (holding stage)
Crazy period (take profit in batches)
Despair period (re-layout)
In ten years, I have seen too many people's stories:
Old Zhang, who was liquidated in 312, has not recovered until now.
Xiao Wang, who was buried in 519, switched to delivering food.
Old Li, who successfully bought the dip in 2023, is now a multi-millionaire.
The most cruel and fairest thing about this market is that it does not sympathize with tears, it only rewards cognition.
[My Trading Philosophy]
Always keep 30% cash
Single coin holding does not exceed 20% of the total position
The stop loss line is set at cost price -15%.
Must withdraw the principal when the profit exceeds 50%
Now I can stay in 2000+ five-star hotels at will, but I still maintain the habit of watching the market for 4 hours a day. Because I know that in this market, today's success may become the breeding ground for tomorrow's failure.
[Advice to Newcomers]
Learn to survive first, then seek development.
Record the decision-making logic of each transaction.
Stay away from leverage, longevity is king.
Find 3-5 real trading experts to continuously observe and learn.
These experiences are lessons I have learned with real money. Sharing them is not to let you copy them, but to hope that you can stand on the shoulders of predecessors and see further. Remember: In the crypto circle, living long is more important than earning fast. The bull market will eventually come again, but the premise is that you must be in the market.
The real path from 5,000 yuan to 10 million: I used these three tricks to turn around from debt, and most people can't do the last one.
When I first entered the crypto circle, I only had 3,000 yuan for living expenses. Now there are more than 20 million in my account. It's not by luck, but by fighting out a set of "violent rolling position method".
First stage: Savage growth of 300U (key: overcoming greed)
A common mistake for novices is "wanting to earn 1 million directly with 5,000 yuan", resulting in zeroing out in three days. My starting strategy is extremely counter-intuitive:
100U sniper warfare: Only chase the top 10 coins in terms of 24-hour trading volume (such as hot coins like PEPE and WIF), but strictly abide by two iron rules:
Immediately withdraw the principal when the profit exceeds 80% (immediately withdraw 80U when 100U becomes 180U)
Cut losses directly when losses reach 30% (immediately stop loss when 100U is left with 70U)
Three-win rule: You must stop after winning 3 consecutive times (100→180→324→583U). At this time, the account probably has 500-600U, and immediately transfer it to the wallet and refrigerate it for 24 hours - this is the "sage time" to prevent being impulsive.
Second stage: Three-dimensional harvesting after 1000U (most people are stuck here)
After the funds break through 1000U, you must operate with separate positions:
1. Blitzkrieg
Only operate at 4 pm/8 pm Beijing time (European and American institutions enter the market).
Specialize in eating BTC/ETH's "pin insertion market": Hang long orders at support levels (such as BTC falling to a key moving average), and close positions when the rebound is 2%. Only do 1 order per day.
2. Ambush position (30% of funds)
Track Coinbase listing previews and lay out in advance.
Use 5x leverage to play new IEO coins, and must throw them within 30 minutes of the opening.
3. Nuclear weapons (50% of funds)
Only trade 2-3 times a year, but earn 300%+ each time.
Need to combine "Federal Reserve interest rate hike calendar + on-chain giant whale trends" (for example, before the Federal Reserve meeting on June 12, I will monitor Coinbase's BTC withdrawal address)
Last year's bull market, I saw countless people earn 7 figures and lose it all back. The core failure lies in three points:
1. The ritual sense of stop loss: Write down the reasons for the error by hand after each stop loss and post it on the wall.
2. Cash withdrawal freezing technique: Immediately convert 25% of profits into USDT and recharge it into a cold wallet every time the profit reaches 50% #炒币 #币圈
3. Time shackles: Operate with a spare Android phone, and force the machine to lock from 14:00-16:00 every day.
If your account is less than 10,000U now, immediately implement the first stage; if you are already in the 1-100,000U range but cannot break through, what you need is not a new strategy but a guide like me.
The best time to enter breakout trading is exposed! 4 ultimate skills that 90% of retail investors don't know.
This is an effective way to quickly follow up when a new trend appears. The best breakouts usually occur when the price breaks through a very obvious resistance level that is watched by many market participants. At this time, market momentum often increases sharply, attracting more buyers to enter the market, thereby driving prices further up.
However, catching these breakouts is not as easy as it seems. In this article, we will discuss four different breakout trading entry methods, each with its own advantages and disadvantages.
Remember to choose the method that best suits your trading style to increase your chances of success!
How to enter breakout trading?
Determine the breakout level.
Traders first need to determine the key price level or technical indicator for the breakout. This could be a trend line, moving average, or resistance level.
Option 1: Buy before the breakout
It is entirely possible to buy before the breakout actually occurs, which is also known as "predicting the breakout". However, there is no doubt that this approach is riskier than the other options discussed below.
If you decide to adopt this method, make sure to only choose those stocks or varieties that show strong momentum and whose trading volume has already increased before the breakout.
The main advantage of this method is that if a breakout does occur, you will profit quickly because you have predicted the breakout in advance. However, the breakout may not eventually occur, or the breakout may fail.
Traders using this strategy often test with a light position first, and then buy again during or after the breakout to build multiple positions.
Entry and Stop Loss
Buy when the price is still in a sideways consolidation phase. The initial stop loss is usually set below the sideways trading channel.
Option 2: Buy at the breakout
Buying at the breakout ensures that a valid breakout has indeed occurred. For this option, close attention should also be paid to momentum and volume. Stronger momentum and higher volume are early signals of increased buyer interest. This has a much higher probability of success than predicting a breakout.
Similar to option 1, buying during a strong breakout offers the opportunity to profit quickly.
However, there is still the possibility of false breakouts. On a daily chart, false breakouts are often manifested as the price breaking out during the trading session, but the closing price eventually falling below the breakout level.
In this case, traders need to decide whether to continue holding (assuming the breakout will eventually occur) or close their positions immediately and wait for the price to attempt a breakout again.
Buy immediately once the price breaks through the determined breakout level. The stop loss can be set below the last candlestick (aggressive type) or below the sideways range (conservative type).
Option 3: Buy after the breakout
Option 3 is a more conservative strategy, but its advantage is that it provides a higher degree of certainty. Not only has the breakout occurred, but the breakout is confirmed because the closing price at the end of the trading day is above the breakout level. This eliminates the possibility of intraday false breakouts.
A major disadvantage of waiting for confirmation of a breakout is that you may miss out on a significant portion of the price increase. Breakouts of 10%, 15% or even higher occur frequently. Not all traders are willing to enter after the price has already risen significantly.
In addition, there is still the possibility that the price will fall back below the breakout level again on the next trading day. Therefore, the possibility of a breakout failure still exists, just not on the day of the breakout.
Buy once the price closes above the determined resistance level. The closing price depends on the time frame selected. In this case, the stop loss can be set directly below the breakout candlestick (aggressive type), or slightly lower to give the price more room to fluctuate and avoid premature stop loss (conservative type).
Option 4: Buy the retracement after the breakout
The last method is the most conservative. First, as with option 3, you need to wait for a confirmed breakout to occur. Then, wait for the price to retrace the breakout level before entering.
A successful retracement is an additional confirmation signal after a breakout. This trading method requires traders to have extreme patience and must be able to resist the temptation to enter early. People who use this method need to accept that many breakout opportunities will be missed if a retracement does not occur after the breakout and the price continues to rise immediately.
Some traders use the retracement method to expand their initial (light position test) position to a full position. In this case, the way of retracement is very important. The decline that causes the price to return to the initial breakout level should be controlled, and the selling volume should be lower than the previous buying volume.
Buy after the price retraces to the initial breakout level. Buy when the price retraces to the initial breakout level and a reversal signal appears. The stop loss is usually set not far below the breakout level. However, you can also choose a more conservative approach by using the previous swing low as a stop loss.
How to exit a successful breakout trade?
After a successful breakout, properly managing an open long position is very important for achieving structural profitability in the long term. There are several ways to achieve this depending on your trading style.
1. Set Price Targets
Price targets are set simultaneously with entry and stop loss. Make sure your target is at least 1.5 times your initial stop loss.
For example, if you buy a stock at 12.92 yuan and set a stop loss at 12.49 yuan, the risk per share is 0.43 yuan. Therefore, if we want the price target to be at least 1.5 times the risk, we need to achieve a profit of at least 0.65 yuan (0.43 yuan * 1.5). In this case, the minimum price target should be set at 13.56 yuan.
Assuming that half of your trades are stopped out and the other half reach the take profit target, this exit strategy can still be profitable.
2. Use a trailing stop loss.
This type of stop loss ensures that accumulated profits are protected when the price declines. However, as long as the price rises, the trailing stop loss will also rise, thereby protecting a larger proportion of the profit.
. Use technical indicators.
Many technical indicators can provide insights into price movements and help you determine whether the momentum of an existing trend is strengthening or weakening. Below we will discuss several commonly used indicators that are helpful in this regard.
◎ RS Indicator
This is a momentum oscillator that measures the speed and change of price movements. The default upper limit of this indicator is 70. Above this value is considered an overbought situation.
Traders should be aware of possible trend changes (short-term or long-term). In particular, the divergence between the RSI indicator and the price should be closely watched in order to detect price changes at an early stage.
◎ MACD Indicator
This is a trend-tracking momentum indicator consisting of a MACD line and a signal line. A MACD line crossing below the signal line can serve as an exit signal for existing long positions.
◎ Bollinger Bands
Bollinger Bands are used to monitor the volatility or degree of fluctuation of prices. The upper and lower limits of the price's usual fluctuations are defined by the standard deviation of the moving average. If the price exceeds the upper limit (upper Bollinger Band), this may indicate that the price has overreacted and may trigger a price decline. Based on this, existing long positions can be closed.
Be careful when using technical indicators as exit signals. In strong trend movements, they will generate many false signals, causing prices to rise further and causing you to miss out on large profits in the long run.
It is best to use indicators as warning signals. Rather than closing your position immediately, use the exit signal to manually move the stop loss slightly closer to the current price.
If the exit signal is correct, you will eventually be stopped out (while retaining most of the profit). However, if the price continues to rise, you will continue to profit from the uptrend.
How to exit a failed breakout trade?
As with profitable positions, properly managing losing positions is also essential. The only quick and effective way to do this is to use a hard stop loss.
When using a breakout strategy, traders expect the trend to continue after the breakout. If the breakout fails to continue and the price falls again, the stop loss will ensure that losses are limited.
Earlier we mentioned the approximate location of the initial stop loss in each option. In this regard, we would like to emphasize two points:
1. Pay close attention to important support levels and strategically place stop losses below these support levels. If the previous support level fails to bring the price back up, this is a strong signal that the price may fall further. A stop loss will protect you from larger price declines.
2. Do not set the stop loss too close to the current price. In this case, the stop loss may be triggered prematurely. In many cases, you will notice that the price moves in the expected direction shortly after. This can lead to a lot of frustration!
To determine the minimum distance of the stop loss, you can use, for example, the ATR indicator. For more information, please see: (The intraday trading "artifact" that 90% of retail investors say is good, you must understand the ATR indicator).
Summary
Key points
1. Trading based on price breakouts is a great way to capitalize on new market trends.
2. After confirming a breakout, you should always pay attention to momentum and volume before deciding to open a position.
3. The four entry methods for breakout trading include "buying before the breakout", "buying at the breakout", "buying after the breakout" and "buying at the retracement level of the breakout". Each method has its own advantages and disadvantages.
4. Choosing the method that best suits your personal trading style can provide you with the greatest chance of success.
5. Risk management also plays an important role in long-term success. A sound exit strategy to protect profits or limit losses is essential in this regard.
Frequently Asked Questions
1. Can breakout trading make money?
Generally speaking, breakout trading can be very profitable. Successfully identifying a breakout and entering at the right time can lead to substantial profits, but there is always the possibility of a false breakout or the price not moving in the expected direction. Remember, no strategy can only generate profits and never encounter losses.
Therefore, achieving consistent profitability through breakout strategies is closely related to sound risk and position management. To this end, an exit strategy (whether for profitable or losing positions) that maximizes profits and reduces risk is crucial.
2. What is the ideal time frame for breakout trading?
Breakout trading can be done in different time frames. Breakout patterns can appear on 5-minute charts or monthly charts.
The ideal time frame for breakout trading depends on the following factors:
● Your trading style and strategy
● Current market sentiment and overall market trend
● The volatility of the financial product you are trading
Short-term breakouts (entry and subsequent operations are completed within a few hours to a few days) are mainly used by intraday traders and swing traders. They mainly use intraday charts (5 minutes, 15 minutes, 1 hour, etc.) to identify areas where prices break out.
Long-term breakouts (the main goal is to participate in long-term trends that last for weeks or months as early as possible) are the preferred area for position traders. They mainly focus on daily and weekly charts to determine when and where to enter.
3. How to avoid false breakouts in trading?
To avoid false breakouts as much as possible, you can take the following measures:
● Wait for breakout confirmation, the price closes above the resistance level. Doing so will miss the actual breakout rally, but it will also avoid many false breakouts.
● Pay attention to additional confirmation factors that support the breakout. A significant increase in trading volume before and after the breakout is the most important parameter. Breakouts with only moderate trading volume should be avoided.
● Observe long-term trends. Focus on upward breakouts of varieties that have already shown a clear long-term uptrend.
● Consider overall market trends and market sentiment. Breakouts work best when the overall market is bullish.
I have been in the crypto circle for more than 10 years. These eight iron rules are read before entering the market every day, so that I can be spared from one big drop after another. Today I will share it with friends who are destined to be inspired.
1. When entering the market, you should not only look at the trend of the coin K-line. Especially when doing short-term trading, you also need to look at the 30-minute K-line. At the same time, the overall market should stabilize and resonate at this moment before you can start. For example, sometimes you see a K-line with a long upper shadow line and feel that there is no chance, but the next day it pulls out a big Yang or even a limit-up. In fact, if you look at the 30-minute K-line, you can see the mystery.
2. If the trend and order are not right, taking another look is a mistake. Follow the trend, and the order of simultaneous rise cannot be broken.
3. If short-term trading is not in a hot spot or potential hot spot, it is better not to do it.
4. Give up all impulsive entries. Trade your plan, plan your trade.
5. Anyone's views or opinions are only for reference. You must have your own careful consideration and careful analysis.
6. Lock in the direction first and then select the individual coins. If the direction is right, you will get twice the result with half the effort; if the direction is wrong, your efforts will be in vain."
7. Intervene in coins that are on the rise. It is a big taboo to like to guess the bottom. You always feel that it will rebound immediately, and then there will be an ultimate shakeout. The coin price always runs towards the small resistance level. Intervening in coins that are on the rise is to choose the direction with less resistance.
8. After making a lot of money and losing a lot of money, you should clear your positions and re-examine the market and yourself. Figure out the reasons for making a lot of money or losing a lot of money before taking action. After so many years of trading coins, I found that after making a lot of money and losing a lot of money, clearing your positions has a probability of more than 90%. 收起^ In the final analysis, what is difficult to earn 💰 is not the method, but the execution.
The trading system is a weapon that allows you to achieve stable profits.
It can help you mark key levels, discover entry signals, and find trading opportunities that can make you money.
So to put it another way, as long as there is a stable trading system ◇, you can do it if there is an opportunity within the system. If you lose, you can take revenge, do what you should do, and leave the rest to the market. Anyway, you can always cover the loss with profits in the end.
However, the biggest problem for 99% of people is that they don't have their own trading system, so they are afraid of losing money when they trade, because if they lose this money, they can't earn it back. Even if they earn it back by luck, they will eventually lose it all by their ability.
Playing around in the crypto circle is just a game between retail investors and dealers. If you don't have cutting-edge information and first-hand information, you can only be harvested! If you want to lay out together and harvest the dealer together, you can follow me!
Welcome like-minded crypto people to discuss together~
I strongly agree with a saying: The boundary of knowledge determines the boundary of wealth, and people can only earn the wealth within the boundary of their knowledge.
You must have a good attitude when trading coins. Don't let your blood pressure soar when it falls sharply, and don't be carried away when it rises sharply. It is important to take profits.
For people without many resources, being down-to-earth is an unbreakable way to survive.
Give someone a rose, and fragrance lingers in your hand. Thank you for your likes, follows, and forwards! I wish everyone financial freedom in 2025!
