I have been trading cryptocurrencies for ten years and have earned 30 million yuan. Because I want to change my destiny, I have to try the cryptocurrency circle. If you can't make a fortune in this circle, ordinary people will never have a chance in this life.
I think first of all, a good trader must be patient in order to maintain prosperity!
"May is poor and June is desperate" is like this every year. According to the cycle theory, which few months can only be used for cryptocurrency speculation in a year?
"May is poor, June is desperate, and July is not likely to turn around." Every May, June, July and August, I play in Ogura.
So when is the right time to start trading cryptocurrencies?
1. Enter the market at the end of September and clear the market at the end of November.
2. Enter the venue before the Spring Festival and clear the venue in April.
3. Follow the above two iron rules. Of course, the situation where the main players are playing with individual small-cap coins is not taken into account.
Fourth, the next step is to learn how to find coins that can increase by 100 times, and with a bull market, you will become rich overnight.
After more than 10 years of working in the market, one of my accounts has accumulated 30 bitcoins! The return on investment of this account is also
Without further ado, let’s get straight to the point:
What to analyze in naked K trading?
There are four main modules of naked K analysis, namely: trend, position and momentum signal.
These four core analysis modules are not isolated; they support and promote each other and work together.
When dealing with the ever-changing market, if we can conduct in-depth analysis from these four dimensions, it will make our analysis more comprehensive and systematic, and avoid the impulsive behavior of rushing into the market just because we capture a certain trading signal. This is a common misunderstanding made by many novice traders.
So, how to accurately grasp the pulse of the trend?
When it comes to trend analysis, there are three main elements to keep in mind: structural layout, direction of movement, and level of volatility.
As for the identification of naked K-line trends, it is mainly based on the definition of trends in classical technical theories.
From a structural perspective, when obvious highs and lows are observed to continue to rise, it can be determined to be an upward trend; on the contrary, if the highs and lows continue to decline, it is considered a downward trend; and those fluctuations between the highs and lows are classified as a volatile pattern.
Figure (2)
The biggest difficulty in trend judgment is the level division and trend conversion
The division of trends at different levels involves the issue of primary and secondary rhythms. Beginners are easily affected by small-level trends and often ignore the main trend, resulting in confusion in trading direction. Is the change of trend a trend correction or a trend reversal? It is not easy for us to judge because there is no absolutely quantifiable standard.
To solve the problem of size level and trend conversion, my method is to define your main trend critical point
Because the starting point of the trend selection is different, the trend direction in your eyes and others' eyes may not be the same. So you need to define the trend you have divided, find out its main trend, and then find the critical points of each trend level. The critical points are generally horizontal lines and trend lines.
Is the price position high or low?
Keywords for position: support level, resistance level, profit and loss ratio
Why do you chase high prices? Why do you always make small profits and suffer big losses? This is related to the price position judgment.
If you always go long at resistance levels and short at support levels, not only will your failure rate be high, but your profit-loss ratio will also be low.
Location is also important. Is the price high or low? Here are my basic criteria:
Support level belongs to the low price
Resistance levels belong to price highs
Because the take profit setting is also set at the support and resistance levels, so:
Buy at support level and sell at resistance level, the profit and loss ratio of long position is the highest.
Buy at resistance level and sell at support level, short selling has the highest profit and loss ratio.
Unless you trade a breakthrough, all long positions at resistance levels are considered opening high positions, and all short positions at support levels are considered buying on the decline.
This is how you judge the price based on support and resistance levels. If you add the concept of trend, how would you judge the price?
How to judge the conversion of kinetic energy?
Keywords for momentum: trend, trend, candlestick pattern, slope
Momentum can be said to be the cornerstone of trend movement. Without kinetic energy, there will be no trend, so momentum analysis is also a very important module.
What is strong kinetic energy and what is weak kinetic energy?
Strong kinetic energy: trend, consecutive positive and negative lines, large positive and negative lines, large slope
Weak kinetic energy: range trend, cross star, small positive and negative lines, small slope
For an uptrend to work, the bullish momentum must be stronger than the bearish momentum.
For a downtrend to occur, the bearish momentum must be stronger than the bullish momentum.
Range oscillation must be a state where the bears and bulls are evenly matched, and narrow fluctuations are a trend of energy accumulation.
A trend from strong to weak is a momentum.
The trend from a large white candlestick to a small white candlestick is a trend of weakening bullish momentum.
A slope from large to small indicates that momentum is decreasing, and vice versa.
The above is based on the trend and price K-line form to judge the change of price momentum, and thus judge the direction of price movement in the market outlook.
So what are the special changes to kinetic strength analysis if position is added?
Is it reliable to enter the market based on signals alone?
Keywords: trend, position, momentum
When it comes to signals, many of us only think of starting signals such as hammer lines, pregnancy lines, and engulfing lines.
When it comes to trading signals, they must be based on the three modules of trend, position and momentum. If you separate yourself from the analysis of the first three modules and directly look at the signal to enter the transaction, you will find that the success rate is not high. This is why trading signals cannot be separated from market conditions.
Personally, sometimes my entry does not always wait for a trade signal to enter because I have a strong grasp on the trend, position and momentum of the price.
Finally, this article explains the four analysis modules of naked K. Each module also covers a lot of knowledge points, which requires you to have a more solid foundation, but in any case, the four modules are a large analysis framework. If we have not found the direction of analysis and trading, we might as well sort out the market from these four modules.
In addition, there are several key technical levels worth noting:
1) Psychological support and resistance points - usually round exchange rates such as 1.00, 1.10, 1.20, etc. Many traders tend to set orders around these round numbers.
2) Fibonacci Retracement Levels – Look for potential levels and trends for price to retrace. When used on higher time frames, important Fibonacci levels such as the 61.8% retracement level can become key technical levels where there may be large open orders.
3) Pivot Points - Pivot points are points where the market direction turns during a day. By simply calculating the previous day's high/low and closing price, a series of points can be obtained that can form key support and resistance lines. Range traders can use the pivot point system to confirm potential reversal points, while breakout traders can use the pivot point system to confirm key breakout points in a trend.
4) Dynamic support and resistance points-key technical levels are not necessarily fixed, but may also be dynamic. Moving averages are often used to determine dynamic key technical levels that appear near the 50-day EMA, 100-day EMA, EMA or Fibonacci EMA levels (such as the 144-day EMA).
5) Integration Zones of Support/Resistance – These are the intersections of different important technical levels. For example, an uptrend line may provide horizontal support to the price at a horizontal support level. This will form an integration support zone of the uptrend line and horizontal support.
How to determine which are pullbacks and which are trend reversals in trading? (with illustrations)
Today we will sort out the six ways to judge the end of a trend. Before judging the end, you must first learn to judge the trend in our previous article. Judging that the trend has reached the end does not mean that I can go long or short immediately, but to be prepared to go short or long.
Let’s get down to business.
Two necessary conditions for judging that the trend is about to reverse
1. Insufficient force
2. The counterforce is strengthening
Keep these two points in mind:
The first category of indicators
1. MACD divergence
As shown in the figure
The price goes down, which is a divergence. Everyone knows that indicators have lags.
2. Moving average
3 moving average EMA21.55.144
Granville's Eight Laws
There are three moving averages in the picture, long, medium and short. You need to pay attention when the short line crosses the fast line. You may say that it is almost over, so what is the point of doing anything? It doesn’t matter, there is still a way.
When the three moving averages are entangled, it is basically the end of the trend.
Note that you must use the same period when using the moving average. What is the same period? If you see entanglement in the 4-hour period, it does not mean that it is entangled in the 1-hour period. Do what you want in each period.
The above two are indicator judgment methods
Type II Price Action
3. Price Action Leg 1 = Leg 2
1 It is often said in price behavior that after a trend has gone through complex adjustments, if the upward momentum is strong, it should go an equal distance.
We regard the colored line segment in the figure as a trend. After a complex adjustment, the price did not move out of the same distance, indicating that the momentum of the rise is exhausted. In the subsequent figure, we regard the red line segment as a trend again.
Continued from the previous picture
After complex adjustments, the price did not move the same distance again.
Does it fit these two sentences? It's just like an old lady climbing a hill and getting more and more tired as she goes up. It's just a metaphor.
4. Number of callbacks, callback depth, and rising slope
With the naked eye, when the price pulls back more and more times and the depth of the pullback increases, and each upward push is weaker than the previous one, we need to have psychological expectations that the price may reverse or move into a trading range. This method requires a certain price behavior basis and a certain amount of experience.
5. Major trend reversal
With the help of EMA20 moving average, when the moving average no longer carries the price, the price falls below the 20 moving average and a hole is created, and the subsequent price does not break the previous high, then we believe that the price has mainly reversed.
The above three are some basic ways to judge price behavior.
Category 3
6..The 123 rule of Taoist theory
Taoist Theory 123 Rule
1. Break the line first
2. Not breaking previous highs
3. Break through the previous low
An especially important point here is how to draw a trend line. There are thousands of ways to draw a trend line.
1. Be sure to remember which trend you are drawing.
2.2 points verify 3 points to be a valid trend line.
It's not just a casual drawing, but the trend line is so casual. The market for soul painters is full of multi-millionaires and billionaires. Be more rigorous.
Summarize
Today we have divided the trend into 3 categories and 6 methods to judge the end of the trend. Of course, there are many other methods such as Chaos Theory and Wave Theory to make judgments. We have only summarized 6 of them. I think among these 6 methods, you only need to learn 1 or 2 of them.
Trading will eventually become simple and your charts will become cleaner, just like when we go to the battlefield to fight. It is not that the more weapons we bring, the greater the chance of our victory. We may win with a pistol or two mines. The important thing is to practice a move to the extreme. Even if you only know one way, you can make money and judge in the chart after a lot of practice. Remember that it is better to practice more than to know more.
My investment system is divided into six sections, which are ranked in order of importance based on my own experience.
1. Energy Management
The purpose of energy management is to make people more focused, have faster reaction and recovery. Whether it is the whole or the part, they have the correct cognition and decision-making ability. Having abundant energy is like having a strong army, brave and invincible.
1. The importance of physical and mental strength
2. When you are not feeling well, you should rest more.
3. Develop good health habits
4. Treasure your energy and know how to manage it
2. Emotional Management
One day in the cryptocurrency world is like ten years in the real world. The cryptocurrency world is a wealth (negative) amplifier. When people fantasize about getting rich in the cryptocurrency world, the emotions of this amplifier will be amplified hundreds or thousands of times more than those outside the circle.
The FOMO emotion in the cryptocurrency circle, the emotion of missing out, the emotion of being jealous of others making money, etc., these emotions will eventually turn into your anxiety, and your anxiety or your emotions will become a tool for the banker to harvest.
Therefore, in the cryptocurrency circle, we must manage our emotions well, neither be arrogant when we win nor be discouraged when we lose.
As for why I feel anxious, my understanding is that it is because the strategic goals of investment are not clear. I only see others making money in the cryptocurrency circle, but I cannot correctly assess my own conditions in the cryptocurrency circle, including capital, off-market earning ability, investment research ability, etc. When I lose money or see others making money, I will have a great shock in my heart and anxiety will come.
The more anxious a person is, the more distorted their investment behavior will be.
And the more anxious people are, the more they want to take shortcuts and the more they want to rely on others to give them the code to wealth.
The more you fail to form your own investment system, the easier it is to become a leek to be harvested.
So how do you relieve anxiety? I have summarized three steps:
1. Have a healthy body
Health always comes first! If you are healthy, eat well and sleep well, you will be in good spirits. If you have strong mental strength and focus on your work, you will be your own god, and you will be less affected by anxiety. I have never seen a person with super good sleep quality suffering from anxiety. The roommate who brought me into the circle told me before that he could fall asleep immediately as long as he closed his eyes, so his energy recovery ability would be very good. I have always insisted that good sleep is the foundation of his investment success. Even he himself would ignore this problem. As a bystander who has not slept well for a long time, I discovered this observation perspective.
I have been diagnosed with depression and anxiety. I know that poor sleep can really make people collapse, and even lead to suicidal thoughts. Anxiety can make people sleep worse, a vicious cycle. So if you are anxious, you need to find a way to get a good night's sleep, so that your body can gradually get better. (Regarding this, I will share how Qianchuanbai improves sleep when I have time.)
2. Establish investment strategic goals and implementation strategies
You must set a strategic investment goal, and this goal must be combined with your own situation, and then formulate a corresponding implementation strategy. For example, you need to consider how much capital you have, what your advantages are, what kind of investment operations are suitable for your personality, what your worst outcome is, how you feel about your execution ability, etc. At the same time, you must also consider the background of the overall market trend, so that you can try to achieve realistic strategic goals.
For example, if your capital is RMB 200,000, you have very little time, and you are good at making money in the OTC market. Your goal in the cryptocurrency world is to make a few million. Now it is very simple. You should do less operations in your execution strategy because you don't have that much time and energy. You can use most of your funds to buy ETH, and then allocate assets such as SOL, and then you can ignore it. In the bull market, it should be no problem to double your money. You don't have to worry about not being affected by short-term fluctuations. Just do what you should do.
Even if you execute the strategy properly, you can easily make millions of dollars a year with your 200,000 yuan capital. Just find 5 projects with 100-fold potential at the beginning of the bull market, buy 40,000 yuan for each, and hold on to them until the bull market. Even if none of the 5 projects have a 100-fold return, and only have a 40-fold return at a 40% discount, you can still make 200,000*40=8 million yuan. The question is, can you find such a project and hold on to it in the end?
But if you say that your goal is to take 200,000 RMB and make tens of millions or even hundreds of millions in this bull market, then you have to consider whether you have the strength and drive to match your goal.
When the strategic goal is clear, execute it according to the established execution strategy. Even if there are market changes, you will not be as panicked as before. Naturally, you will be less affected by emotional fluctuations, and anxiety will be reduced accordingly.
To fight anxiety, you should do as the teacher said, you fight yours and I fight mine. No matter how the outside world affects you, as long as you can grasp the general market trend and punch strictly according to the style that suits you, you will definitely see the dawn of victory!
3. Cognitive System Management
When your energy management and emotional management are in place, you will have a stable and continuous execution foundation. At this time, you should consolidate your cognition and establish your own set of currency circle cognition system.
The cryptocurrency world is a game. To make money, you have to make money from people who are not as knowledgeable as you. It is very difficult to make money from the dealer. Don't even think about it. Therefore, it is very important to quickly improve your knowledge. This is the core of making money in the cryptocurrency world. The cryptocurrency world is a game of rapid knowledge and monetization, where you buy at a low price and sell at a high price. If you know how to buy, you are an apprentice, and if you know how to sell, you are a master. If you know when to buy and sell, you will have the opportunity to make money.
The cognitive system is the core competitiveness of making money in the cryptocurrency circle! How to build a cognitive system, I personally summarized the following components.
1. Establish an overview of the cryptocurrency world
Establishing an understanding of the outline of the cryptocurrency world allows you to see farther from a strategic perspective, have a global awareness, and be able to look from the overall to the local, from the big to the small, and to the details. At least it can make you have a glimpse of the historical context of the cryptocurrency world, the development of each sector, and understand the trading methods of many bankers. I can't describe this feeling specifically. The information density of the cryptocurrency world is too high, and the information iteration is too fast. My personal feeling is that you must have an understanding of the outline of the entire cryptocurrency world, just like painting, first draw the outline of your imagination, and then cut into the specific details.
You should at least know which sectors there are in the cryptocurrency circle, such as BTC, ETH, BTC ecology, L2, blockchain games, DeFi, NFT, AI, RWA, Depin, etc., and you should also be clear about the development of these sectors, such as which sector is currently rotating, who may be the next sector, etc. You need to establish this perspective of standing high and overlooking each sector, and then find the sector and operation that suits you. You can ambush, buy or sell directly, or wait and see. In short, if you don’t establish a sense of the outline of the entire cryptocurrency circle and Web3 projects, you will always be led by the nose, and the probability of anxiety and losing money will increase greatly.
Qianchuanbai suggests that you can find a piece of paper to draw out each plate and draw the outline of the currency circle.
2. Build your own information collection system
From a strategic perspective, the core of making money in the cryptocurrency circle is to improve cognition and make money from low dimensions in high dimensions; then from the perspective of each campaign, making money in the cryptocurrency circle at the execution level depends on information asymmetry. With information asymmetry, you can buy at a very low price before the price of the currency soars. When other investors rush in, you have already followed the dealer to sell.
You need to understand the information gap and information flow in the cryptocurrency circle. The top layer is definitely the project party and the dealer, and then below is their peripheral related institutions or connections, and then spread layer by layer to KOL, news media news, group friends news, etc. Therefore, when you see the news that a coin is going to rise or fall, this information may have been passed down layer by layer for a long time, and finally told you just to let you come to the top of the mountain to take over.
Therefore, it is very necessary for you to establish an information collection system that suits you:
Twitter: Follow KOLs with high chances of success, strong analytical logic, and great community influence, and use Ding Dong to get information first-hand; for example, I often follow the Twitter of Dayu, Wei Shen, Dao Ge, Wizard, and Mamba Teacher;
Paid group: Join a VIP paid group with a high chance of winning and strong investment research capabilities, and directly spend money to buy information. This is the easiest way, but if your own execution ability cannot keep up, joining the paid group does not mean that you will definitely make money;
News media: Get information from news media. I have tried a trick that works in a bull market. When I see good news in the news, I buy the stock as soon as possible, and the probability of it rising is high.
Friends around you: Make friends with a few powerful friends who have a higher chance of winning, and filter out the content that is beneficial to you from the messages of the friends.
At the same time, technical analysis can also be used to verify whether the news is reliable. The method shared by Mr. Nakamoto Suan before is to use technical analysis to verify whether there is any error in the fundamental judgment. If there is no error, then go in boldly. Because a lot of data in the currency circle is on the chain, some information can also be obtained from technical analysis, such as the main position information, etc.
In short, you should find a cryptocurrency information collection and acquisition system that suits you based on your investment goals and your own personal situation. Just like getting intelligence, you should do everything you can to get first-hand information and then buy it.
3. Cultivate investment research capabilities
Why should we cultivate our own investment research capabilities? Because some information is inferred through investment research analysis. Everything has its own rules. In the cryptocurrency circle, as long as we have mastered some characteristics of some sectors or the market trends of some projects, and make comprehensive references based on market data, sector narratives, etc., we can naturally infer a certain future market value direction and buy in ambush based on the comparison between future valuations and current ones.
Investment research ability tests a person's overall comprehensive practical ability, which requires accumulation and precipitation in daily life. I am still summarizing it, and I will update and summarize my investment research methods in this section in the future.
In a word, I think that investment research ability is to strengthen cognition, shorten information gap, make quick decisions and execute them.
4. Talk about your opinions but don’t be biased
The charm of the cryptocurrency world lies in the fact that it creates many ways to issue assets, and then constantly packages them through various narratives, technologies, or other concepts to attract global capital (leeks) to participate. Finally, in a bull-bear cycle, it is a game of who can build a position at a low price and escape at a high price. Whether it is DeFi, blockchain games, or other sectors, they cannot escape this law.
So when a new narrative or other thing appears, you must not be biased or even reject it. Those who were biased against $ORDI and did not buy it in 2023 have already fainted in the toilet.
Really, you can have your own opinions, but you cannot be prejudiced, because prejudice can kill people!
4. Have strong execution ability
If you are energetic, not affected by any negative emotions, have a high level of knowledge about the cryptocurrency world, and have your own fast information channels and investment research methods, then if you want to make money in the cryptocurrency world, you must have strong execution. If you don't have execution, no matter how high your knowledge is, no matter how early you know the information, it's just talk. If you know the market will rise in the future, but you don't buy it, you will miss out on this wealth.
The information density and changes in the cryptocurrency world are very different. You don’t have to seize every opportunity, because it is difficult for you to have the energy and strength to seize every opportunity. Improving self-awareness has helped you find a strategy that suits you. Once you have a strategy, you must act. You must be like a hunter and take action when it is time.
Simply put, it is better to give up bad opportunities, but as long as a good opportunity appears, you should take action and make a big move.
So no matter you are taking advantage of airdrops or looking for alpha, or doing secondary investment research, or other sectors, your execution must keep up.
For example, Mr. Dayu has to look at several projects every day, and he has been doing this for several years without fail; various airdrop masters on Twitter are also working on various projects every day; and various secondary analysts are faced with various data analysis every day...
Others are smart and hardworking, with high cognition and strong execution, so it is reasonable for them to make money in this market. If you are still lazy, your execution is not up to par, and you are still fantasizing about getting rich overnight, this is probably nonsense. Even if you get rich by luck, you will lose it by strength. If you are not worthy of your position, there will be problems.
So everyone here, hard work can make up for lack of talent, and the best way to improve your cognition is to practice a lot. Whether it is to look at projects, participate in projects, or analyze and review projects, you must have execution ability, otherwise everything is empty talk.
Execution ability is a reflection of your cognition, reaction and perseverance. You should engrave it in your bones like a soldier or an athlete.
Only when the execution is in place can the results be achieved
But by the way, the strength of execution depends on your investment strategy, just like whether to buy new stocks for self-defense. Some people need to buy stocks, while others don’t, because their execution strategies are different. Some people need to go out to find food every day, while others may not move at ordinary times, but once they do, they will win and have enough meat to eat for half a year.
5. Fund position management
If being energetic is like having an army that can win battles,
Having emotional stability means having a commander who can make very calm judgments on the battlefield.
Adequate cognition means that the army has a military advisor who has a clear understanding of the enemy and our own situation.
Strong execution ability means that the commander has a group of brave and brave generals who dare to fight tough battles.
Then warehouse management is the logistics support team in this team and is the key to ensuring victory on the front line.
But I think in the cryptocurrency world, logistics support is the front line, and position management is the first priority. You must know clearly how many bullets you have on the battlefield, how many troops you have deployed, and how many battles you have won and lost. All other preparations are for position management, because there are only two actions in the cryptocurrency world, position buying and position selling, which is the final battlefield. Those who know how to buy are apprentices, and those who know how to sell are masters. Giving the same password to different people will eventually earn different amounts of money because of their different levels of position management.
Based on my own experience, I can currently sort out the following content:
1. Fund management:
To know the situation of your funds, it is best to use a table to count which ones are long-term, which ones are medium-term, and which ones are short-term funds. Because if there are too many projects, the funds will flow and it is likely that the funds will be confused.
Simply put, at least you need to clearly know which CEX and DEX wallets you have, how much assets you have in each, and whether these assets are safe. After all, it is not uncommon for cryptocurrency assets to be stolen.
2. Trading position management:
Trading position management is to do things according to your own execution strategy. You need to plan how much money to charge for each project and set the stop-profit and stop-loss in mind. The first thing to do in the cryptocurrency circle is to protect the principal (including fund security, of course). Don't go too far. I have several local dogs who made dozens of times more money because they went too far, and in the end they only got a little bit of meat.
Regarding this content, I will take the time to summarize the methods later. In short, if the capital position is managed well, the final result will be good.
6. Review ability
The purpose of writing this article is to review myself. I mentioned earlier that this is a lesson learned from blood and tears:
In the cryptocurrency world, the ability to review determines the speed of progress, and the speed of progress will affect the efficiency of making money.
When I was dealing with depression and anxiety, I found something interesting. Event A that actually happened in this world is one thing, but what I saw was an A+ event. Because the A+ event contains my cognition, emotions, and even is affected by factors such as the environment at the time, it is difficult for me to clearly recognize the A event. So how can we see the A event as clearly as possible? It is to use the power of words to record it down, exactly as it is. When you are faced with a pile of words or a pile of numbers, you can better distinguish which are facts, which are appearances, which are emotions, which are your cognitive deficiencies, etc. The closer you are to seeing the real event A, the calmer your heart will be, and you will find that the bottom line has returned to zero.
So if you always feel that you are unlucky and don't make money, you might as well reflect on your operation ideas at that time, and you will find many problems. Of course, if you win the battle, you should summarize the valuable experience, because if you don't summarize, you will easily become arrogant and may fall into a big fall next time.
I suggest that everyone review more often and believe in the power of review!
VII. Others
1. Learn to Hodl
If you hold a certain coin asset that you are optimistic about, you must hold it. The best way is to find a team and become a family. Because only by finding a team, through continuous XC, meetings, group chats, etc., can you make your uncertainty become firm, and you will not be afraid of the impact of short-term fluctuations. Observe yourself, there are generally two types of people who make a lot of money in the currency circle. One is very knowledgeable, understands the rules, and can hold on; the other is that they buy and forget, and only remember to buy in the bull market. But it is difficult for ordinary people to achieve these two points, so it is best to find a group of people to support each other through the long march.
2. Don’t complain, be grateful
Strong people never complain about their environment. Don't complain, be grateful. From now on, don't complain about why others don't tell you the password, why others don't take you to play, etc. Complaining is very destructive, so stop this behavior, it is a waste of energy.
People must have a grateful heart! I have experienced many setbacks in the past two years. I am very grateful to my friends who helped me when I was at my lowest point. It is easier for people to see the world clearly when they are at their lowest point, especially when you are sick and have nothing.
3. People outside the circle should be cautious when introducing
Be cautious when introducing people outside the circle to the cryptocurrency circle, even if they are good friends. Because people have different perceptions, even if you know that there are great opportunities in the cryptocurrency circle, others may not think so, and may even think it is illegal. Also, don’t easily tell your friends that you are in this circle. This circle has a great wealth effect. If you become rich or poor, it will easily affect your original interpersonal relationships.
Therefore, those who can enter this circle are destined to be together.
4. Don’t touch the contract
Never touch a contract, it's gambling. I have never seen anyone get rich by relying on a contract. I have only seen friends who constantly regret having touched a contract. I have several such friends around me. Personally, I never touch a contract.
Now that the bull market is in its infancy, wouldn’t it be nice to hold on to the spot goods?
There is a saying that "the most people lose money in a bull market."
Now that I think about it, it makes sense. Why has BTC hit new highs? Here are some mistakes that retail investors make that lead to losses.
No research, just buying blindly.
When the amount of funds is small, there are too many positions held.
After suffering a loss, there is no in-depth understanding and timely stop loss.
After suffering floating losses, they chose to stay put without continuous follow-up, feedback, and optimization of holding strategies.
In fact, as long as you keep tracking, providing feedback, optimizing, and continuing to research and learn, it is possible to reduce losses and expand profits. An obvious rule is that when Bitcoin falls slightly (2-3%), altcoins will generally plummet, and when Bitcoin rises slightly (3-5%), altcoins will generally soar.
One thing that many novices may forget is that for the same price, after a drop, it will take a bigger increase to recover. For example, if you buy at 10 yuan and it drops 50% to 5 yuan, it will take a 100% increase to get out of the trap.
Believe me, even if you know a lot of principles, you still can't live a good life.
Is truth understood from the heart? Or is it understood from the feeling? Is it obtained through practice, or is it just heard? If you understand superficially, it means that you have heard this sentence, but you don’t think deeply about it, and you don’t use your mind to judge it. Then such truth is really useless to you, and you will eventually prove that you “can’t live a good life”.
Trading is not just about understanding the principles to make a profit, it also starts with planning. Success starts with planning. Not having a plan is planning to fail.
Failure to maintain consistent operations during trading, from the perspective of wisdom, is a lack of knowledge, so actions are only ideas, and execution is just a fantasy; from the essence, it is because you do not understand the rules of your operations, the probability of stop loss, and the overall profitability, so after several losses you lose confidence in the system and begin to doubt, and then look for another system. Next time you encounter such a problem, look for a new system again, and this cycle repeats itself. This is human nature.
The inability to achieve consistency in trading ultimately comes down to a lack of deep understanding of one's own profit logic and the robustness of the system. There is not enough retracement, and one is not confident enough. One also does not anticipate the possible losses that may be caused by the system encountering unsuitable market conditions, and one cannot afford it.
You need to understand your trading logic, what kind of money can you make? When should you not try? What is the reason for losing money? For me, it is to make a small cycle breakthrough against the trend. Test the system's profit probability, the maximum loss when extreme losses occur, etc. If you think it through and consider it clearly, you will naturally be able to achieve consistency.
Trading is like life. Only by keeping inner peace, tolerating imperfections, and knowing how to stick to simple principles can you find happiness. Being driven by human instincts and chasing passion is ultimately futile.