A Must-Read for Newbies in the Crypto World! Eight Practical Rules [Thumbs Up] From 50K to 5M in One Year, These 8 Experiences Are So Real!
I am an ordinary player in the crypto world. I used my 50K capital, which I saved by working in a factory, to test the waters in crypto.
Back then, I was completely a novice, having experienced being trapped, cutting losses, and liquidation. In just a few months, I lost down to only 30K, and I was about to give up, but I decided to summarize my experiences and learn strategies to completely change myself. Now my account has miraculously reached 5M!
Later, I summarized my 8 survival rules:
1. Average down when trapped, only to preserve capital, not to greedily seek profit.
At first, I often fantasized about a rebound, but ended up losing even more. Later, I understood that averaging down only reduces losses; don’t think about turning the tables overnight.
2. Calm markets often hide storms.
Once, I underestimated the risks during a sideways market, and as a result, I faced a sudden surge and then a sharp drop, losing everything. The market changes rapidly, so vigilance is always necessary.
3. Big rises must correct; don’t be greedy at high prices.
I once averaged up at a high price, ultimately getting deeply trapped and losing. "What rises a lot must fall, this is an iron law." Observe the patterns and don’t be deceived by highs.
4. Buy in fear, sell in frenzy.
Every time others panic, I buy the dip; when others are crazy, I sell. Counter-intuitive actions may seem against human nature, but they are the secret to profit.
5. Don’t sell when it’s not rising, don’t buy when it’s not falling, remain still in sideways markets.
Once, I was eager to place a bet during a sideways period and missed a better opportunity. Patience is more important.
6. Look for resistance during rises, look for support during falls; know your numbers.
Use technical analysis to grasp key levels, making operations more composed.
7. Full positions are a big taboo; position size determines life and death.
“The worst liquidation I experienced was because of a full position.” Leave some space to respond flexibly to market changes.
8. Mindset determines everything.
Greed and fear are the most terrifying enemies in the crypto world. From a novice chasing highs and cutting losses, I transformed into a calm and rational expert.
Finally, I reflect: "The crypto world is a battlefield, but also a place for self-cultivation. Whoever can control their emotions will be the one to laugh last."
