I've been in the crypto space for a few years. Starting as a small retail investor with 50,000 yuan and struggling in the crypto world, I have now achieved tens of millions. Today, I want to share my personal experience.
Let's first talk about capital management; never invest all your money at once. I prefer to operate in batches, so even if I lose, it won't be too disastrous. I set a rule for myself: once losses reach a certain level, I will decisively withdraw, regardless of the market. This way, even if I suffer consecutive losses, it won't be crippling, but if I make a profit, the returns can be considerable. Even if I get stuck, I can maintain my mindset.
Go with the market trend; it's correct. When the market is falling, don't keep thinking about bottom fishing; it's unrealistic. When the market rises and retraces, that's a good opportunity; buying low is much safer than trying to catch the absolute bottom.
Choosing coins requires insight; those that suddenly spike, whether mainstream or altcoins, should be treated with caution. Steep rises often lead to steep corrections, making it easy to get stuck.
In terms of technical indicators, I often use MACD. When the DIF line and DEA line cross below the 0 axis and then break through the 0 axis, it is a buy signal. If they cross above the 0 axis and then go down, you need to reduce your position. Never try to average down casually. If you lose, don't average down; many people end up losing more and losing everything. Remember, losses must have stop losses, and profits can increase positions.
Trading volume is also crucial. When the coin price breaks through at a low level, if the trading volume increases, it might be a significant opportunity.
The most critical thing is to go with the trend. Combine daily and monthly lines for comprehensive judgment; when one line bends upwards, you will know how to operate.
In conclusion, trading cryptocurrencies has risks but also opportunities. I hope my experience can help everyone, but I still want to remind you to invest cautiously!
Survival rules in the crypto space:
In the unpredictable crypto space, survival is the ultimate victory. There are no celebrations for lucky individuals, only sustained success for those who strictly adhere to the rules. The following 15 survival rules are key guidelines for navigating market cycles:
1. Principal first: Prioritize safety, better to miss out than to take risks. Ignoring the risks of ambition will ultimately backfire on all gains.
2. Resist greed and seek stability: Give up the fantasy of getting rich quickly; accumulating small profits is better than gambling big. Control your desires to grasp real opportunities.
3. Diversify risk: Use asset combinations to spread risk, keeping more than 20% in cash. When the market reverses, liquidity is a lifeline.
4. Strictly adhere to discipline: Stay away from falling trend coins and refuse to chase highs and sell lows. Impulsive trading only results in 'tuition fees' for the market.
5. Have a method for entry and exit: Accumulate positions in batches during sideways markets, and decisively take profits when targets are reached. Don't be greedy or attached to battles; that's where the truth lies.
6. Respect risk: There is no end to making money in the market, but your balance could go to zero. Taking profits when they are available will let you smile in the end.
7. Decisive stop loss: Act quickly when the fundamentals deteriorate. Hesitation can turn small losses into deep pits; preserving capital is key for the future.
8. Go with the trend: Look at long-term trends on the weekly chart, and ultra-long-term on the monthly chart. When the trend reverses, take profits timely and don't resist.
9. Beware of extremes: Reversals often occur after sharp rises and falls. Always maintain a clear mind towards 'irrational exuberance'.
10. Better to be safe than sorry: 90% of the market is noise. Learn to stay in cash and wait; missing out is not regrettable, making mistakes is fatal.
11. Patience wins: Instead of blindly looking for opportunities, it is better to wait for trends to become clear. Top trading wins by waiting.
12. Know when to stop: Set profit targets and take timely breaks once achieved. Maintaining rationality is more important than pursuing extremes.
13. Stop loss is a responsibility: Stop loss is the bottom line, profit depends on the market. Don’t confuse luck with skill; luck can ruin plans.
14. Time compounding: Frequent trading erodes the principal. Sticking to trends and enduring loneliness is the way to preserve prosperity.
15. Unity of knowledge and action: No matter how perfect the strategy is, without execution power it is just talk. Use discipline to fight against emotional demons and let rationality dominate trading.
These rules embody countless lessons learned through blood and tears. Only by engraving the rules into your bones can you become a true survivor and winner amidst the tumultuous waves of the crypto space.
Guide to leverage selection for perpetual contracts: Why 100x leverage might be your optimal solution?
1. The underlying logic of perpetual contracts
- Unlimited holding: As long as you don’t trigger a liquidation, you can hold indefinitely.
- Price anchoring: Maintaining linkage with spot through funding rates
- Leverage freedom: Flexibly adjust leverage to fit different capital strategies
2. The core formula for leverage selection: Risk × Efficiency = Profit
1. The essence of risk: Leverage risk depends on position control; 100x leverage can be managed scientifically to have risk comparable to low leverage.
2. Comparison of capital efficiency (taking BTC 4700U as an example)
|Leverage multiple Margin Occupancy Rate Fee impact
1x 4700U 100% significant
30x 156.7U 3.34% relatively high
100x 47U 1% relatively low
Core conclusion: 100x leverage only requires 1% of the principal to open a position; 99% of the funds can be used as risk reserves to effectively avoid transaction fee losses.
3. 100x leverage practical risk control system
1. Position management
Single margin ≤ total funds 5%
For 5000U principal, it is recommended to hold positions ≤ 20 contracts (total margin ≤ 940U)
2. Dynamic risk control
Fixed stop loss 2-3%, 5% profit triggers trailing stop loss
Daily target of 1-2% profit
3. Trading discipline
Prohibit holding positions; adopt a per-position model.
Daily trading ≤ 2 hours to avoid emotional trading
4. Profit calculation (5000U principal)
Table
Market scenarios Daily profit Monthly profit Risk control performance
Ideal market 2% 3000U controllable
Normal fluctuation 1% 1000U stable
Extreme market -5% -500U risk isolation
Core conclusion: Under strict risk control, 100x leverage can achieve low risk and high returns.
5. Newbie pitfalls
1. 30x full position risk > 100x 5% position
2. Reserve 5% of the principal as maintenance margin to prevent forced liquidation.
Summary: 100x leverage is a professional capital allocation tool. Mastering scientific risk control can achieve efficient and stable trading.
Regular army pattern trading skills (hardcore content)
W底 (upward trend, the second bottom is higher than the first bottom)
M top (downward trend, the second top is lower than the first top)
W bottom is opposite to M top; M top has strong short intentions while W bottom has strong long intentions. How to choose the entry point and set the stop loss and take profit points?
My method is to combine trend lines, which are constantly updated as the market changes. If the market does not move in the expected direction after entering, I will observe the market. If there is no movement, I will exit firmly without attachment. Stop loss will be set at the high or low of the previous K line (for long positions, stop loss at the low of the previous K line, and vice versa for short positions), take profit at will.
The concept of 'triangle' is often used in morphological schools.
In addition, there is also this:
The formation of triangles generally occurs after prices develop to a certain stage, where there will be repeated or stagnant price actions, and the price fluctuation will become smaller and smaller. The high points of the K lines are connected, and the low points are connected and extended to the intersection. At this time, it will be found that the price operates within a triangle, with the equilateral triangle being a typical representative.
Double bottom (top) reversal pattern
1. Identification of the double bottom pattern (W shape)
Basic elements of the double bottom pattern:
A. There was a clear downward trend rhythm in the previous period.
B. There is a certain time span between the two bottoms, and the second low is basically the same as the previous low.
C. Price effectively breaks through the neckline.
2. Key points for operating the double bottom pattern (W shape)
During the evolution of the double bottom pattern, there are two buying opportunities for long positions:
A. The right-side low point serves as a buy point. At this time, the double bottom reversal pattern has not yet been established. This point is a counter-trend trade with considerable risk; you need to prepare for stop loss protection.
B. After the price breaks through the double bottom neckline, a drop back to the neckline position serves as a buy point. This position is relatively safe, and the stop loss can be placed at the previous low point.
3. Stop loss for double bottom pattern and minimum target calculation
Still, the same saying: If you don't know what to do in a bull market, click on the avatar of Coin Guy, follow, and get free shares on spot planning and contract strategies.
