In the crypto circle for 10 years, in 2015, I entered the market with 300,000, and it peaked at over 3 million. At that moment, I thought I was a trading genius, so I decisively quit my job to focus on trading, even borrowing money to trade.
However, reality gave me a harsh slap; I faced many problems that caused me to not only give back all my profits but also incur massive debts, eventually forcing me to sell my house, and my wife and child almost left me. 2017 was my darkest moment; in just a few months, I fell from the peak to the bottom.
After much reflection and summarization, I was fortunate to share tea with a big shot in the crypto world and discuss the dynamics of the crypto market.
His words left me deeply shocked.
Later, I began to summarize methods, review trades, change my wrong trading methods and approaches, and started to change my mindset and understanding, learning + learning + learning, and it was only through the guidance of experts that I gained insight! Currently, I wouldn’t say I’m wealthy, but I have achieved stable profits and can reliably outperform over 80% of people.
Looking back at my journey in the crypto circle, it’s been filled with ups and downs. From initially entering the market with 300,000 to making millions during the bull market, then from over 10 million back to 2,000,000, and now aiming for a small target of 1.1 million. I am currently waiting for the next bull market to arrive, aiming to reach three small targets.
Next, I’ll summarize my experience, hoping to provide some help to fellow crypto enthusiasts:
In a bull market, how to properly accumulate coins? In a bear market, how to trade?
Compared to traditional financial trading such as stocks and futures, there are many more people making big money in the crypto market! Many ordinary people, or even those worse off than us, have become rich. How can we not be tempted?!
The temptation to get rich can make people lose their rationality. Many hold onto the hope of finding a few promising coins, investing large sums, and waiting to get rich or change their fate! So-called promising coins can turn into thousands or tens of thousands of times!
Here, I must share a fact. The wealthy are, after all, a minority, and a sadly small one at that. It’s undeniable that many people have become rich, but wealth is often temporary, or merely exists in an account for a short time. If not withdrawn, and one exits the crypto market, they will eventually lose it all. There are too many such examples. For instance, among my classmates. We studied trading techniques together. He had great luck; with a capital of 20,000, he earned 5 million in just 6 months. At that time, we were envious, even jealous. We advised him to quickly withdraw the money, buy a house, gold, or other fixed assets, or at least give most of the money to family. The result, as you might guess, was that all the profits were lost, ending in chaos. So how can we remain undefeated in the crypto market?
In a bull market, how should we correctly accumulate coins to make money?
First, find promising coins and invest half your capital; buy in and don’t sell for at least six months or a year. Second, trade in waves—use the remaining half of your capital to continuously buy low and sell high, consistently earning profits.
Specifically, how to buy low and sell high? In my complete trading system, I’ve summarized a simple trading system, which can be learned by any intellectually normal person in half an hour and mastered proficiently in about a week. This involves using two tools: one is pivot points, and the other is trend lines. The immediate use means that the opening and closing positions are clear at a glance.
For those interested in using a simple, immediate trading system, feel free to contact me separately.
With a big bull market, there comes a big bear market. If in a bear market, one still holds onto old beliefs, i.e., buying low and selling high, it often leads to significant losses. So? Is there a good solution?
The solution is to short. First, leverage trading can be used for shorting; use a 1x position. For specific operations, you can ask customer service. Second, use low-multiple contracts. Set the contract multiple to 1 and short the entire position.
Specific short-selling points, or use a simple trading system immediately.
A simple immediate trading system is something I summarized over two months. In addition to the above advantages, it has the following benefits:
1. Avoid human weaknesses, namely greed and fear. Have clear buy and sell points; buy when it’s time to buy, and sell when it’s time to sell!
2. Applicable to all coins (including mainstream coins and altcoins).
3. Applicable to a wide range of cycles (above 15-minute charts).
4. Avoid the dulling of indicators.
Finally, I emphasize that in a bull market, focus on spot trading and avoid futures! A simple immediate trading system can be summarized in four words: simplicity is the ultimate sophistication. I hope everyone doesn’t underestimate this because it reveals the laws of financial trading.
The bottom line that must be adhered to in futures trading.
Futures trading carries extremely high risks; the essence of making money under high risk is effective risk management. This is often summarized as earning more when you earn and losing less when you lose. This principle applies even more in futures trading. Therefore, I’ll first discuss the importance of risk management in futures trading as a whole, then highlight a few key risk management items.
It can be said that making money in futures is neither easy nor hard. Earning a profit once or twice is easy, but the difficulty lies in making stable profits over the long term. In the face of the market, we are all small investors and should keep our expectations low. As long as we are making profits, we shouldn't pursue win rates or the highest or lowest points, and we shouldn't expect to get rich quickly. Opening a position has risks, whether right or wrong is normal; don’t let it affect your mindset—just cut losses in time. Earning less this time means you can earn more next time; take your time to accumulate, and do not be anxious. Such thoughts are like a sword of Damocles, and they may bring potential disaster in certain market conditions.
Ultimately, the nature of the trading market is greed and panic. To make money, one must find ways to overcome human weaknesses; don’t be greedy when you shouldn’t, and don’t be fearful when you shouldn’t.
It’s crucial to stick to your thinking. The crypto market is still fairly small, and there aren’t many trading opponents. The essential reason for being able to make money lies in adhering to personal thinking. If you go with the flow and follow others, you’ll be lucky to break even; making a profit is as difficult as climbing to the sky.
Therefore, futures trading must strictly adhere to the trading discipline you set for yourself—no greed, no gambling. You can’t be complacent about profit from a single act of non-compliance, nor should you be frustrated for missing opportunities by adhering to discipline. Discipline is ironclad; discipline is the bottom line. No matter when, adhere strictly.
All of this is to ensure effective risk management and reduce the probability of fatal mistakes. By adhering to the following points, making money will be a high-probability event:
1. Reduce leverage.
You must control the actual leverage of your positions to no more than 2-3 times; ideally, it should be around 1x. If using full margin mode, always set stop-loss and take-profit to prevent total liquidation during significant fluctuations like those on September 25.
2. Learn to cut losses.
This point is very important; let me reiterate: the money lost by retail investors is not lost through stop-losses but through liquidation. Market volatility is inherently unpredictable, and those who make money generally do so by earning more when they are right and losing less when they are wrong. Stop-losses help you minimize losses when you're wrong. Therefore, retail investors should also recognize mistakes promptly; they must set stop-losses and absolutely cannot hold onto losing positions. Set a loss ratio that you can bear, such as 15% or 30%, depending on your situation. Once you reach your maximum loss ratio, don’t gamble hoping for a turnaround, and don’t think that since you’ve already lost so much, you might as well hold on. In summary, you must stop losses at all costs. You may not feel it once or twice, and sometimes you might realize a stop-loss was unnecessary, but over time you will appreciate the wisdom of your stop-loss strategy. For example, during the time before September 25, if you kept opening long positions, you might easily hit stop-losses. Each time you hit a stop-loss, you might feel frustrated, but looking back, many people used 2-3 times leverage and were liquidated that night. You should be thankful for how wise your stop-loss was. In short, a stop-loss just cuts off a small part of your losses; not stopping losses is equivalent to self-destruction.
3. Reduce frequency.
This doesn’t need much explanation; everyone should understand that the more you trade, the more mistakes you make. If you happen to make mistakes during times of significant loss, it’s even worse. Therefore, in trading, strive to do the right thing, reduce trading frequency, try to seize high-probability opportunities, make fewer mistakes and incur fewer losses. This is beneficial for both profit generation and mental adjustment.
4. Capital management.
I believe capital management is the most important aspect of trading. Mastering good capital management strategies can effectively protect your principal and significantly reduce drawdowns, preserving profits, ultimately multiplying your risk tolerance. Capital management determines whether you can make money and is the lifeblood of surviving long-term in the trading market.
Here are a few rules to mention separately: (1) Always keep your principal from being fully invested. Even keeping 10% in cash will make you grateful for adhering to this discipline in extreme risk situations. I generally keep 10-20% of funds in cash and occasionally trade short-term altcoins, usually holding for less than 24 hours before exiting. (2) Futures and spot trading must be separated as a form of risk isolation. The spot portion should not use any leverage; only profit from the rise in spot prices. The futures portion can occupy 20-30% of the total capital in clearly defined trend situations, with a maximum of 50%. Use low leverage for the futures part, anchoring returns in the underlying currency, and after stabilizing profits in the futures market, the returns can also be quite substantial. (3) Avoid excessive diversification of funds. Concentrate your funds into a few relatively strong currencies, don’t spread them too thinly, and reduce the number of trading targets. For example, don’t think about opening contracts for Bitcoin, Ethereum, Ripple, and Litecoin simultaneously; that’s what experts do, aiming for maximum returns. As retail traders, we should first pursue profit rather than maximization. Trading too many targets increases risk without amplifying profit. Therefore, it’s better to focus efforts on improving win rates, which will lead to easier profits, compared to spreading funds thinly across many targets.
5. Reflect frequently, summarize often.
The entire trading process has only a few steps. Determine the trend direction—find the entry point—confirm the position size—add positions based on market conditions—set stop-loss and take-profit. Essentially, these are the main tasks. After completing a trade, reflect diligently. Identify which aspects you were weak in during the trading process and focus on strengthening them. Ensure you have good discipline to adhere to and execute at different trading stages, summarizing successful experiences and lessons from trades. By maintaining this long-term approach, you will surely reap rewards.
This is what I want to express about futures trading. I haven't discussed opening techniques and strategies but chose to highlight these seemingly common thoughts and concepts, not because techniques and strategies aren't important, but because I believe these foundational thoughts are more crucial, more practical, and must be mastered. They are like the foundation of a building; only with a solid foundation can the upper floors be more beautiful. Therefore, on the premise of understanding these basic principles, one can also develop certain technical analysis skills, master some trading techniques and strategies, and then futures trading becomes your ATM.
In the crypto circle, to turn 10,000 into 12 million, there’s only one way—roll over.
The riskiest methods should also be divided into three parts. This means you should give yourself at least three chances.
For example, if the total account capital is 200,000, the maximum allowable loss is 20%, which is 40,000. Therefore, I suggest the most risky loss plan: the first time 10,000, the second time 10,000, and the third time 20,000. I believe this loss plan has a certain rationality. Because if you are right once out of three times, you can profit or at least survive in the market. Not being kicked out of the market is also a form of success and gives you a chance to win.
2. Grasp the overall market trend. Trends are much harder to navigate than sideways markets because trends involve chasing up and cutting down. You need to maintain composure in holding positions, whereas buying high and selling low aligns with human nature. Trading becomes harder when it goes against human nature, which is why it can be profitable. In an upward trend, every violent pullback is an opportunity to go long. Remember what I said about probabilities? Therefore, if you haven’t boarded the train or have exited, be patient. If the market drops 10-20%, boldly go long.
3. Specify take-profit and stop-loss targets. Setting take-profit and stop-loss can be said to be the key to whether profits can be made. In several trades, we must ensure total profits exceed total losses. Achieving this is not difficult; just follow these points: ① Each stop-loss ≤ 5% of total capital; ② Each profit > 5% of total capital; ③ Total trading win rate > 50%. Meeting these requirements (with a profit-loss ratio greater than 1 and a win rate above 50%) will yield profits; of course, you can also have a high profit-loss ratio with a low win rate or a low profit-loss ratio with a high win rate. Anyway, just ensure total profits are positive: total profits = initial capital × (average profit × win rate - average loss × loss rate).
4. Remember to avoid excessive trading frequency. Since BTC perpetual contracts are traded 24/7, many new traders operate daily. With 22 trading days in a month, they might trade almost every day. As the saying goes: 'If you walk by the river often, how can you avoid getting your shoes wet?' The more you operate, the more likely you are to make mistakes. After making mistakes, your mindset may worsen, leading to impulsive decisions and 'revenge' trading: possibly going against the trend or over-leveraging. This can lead to one mistake snowballing into multiple mistakes, resulting in significant losses that may take years to recover.
Key points to note about rolling over:
1. Sufficient patience. The profits from rolling over are enormous; as long as you can successfully roll over a few times, you can earn at least a six-figure sum. Therefore, you must not roll over lightly; seek high-certainty opportunities.
2. High-certainty opportunities refer to situations where the market experiences a sharp drop, then consolidates sideways before breaking upwards, significantly increasing the probability of following the trend. Identify the trend reversal point and get on board right from the start.
3. Only roll up, do not short.
But regardless, futures trading is a high-risk gambling market; safety comes first. I wish everyone can make a fortune in the crypto circle.
Pattern.
Life is full of coincidences and opportunities. Often, your efforts don’t meet opportunities, and truly, it means nothing, let alone soaring to great heights. I don’t mean to say don’t work hard, but rather don’t struggle too much against yourself.
The future is full of unknowns, and there are too many unpredictable events. Trading and life are not linear; they are filled with sharp rises and falls. What’s needed is to be prepared, and wait for the right moment. When opportunities arise, you should raise your sails, and during adversity, stay put and don’t think about unrealistic things.
1. Short-term traders.
We lack faith in trends; we are only concerned with the sound of coins, accumulating small amounts cautiously. But does this matter? Short-term trading relies on time to accumulate profits, and daily losses must be controlled within a certain range because you can earn back in a few days.
2. Faith.
Long-term trading requires faith; many day traders also have strong beliefs. These understandings of the market and self-awareness build our confidence. Long-term trend trading relies on market conditions; if a significant trend occurs, it must be seized, or you will spend a lot of time waiting for the next big trend. Or, when the next magnificent trend arrives, you may be exhausted by the market, having lost sufficient capital, which can be troublesome. Thus, luck is also very important.
3. Execution.
With the same technical analysis, some make a fortune while others face bankruptcy. Why is that? Since everyone understands that technical analysis is just a game of probabilities, why is there such a big gap? It’s due to differences in execution.
For many traders, whether they make or lose money, they are all rigidly staring at technical analysis, with their computer screens filled with various trend lines. But when it comes time to enter the market, they often hesitate and drag their feet when exiting. In the end, technical analysis, their only weapon, becomes virtually ineffective.
A trading principle solves two problems.
This principle is: buy strong, sell weak!
Why buy strong and sell weak? Are you also following this principle in your operations? If you don’t understand the reason, think more about it; I won’t explain it here. Adhering to the principle of buying strong and selling weak will greatly increase your profits and reduce risks!
The first question is: trend judgment!
We all know that trading must follow trends; the probability of doing the right thing by following the trend should be above 50%. So which trend should we follow?
How to judge trends and trend reversals? The issue of which trend to follow has already been resolved in trading methods, as you have determined your trading period. Once you establish the trading cycle, discussing trends with others becomes meaningless, as differing trading periods may lead to different trend directions. Therefore, what others say about rises and falls has nothing to do with you; just use your trend judgment standards to make clear judgments within your cycle.
Once you understand the judgment, only open positions in the trend direction, solving the problem of following the trend! Of course, there are also standards for judging trend reversals, which is also to follow the trend! As for the method you use to judge, anything is acceptable!
Trend lines and moving averages are good; they are simple and clear without subjective judgment!
The second question: the structure of the trend!
Once you clearly understand the basic structure of the trend, the trend will become clear to you, no longer a tangled mess! So what is the basic structure of the trend?
Is it a declaration? A question? A statement? Finally, it’s a statement! Once you understand that the up and down of the day is an excellent position for both offense and defense, will you still trade blindly?
I’ve said this isn’t a secret; there’s no issue with speaking it out loud. Because this is an unchangeable essence!
The way is the bone that supports the framework of trading! The law is the muscle that connects the inside and outside, and the technique covers the outside. Thus, trading reaches a complete realm!
Patiently stay in cash, waiting for the trend and opportunity.
Patiently wait for the market’s truly perfect trend; don’t make predictive interventions. 'Timing is everything'; buy at the right time and sell at the right time. Trading isn’t something to do every day; those who think they must trade at any moment overlook one condition: trading needs a reason, and it must be objective and appropriate.
If you can avoid the storm of a 'big wash', you can bring home massive profits.
Only when the market shows strong trending characteristics or your analysis indicates the market is brewing a trend can you confidently enter the market.
The above are theories from predecessors; my understanding is: there are two reasons for entering the market:
1. Identify trends that can be determined with your analysis methods (trends you can understand).
2. Use 'confirmed' entry signals that have been thoroughly tested and validated.
Knowing how to stay in cash is wise. This statement holds some truth; staying in cash is not difficult; it’s about not trading when the trend lacks certainty.
Patiently hold positions, waiting for the trend to conclude.
Trends have sustainability. My 'ideas' have never made me a lot of money; it’s always my 'persistence' that has earned me a lot of money, understand? It’s my persistence! In an upward trend, your approach is to buy and hold tightly until you believe the upward trend is about to end.
It’s rare to find someone who can judge correctly and remain steadfast. I’ve found this to be the hardest thing to learn.
'Following the trend' positions can yield significant profits; never easily 'abandon ship.'
'Cut losses short and let profits run.' The purpose of patiently holding positions is to maximize profits, and the key is how to close positions. Solving the closing problem can resolve the matter of patiently holding positions. After more than a year of repeated exploration, I have found a method.
Don’t think about buying and selling at the highest or lowest points. Use shorter time frames to exit on the right side. Although you may lose some profits, you can hold onto positions until the trend ends and maintain consistency in closing positions.
The key to increasing profit success.
The market is a very magical one; it can bring immense wealth, but most of the time, it brings joy and sorrow, leading to liquidation and exit. Today, let’s talk about the secrets that experienced traders have for succeeding in the market.
Solving the following three problems will bring you significantly closer to stable profitability.
1. What ultimately enables investors to achieve continuous profitability?
2. How can I improve the profit-loss ratio in investments?
3. What are the secrets to quickly flipping small capital?
To solve these problems, there is only one method: to establish a mature trading system of your own and raise the success rate of the system to over 70%. This way, consecutive losses can be controlled within five times. Set the system’s profit-loss ratio to 3:1 or even larger, and through specific capital management methods, you can achieve a winning goal in every 10 trades.
To profit in trading, you must have a profound understanding and knowledge of your trading system. You need to firmly believe in your trading system, and having the right mindset and a good trading attitude is the prerequisite for successful investments.
The investment market has repeatedly confirmed the rule that 80% of people incur losses; no one can change the natural laws of the investment world because this is the eternal iron law of the investment world. It’s not that the stock market is mysterious or difficult, but because most people have an irresistible nature, doubting their trading systems. This fatal nature ultimately leads to investment failure, while trusting the system is precisely the most crucial part of trading. Only by trusting your trading system can you find the key to unlock the door to wealth.
The secret to successful trading: is to consistently stick to your trading system.
Investment success does not depend on how powerful or excellent your tools are but on whether you can effectively use your trading tools. On the road to wealth dreams, the most effective strategy is to focus and stick to a good trading system. Focus and persistence can generate incredible power. When you can truly achieve this, you can create miracles you never thought possible.
Successful traders all share a strong belief: they firmly believe that sticking to a successful trading system is the best choice for small people to achieve great things. Doubting your trading system is the beginning of investment ruin. Every successful investor possesses a unique quality: the correct mindset, a rigorous trading attitude, strong self-confidence, decisiveness, and an indomitable spirit in the face of failure. Even in the most difficult times for the system, they can trade entirely according to the system because they know that success requires a broad vision, overcoming the short-sighted weaknesses of human nature, and having patience and confidence to stick to a fixed profit model.
