After seven years of trading cryptocurrencies, I peaked at turning 500,000 into over 9.6 million, and I also experienced a few weeks of going to zero, feeling hopeless for half a year. I returned to the crypto space and started a new account with 50,000, which I have now grown. In fact, the so-called enlightenment from trading is to remain calm and composed regardless of market conditions, inner state, or profit curve!
I have used 80% of market methods and techniques, but the most practical is still bottom fishing! I will share everything today, which will surely help you realize your path to wealth from recovering losses to profits.
To become a master at trading cryptocurrencies, you must first get started! If you can do the following points, getting started will be no problem.
1. Be absolutely honest; do not deceive yourself.
The crypto space may be the fastest place in the world to get slapped in the face, where lies and self-deception cannot survive; only those who are sufficiently honest can thrive here.
If the crypto space has taught me anything, it is that behind honesty is courage, and courage is the noblest quality in the world. Many people's lives are filled with deception, cunning, and lies, losing the courage to face themselves honestly, perfecting excuses, and building a 'it's all someone else's fault' explanation system.
The first thing is to think clearly about why you bought cryptocurrency and why you sold virtual currency.
When you buy, do you really understand its fundamentals, or did you just read an article by a big influencer on Xueqiu, or hear some so-called 'information' from a distant relative of your elementary school classmate and get tempted to jump in because it has risen too fast recently?
When you sell, was it because the fundamentals changed, or because you were scared and hurt by the drop, or anxious when it rose, or lost patience seeing others rise?
This is actually a very basic question. Most people cannot make money in the crypto space not because of technical issues, but because they cannot even pass this first hurdle.
2. Know what you are doing at every moment; form a system and style.
When you can honestly face your buying and selling logic, you should further improve your trading system.
If you are a long-term investor, you should look at the fundamentals. For you, the fundamentals are the only standard. If you are a trend investor, you should look at strength and trends. For you, the trend is the only standard.
3. Cheerfully accept the faults and risks of every system.
In this world, there is no perfect trading system; every trading system has its faults and risks.
Doing long-term investments can be extremely lonely, watching other hot sectors rise and rise, and you might face huge losses if you misjudge the fundamentals.
4. Patience is very important.
If you are a long-term investor and have a long-term view on a sector, seeing several coins you are optimistic about not rising, or even dropping, while those sectors you don't favor are hitting new highs every day, what should you do?
If you are a trend investor and the recent hot stocks are not trending, buying in every time it seems about to break out only for it to pull back the same day, do you still want to stick to your trading system?
5. Have a position and stop-loss system.
Because there is no perfect trading system in the world, you need to have position control and a stop-loss system.
Buying a coin with all your funds and getting stuck at a 40% loss is something only a rookie would face. First, you shouldn't have gone all in when you bought, and secondly, you should have stopped losses when it dropped.
6. Have the spirit to gamble and accept losses.
If you have a long-term view on a coin, but its price keeps falling, and you firmly believe the market is wrong, buying more as it drops, in the end, it proves that the market was right and you were wrong; the fundamentals of this coin have deteriorated, but you just didn't know it.
At this time, you really shouldn't complain. You guessed the wrong direction, leading to losses. The coin was chosen by you, and the decision to hold firmly and buy more as it drops was made by you. At this point, you should admit your mistake and stand tall.
For most people, if they can achieve the above, they may not become rich, but they are definitely not far from making money.
If you plan to stay in the crypto space for the next three years and are determined to treat trading as a second career, you must read these 9 iron rules. What I share are practical tips for making a living from trading, and I believe that after reading, you will avoid many years of detours.
Finally, I want to share a few points of experience!
First, understand the rules of the market you are in.
In the crypto market, having transaction fees means you already lost the odds when you entered. You must enlarge your cycle and volatility space to reduce the impact of transaction fees. Don't underestimate transaction fees; they are a major reason for the failure of the coin flipping theory.
In the crypto market, my trading frequency has dropped to dozens of trades a year. I calculate the number of trades this way: two batches of entries count as two trades, rather than counting entry and exit as one.
Second, find a trading method that belongs to you and only act in familiar moments.
We have many methods for entering and exiting the market, with so many indicators available. But the more methods, the easier it is to make mistakes. The simpler and more singular the method, the more it can ensure the win rate. I remember when we were trained, the teacher didn't teach methods at all; he said everyone has their own methods, and you can't teach what can't be learned. I consider myself a mid-level trader; I can't make big money but never lose money, maintaining stable monthly returns because my trading method seeks stability. Clients also prefer this type of trader, able to ensure stable profits without causing fatal blows.
Some people like to follow trends while others like to catch reversals; these are two different mindsets, and the chances of making mistakes are higher. Personally, I am best at making reversals, so I will only wait for my opportunity and ignore the rest.
Third, buy low and sell high.
The simplest principle is that if pork prices rise this year, everyone will start raising pigs, and pork prices will definitely drop next year. The market has cycles; after a downturn, there will be prosperity. During the market downturn when everyone is afraid to enter, buy in batches, raise pigs when pork is cheap, and sell when pork prices rise. It's that simple.
Fourth, fund management.
If you want to fight a long battle, do not invest all your funds in one go. If you want a quick victory, then make full use of your funds.
Control your risks. Trading institutions have risk control specialists for forced liquidation. However, due to different trading methods, traders must face varying degrees of losses. If you are following a trend and have a 10% loss, that clearly means you are wrong—acknowledge the mistake and exit quickly. If you are making reversals, a 10% loss is quite normal.
That's about it; there's no point in saying more. The best traders in the world have been through great storms. I've traded what you've traded, and I've also traded what you haven't. Every trade of the 100,000 is real and is a summary of practical experience. In trading, it is always easy to make money but hard to keep it. A big problem arises when you can't cash in after making a profit.
Technology is the foundation of survival; teaching someone to fish is better than giving them a fish. Leveraging small investments for large returns is the true charm of investing; holding onto profits you are sure about is the essence of financial management! Follow me for continuous sharing of practical tips from the crypto space and let's explore its mysteries together!
