Not long ago, I had the fortune to drink tea with a big shot in the cryptocurrency world, and our conversation about the cryptocurrency market left me deeply shocked.
It turns out he went bankrupt due to contract trading within three days, with losses reaching 50 million yuan. This experience was undoubtedly a profound lesson for him.
Looking back at my own journey in the cryptocurrency space, it has also been full of ups and downs. From initially entering the market with 50,000 yuan, to making tens of millions during the bull market; then, from tens of millions back to over 200,000, and now aiming for 1.1 million; now, I am waiting for the next bull market to reach my target of 3 million.
My trading method is not complicated but exceptionally practical. In just one year, I turned my assets into an 8-digit figure. My secret is to only trade one type of pattern, decisively entering when I see an opportunity, and to firmly avoid trades without a pattern.
Over the past five years, I have maintained a win rate of over 90%, thanks to my patience and precise judgment.
Today, I will share the best practical advice with you:
The method for position management is batch operation.
Batching: divided into equal batching and non-equal batching.
First: Equal distribution, also known as rectangular trading method, refers to dividing funds into several equal parts, buying or selling in order, with the same proportion of funds for each transaction. Typically, 3 or 4 equal parts are used. For example, buy 30% first, if you start to profit, buy another 30%. If there is no profit, temporarily refrain from investing new funds. When the price of the cryptocurrency reaches a certain high point or the market changes, gradually sell off your position.
Second: Non-equivalent distribution, which refers to buying or selling funds in different ratios, such as 1:3:5, 1:2:3:4, 3:2:3, etc. The forms produced according to these ratios include: diamond, rectangle, hourglass, etc., with the pyramid trading method being the most commonly used.
Third: Equal funds, equal positions, using different methods for comparison.
Pyramid: Buy 5 layers at 1000, 3 layers at 1100, 1 layer at 1200, average price 1055.
Inverted pyramid: Buy 1 layer at 1000, 3 layers at 1100, 5 layers at 1200, average price 1144.
Equal distribution rectangle: Buy 3 layers at 1000, 3 layers at 1100, 3 layers at 1200, average price 1100.
Price rises to 1200 with profits: pyramid 145, inverted pyramid 56, rectangle 100.
When the price drops to 1000, losses are: pyramid +55, inverted pyramid -144, rectangle -100.
For example: If a certain cryptocurrency drops to 10 yuan, buy 20% of your position; if the price drops to 8 yuan, enter another 30%. At this point, the average cost is 8.6 yuan. If the market continues to drop to 5 yuan, then enter another 40%, averaging 6.5 yuan. If the price rebounds to 6.5 yuan, it is a break-even. If it rebounds to 10 yuan, it means a profit of 3.5 yuan. But if you buy heavily at 10 yuan, when the price returns to 10 yuan, you have just broken even.
The curse of retail investors in the cryptocurrency market.
Regarding the curse of buying and falling, selling and rising.
Thinking about this question from a different perspective will help you understand a very simple truth: if I were the dealer, having built such a large team and invested so much money, my goal is to profit from you, not to help you make money. This is the main point. All actions revolve around this point. After secretly collecting bottom chips for several months or even a year, why would I help you fly? Therefore, before the price rises, I must kick you off the bus.
How to drive? Wash the market!
After lying in wait for a while, I obtained enough chips to control the market. The fate of the entire K-line is now completely in my hands. Controlling the K-line is like holding the heart of retail investors; the K-line is the rope, and retail investors are a herd of sheep; wherever I lead, you will follow. You overestimate yourself if you think you won't be easily swayed. As long as you have humanity and desires, you cannot remain calm; emotional fluctuations only require a moment, and buying and selling actions only take a second.
It won't even give you time to realize your emotions are being manipulated. By the time you notice all this, you have already executed the buying and selling actions, and this is exactly what I want you to do. When you think this cryptocurrency will rise, others will think so too; most people will think so. Therefore, not only have you bought in, but others have too. With you all in, can I still rise? If I rise and you all make money and run, who will take the next share?
So once you all follow, I will wash the market until there are no uncertain chips left. Unless you uninstall the platform after buying, I really have no way to handle that, but how many can actually do that? Conversely, when no one thinks this cryptocurrency will rise, and no retail investors swarm in, and the previous retail investors have been mostly washed out, then I will begin to rise, pulling it up with a big bullish line. Whether you chase or not, if many chase, I will repeat the market-washing action; if you don’t chase?
So why wouldn't I continue to rise, while you successfully miss the opportunity? Therefore, the pattern of buying and falling, selling and rising is inevitable; it is a result caused by the actions of the vast majority of retail investors, which is a dynamic orientation. As long as it's 'most people', you will fall into this curse.
How to be among the few: the dealer hunts the retail investor, and we hunt the dealer. The cryptocurrency space is full of many experts; when the dealer hunts the retail investor, they watch the show; when the dealer rises, they follow, and when the dealer distributes chips, they run away.
Their common characteristic is patience. Like a wolf, they stare at their prey without moving. Knowing oneself and the enemy leads to victory in every battle. Understanding the enemy's movements enables targeted actions.
I believe many old hands have seen this image below, even familiar with it.
After seeing this image, you might think, how could I be so foolish?
Don't believe it? Just open your trading records and you'll know. Why is such a simple and easy-to-understand principle so difficult to implement?
It's just human nature; trading is about human nature. Just an example:
On December 31, 2022, during a new decline that did not create a new low, this was a signal for a bottom; at this time, you can buy and wait to sell in March 2024. It's simple and clear. When you see this, you might scold me, saying that the K-line has moved; how can you say that if it hasn't moved?
Every complete K-line is like a complete civilization. History does not repeat itself, but it keeps repeating.
If you foolishly hope to get rich in a day by doing contracts and leveraging 10x or 100x, operating dozens of times a day, then the K-line chart that hasn't moved holds no meaning for you; your money will ultimately go to zero. Don't deny it; patience is a luxury for most retail investors.
The process shown above takes about a year. It feels like I have to operate dozens of times a day, let alone in a year.
Of course, this excludes professional short-term traders, whom I greatly admire. Short-term traders require not only patience but also keen insight. If you have nothing and are just guessing, then you are gambling, and you are gambling against a dealer who can cheat. How can you not lose?
In the trading process of cryptocurrency, how can retail investors avoid losing money and make profits?
Face is not worth anything, and self-esteem is also worthless, especially when one is in a difficult situation.
If you care about self-esteem and face, you will not realize your own problems. Even if you realize there is a problem, you are unwilling to face and accept reality, which greatly hinders our own growth.
The financial market never cares about these so-called superficial things.
If one's self-awareness and professional ability do not improve or grow, we will face endless confusion and trouble.
Don't say you can't stand the current market correction; even if the market rises, you still can't stand it. Every stage has its own problems.
Without experiencing life, one cannot grow; without growth, how can one succeed?
Making money has never been a simple matter, especially in the financial market. Achieving long-term stable profits will become increasingly difficult.
In this field, those who can achieve results have all undergone a transformation.
Those who think they can easily make money in the cryptocurrency bull market either have a cognitive problem or ulterior motives.
Many friends who added me on WeChat after reading my articles believe I have a good mindset and are asking why my mindset can be so good.
For me, pain, anxiety, greed, fear, and the ups and downs of life are all things I have experienced, and I have gone through enough of them.
Trading should essentially be a smooth process; make thorough preparations before entering the market, achieve unity of knowledge and action during trading, and reflect and improve after the trade.
Prepare all work in advance and think carefully about all the bad outcomes that you cannot bear. If a small probability event or black swan truly occurs, do you have the ability to bear the risk? Are you mentally prepared and have realistic expectations for the worst outcome?
I have truly achieved the mindset of gaining is my fortune, losing is my fate.
If not, there will still be anxiety, fear, anxiety over gains and losses, greed, and so on. There must be some problem; either find the problem and solve it, or you are not suitable for this industry, and it would be better to withdraw from the circle to avoid tormenting yourself. Don't lose money and ruin your health.
Main issues faced during the trading process: correct investment mindset and concepts, attitude, technology, strategies, fundamentals, capital, news, policies, etc.
If you have not realized what problems you have at the moment, I can help you. If you are aware of the problems but cannot solve them, I believe I can still help you.
All of this is based on our genuine desire to change.
One's own karma cannot be interfered with by others; only one can save oneself.
For ordinary people wanting to make money during a bull market in cryptocurrency, the correct mindset and clear positioning are essential!
Today, let’s tell a story that starts with the shepherd and the woodcutter. Whether it's good or not, my cultural level is limited, so please bear with me!
It's about identity positioning; the shepherd finished all the necessary tasks during our casual chat, and by the time you realize it, you have achieved nothing.
If one is unaware of their own clear positioning, that is a limitation of cognition and thinking, which cannot be changed by mere hard work.
It's just like making the wrong choice and wasting effort.
Realizing this, choosing to turn a blind eye and not change is the realm of action; the unity of knowledge and action is indeed very difficult for each of us. Setting limits on ourselves before we even start, saying I can’t do it, I have no money, I’m too old, my education is insufficient, I can’t learn, I’m busy, etc., is truly a misguided effort to find an excuse.
One must experience and grow; humans tend to seek benefits and avoid harm, which is a weakness of human nature and fundamentally inevitable. For each of us to overcome our own inertia is not easy, which is why there is such a vast gap between knowing and doing.
However, to become strong, we must break through; otherwise, we will only achieve mediocrity. The process of persisting, changing, and growing oneself is indeed very painful, as I have experienced over the past few years.
So what should we do when we want to change the status quo but have to act?
The fastest way to change oneself is to do the things you fear, the things you dare not do, the things you think are impossible; do them immediately, right away, and just do it.
Money lost can be earned back, jobs lost can be found again, friends lost can be made again, love lost can be sought again; you were born with nothing, so why fear starting over? Water that reaches a dead end becomes a waterfall, and when a person reaches a dead end, it is rebirth. The mountain halfway up is always crowded; you must strive to see the top.
The biggest detour in life is trying to take shortcuts.
Only when our thinking changes can we influence our behavior every day, and ultimately change the results we can achieve through our actions. Never dream of repeating the same things every day and expecting to achieve different results than others, or even hoping to achieve better results than others; that's all there is to it.
The road to success is not crowded; it's just that very few people persist along this path.
I hope to always see you in the cryptocurrency space in the future, as I will continue to work in this field for the rest of my life.
Old Bo only does real trading; the team still has spots available.
\u003cc-71/\u003e\u003cc-72/\u003e
