After ten years of deep involvement in the cryptocurrency market, with its ups and downs, I entered the market in 2015 with 500,000, reaching a peak of over 7 million. At that moment, I thought I was a trading genius, focusing solely on trading cryptocurrencies, even borrowing money to trade. However, reality taught me a lesson as I faced continuous problems, losing not only all my gains but also accumulating debts, ultimately having to sell my car and house.
2017 was my darkest moment; in just a few months, I experienced a fall from peak to trough.
Later, I summarized and reflected, fortunate to share tea with a few big names in the crypto world, discussing the trends in the market. Their words deeply resonated with me and left a profound impact.
Later, I began summarizing methods, continuously reviewing and reshaping my trading strategies, using Dreamer tools to create my own trading methods, changing my mindset, and continuously learning and updating. While I can't say I've reached the peak of my life, I have achieved stable profits and can comfortably outperform over 80% of people. Looking back at the entire process, it has been full of ups and downs.
From initially entering the market with 500,000, to making tens of millions during the bull market; then from tens of millions down to my current small target. This year, I am preparing and positioning myself for the arrival of the next bull market, aiming to reach three small targets.
How to match short-term, mid-to-long-term regular investments with quantitative trading
As a newcomer to the crypto world, you must clearly recognize the risks of the cryptocurrency market, learn essential trading skills, and maintain the corresponding mindset.
Prepare yourself and avoid common pitfalls in cryptocurrency trading to prevent falling into traps. However, there are too many trading methods and techniques on the market, fundamentally falling into four main ways to make money: short-term, mid-to-long-term, regular investment, and quantitative trading in the crypto space.
Short-term trading usually refers to operations over a brief period, buying low and selling high to make a profit, carrying speculative characteristics. As long as you combine technical indicators and reference fundamental news, you can get started, but it is easy to chase after price spikes and inadvertently end up holding the bag at the peak.
Suitable for: Those with certain technical abilities, who should spend at least half an hour watching the market every morning, noon, and evening. Mid-to-long-term investments don't simply mean buying and ignoring; it requires focus and diligence, along with a deep analysis of fundamentals.
In this field, you need to have a strong psychological endurance and a certain perspective on future trends. If your view is inconsistent with market movements, it can lead to significant losses.
Suitable for: Those who do not have time to watch the market, enjoy researching and analyzing, have confidence in the future development of the coin, and are willing to understand the underlying technology and development prospects.
Regular investment
Regular investment is a long-term method for seeking average returns, which is less affected by bull and bear markets. If you have been exposed to fund regular investments, you should have some understanding of digital currencies.
Regular investment is not difficult to understand, and digital currencies often yield higher returns than mutual funds. As long as you invest regularly and in set amounts, choose a few cryptocurrencies to form a portfolio, and set stop-loss and take-profit levels, the returns can be significant. Suitable for: Salary earners, those interested in digital currencies but lacking time for analysis, and individuals with a fixed amount of spare funds each month.
After ten years of trading cryptocurrencies, from significant losses to substantial gains, I've summarized ten iron rules and offer a piece of advice to all retail investors! If you want to stay in the crypto market for the long haul, please take this article's heartfelt words seriously! Newcomers must remember these rules to navigate the market skillfully.
The cryptocurrency market is a world filled with opportunities and risks, especially for newcomers. Learning how to survive and profit in this highly volatile market is a discipline that requires continuous learning and practice.
Finally, to summarize: The two key elements for survival in the cryptocurrency market
If you feel confused or overwhelmed during your operations, remember these two points:
1. Be proactive: Opportunities are fleeting, and decisive action is necessary to seize them.
2. Stay online: The cryptocurrency market is ever-changing, so timely access to the latest news and reactions is crucial. The crypto world is challenging, but as long as you master these iron rules, stay calm and rational, you can find your opportunities in this market. Remember, investing is a marathon, not a sprint; patience and strategy are key to success!
If the pattern determines life, then what exactly determines the pattern?
Many retail investors often find that while many have excellent strategies and analyses, they fail to execute them.
In life, we call it a lack of self-discipline; in trading, it's often related to mindset and confidence. If the reasoning behind your plans and strategies isn't sufficient, and the long-short approaches and selections are too random, you may hesitate when a sudden drop or spike reaches your entry point. Additionally, being overly cautious often indicates a lack of flexibility and insufficient capability, using 'caution' as an excuse.
An excellent trader is forged in the field, not in theory books; an improper mindset leads to fear of stop-losses and an inability to view gains and losses with equanimity, overly magnifying stop-losses and becoming hesitant.
Rome wasn't built in a day; slow accumulation is necessary for any endeavor, and investment is no exception. If you enter the investment market with the expectation of getting rich overnight, profits may drift farther away from you.
Mu Qing often tells his friends: It's better to have steady income than to get rich overnight; big ups and downs are less reassuring than steady profits.
If you plan to trade cryptocurrencies in the long term but don't understand the technology or haven't found effective trading tips, you might want to try this super simple 'foolproof strategy.' Even if you are a complete beginner, you can easily get started, with a success rate of up to 80%. Whether buying or selling coins, just follow the instructions.
First, you need to choose those coins that are rising or at least stable; those that are declining or clearly trending downward should be passed over.
Then, divide your money into three parts. When the coin price crosses the 5-day moving average, cautiously buy one-third first. When it crosses the 15-day moving average, buy another third. If it can also cross the 30-day moving average, buy the remaining third. This step must be strictly followed; do not slack off.
Next, if the coin price has crossed the 5-day moving average but lacks the strength to continue to the 15-day moving average and instead drops, as long as it doesn't break below the 5-day moving average, hold steady. If it breaks, sell quickly.
The same principle applies: if the coin price goes above the 15-day moving average but lacks the strength to continue rising, as long as it doesn't drop below the 15-day moving average, hold on. If it breaks below, sell one-third first; if the 5-day moving average holds, continue to keep it. If the coin price breaks through the 30-day moving average but then falls back, follow the previous rules and sell when necessary.
Conversely, the same applies when selling coins. When the price is high, if it drops below the 5-day moving average, sell one-third first. If it doesn't continue to rise...
If the price drops, hold onto the remaining 60%. But if the 5-day, 15-day, and 30-day moving averages are all broken, then clear out completely without hesitation.
This foolproof strategy, although simple, is crucial to stick to the rules. Once you buy, you must establish clear buying and selling rules; only by strictly adhering to these rules can you make money!
