In 2012, I came to Shenzhen with dreams of the future. In early 2015, by chance, I stumbled into the cryptocurrency world. At that time, I was both excited and anxious, unaware that this step would greatly change the trajectory of my life.
Now, I have two houses and two cars in Changsha, one Land Rover and one Mercedes-Benz, and I can spend 100,000 a month without pressure. Most of my other assets are in exchanges. However, trading is not as glamorous as the outside world imagines; it is actually an extremely tedious activity. After engaging in it long-term, I have long passed the stage of being surprised by some fluctuations.
Daily trading: The unknown side
Staying up late becomes routine
Staying up late is not considered staying up late for our group; it’s just routine. That’s why you often see so-called genius traders looking ten years older than they actually are. Fortunately, I still pay great attention to my appearance since I have to rely on my looks, haha~
Not as carefree as imagined
It’s not as glamorous as you imagine; it’s often a state of just getting by. Even when going out to have fun, I can’t fully immerse myself in the moment; a state of anxiety compels me to keep moving forward. Because so many people trust us, every bit of trust feels like pressure to us, and pressure pushes us to become better.
Every day isn't about feasting and socializing; rather, it’s an endless cycle of watching the market, checking news, and reflecting. At least, that's how it is for me. The notifications on my phone are never-ending.
Pressure follows like a shadow
Speaking of the pressure in trading, it truly follows like a shadow. At first, I thought about how to relieve the pressure, but over time, I realized I could only keep enhancing my ability to bear pressure. Some people ask why I always keep an eye on the market. Because contracts primarily involve short-term trades, I generally look for suitable opportunities. Then, I respond to various questions from others. I am still quite nice, haha, and the differences in points are still very large; those who understand will understand.
My trading principles
Say goodbye to feeling your way through trading; respect market sentiment. Trading based on feelings often deviates from market realities. Just like sometimes you might feel a certain coin will rise, but the market sentiment leans bearish, leading to unsatisfactory results. Only by respecting market sentiment can one align more closely with market trends.
Strictly set stop-loss levels; stop-loss levels should be determined by the market and should reflect your acceptable level of loss. This is the key to controlling risk. Once the stop-loss level is reached, exit decisively without harboring any wishful thinking.
Stick to your original views; if you are wrong, you must pay the price. The views you arrive at through analysis should be firmly executed. Even if it ultimately proves to be wrong, you must be brave enough to bear the consequences.
Trading is not about who makes more money, but about who can go further. Temporary high returns don't mean much; the real key is to survive in this market for the long term.
Life lessons taught by trading
From trading, I have seen the meaning of life and learned to view everything around me from the perspective of volatility and probability, clearly seeing what I want. This is my biggest gain from studying and researching trading.
Since I thought I had gained enlightenment, I buckle my seatbelt while driving, quit smoking, refrain from arrogance and impatience, act steadily, love learning, love working, and treat everyone and everything around me kindly. Breaking bad habits becomes effortless as it flows naturally. I bought a cheap piece of jade and engraved "A modest gentleman is as warm as jade" as a self-encouragement.
I have gained many insights; let me share one: All correct goals are to self-validate mistakes. I humorously validated this statement. Now, trading asks me to quit trading. Really, I suddenly feel that a life of cheating is meaningless; this way of making money is pointless and will destroy my hope for the future.
I want to temporarily escape a lonely life and do something I love outside of work. I started learning calligraphy every day, learning sketching, appreciating famous paintings, playing the electronic piano, listening to music, studying psychology, reading classic texts, smiling and chatting with people, inviting someone to dinner whenever possible, and strolling in the park when I have time, admiring trees, mountains, and water. These happiest moments have nothing to do with money. I have never thought of changing anything; being able to see and experience more of this world makes me very happy. Humanity carries so many interesting and lovely cultures; why should you devote your entire life to K-lines and remain lonely for a lifetime?
All of this is what trading has taught me. The essence of trading is to reflect on oneself and understand oneself! If you manage to balance your actions, the market will treat you with respect; if you are greedy, the market will surely leave you dry; if you try to defeat the market, it will leave you without a place to bury your body.
"I have failed in my life!" This is the reflection of successful speculative predecessors who couldn’t catch up with others at the moment of their suicide. Speculation is too quick and crazy; since the body cannot keep up, why not slow down?
If you ask me what the essence of trading is? I simply seek a defeat. If you ask me what the essence of life is? I simply seek a death. Do you think this is pessimistic? Do you think this is arrogant? No! This is a calm, peaceful attitude towards the game—neither sad nor happy, neither afraid nor daunted.
The unity of knowledge and action in trading
Unity of knowledge and action, as the name suggests, means that your thoughts and strategies must align with your actions; this is actually very difficult to achieve. I often like to describe the conflict during trading as "the struggle between thought and action."
If one can persist in this for a long time, it is a breakthrough. In fact, many people analyze the market correctly and thoroughly, but ultimately lose money because their actions diverge from their thoughts.
There’s also a situation where, when one is uncertain about the market, it’s best not to trade. Why? It’s quite simple; when you don’t even dare to believe in your own judgment, it’s hard to do well. Many people start by taking a gamble or asking others for their operations. This reminds me of a friend's investment saying, "Gambling is a mistake, but not gambling means missing out." This is quite reasonable, but I countered at the time that in this market, I would rather miss out than make a mistake.
Therefore, it’s best not to gamble at this time, neither long nor short. In fact, many people can’t stop themselves; as long as the market moves, they feel the urge to trade. This flaw is also quite common. Thus, the simple principle of "watch more, act less" has eliminated a number of people. If you keep trading, there are three types of people who will like you (those at the exchange, people from futures companies, and your brokers). I believe that the more frequently an investor trades in this market, the shorter their lifespan will be; comparatively, it is harmful to both parties and not beneficial at all.
This also includes a situation where one is uncertain and asks others for advice on placing orders. First, it’s important to understand that this order is not based on your own subjective awareness, yet it is yours. At this moment, you might think, since everyone is doing this, it shouldn’t be a big problem for me to do the same. This issue can be significant; it’s an entirely different matter.
Why? First, in others’ minds, this order generally has plans for what to do if it goes wrong or how to take profits when it works; whereas in your own mind, there is no strategy whatsoever. Therefore, when encountering abnormal situations, you begin to panic, unsure of how to proceed. Even if you are right, do you know when to take profits? In your subconscious, the concept of taking profits does not exist; you only have the concept of when others close their positions.
At this time, due to my own funds and positions, my mindset differs from others. Therefore, the strategies to adopt are quite different. Another flaw some traders have is that they know what their own views are but still ask those around them how they perceive the market. This can lead to the following negative phenomena.
Your views and directions are likely similar to theirs.
The two people's thoughts are completely inconsistent.
The former is fine; both people can be pleased (though it may fuel their greed), but the latter is troublesome—for example, when others’ analyses seem more accurate and comprehensive than their own, they will begin to doubt their own judgments, leading to a chaotic thought process.
At this point, trading lacks a broader perspective and becomes very limited. Therefore, I personally believe that discussing market conditions is necessary, but it should depend on the situation. It’s best to focus on discussing mindset and sharing past mistakes rather than discussing how to view future market conditions. I believe that discussing future market views is fundamentally of little significance; who knows what the future market will be like?
Because what we need to do is not predict how accurate the market trend is but to decide what strategy to use when the market is unfavorable and that making profits when the market is favorable is a natural outcome. Therefore, once the strategy is in place, you need not be so distressed and mysterious about analyzing market trends, and I personally believe that blindly predicting market trends is an impractical behavior.
The key to successful investment
Successful investment is simply the repetition of simple, correct actions. The market is like the primitive forest of Africa; the most important thing is survival. The principle of technical analysis: strive for simplicity, so simple that you don’t have to use your brain, and do not blindly trust complex technical analysis methods.
You must have confidence in the system you set for yourself, rather than relying on personal emotions, prejudices, or wishful thinking. You must test the system you plan to use over time and through practical experience.
You must have patience waiting outside for the system to signal a trading action. Once you build a position, have the same patience to hold it until the system sends a reversal signal. You must strictly adhere to principles and operate according to the signals indicated by the system. Only when the market shows a strong trend should you enter. If you misjudge the trend, exit immediately; if the trend analysis is correct, pyramid your positions. Money is made by ‘sitting’ rather than through active trading; only when objective methods indicate a trend reversal should you close positions.
How to pass the boring time of holding long positions is also key to whether one can hold long positions. When necessary, one can adopt an "ostrich policy" to avoid the tense emotions generated during the most volatile periods of a major market.
The risks and rewards contained in a price are possibilities, not absolute certainties. We can use technical tools to assess the probability of these possibilities occurring, but we cannot say it will definitely happen; this is why we need to set stop-losses.
You can only trade based on your views of the market. Once a person tries to predict things, their vanity will come into play, making it difficult for them to accept anything that contradicts their predictions during the trading process. However, true wealth is realized through savvy exits, as it allows traders to stop losses and roll profits.
In short, people earn money by discovering themselves, realizing their potential, and syncing with the market's rhythm. When a rebound or consolidation occurs, people begin to feel hesitant, and trading often becomes chaotic, with frequent short-term engagements, back-and-forth switching of positions, losing not only direction but also themselves. This self is belief and its trading system!
This kind of disorientation often prevents traders from going further. As long as you trade according to the signals and act according to the rules, you will inadvertently find that trading is not as difficult as it seems. Stick to one method, research it thoroughly, and control your mindset, and you will succeed.
Most investors do not realize that only a few days each month are good for making big profits. The rest of the time, if they avoid pitfalls, they’ve done well. Always remember to keep your account intact, waiting for a big market move.
Trading is like military strategy; if you have a 50% certainty, you don’t fight; if you have 70% certainty, you still don’t fight; you wait until you are 100% certain to strike with full force. However, the situation changes rapidly, and when will you ever have 100% certainty? Technical analysis is the behavioral discipline of traders; it is primarily not about prediction. It helps you identify trends and follow them. Act when you must act, stop when you must stop. In a strong market, buy signals in technical indicators may be accurate, while sell signals may not; in a weak market, sell signals may be accurate, while buy signals may not. A position that "follows the trend" can yield significant profits, so never easily "abandon ship". During this process, many temptations may arise, luring you to seize on small fluctuations and act against the trend. Unless you are familiar with this and have set stop-loss points, do not enter or exit casually.
People invest based on price fluctuations, but if emotions fluctuate faster and more significantly than prices, they lose the most precious calmness, making it easy to misjudge trends and repeatedly overturn their established investment plans, falling into the trap of chasing gains and cutting losses.
Secrets to success in the cryptocurrency market
Profit comes from persisting with the trend that others abandon, seizing the opportunities that others overlook, and doing what others dare not do. In investment, there is only insufficient persistence leading to abandonment, not total failure. Trading is the same; initially, you may have a good outlook, but as the market fluctuates, you change your original direction. Originally bearish, you close out and go long because the market rose slightly, ultimately delaying the downward trend and incurring losses. Such examples abound in trading; any success requires persistence.
The four mindsets that a successful cryptocurrency trader should have
Do not be arrogant and complacent when making profits: An arrogant person ultimately destroys themselves in their arrogance. In the process of investment and financial management, if a person becomes arrogant and complacent due to making profits, there will always come a day when they lose money. The reason lies in the fact that arrogant and complacent individuals will disregard others' opinions and suggestions due to their minor achievements. Even when the market changes, they will stubbornly believe in themselves, thinking all their decisions are right, and will also neglect risk prevention, ultimately facing losses.
Do not rush to recover losses: It’s normal for cryptocurrency trading to have both gains and losses. I’ve talked about profits, now let’s discuss losses. While profits may make some people arrogant, losses can trigger a strong desire to recover. However, recovering losses also depends on timing; if you rush to make up for losses, you are likely to make irrational decisions. For example, some people rush to recover losses by betting all their trading funds on a seemingly promising coin. However, the market is always unpredictable and uncontrollable. If that stock declines, not only will you fail to recover your losses, but you may also incur even greater losses.
Do not be greedy for quick gains: Accumulating wealth through cryptocurrency trading is a long process. If during this process, one is both greedy and trying to make quick money, it is essentially impossible to achieve wealth growth. Both of these mentalities lead to blindly chasing profits, which can result in loss of rationality when faced with high returns. But high returns mean high risks, and blind investments only result in failure. Only by pursuing stable growth in wealth can you balance risk and profit.
Do not worry about gains and losses: Investors who worry about gains and losses often struggle for a long time before investing, fearing their money will incur losses. Once they finally decide to invest, this mindset becomes even more pronounced. As soon as they see their account balance decrease, they become anxious and irritable. If it decreases too much, they either withdraw their investment or seek insider information, hoping to recover their losses quickly; in the end, they usually end up losing money. Additionally, if they hear news about platforms collapsing or withdrawal difficulties, they will worry about the safety of their investments, even if their platform hasn’t shown any issues, leading them to stop investing, making it difficult to continue on the path of investment and financial management.
Day trading techniques and points to note
Market sentiment and emotions: The changes in trading volume and open interest can be analyzed to determine the strength of bullish and bearish sentiment. If volume increases but prices don’t drop, it might signal a stop to the decline; if volume increases but prices can’t rise, it may signal a peak in the short term. The volume requirements during an uptrend and downtrend are different. In an uptrend: it requires sustained and even volume increase. If an evenly distributed increase appears on a 3-minute K-line chart, it indicates that the uptrend will continue. If there is a significant decrease in volume or a very large volume appears, the uptrend may come to an end. In a downtrend: as long as volume increases when breaking through some key levels, the downtrend will continue. If the price stops rising at a certain level while open interest keeps increasing, with buy and sell orders getting lower, it indicates a possible price drop. Increasing positions with stagnant prices is a great opportunity to short, or increasing positions with stagnant declines can lead to rebounds.
Key levels: Draw key resistance, support, and trend lines on the chart. When prices reach or break through these key levels, take swift action. I personally use Fibonacci ratios to predict support and resistance.
Trading rule: Only one instrument can be traded within a certain period; continuously track the instrument until it no longer holds speculative value before giving it up.
Market observation windows: A one-minute window is for preparing entry and exit timing; a three-minute window is for monitoring the wave conditions after entering; a thirty-minute or sixty-minute window is for monitoring daily trend changes.
Trading reminders: Opportunities for trading arise every day, and if you get stopped out, don’t rush to make up for it immediately. Once you’ve been stopped out, that trade is done; the next trade is a new one, and you should focus on how much you can earn without letting previous trades dictate your goals for future trades; otherwise, you’ll keep losing.
Always keep records: Try to document your feelings and the details of your operations at that moment because words do not lie. Only through real records and careful reflection can you find direction for your next correct decision.
Never go all in: Whether in the cryptocurrency market or the stock market, truly mature investors will not choose to go all in all the time. Because black swan events, those extreme situations, will definitely happen, especially in a market as volatile as cryptocurrency. This seems like a simple principle, but it is very difficult to execute in practice. Of course, you may have various reasons to go all in, such as having little capital or believing that your newly purchased asset will rise immediately. Regardless, you always feel reluctant to leave your money idle, having the impulse to invest it at any time. I completely understand this feeling. But reality always mercilessly teaches us those who go all in a lesson. Therefore, I decided to set aside at least about 15% of my position after the next wave of increase. I initially wanted to reserve more, but I know I might find it hard to let go, so I will take it slow; after all, personal growth is not achieved overnight. This reserved capital will only be invested again when the market experiences a decline of about 30%.
A sharp decline is the best trial of human nature: A sharp decline is both a mirror and a touchstone for human nature. Just like most people can share joy but struggle to share hardship, each sharp decline not only causes the price of coins to plummet but also reveals the truth of human nature. In the past, I helped several strangers earn several times their money; some were grateful and insisted on sending me coins as thanks, while others felt powerful when making profits but shifted the blame to me when they lost money. This recent sharp decline has particularly highlighted these differences; of course, I’m not foolish, and after this, I already know how to treat these individuals.
Always only buy coins that make you comfortable holding: Honestly, the reason I didn’t panic this time is that over the years, whether buying coins or trading stocks, I’ve only bought those assets that I believe can hold for over 5 years without any problem. This has become my talisman for peaceful sleep. Of course, I have to admit that the recent market fluctuations got to me, and I bought some small coins. However, because the amounts were small, I could accept if they went to zero, so I didn’t panic too much. I hope everyone remembers and follows this principle, as it will help you avoid many troubles while greatly improving your quality of life. Only by holding truly quality assets can you find true peace.
Profound insights
The survival rule in the cryptocurrency market is not to pursue short-term windfalls but to build a stable profit system. The compound interest effect is like a snowball; the longer it rolls, the more powerful it becomes. Only by establishing a scientific position management and risk control mechanism can assets continue to appreciate amidst market fluctuations.
In the face of a rapidly changing market, we need to establish a dynamic observation system: when Bitcoin breaks through key resistance levels, when mainstream coins show divergence signals, and when the market sentiment index enters extreme ranges, these are all important nodes worth paying attention to.
A true winner in the cryptocurrency market can not only earn profits during a bull market but can also preserve strength during a bear market.
Understanding cryptocurrency is a similar process, going from a 70% loss to a 50% break-even, and then to a 100% profit, all achieved by focusing and not being greedy for various profit models; steadfastly sticking to one trading system will eventually turn it into your ATM.
If you also have tens of thousands of capital and want to test the waters in the cryptocurrency market but are afraid of pitfalls; if you’ve heard of "investing in mainstream coins" or "taking part in airdrops" but don’t know how to operate; if you want to understand "how to choose potential coins" or "whether to increase or decrease positions when the bull market arrives"—you might as well follow along. Tomorrow I will break down the investment plan, the three data dimensions to watch when selecting coins, and even the basic script logic for participating in airdrops, teaching you step by step how to avoid the pitfalls of "blind gambling" and find a survival method in the cryptocurrency market that suits you.
Money in the cryptocurrency market is never "gambled"; it is "calculated." Follow @币来财MAX ; tomorrow we will continue to discuss how to ensure that every penny of your capital is on the right path.