A fan told me that in his early years in the crypto world, like many beginners, he was attracted by the market's frenzy and the myth of getting rich quickly, dreaming of seizing every opportunity to achieve financial freedom. So, he stayed up late every day, staring at the K-line chart, rushing to chase the rising and falling prices at the slightest hint of market movement.
But what was the result? His account balance not only did not grow but instead incurred losses that kept him up at night, with anxiety following him like a shadow. Through constant setbacks and reflections, he gritted his teeth and stuck to a seemingly 'stupid' approach, unexpectedly surviving in this brutal crypto market while gradually achieving stable profits. Looking back now, this method, while not flashy, proved to be very effective: 'If I don't see signals I'm familiar with, I won't act!' It’s better to miss out on some seemingly enticing market opportunities than to make random trades. By adhering to this iron rule, he now maintains an annual return rate of over 50%, finally bidding farewell to the days of surviving in the crypto world based on luck. Below is his experience, gained through real trading losses, shared with newcomers just entering the crypto world, hoping to give everyone a helping hand.
Do not place orders after 9 PM
He said that the daytime news in the crypto world is extremely complex, filled with various true and false good and bad news. These messages intertwine, causing the market to jump up and down like a runaway horse, making the trends very unstable, and beginners can easily be misled in this chaotic situation, impulsively entering the market. He generally waits patiently until after 9 PM to start trading. During this time, the market's news is basically settled, and after a day of digestion, false information is gradually recognized by the market. At this point, the K-line chart is relatively 'clean', without excessive noise interference, and the price trend reflects the true market direction more clearly, allowing for more accurate judgments.
Take profits immediately
In the crypto world, greed is often the biggest killer of wealth. He has seen many people who always think about making a huge profit from a single trade, for example, if they earn 1000U today, they calculate how to double or earn even more. However, the market is ever-changing, and this excessive greed often turns profits into illusions. He strongly recommends that when you make a profit, such as earning 1000U, you might as well withdraw 300U immediately to your bank account. Holding real cash in hand, while continuing to gamble with the remaining funds in the crypto world, is wise. He has seen too many people who, after making several times their profit, remain unsatisfied and fantasize about higher returns; as a result, when the market corrects, they not only lose all their profits but also their original capital. Taking profits is a way to secure what you have, and while it may seem like just saving part of your profit, it actually safeguards long-term stable gains.
Look at the indicators, not feelings
He believes that trading cryptocurrencies is definitely not something that can be achieved based on intuition or feelings; it's no different from gambling. Installing a TradingView app on your phone can be a great assistant in your trading journey. Before placing each order, carefully check these key indicators:
MACD: Focus on whether a golden cross or dead cross occurs. When the MACD's DIF line crosses above the DEA line to form a golden cross, it is often a bullish signal, indicating that the price may rise; conversely, if the DIF line crosses below the DEA line to form a dead cross, it is a bearish signal, indicating potential price decline.
RSI: Mainly observe whether it is in the overbought or oversold zone. Generally speaking, when the RSI value exceeds 70, it indicates that the market is in an overbought state, and the price may face a correction in the short term; when the RSI value is below 30, the market is in an oversold state, and the price may rebound.
Bollinger Bands: Pay attention to whether they are narrowing or breaking out. A narrowing Bollinger Band indicates reduced market volatility, and the market may soon choose a direction; when the price breaks through the upper band, it may indicate the beginning of an upward trend; if it breaks below the lower band, it may signal an impending downward trend. When trading, it’s best to wait until at least two of the three indicators give a consistent signal before considering entry, as this significantly increases the success rate of the trades.
Stop-loss must be flexible
Stop-loss is the last line of defense for protecting capital in trading cryptocurrencies, and its setting is very crucial. He says that when he has time to monitor the market, he manually adjusts the stop-loss price flexibly after making a profit. For example, if he buys a cryptocurrency at 1000U, when the price rises to 1100U, he can raise the stop-loss price to 1050U. This way, even if the price later corrects, as long as it does not fall below 1050U, he can still retain part of the profit. However, if he has to go out and cannot monitor the market in real-time, he must set a hard stop-loss at 3%. The crypto market changes rapidly, and sudden crash events can occur, so setting a hard stop-loss can effectively prevent the loss of the entire capital due to an inability to operate in time.
Weekly withdrawal is a must
In the crypto world, money that hasn't been withdrawn is just a number in the account; it seems huge but is actually illusory. He consistently transfers 30% of his weekly profits to his bank account every Friday. This approach has two benefits: on one hand, it allows individuals to genuinely feel their profits in the crypto world, enhancing their investment confidence; on the other hand, from a long-term perspective, consistently transferring profits out helps the account balance grow steadily, avoiding the risk of losing all profits overnight due to significant market fluctuations. The remaining 70% can continue to be rolled over in the crypto market, pursuing more gains.
There are tricks to reading K-lines
K-line charts contain a wealth of information about the crypto market. Mastering the correct viewing methods can help you better grasp market trends:
For short-term trading: Focus on the 1-hour chart. When the price shows two consecutive bullish candles, this is often a signal that the market's bullish power is increasing, and it may be a good time to consider going long. However, be cautious as short-term trading carries higher risks and must be combined with other indicators for comprehensive judgment, and strict stop-loss settings are necessary.
When the market is in a sideways trend: switch to the 4-hour chart to find support lines. When the price drops near the support level during a sideways trend, it may bounce back from support, making it a good time to consider entering. A support line is a straight line formed by connecting multiple low points on the K-line chart, reflecting the market's support strength at that price level.
Never step into these traps
In the crypto world, there are many pitfalls that you must avoid:
Be cautious with leverage: While leverage can amplify returns, it also multiplies risks. For beginners, it's best to keep the leverage ratio within 5 times and never exceed 10 times. With high leverage, even slight market fluctuations can lead to instant liquidation and total loss.
Stay away from high-risk altcoins: Altcoins like Dogecoin and shitcoins may occasionally experience skyrocketing prices that attract many, but they hide significant risks and can easily be manipulated by major players. They lack substantial value support, and their price fluctuations are entirely driven by market sentiment and the tactics of major players, which often leads to new investors being slaughtered.
Finally, he wants to share this message with every friend striving in the crypto world: trading cryptocurrencies is not gambling, and it should not be treated as a shortcut to instant wealth. Try to regard it as a job, going to 'work' on time every day. When it's time to 'clock out', decisively turn off your device; eat when it's time to eat, sleep when it's time to sleep. When you treat trading with this calm and rational mindset, you will be surprised to find that your earnings become more stable. In the crypto world, stable profits are the way to go; may everyone find their path to success in this market full of opportunities and challenges.
If you currently feel helpless and confused in trading and want to learn more about the crypto world and the latest information, click on my avatar to follow me, and you won't be lost! @加密大师兄888 Understanding the market clearly gives you the confidence to operate. Steady profits are far more practical than fantasizing about quick riches.
