I am 28 years old this year. I entered the cryptocurrency world at 20 and started my trading career. By 2024-2025, my assets successfully surged to eight digits.
Looking back over the past decade, I have hardly been involved in those business disputes that are full of back-and-forth. I have fewer worries, and because of this, I have the leisure and patience to summarize my insights from these years. In my opinion, when it comes to trading cryptocurrencies, mindset is of utmost importance, while technical skills are secondary.
Next, I will share my practical experiences with everyone without reservation.
In the cryptocurrency world, a day is like ten years in the human realm, showcasing its turbulent changes.
I have been in the cryptocurrency world for 8 years. Initially, I suffered heavy losses, but I've had ups and downs along the way, and now I rely on it to support my family.
I will summarize 10 points of experience for everyone’s reference, making it hard to lose.
Stocks protected by market makers:
When the market crashes, if the coins you hold do not drop, it is highly probable that there are market makers protecting them. Such coins either have solid fundamentals or potential good news, so hold on firmly; the subsequent profit space is large.
Beginner's Moving Average Guide:
Beginners should pay more attention to macro information when buying and selling. For short-term, look at the 5-day line; hold if above the line, exit if below; for mid-term, focus on the 20-day line, operate similarly. Stick to a simple moving average strategy, acting decisively.
Short-term Response Strategy:
For short-term buying of coins, if there’s no movement for three days, change immediately. If you buy and it drops with a 5% loss, decisively stop-loss, efficiently utilize capital, and avoid losses.
Opportunities for Oversold Rebounds:
If a coin has been cut in half from a high position and has fallen for nine consecutive days, it may have dropped as much as it can; a rebound is imminent, so decisively buy to catch the rebound.
Investment Logic for Leading Coins:
Involved in the cryptocurrency world, one must chase leading coins, as they have strong upward momentum and resilience against downturns. Don’t hesitate due to high prices or large drops; buy when an upward trend is established, and sell upon reversal.
Bottom fishing and trend weighing:
Don't be obsessed with bottom fishing; a falling coin may have no bottom. Investment should follow the trend, accurately grasping the timing to enter; the probability of profit is higher when entering during an uptrend.
Build a trading strategy:
Don’t get complacent in the cryptocurrency world just because of a profit; continuous profitability is what’s difficult. After each profit, review whether the strategy is effective or just luck, and build a strategy that suits you.
Using a cash position strategy:
When there is no confidence in the market, hold cash positions; capital safety is the top priority. Entering the cryptocurrency world aims for stable asset appreciation, not gambling-style investments. Trading is about success rates and profit-loss ratios.
Key points for new coin investment:
In the early stage of new coins, due to market optimism, funds flood in to push prices up, but they may lack fundamental support. When market sentiment shifts and funds withdraw, prices can plummet easily; investments should be cautiously assessed.
Consensus and Wealth in the Cryptocurrency World:
Digital currency develops through a consensus mechanism, where participants earn wealth through belief and effort, showcasing the power of consensus in the cryptocurrency world and its potential for wealth creation.
If someone becomes confused due to market fluctuations and doesn’t know how to deal with being stuck, or feels misled during the operation process, remember to learn more.
In a market of long and short conversions, with fluctuating emotions, why is it so difficult to make money in the investment market? Actually, it’s not; on the contrary, making money is quite simple, but you just haven't grasped the winning formula within it.
Feng Chao helps people solve different problems every day; some have mindset issues, some have operational method issues, and some have cooperation issues. Regardless, although the problems are complex, as long as you handle them step by step with patience, they will eventually be resolved smoothly. This is Feng Chao’s principle of dealing with people, and it is also the investment handbook—step by step, grounded!
Here at Feng Chao, this is just a basic idea; I also suggest that beginner friends set stop-loss and take-profit during operations and stay away from being stuck in positions!
| The Way of Financial Trading |
The cryptocurrency market is a highly risky market. While it creates high profits, it inevitably accompanies significant losses for others. Strictly adhering to discipline is the only way to avoid major losses and move towards profitability.
Ironclad execution includes the following three aspects: strict stop-loss, strict control, and strict processes.
If a judgment error occurs without timely and strict stop-loss, it can lead to significant losses or even total ruin. In executing this discipline, one must be decisive, cannot delay, cannot look back, and must not harbor lucky fantasies. For successful traders, strict control of every loss is key to wealth. Generally, if you make mistakes three times in a row, you should temporarily exit and rest until your state is adjusted before re-entering. Having a market advantage is essential.
The main reasons for the failure of ordinary traders' investments are as follows |
1. Capital management is out of control, heavy trading (speeding leads to crashes, wanting to go fast will inevitably hit a tree).
2. Not realizing the immense importance of discipline in the cryptocurrency market! (Dealing with stop-loss should not be a decisive quick action but should not be governed by luck, procrastination, and the habit of hesitation, ultimately leading to large losses when feeling fear.)
3. Not attaching great importance to the trading discipline of 'stop-loss', greedy for small profits, hoping for perfection, and fearing losses, renders 'stop-loss' ineffective.
4. Without a clear, scientific, and systematic trading method, relying on various vague techniques and market intuition makes it difficult to break free from the severe constraints and distractions of human weaknesses.
5. Trading when your body, emotions, and mental state are not good, and when the surrounding environment is full of distractions, leads to unclear thinking and slow reactions, often resulting in significant trading mistakes.
6. Recklessly participating in high-risk varieties without accumulating years of trading experience.
7. The habit of adding to losing positions.
8. The habit of trading against the trend and making random trades (especially holding positions overnight against the trend). Traders must adhere to discipline, and this must be taken seriously!
| Core of Trading |
1. Currency trading is not about products, but about human nature: adhering to consistent trading discipline and trading strategies;
2. The essence of currency trading = strictly controlling the profit-loss ratio, closely following market trends, using continuous small losses to test and capture major market movements;
3. Successful currency trading = an effective trading system + correct execution + effective capital management;
4. The key to stable profits = establishing a trading system that suits you: one indicator + one philosophy = a secret weapon;
5. Effective capital management: currency trading is like boxing; your boxing ability is not about your striking power but your ability to withstand blows.
6. Correct execution is essential for successful futures trading.
7. The wise win before the battle; winning after the battle is a poor strategy.
8. The key to making big money: long-term trading + increasing positions with the trend = small losses, big wins;
No amount of talk is as real as a practical profit, yet some people are confused and at a loss with the recent money-making market. Feng Chao wants to say, if the cryptocurrency world is filled with gold and some people have safely picked it up, why are you still hesitating on the sidelines?
Allowing followers and those who trust you to profit is the best way to fulfill promises. However, in this process, Feng Chao believes that one will definitely face various market challenges; the only thing to do is to withstand temptation and endure loneliness. Markets fluctuate repeatedly, with operations resulting in losses and gains; no one profits completely. This market is also unfair; momentary gains and losses do not determine success or failure. Without confidence, you may lose it all back; don’t hesitate. The one who laughs last is the true winner.
Of course, if you approach it with a mindset of just giving it a shot, then failure is inevitable. Seeking stability and success has always been emphasized by Feng Chao, and if you want to make steady profits, then have a good conversation with Feng Chao!
Trading Psychology—Overcoming Human Weaknesses
Any trader must develop a strong mindset after the baptism of the market; otherwise, they will never become a qualified cryptocurrency investor, and making money will be extremely difficult.
Everyone knows that the cryptocurrency market has two significant characteristics: trading 24/7 all year round; extremely high volatility. A trading market that has both of these points only exists in the cryptocurrency world, bringing both great opportunities and high risks.
Therefore, if you want to make money in the cryptocurrency world, in addition to the decision-making logic and investment trading logic mentioned earlier, your mindset must be stable. You must learn to control the inherent greed and fear of human nature, and greed and fear are also the two main characters in trading psychology, which lead to most trading behaviors.
As a trader, one cannot avoid the psychology of getting rich quickly, which is greed. 'Beginners die from chasing highs; seasoned traders die from bottom fishing.' This saying speaks to the consequences of greed. This greed exists in all financial markets, including the stock market and cryptocurrency market. Regardless of the financial market, there are stories of quick riches everywhere, and it is precisely this psychology that drives everyone to trade. Once they trade, they want to make money immediately, which is even more pronounced in the cryptocurrency world, where retail investors abound, wanting to turn 10,000 into 1 million.
The desire for quick wealth easily clouds their judgment, rushing forward with money while ignoring risks. In the end, those who want to make 100 times quickly are either left with nothing after being cut by altcoins or are forced to exit due to futures contracts exploding at 10 or 20 times. Excessive greed and eagerness for quick wealth are major reasons why most retail investors get cut. Little do they know, trading markets always follow the 80/20 rule, where a minority makes money while the majority loses; I estimate that in the cryptocurrency world, it might even be 90/10.
If you think seriously, it’s easy to understand that very few players in the cryptocurrency world who have made big money did so in just a few days or during one wave of market movement. Most of them have played for a long time before making money. In simple terms, it means that time is needed to exchange for space. The appreciation space for crypto assets still exists, whether hoarding coins or trading, as long as you have enough patience, abandon the mindset of getting rich quickly, and control your greedy desires, you will eventually have your breakthrough.
Contrary to greed is panic, but they are like twin brothers, inseparable. Whether chasing highs and killing lows, or frequent operations, the root cause is such trading psychology at play.
In the minds of retail investors, there are a million directions in a minute; prices rise and they chase in, prices fall and they quickly sell out. In fact, the prices haven’t fluctuated much; it’s just the inner demons amplifying that panic. The result is that retail operations are like two sine waves with a phase difference of 180 degrees, forever out of sync, as if targeted by market makers, becoming the contrary indicator. Exhausted, they keep cutting losses back and forth.
I believe everyone has had such experiences; beginners often do this, and even seasoned traders can do the same when they are not in the right state. The essence of it is a mindset issue, namely trading psychology, which highlights how important trading psychology is for traders. It’s important to remind you that this psychological growth is not something you can grasp just by reading others’ articles; it’s the true cultivation of inner strength during the trading process, requiring heartfelt experience, repeated practice, and correction to gain rewards.
It can also be called a war without gunpowder, a game of human nature and the market. Overcoming human weaknesses is the key to winning the war; hence the saying 'trading is anti-human' arises.
