Citing my uncle's experience, I advise everyone not to hold too few contracts and to avoid small-cap coins.
Having traded coins for nine years, starting from an entry of 6000 to a profit of 20 million, then from 20 million to 3 million, and now having assets in the nine figures. My uncle learned about this; he is someone who likes to ponder things. He is an electrician; although his education is not high, he has a knack for analyzing situations, and people around him see him as quite smart, often making money through various peculiar methods.
My uncle learned from my mother that my assets had skyrocketed exponentially, and he immediately felt there was profit to be made in the crypto space. One morning, after a brief chat about crypto with me, I advised him to wait and not rush to buy coins, and to avoid leverage and junk coins. However, after pondering for over an hour, he started buying coins that afternoon (completely ignorant of the technology). He said his goal was to earn enough money for a car costing around 100,000 for his son, and once he made it, he would exit immediately.
In two weeks, doubling assets through trading contracts.
He deposited 20,000 RMB and then started trading in the contract market with 10x leverage. After two weeks, his assets successfully reached 40,000 RMB. During this time, he told me almost every day about his research insights and views on investing in the crypto space, urging me to try contract trading as well.
In one and a half months, assets increased sevenfold.
After a month and a half (April 2021), he told me his assets had reached 140,000, and by then he had already started using 50x leverage. Naturally, he became arrogant because I only bought mainstream coins like BTC and ETH, and I didn't touch them for years, while he achieved a 7-fold return in just over a month. So he believed there was something wrong with my investment philosophy and thought that in a few months, his investment return multiplier could surpass mine, which had accumulated over several years.
In the third month, earnings exceeded 12 times.
By the third month (May 2021), he not only used 50x leverage but also started trading junk coins (various unknown small coins). At that time, his assets were around 250,000, and he had started to inflate infinitely, feeling that I was too inexperienced to communicate with me anymore.
In the 8th month, profits retreated by 40%.
The last time my uncle looked for me was five months later (October 2021). He said he lost a lot of money due to liquidation. The unknown coins he bought also plummeted, and now he has less than 150,000 left, feeling useless. He still thinks my idea of holding coins is better. I told him he was already excellent; he had already achieved his goal of buying a car worth 100,000, and he could have stopped there and waited for the big bear market to return to accumulate Bitcoin and Ethereum. He agreed and then lost contact again.
In the 15th month, all assets were lost.
To speak again was seven months later, in May 2022 when Luna crashed. My uncle, holding the remaining 60,000 at the time, rushed into Luna, hoping for a miraculous fortune, but ended up burying himself. The death spiral of Luna directly caused his assets to go to zero in a day.
After his assets went to zero, my uncle was determined to start dollar-cost averaging in the bear market, accumulating Ethereum to slowly become rich. Now that the market is down, he is not depositing any more and plans to wait for several sharp drops before starting to trade again.
In the 18th month, deposited again and profits doubled.
After three months (August 2022), my uncle told me he had deposited another 20,000 and had already made a 100% profit by buying some coin (I forgot which one). Now he has 40,000. I told him, good luck, as long as you're happy.
Summary: When a person decides to trade contracts, the end they can reach is inevitably a dead end. The unwillingness to accept losses after losing the principal pushes everything toward a dead end.
My uncle is not a fool; his contract trading performance shows he is smarter than many, yet he still lost his principal. So do you think most people in the crypto space are suitable for contract trading?
The crypto space is a market that is still quite new to the public, with fluctuations larger than any other investment product. This single point has attracted many, with countless novices who are not very familiar with this new market. After blindly investing, most end up losing money, leading to a total mental breakdown, resulting in a deeper and deeper trap until they can no longer afford to lose.
Here I summarize some experiences and lessons; ways to make money are diverse, but the summarized experiences and lessons are often uniform.
Let me tell you a simple way to trade coins; it’s truly risk-free! I made over 20 million relying on this!
1. Just trade these two coins.
1. Definitely avoid those messy altcoins, just focus on Bitcoin (BTC) and Ethereum (ETH).
2. Those small coins are like gambling; nine out of ten people lose.
2. When should you short?
1. Look at the yellow line (MA60) on the 4-hour chart; if the price is continuously pressed down by it, that’s an opportunity.
2. Sell in three batches: for example, if it rises to 2400, sell a bit, then sell more as it rises.
3. Be ruthless with stop losses: if it spikes to 2450 and then drops, set a stop loss at 2455; losing this amount is nothing.
3. When should you go long?
1. Look at the daily chart where it previously couldn't drop.
2. Also buy in three batches: for example, at the 2300 support level, buy a bit first, and then buy more if it drops.
3. Set your stop loss properly: if it drops to 2280 and then rebounds, set your stop loss at 2275.
Four, managing money is the most important.
1. The maximum loss in a day should not exceed 20%; if it does, turn off the computer and go to sleep.
2. Each time, do not exceed 5% of total funds.
3. No trading after 2 AM, and try to rest on weekends.
5. How to chase after a big rise.
1. Only chase the top three coins that rise the most that day.
2. Make three times as much as you lose: if you invest 100 and make 300, then run.
3. When you make money, move your stop loss up; for example, after making 200, adjust the stop loss to breakeven.
Six, what to do during a sharp drop.
1. Keep 30% cash untouched and wait to pick up bargains.
2. Wait for a drop of over 8% before taking action.
3. Bottom fish in three batches, each time at 3% intervals.
Seven, when to stop.
1. If Ethereum makes 20 points and Bitcoin makes 350 points, lock in profits immediately.
2. If you've made a lot, use the 5-minute line to protect profits; for example, after making 500 points, pull out every 50-point pullback.
3. If you earn enough 15% in a day, call it a day; don't be greedy!
Remember, this market is specialized in treating various forms of defiance. Following the rules is crucial for longevity!
You must pay attention to these eight iron rules; they are practical tips for making money in trading coins, and I recommend saving them!
1. Spot investment should be dominated by major coins, accounting for at least 70% of the position. The remaining 30% can be used for new investments or to invest in high-risk but high-reward projects!
2. The crypto projects are numerous; for those with cost requirements, most of the time you need to observe more and act less. If you really want to participate, ensure you hit the mark right away.
3. Spot secondary market dollar-cost averaging; when transitioning from bear to bull markets, just buy without selling. If it drops, buy; if it drops significantly, buy more. When transitioning from bull to bear markets, just sell without buying. If it rises, sell; sell gradually.
4. Don't mess with leverage contracts, and avoid risky domestic projects.
5. Let me tell you about the fish-eating theory. From various groups you've joined, you can judge what stage your invested project is in. If everyone in the group is shouting to buy, and eight out of ten groups are shouting, then this project may have reached a temporary peak, and you might consider selling some.
6. If you encounter some short-term projects that rise particularly sharply, when selling, first take back the cost and part of the profit, leaving the remaining profit inside; this way, you’ll feel more at ease.
7. The timing of buying can also be judged from the group. If you find that everyone in the group is cursing this project, and there are complaints online, then this project is probably at a temporary bottom.
8. Whether it’s a short-term hot project or a long-term story, participants must be the leaders or second players in that niche or protocol, as they receive more recognition, have more stories to tell, and are easier to hype up!
15-minute wealth rule: why are you always being cut like chives?
The candlestick chart in the middle of the night dances on the screen, resembling the unquenchable neon lights of the crypto market. As an old trader who has been in the crypto space for seven years, I've seen too many people lose due to fixating on a single cycle—some washed out in daily fluctuations, while others lost direction chasing the highs and lows in five minutes. Today, I want to share a set of survival rules tested through bull and bear markets: anchor the direction with a 4-hour chart, lock the battlefield with a 1-hour chart, and execute tactics with a 15-minute chart.
Chapter 1: 4-hour cycle - the North Star in the dark.
When you open the 4-hour candlestick chart, imagine you are standing 3000 meters above the battlefield. There is no noise from the 5-minute level, only the breath and rhythm of the trend:
An uptrend is like the warmth of spring water, with prices continuously breaking through previous highs and low points gradually rising. At this time, every deep pullback is a gift from heaven.
The downtrend is like autumn leaves falling; the highs are gradually lowering, and the lows are constantly probing downwards. At this moment, the wisest choice is to hold cash and wait for the winter.
Sideways fluctuations are like the calm before the storm; the 20-day and 60-day moving averages intertwine, and at this time, one must lie in wait like a cheetah.
Remember: if you are going in the wrong direction, no matter how sophisticated the tactics are, you will end up off course. Last year, how many people were trapped in the dawn before the major upward wave because they were obsessed with the 15-minute rebound during Bitcoin's correction from $60,000?
Chapter 2: 1-hour cycle - tactical map on the battlefield.
When the 4-hour cycle points the way, the 1-hour chart becomes your battlefield. Here lie three key codes:
Support and resistance levels: previous highs and lows are like ancient battlefield passes; the golden and death crosses of the 20-day and 60-day moving averages often indicate a shift in bullish and bearish forces.
Pattern confirmation: a "bull engulfing" in an uptrend is a call to charge, while an "evening star" in a downtrend requires decisive withdrawal.
Volume-price coordination: a breakout with high volume is the signal of a general drawing sword, while a low-volume pullback is the posture of an archer drawing a bow.
Last year when Ethereum broke through the $2000 mark, the 4-hour chart had already issued an uptrend signal, and the 1-hour chart formed a triple bottom at $1950, combined with a MACD golden cross; this was the "safe entry point" in the eyes of professional traders.
Chapter 3: 15-minute cycle - dance on the edge of a knife.
When the general direction is clear, and the battlefield range is locked, the 15-minute chart is the sharp blade for executing precise operations. Here, you need to cultivate the ability to "observe in all directions":
Observe whether RSI has entered overbought or oversold zones.
Pay attention to the rhythm of the Bollinger Bands narrowing.
Capture the moment when the candlestick touches the moving average closely.
But please remember: the 15-minute chart is a tactical tool, not a strategic guide. Just like in warfare, you cannot only focus on the bayonets; trading also requires understanding "what to do and what not to do."
Final Chapter: Trading is a form of practice.
In this 24-hour sleepless battlefield of the crypto market, we must strategize like generals while waiting calmly like Zen masters for the flowers to bloom. Once you learn to feel the pulse of the trend in the 4-hour chart, draw the battle plan in the 1-hour chart, and grasp the timing in and out in the 15-minute chart, you will find that the so-called holy grail of trading is merely a heart that respects the market and fears the trend.
May every trader find their own survival path in the rise and fall of candlesticks. Remember: the market is never short of opportunities; what’s lacking is the clarity to maintain composure during fluctuations and the courage to act decisively when trends arise.
To survive long in the crypto space, one must first preserve capital, then follow the trend, and finally earn profits. The following 10 tips can help you!
1. Entry iron rule: capital is king! First position ≤ total funds 5% (starting from $1 million, first order max 50,000), stop loss at 6% triggers automatically, first give the account a "safety cushion."
2. Bottom fishing 3D verification: weekly + daily + 4H three-level resonance, volume decreasing by more than 30%, MACD showing two consecutive bottom divergences, then use 3% of funds to test the true bottom.
3. Three-stage wave: lock in 40% profits after breaking previous highs; if the day drops 20%, initiate "three batches of bottom fishing"; use a "0.3% grid" in the sideways range to frequently grab price differences, earning 0.2% per day is also nice.
4. Positioning mindset: sideways markets are whales accumulating, do not act like a flea; major upward trends often complete 80% of their gains within 72 hours; loosen your grip a little, and profits can be halved.
5. Mobile stop-loss: if you make a profit of 15%, move the stop loss to the cost line, and then raise the take profit by 5% every 8% increase, allowing profits to grow wildly in the "moving castle".
6. Pyramid averaging down: first set 50,000 with an 8% floating loss, add 25,000, then drop 8% and add 12,500; reduce position size and spread the price difference exponentially; a 12% rebound will allow you to liquidate all positions.
7. Observe during fluctuations: when the range is unclear, throw 50% of your funds into stablecoin DeFi pools with an annualized return of 6%–12% to earn interest; once the trend is established, throw all back into the main battlefield.
8. Cycle red-green light: daily RSI second peak > 85, liquidate 80%; weekly KDJ second bottom < 15 and with volume, heavily invest 30%, grabbing enough bloody chips in one go.
9. Emotional firewall: write the "script" before the market opens, set conditional orders, and only act like a robot during trading—do not chase highs; do not sell off; do not panic; do not bottom fish, with emotional interference at 0.
10. Time-based rhythm:
• From 09:30 to 10:30, take 30% off the table during a sharp rise to prevent "early riser scythes";
• From 13:30 to 15:00, the rise is mostly a bait to lure traders; just watch the show.
• From 14:45 to 15:00, if there's a sharp drop, use 1% of your funds to test the next day's premium.
• The next day from 09:30 to 09:45, if there is a sharp drop, do not cut losses; wait for the "panic V reversal" before taking action.
If you must trade contracts, remember the following points! Very important!
1. Trading contracts is betting small to win big; experiencing losses is normal, but after a stop loss, two types of people appear: some will frantically open new positions, while others will directly enter a cooling-off period.
My suggestion is that if you encounter frequent stop losses, calm down, temporarily stop trading, and adjust your strategy.
2. Don’t rush for success; trading is not a means to get rich overnight. When facing losses in trading, maintain a calm mindset, don’t rush to open positions, and definitely don’t go all in.
3. It’s important to recognize the big trend. When you see a unidirectional market through the charts, you must follow the trend and not trade against it; going against the trend is the root of losses. This habit exists in both novices and veterans. However, once a market trend forms, trading against it often leads to severe lessons from the market, so we must learn to follow the trend and patiently wait for opportunities before taking action.
4. The win-loss ratio must be well managed; otherwise, it is hard to make money. Ensure that profits are as large as possible compared to losses, at least achieving a ratio of 2:1 before considering opening a position.
5. Frequent trading is a big taboo in contracts. If you're not an expert, you must restrain the impulse to make blind trades, especially for new players who are full of enthusiasm for the market and want to seize every opportunity. However, most so-called opportunities will lead to losses.
6. Only earn within your understanding; this is very important.
7. Do not hold onto positions; holding positions in contracts is a big taboo, especially for newcomers. You must ensure proper stop losses, as holding onto positions is the beginning of falling into the abyss. Again, I remind you not to hold onto positions.
8. Don't get carried away when you're making profits; getting carried away will lead to losses.
