First of all, 3,000 yuan is enough as a starting capital in the cryptocurrency circle.
It’s not about how much money you make, but how much you earn steadily; if you operate recklessly, your money will be gone in an instant.
1. You can use 2500 yuan for spot trading and 500 yuan for contracts. See the chart.
If you choose this kind of unilateral surge in prices, then your 2500 will become 5000 in just three days, which means you already have a principal of 5500 yuan, minus 500 yuan, because a novice who opens a contract with 500 yuan will generally be liquidated instantly!
2. 500 yuan can be divided into five installments of 100 yuan each, with 10x leverage. With 10x leverage, if the price fluctuates 10 pips in the opposite direction, the position will be liquidated. New traders are advised to open fixed positions, as this will ensure your trading account remains liquidated even if the position is liquidated. However, if you open a full position and encounter a pin-spin market, your account could be wiped out instantly! Some new traders have jumped off buildings after losing money in fixed position trading for this very reason!
3. When doing spot trading, you must be able to choose explosive varieties: that is, the explosive varieties can double or even several times in the same period of time, which is a matter of a few days, or even a few hours. This is why many people are obsessed with the cryptocurrency circle. This is just spot trading. What if you add ten times leverage?
As for how to choose explosive varieties, you can follow me and I will share it with you for free in the following articles.
4. The above methods are actually not very meaningful for newcomers, because in order to make a profit, in addition to having certain trading skills, you also have to overcome human nature. In trading, it often starts with technology and ends with human nature!
5. When you start investing in cryptocurrency with 3,000 yuan, don’t expect too good results. If your principal is still there after making a few trades, you are already much smarter than others!
Finally, I wish you all a happy trading!
2024.2.20 Update:
Seeing the number of likes for this answer, I will update it again. The main thing is to make a modification to the second point above. In fact, the remaining 500 yuan does not need to be divided into five times, using 100 yuan each time to open five 10x contracts. After my countless test experiences, opening contracts 3 to 5 times is the maximum. Five times can accept a reverse fluctuation of 20 points, and 3 times can accept a reverse fluctuation of 33.3 points. If a newcomer takes 500 yuan to do a contract with a five-fold leverage, the probability of winning money is still very high, provided that the direction must be determined. Generally, regardless of the long or short market, altcoins rarely fluctuate 20 points in the opposite direction as long as it is in the early stage of the market. Therefore, as long as you do not make the wrong direction, after opening the order, you only need to wait for the closing signal in the daily band operation to appear. Note that one thing is very important. Many people cannot wait, and they change back and forth, and eventually work in vain or even lose everything. Therefore, we must learn to decisively open positions at the beginning of the market launch, so that we can basically see the vegetables under the knife and make floating profits immediately. But there is a principle here: no matter how long you wait, the premise is that you must be able to wait. Many people cannot do this. I am often impetuous, but I still have to overcome it. This is the advantage of low leverage. No matter how the price fluctuates before closing the position, you don’t need to care. You just need to wait quietly for it to rise or fall. As long as you can wait, profits will come sooner or later.
On the contrary, high magnification cannot wait. High magnification only requires that the price immediately moves in the direction of opening the position after opening, and cannot look back. If you look back a little, the position will be immediately liquidated. Now I think about how I used to open 20 to 50 times in the copycat business, and I was still complacent after opening the order, feeling that I was very courageous. It was really a bit stupid, haha. You often hear the phrase "the market is unpredictable", which refers to the unpredictable fluctuations of prices in the small cycles during the operation process. You also often hear the concept of "trend trading", which refers to the strategy of following the trend in the large cycle. So I have been trading for so many years, from only doing spot trading to playing high-multiple contracts, and now only doing leverage. Or low-leverage contracts, because leverage trading can only go up to 10x, which is a bit much for altcoins. I recently placed a 10x long position on SOL, and after getting liquidated, the price went back up. If I had opened a 5x position, I wouldn't have gotten liquidated. So, capital security is paramount. Leverage trading works in both bull and bear markets, so there are endless opportunities. As long as you have your capital, you can live a happy life. So, I basically only trade altcoins with leverage of 5x or less. Only Bitcoin and Bitcoin offer higher leverage, but they're very particular about it around the entry point. 5x is really a lot. Imagine you make 5,000 yuan a month, and your boss suddenly gives you 25,000 yuan. Do you think it's a lot? Now, we only have 5,000 yuan in principal, and that seems too little for spot trading. 25,000 yuan at 5x is perfectly fine. Wouldn't it hurt to waste 5,000 yuan of hard-earned money on the exchange if you insisted on a high leverage? So friends who see this answer, if you keep losing money with high multipliers, you might as well try changing the multiplier to less than five times. Maybe your trading situation will change from then on.
Updated on March 1, 2024
The cryptocurrency world has been crazy lately, and that’s normal. After all, cryptocurrency enthusiasts have endured humiliation and hardship for more than two years, and it’s time to recoup some of the losses. But at this moment, I quietly ask myself, have I made any money?
Have you seen many coins you know soaring like crazy, but you are not on the train? Well, seeing that the price is rising so fast, you finally can't hold it back and get on the train. Trouble comes, you are successfully trapped. You may ask, how do I know so accurately, because I have experienced it step by step.
All this is because you may not know the main trading logic: building a position ~ testing the market ~ shaking out the market ~ pulling up ~ shipping. We must dare to enter the market decisively when the main force just starts to pull up (most people dare not enter at this time, because they cannot understand the main force's intentions and mistakenly take the pull up as shipping.), and leave the market with the main force when shipping. But if you think I am talking nonsense after reading this, it means that your trading knowledge may really be a bit lacking. Anyone with a little trading skills will understand what I am saying!
However, in this answer, I'm primarily discussing futures contracts. While the above discussion is useful for spot trading, it's less relevant for futures trading. With futures trading, you can participate in both price increases and sell-offs. So, what's the core issue with futures trading? In other words, what's the central purpose of futures trading? Some might say this is nonsense; isn't the purpose of futures trading to make money?
Wrong! Dead wrong! If you ask me, the process of trading contracts is a life-saving process. Think about it: when you trade contracts, choosing an entry point, selecting low leverage, setting stop-losses, managing positions, and so on, aren't all these actions done to protect your principal?
Yes, the core of contract trading is to protect your life, with profit taking a back seat. So, in this update, I want to highlight a key point: if you start to see unrealized profits after opening a position and the price is far from your cost price, you must set your stop-loss at your cost price (you can also set it slightly in the direction of the unrealized profits, depending on support and resistance levels). The logic is that as long as it doesn't damage your principal, let it go. If you experience a big profit cycle, then you'll make a killing. But if you encounter a pinfall, and your principal is still there, you can simply wait for the pinfall to subside and then resume your position. I'm also currently compiling my trading experience, and I've compiled over 50 of them. Follow me; there's a lot of valuable information that I'll be updating soon. It's all accumulated gradually through my own trading experience, and I'll share it with you over time. So, for now, it's almost 2 a.m., and I'm going to bed.
Updated on March 3, 2024
Today I would like to recommend two books to you. Let me first tell you how I discovered these two books. When I was young and ignorant, I worked in a company. After two years, I was suddenly summoned by the police and was told that my company was suspected of illegal fundraising. I was arrested and later put in a detention center. I was detained in a room in the detention center for a full three years before I received the verdict. Later, I was sent to prison for the remaining 15 months.
Before I was sent back to the detention center, I traded stocks for two years. During the bull market in the A-share market from the second half of 2014 to May of 2015, I invested 10,000 yuan and only made 20,000 yuan after spending the better part of six months. Now I think it's a joke. I only made 20,000 yuan in such a bull market. At the time, I was just fooling around, not knowing anything. It was all based on passion and instinct. Thank goodness it was a bull market, otherwise I would have lost all my 10,000 yuan!
Then, in 2017, a friend introduced me to crypto trading, saying I'd caught up with the bull market. I invested 1,300 yuan and within three months, I'd grown my investment to 70,000 yuan. By then, I wasn't particularly skilled, but I was always chasing the gains during this bull market. It was common for altcoins to double overnight. I luckily won a little money, but just when I was planning to invest 70,000 yuan in ETH, it was only a few dozen yuan apiece. That was it, and I was thrown into jail. Later... 10,000 words omitted here!
I love reading, and I'd spend my days cramming books into my pocket. One day, I stumbled upon a book about stocks. I flipped through the first few pages and was blown away. I thought, "Who knows, there's someone else who talks about stocks this way? It's so different from anything I've ever read!" I finished the book in two days. Because it belonged to someone else, I had to return it quickly. I even wrote down the names of the author's other books from the introduction. It took a year before I finally managed to get the book delivered to me by my family. You might ask why it took a year to get it delivered. Think about it, what kind of place is that? If you can get whatever you want so easily, doesn't that seem unfair to the victim?
One of the books I received was truly beneficial to me. It's no exaggeration to say I was ecstatic. It's truly excellently written. Those of you who frequently read my work on Zhihu and other platforms know that I analyze which stocks or coins have market makers involved and when a market move is about to begin. I learned this analytical method from this book. I'm sharing it now. If you're interested, please send me a screenshot in a private message. I'll confirm that you've placed an order with me. If you have any questions while reading, please feel free to discuss them with me. You can also follow me for future discussions.
Okay, I will update here for today. Next time I will share with you the book about trading that I read after I was transferred to prison. That book is just as good as this one, but the focus is different. Later, when I returned to society, I bought both books back. Okay, I will update next time. I’m going to sleep.
2024.4.26
It's been a while since I last updated. I've been trading a lot lately, and while I did make some profit in the end, it wasn't much. Here's a summary, hoping it'll be helpful and inspiring to everyone:
1: In this wave of copycat long-order operations, I basically selected the skyrocketing varieties when building positions. As a result, when the market really broke out, I got off the bus. As I mentioned before, I have to be able to wait. After building a position, I just wait quietly for it to make a profit and wait for the opportunity to close the position.
2. Stick to a low leverage ratio. The probability of floating profit is very high. It is really important to grasp the entry point. It can be said that the entry point determines the leverage ratio. I usually refer to the four-hour trend to determine the entry point and leverage ratio. If the price breaks through the four-hour high or low, I will exit decisively. If the price moves in the direction of floating profit, then don't move, just let the profit run. When the price on the four-hour chart shows a pullback, exit first and wait for the pullback to end before re-entering the market. A low leverage ratio is always necessary to give the market enough room for error.
3. During this operation, I added to my position on a profit, but failed again. I've tried adding to my position on a profit countless times, and always failed. It's not that adding to a position on a profit isn't possible, but adding to a position on a small-cycle profit is a joke against the rules. It's possible to do it on a large-cycle basis, but contracts are primarily for short-term trading, so what's the point of adding to a position on a large-cycle profit? It's better to open a new order!
4. My last round of TNSR long trades was a heartbreaking loss, as I made the wrong trade, effectively wiping out half of my profit. This was a technical failure, and I have no complaints. The biggest fear is when the trade is right, but then I lose control of my inner demons and trade recklessly, ultimately turning a profit into a loss. This type of self-castration will never win!
Okay, I’ll take a rest today and wait for the new market to come and continue fighting, haha!
2024.5.2
Recently, a fan asked me how to develop the courage to invest heavily, so today I will talk about this topic specifically:
It does take courage to invest heavily, but it depends on the time and whether it is worth it. It is like liking someone for no reason, but when you really plan to give everything for this person, you have to consider whether this person is worth it.
To put it bluntly, if you go in the wrong direction, the losses caused by your courage and heavy investment will be unbearable.
However, if you choose the right direction, your courage and heavy investment will make you rich!
I personally believe that when the certainty of profit is very high, you must hold a heavy position (heavy position does not mean full position), otherwise you will never make money. Note that "certainty" is a prerequisite. To improve certainty, you need to do a lot of work, such as mastering the fundamentals, technology, capital inflow and outflow, news, etc. This is not a skill that can be acquired overnight: hobbies, talents, and a good attitude must all be there. As the saying goes, "the more skilled you are, the more courageous you are." Skill is measured by certainty, and courage is measured by courage!
When a one-sided market emerges, we're only playing it small. What's the difference between this and missing out? Don't trade too frequently. Short positions are also a skill. Seize the opportunity, go all in (not all in), then travel and wait for new opportunities! Courage always comes from huge profits! How can you find courage if you keep losing money?
Wish you a happy trading!
2024.5.29
I don’t update very often, not because I don’t want to, but because I don’t have any inspiration. Occasionally, when I have an epiphany, I pick up my pen and write it down. My writing comes to life, which is an improvement for me and may be of some inspiration to you too. Now, let’s get back to the topic.
Let's first throw out a few questions that fans have encountered recently:
1. Teacher, I'm losing so much money trading contracts that I have no direction. What should I do? I'm confused!
2. Teacher, please save me. I have lost all the money I got from mortgaging my house and only have tens of thousands of dollars left!
3. Teacher, the last time I bought a certain coin and ran away, it took off!
4. Why do I lose almost every time I trade contracts? And so on. There are so many other questions, too numerous to mention!
When I saw these questions, I thought to myself, wasn’t I like that before?
Many classmates thought that after adding me on WeChat, they always thought that I could give them a quick-acting medicine, and then win in one stroke, win back all the losses and small profits, and then start a carefree life. I gave them three words "impossible", because as the ancients said, "haste makes waste", especially in trading, you have to take your time and plan slowly!
There is a saying that goes "It takes ten years to sharpen a sword". I started learning about stock trading in 2014 and it has been exactly ten years until 2024. So I have a deep understanding of this saying and have some say in it. To be continued
Updated on June 24, 2024
If you've made it this far, it means you're truly here to learn, and that my sharing resonates with you to some degree! Congratulations! This is my third year studying contracts. You can probably relate to the ups and downs and heartaches I've experienced. It's truly been incredibly difficult. I feel like I've mastered some kind of magical method, and I'm going to share it all with you without reservation. If reading this helps you make stable profits, congratulations! But you don't have to thank me, because you deserve it for reading this far! Okay, onto the practical stuff.
1. First, determine the cycle. I set the four-hour K-line cycle. Specifically, it is best not to participate during this week's volatility, because if you participate during the volatility, the winning rate is almost zero. In addition, it takes 4 hours to complete one line, and there are dozens of lines at a time. This is too much for most people to endure. So during this period, wait and see on the sidelines, and wait for the key points to break through upward or downward before entering the market using a small cycle! The core action is "wait"
2. What to do after entering the market? Wait, and then close the position after the unilateral market of this cycle is over. If you are afraid of a pullback, use the method of moving profit stop when the price enters the risk zone to protect the profit steadily. When the current cycle begins to fluctuate again, close the position decisively and lock in the profit! The core actions are "moving profit stop" and "waiting".
Do you think this really proves the saying that the great way is simple?
It took me three years and I experienced so many bloody lessons, but I finally summed it up in just two sentences.
The core here is the word "wait"
Wait for the opportunity before entering the market, and wait for the closing signal to appear after entering the market!
Why do I prefer using a four-hour candlestick chart? Think about it: isn't trading itself a game of power between bulls and bears? It's like running a marathon. After a few minutes, who knows who's endurance? Only after running for four hours can we see who has the stronger endurance! So, doesn't the longer-term battle between bulls and bears reveal the strength of both sides? Therefore, a chart that's too short is useless. A chart that's too long can easily miss the best entry opportunities. After extensive real-time trading, I've found that a four-hour candlestick chart chart is the most valuable reference for trading contracts! It's also highly accurate!
Of course, this brief summary of just over a hundred words is the result of three years of hard work and countless setbacks, based on my actual trading experience. While it may be helpful, it doesn't guarantee instant application. The prerequisite is that you have a good grasp of some basic knowledge.
