Five years ago, one early morning, a liquidation alert from the exchange woke me up. In just three hours, my account worth 6 million was wiped out overnight. Staring at the negative numbers jumping on the screen, I felt like I was nailed to the cross of reality and unable to move.
Only later did I understand: The cryptocurrency market is not a casino, but a battlefield that requires discipline. I gathered 120,000 in principal from friends, reviewed thousands of failed cases, studied trading logic and charting techniques, and summarized a method with a win rate of over 90%. Within 90 days, I rolled the funds to 20 million; the journey was exceptionally difficult.
One, Perpetual Contracts: Scientific Use of 100x Leverage
Perpetual contracts have no fixed expiration date; they can be held long-term without liquidation. The core is to use leverage to amplify returns, but the usage is crucial:
Leverage Selection Logic: Taking BTC at 4700U as an example, 1x requires 4700U margin (100% of principal), 30x requires 156.7U (3.34%), and 100x only requires 47U (1%). Although 100x may seem aggressive, 99% of the principal can be reserved for risk, and transaction fee losses are lower. As long as you control your position, the risk is manageable.
Risk Control Iron Rules: Single margin ≤ 5% of total funds, fixed stop loss at 2-3%, profit at 5% triggers trailing stop loss, daily trading should not exceed 2 hours to avoid emotional trading. With a 5000U principal, making 50-100U daily is not difficult; achieving this for 20 days a month leads to profit.
Two, Three Moving Averages Determine Trend; Even Beginners Can Understand Buy and Sell Points
Open the K-line chart and set three moving averages to easily judge the trend:
5-Day Moving Average: Capture short-term fluctuations, sensitively reflect fund trends;
20-Day Moving Average: Filter out noise, anchor mid-term direction;
60-Day Moving Average: The dividing line between bulls and bears, extremely stable.
Four-Step Trading Method:
Choosing Coins: Prioritize coins with 5-day > 20-day > 60-day bullish arrangement;
Entering: Stand firm on the 20-day line with a light position to test, add to the position if it breaks the 60-day line and does not break back;
Exiting: Reduce positions when falling below the 5-day moving average, liquidate when losing the 20-day moving average, decisively stop loss when breaking the 60-day moving average;
Reminder: Combine trading volume and hot topics to assist in judgment; build positions in batches, do not go all-in.
Three, Countering Emotions: The Core Ability for Retail Investors to Make Money
Trading losses often stem from uncontrolled emotions; breaking the pattern requires three steps:
Understanding Trading Volume: There can be no market without volume; an increase without volume is hard to sustain, only participate when the volume expands;
Set clear trading rules: Before holding a position, clarify the entry (e.g., moving average golden cross + volume) and exit (e.g., breaking support) conditions, and refuse to act on impulse;
Learn to be patient and know when to give up: When in a floating loss, as long as the logic remains unchanged, hold on; decisively give up any rise that does not align with logic; being cold-blooded is the way to survive.
Four, 5 Ironclad Rules for Practical Trading, Must Be Engraved in Your Bones
In case of a sharp drop in the morning, don’t rush to cut positions; it's often an overreaction to overnight negative news, it may recover in the afternoon; be cautious when chasing after a sharp rise at market close, as the main force often uses trial trading to lure buyers, making it easy to open low the next day.
Volume Determines Direction: Shrinking volume in an upward trend indicates strong control by the main force, while shrinking volume in a downward trend suggests panic selling has not yet exited, indicating further downside potential.
Identify Sector Tops and Bottoms: Markets typically move in five waves, with the third wave being the most powerful main rise, and the fifth wave often indicating selling. When a leading coin rises but lacks follow-up strength, it is a signal of a top.
Bitcoin Trend Change Signal: If there is a collective surge in altcoins during the top acceleration phase, be wary of a reversal in Bitcoin; when the leading coin stops falling and starts to rise, the index often follows with a recovery.
Focus to Enter: Beginners should first master one trading strategy. After achieving stable profits, learn other techniques. Greed leads to loss; becoming proficient in skills prevents being harvested.
The core of making profits in the cryptocurrency market is not luck, but discipline, cognition, and patience. Life must be full of ups and downs to achieve great understanding; as long as you don’t give up, the more mistakes you make, the closer you get to success. I am Sunny Day; although I haven't accompanied you to watch the stars and the sunset, I hope to walk steadily with you in the cryptocurrency market with every step. Follow me, and together we will maintain discipline amidst the fluctuations, moving toward profit.
