In the field of cryptocurrency trading, I worked my way up from a small retail investor with only 5,000 yuan to finally become a middle-class investor with 25 million yuan!
Today, I will share with you my experience along the way.
The most important thing about cryptocurrency trading is money management. Don't invest all your money at once. I usually divide my funds into five parts and trade only one part at a time. This way, even if I lose, I won't be overly stressed. Furthermore, I've made it a rule to withdraw immediately after a 10% loss, regardless of market conditions. If I lose 10% five times in a row, I'm only losing 50%, but if I win, the gains are much greater. Even if I'm trapped, I can maintain my composure.
Following the market trend is always the most reliable strategy. When the market is falling, don't think about buying at the bottom, that is simply unrealistic. When the market is rising, the pullback is the golden opportunity. Buying at a low price is much safer than trying to find the bottom.
When it comes to choosing coins, you need to be discerning. Avoid coins that have skyrocketed in value, whether they are mainstream or altcoins. Coins that have risen too quickly will likely experience a large correction, making it easier to get trapped.
When it comes to technical indicators, I use the MACD the most. If the DIF and DEA lines cross below and break below the 0 axis, it's a buy signal. Conversely, if they cross above the 0 axis and move downward, it's time to reduce your position.
Don't try to cover your position lightly! Don't cover your position if you're losing money. The more you cover, the more you lose, and you may end up with nothing. Remember, stop losses when you're losing, and only add to your position when you're profitable.
Trading volume is also crucial. When the price breaks through a low level, if the trading volume increases, it is usually a big opportunity.
The most important point is to follow the trend and seize the trend! Combining the daily line, 30-day line, 84-day line, and 120-day line, whichever line starts to turn upward will tell you what to do.
The path of cryptocurrency speculation has risks, but also considerable opportunities.
Only by learning fund management, trend analysis and coin selection can you, like me, go from being a small retail investor to becoming middle class.
To make 5 million from 50,000 in the cryptocurrency circle, as long as you remember these few words, you are already halfway to success!
1. Short-term
1. Pay attention to the top ten mainstream currencies every day. Based on the current market hot spots, news, daily MACD golden cross, BOLL closing and opening, combined with market trends, comprehensive consideration, select varieties with large fluctuations to trade.
2. Control your positions:
Divide 50,000 into 20%, or 5 parts, and use one part to build a position each time.
3. Never hold a full position, 50% at most, and always keep 50% of the position at the bottom to wait for opportunities.
4. Do not place more than 3 orders on the same day and be able to manage them.
5. Never add to your position. If you suffer a 30% loss as soon as you enter the position, you should withdraw immediately. This means that you entered the market at the wrong time.
6. Set a stop loss of 30%. Once it is broken, close the position unconditionally. Do not hold the order, as holding the order will lead to failure.
7. Never fall in love with the K-line, enter and exit quickly, remember!!!
8. Go with the flow, trend is king, only do mainstream things, don’t do small copycat products!
2. Cryptocurrency Life-saving Tips (Recommended to Memorize)
1. Don’t rush to run away if there is a big drop in the morning, there will usually be a rebound in the afternoon!
2. Reduce your position if the market rises sharply in the afternoon, as there is a high probability of a pullback in the evening!
3. If the volume shrinks and the price rises, it will continue to rise; if the volume shrinks and the price falls, it will continue to fall.
4. The stock price will rise before major meetings or good news, and fall after the news comes out.
5. If the domestic market continues to drop sharply during the day, you should buy at the bottom. Foreigners will pull up the market at 21:30 at night.
6. The key signal when buying and selling is the pin. The deeper the pin, the stronger the buy and sell signal.
7. When you hold a large position, you will definitely get liquidated. Why? You are on the exchange's liquidation list.
8. When your short position stop-loss is completed, the stock will definitely fall. How can it fall unless it tricks you out of the market or crashes? For example, TRB.
9. When you are about to get out of the position, just one step away, the rebound suddenly stops. How can you close your position and run away?
10. When you take profit, the market is empty. How can you pull the market up if you don’t get off the car? The car is too heavy.
11. When you are excited, the waterfall comes as expected, and your excitement is also the temptation of the dealer.
12. When you're broke and every project is rising, you're FOMOing and rushing in. So you understand that the market is manipulated over 80% of the time. Besides controlling your position, you must also be proactive and stay in the game until you're aware of the market makers' manipulation. Once you do, you're at the mercy of the exchange.
10 Iron Rules of Cryptocurrency Trading Experience Summary! If you want to do well in the cryptocurrency circle, it is actually similar to doing business in other industries. Before entering the cryptocurrency circle, you must first familiarize yourself with the ins and outs of this market. Only when you understand the ins and outs can you see clearly the world inside. The cryptocurrency circle is constantly changing.
This requires us to have protective armor, and in order to survive we need an aggressive spear, so we need to have our own risk control system and trading rules, and finally we need to have a good attitude and achieve unity of knowledge and action!
I still use the above methods and remind myself when I’m doing them. Some people think they’re simple and you don’t have any skills! I already knew these things, but have you done them?
When operating, you must not make any mistakes. Once you buy, it is irreversible. Unlike in the real economy, if you fail to close a deal with a client, you can always try again next time. The market here will not give you a chance. You only have one chance. Just like time, once it passes, it will never come back.
The above are the lessons learned from years of struggling in the market. I share them today in the hope that after reading them, you can avoid detours and achieve satisfactory achievements in the cryptocurrency circle as soon as possible.
After ten years of ups and downs in the cryptocurrency world, from huge losses to rich returns, I have summarized the following cryptocurrency trading disciplines and experiences:
Every investor entering the cryptocurrency world will experience significant losses, margin calls, and the tumble from profit to loss during their trading career. Among the vast army of cryptocurrency traders, only one type of person thrives: those who have experienced bankruptcy, learned from their experiences, and developed a strong mindset. Without experiencing margin calls and significant losses, you'll never understand stop-loss orders; without experiencing the tumble from profit to loss, you'll never understand the mindset shift from a single thought to heaven or earth.
1. Avoid highs and go for lows, don't chase rising prices. Stay calm about price fluctuations, let them rise and fall freely, and don't be easily tempted.
2. There's no absolute coin, only timing matters. Choosing the right time to buy a good coin is a good choice; otherwise, even the most popular coin is just a passing fad. Patiently waiting for the perfect opportunity and investing in promising coins is the right path.
3. Mindset is king, and restraint is paramount. Itching to buy even when you know it's not the right time to buy is a major taboo in cryptocurrency trading. Only with a stable mindset can you navigate the market.
4. Analyze calmly and disregard emotions. Do not favor one currency over another, acting solely based on market signals. Those with strong technical skills and ample funds should be more flexible, regardless of timing.
5. Self-reflection comes first; the market is not responsible. Mistakes are all your own fault. Learn from them quickly and avoid repeating them.
6. Both technique and mindset are essential. Blindly following trends is foolish; only wisdom and insight reveal the truth.
7. Capital size isn't crucial; strategic execution determines success. Buy and sell with precision, and you'll be the "wolf" of the market.
8. Operate calmly, with funds in hand, why worry about not having good money?
9. The market will not tolerate your luck. Only by radical change can you defeat the market.
10. The desire for quick success and instant benefits is the enemy of cryptocurrency speculation. Only by controlling your inner demons can you achieve long-term success. Investors often become playthings of the market because of an unbalanced mentality, becoming puppets of bulls and bears.
11. Good habits are the foundation of survival in the cryptocurrency world. Temporary gains may be a fluke, but long-term survival depends on good habits. Opportunities are common, but your ability to seize them determines success or failure.
12. Cryptocurrency trading is not gambling; sustained profitability demonstrates true skill. An effective strategy, carefully planned and executed, is the best approach.
13. Patience in nurturing your coins will lead to greatness. Frequent currency swaps will hinder your success. Focus on one area and cultivate it carefully, only then can you accumulate small victories into big ones.
14. Follow the market and dance with it. Master the rhythm and you will be at your best. Abandon greed and fear, listen to the voice of the market, and no one can stop you.
15. Cryptocurrency trading is like spiritual practice; one must clearly distinguish between natural law and human desire. Buying and selling points are determined by the combined force of the market; only by following these rules can one proceed with caution.
16. The magic of compound interest cannot be ignored. When a good mindset is combined with skills, compound interest will naturally follow, and your wealth will snowball.
17. The market is ruthless, both ups and downs are brutal. Based on technical skills, you should act when it is time to act. Missing the selling point is also a mistake.
18. Buy low and sell high; cost is king. Don't predict, just react. Build positions at a large scale and adjust positions at small scales. Lowering costs is the key to success.
19. Be cautious in good times; the market is risky. Until you convert your money into cash, it's all floating around. Chasing rising and falling prices is tantamount to digging your own grave.
There is a clear operating system when entering the market:
(1) How much money do you plan to make in this market trend?
(2) What is the maximum loss I can accept? If the market retreats, I must exit immediately at that loss.
(3) I must pocket a certain percentage of the profit from each trade;
(4) Gradually increase your position, avoid full-position trading, and continuously raise your stop-loss level as profits rise, never allowing existing profits to turn into losses;
(5) Always give yourself another chance to trade and strictly follow your own trading system.
3. Trends are your best friend. Trading's biggest enemies are waiting patiently for a clear market trend and overtrading. Bull markets don't end overnight, and neither do bear markets. In the cryptocurrency world, I've seen businesses go from three years without opening to three years of profit after opening. As long as you have patience, wait for a clear market trend, identify leading stocks, and hold onto them until the bull market ends, without overtrading, you can reap unexpected profits.
When a trend comes, respond to it and follow it. When there is no trend, observe it and remain calm. Excessive trading is also the enemy of investment. Traders who run the arbitrage can only earn a small profit but cannot make big money. Let's calculate the transaction fees of excessive trading: the current virtual currency exchanges are calculated based on 0.2% for both buying and selling, and completing one transaction is 0.4%. If a trader trades once a day, and a year is 365 days, then the trader loses 4/1000*365=140% due to transaction fees. You didn't see that it is 1.4 times. Think about it, Buffett is still working hard for 30%, and your annual transaction fees are 140%; there is another thing that traders often overlook. The more frequently a person enters and exits the market, the more likely he is to change his mind frequently. As the saying goes, the more you do, the more mistakes you make, the less you do, the fewer mistakes you make, and even if you do nothing, you will miss out on big market opportunities due to excessive trading; plan before acting, and determine the arrival of trends based on the obvious price break points, popularity, trading conditions, and capital inflows provided by the market. Keep a broad perspective on market trends and don't be confused and eliminated by short-term fluctuations.
4. Psychological preparedness is the core. Cryptocurrency trading is against human nature. It's a game where only a few profit, while the vast majority simply play along. Trading requires a strong mental fortitude and a mindset prepared for a potential meltdown. If you enter the market with 10,000 yuan and are emotionally pounding over a 100-yuan fluctuation, I urge you to exit the market as soon as possible to ensure your personal safety. If you aspire to make 100 million yuan, then fluctuations within 1 million yuan won't affect your mindset. Ultimately, 100 million is your goal, not just 1 million. This is how you maximize your chances of achieving significant profits.
5. Find a trading method that suits you. Tao represents the logic of things, while Shu represents the methods and approaches. As the saying goes: If you have Tao but no Shu, you can still find Shu; if you have Shu but no Tao, Shu is useless. The birth of a trading method represents the combination of a person's knowledge, insight, and courage. By constantly experiencing the ups and downs of the market, one can eventually understand the basic logic of trading, which is in line with the law. An investor's biggest enemies are hope, fear, and greed. Having your own trading method also requires overcoming the human weaknesses of hope, fear, and greed. When the market is about to fall, when fear is the norm, investors feel hopeless. When the market is rising, they fear a pullback. Fear fills them with fear, when hope is the greatest. This is the reason why traders cannot make big money.
Developing your own trading method and a trading system to overcome human weaknesses, allowing profits to flourish when the market opens, and knowing when to stop losses when losses occur, is the key to achieving great wealth. Finally, only this type of person can make money in the cryptocurrency market. It doesn't depend on the specific techniques or methods used, but on self-discipline. Cryptocurrency trading is sometimes not a matter of strategy but of time and patience.
After trading cryptocurrencies and then stocks, I found that trading cryptocurrencies is easier than trading stocks. Is this true?
My cryptocurrency trading method is very simple and practical. It took me only one year to make an 8-digit number. I only trade in one pattern and only enter the market when I see the right opportunity. I don’t trade without a pattern. I have maintained a winning rate of over 90% for five years.
If your account balance is less than 1 million and you're looking to profit in the short term, there's a timeless cryptocurrency trading strategy in the cryptocurrency world*. It's also a tried-and-true "idiot-proof technique" that retail investors can apply at a glance. It's pure gold!
Don’t worry about whether you can learn it or not. If I can seize this opportunity, you can too. I am not a god, just an ordinary person. The difference between others and me is that others ignore this method. If you can learn this method and pay attention to it in the later trading process, it can help you earn at least 3 to 10 points more profit every day.
1. Invest in batches and times: Suppose you have 10,000 yuan, divide it into five parts, and use only 2,000 yuan of it for each transaction.
2. Test the waters for investment: First use 2,000 yuan to buy a coin to test the waters.
3. Add more positions if the price drops: If the price drops by 10%, add another 2,000 yuan.
4. Take profit when the price goes up: If the price of the currency rises by 10%, sell part of it in time to lock in the profit.
Repeating cycle: Repeat buying and selling until the funds are used up or the coins are sold out.
Advantages of this strategy: The advantage of this strategy is that you can remain calm even if the price of the currency drops. By buying in batches, you avoid the risk of a single investment. Even if the price drops by half, you only increase your position gradually. And each time you sell, you lock in a 10% profit.
For example, if you have 100,000 yuan and invest 20,000 yuan each time, you can earn 2,000 yuan each time.
Key techniques include:
1. Technical analysis: using charts and indicators to identify trends;
2. Fundamental analysis: focus on news and macroeconomic factors;
3. Risk management: setting stop-loss orders and diversifying investments;
4. Trading strategies: determine entry and exit points and use different strategies;
5. Psychological factors: maintain discipline and patience;
6. Practice and learning: simulated trading and continuous learning;
7. Choose a reliable trading platform.
Short-term cryptocurrency trading is very risky, so be sure to do your research and risk assessment before trading.
1. The cryptocurrency world is most afraid of laziness: laziness in transferring coins to wallets, laziness in researching projects, laziness in learning. Diligence eliminates all ills, while laziness breeds chaos...
2. 99.99% of new concepts on the market have only one purpose: to trick you into buying in.
3. Unless absolutely necessary, never trade over the counter.
4. If someone's profile picture is a handsome guy or a beautiful girl, and they show off their life and fitness in their circle of friends, and they frequently contact you to discuss contracts, they are 100% scammers. The correct way is to report and block them.
5. Remember, the coins only belong to you in cold wallets
6. The wealth codes recommended by others are all poison to your life.
7. Except for Bitcoin, no other coin is worth all your investment.
8. In the cryptocurrency world, there are many opportunities and many scammers. How can you avoid the pitfalls? You can either spend money to step into the pits, or follow the guidance of experienced people to avoid the pits. But...how many experienced people still have a sincere heart?
9. Look at the essence of everything, don’t be fooled by the scripts designed by people in the group. If the master who leads the order really makes money like this, I think he will not lead you... Think about the gambling back then
10. Why is the price of the coin being pumped up? It's not because the market makers are being merciful, but because they are desperate to sell and need investors to buy in...
11. What color your heart is, that is the color of the cryptocurrency world. Being innocent when you are young is called cute, but being innocent when you grow up is called stupid, especially in the cryptocurrency world.
12. When scammers try to PUA you, they usually tell you a bunch of things you don’t understand and try to scare you. For example, they say your card was frozen 9 out of 10 times. Finally, they try to sell you their own withdrawal tool.
13. Some things are clearer to bystanders, and some things are understood by people involved. We must stay away from those who advocate that the world can only be saved by "blockchain". True faith is rational and objective, not pyramid schemes.
14. Your mindset is crucial. If you cannot tolerate a 99% drop in the price of the currency, you naturally cannot enjoy a hundredfold profit.
15. The three most harmful addictions in the cryptocurrency world: contracts, short-term trading, and new stock issuance
16. Hot coins are like roses with thorns, which can be admired from a distance but not touched.
17. Stay away from people who talk about "essence", "trend", "next Bitcoin", "bonus period" all the time. Get down to earth and stock up on big coins.
18. Don’t be fooled by the project owner’s promises of dreams, future, trends, and patterns. Their dream is simple: if you buy their tokens, their dream will come true immediately.
19. The fastest shortcut to cryptocurrency speculation is to be down-to-earth, hoard coins honestly, and never question your own efforts. That is the prerequisite for success.
20. Free things are always the most expensive. Develop the habit of paying. Don’t be greedy for small profits, let alone free things. This will lower your vision, cultivate a small-scale peasant temperament, and often lose the big picture.
21. Those who would rather be ripped off in the market than spend money on learning are accustomed to giving up. Of course, those who are fussy are accustomed to giving up.
22. I have always been screening fellow coin hoarders, not promoting them. This is meaningless...
23. Adults, be brave. If you are worried about your identity being stolen even when registering on an exchange, then go home and farm.
24. In the current market, even mining owners are selling mining machines at a discount. Why are you still rushing to buy mining machines?
25. What would you choose, eight-pack abs or eight bitcoins?
26. Millions, tens of millions, hundreds of times, or thousands of times are all nonsense. Just stock up on coins. I think it won’t be a problem to earn more than 5 times.
27. 99% of the information is a trick to cheat you out of your coins. If you read too much, the coins in your hands will disappear.
28. When you are in the cryptocurrency world, talk less about "high-end" concepts and stock up on "potential" currencies.
29. Hoarding coins, you must resist the temptation...
30. The essence of airdrops is gambling. As the number of gamblers increases, this path becomes narrower and narrower...
31. The primary market is riskier than you think. If you have a weak heart, don’t play.
32. Changing one's destiny begins with a habit of taking risks. When we habitually take risks, we find that there are no competitors along the way. Shortcuts are crowded, while the main road is smooth. Why? Shortcuts are free, while the main road is toll-free...
33. Being defrauded of 100 million yuan and being defrauded of one coin are essentially the same... Many people like to comfort themselves after the exchange runs away, saying that others have more assets than me, in order to achieve the purpose of self-paralysis... This is stupid.
Never engage in revenge trading. When I close a trade, whether it's a profit or a loss, I hold on to it. I close the chart and don't open it again for 24 hours. This prevents me from engaging in revenge trading.
We close trades for a reason, which means there's no reason to re-enter immediately. Revenge trading is a leading cause of losses for emotional traders. This is especially critical when trading Bitcoin with leverage.
Cryptocurrency traders watch Bitcoin market for many hours every day, which makes it difficult to walk away and not re-enter after a loss.
Keep it simple and stupid This is one of my firm rules. When I was a beginner, I would check multiple indicators, news sources and patterns to try to find the optimal trading method.
This often leads to over-analysis, and when I see a trading opportunity on the chart, understanding stop-loss and position sizing is far more important than entry and exit timing.
Don't Overtrade I've found that the less I trade, the more money I make. Even when the market is full of opportunities, I try to keep the number of open trades below 3.
Managing risk across multiple trades is much more difficult because if every trade goes against you at the same time, you could suffer significant losses.
Don't gamble:
Never have any fluke mentality, because you are doing a contract. Even if you are right nine times out of ten and make a lot of money, as long as you are wrong once and you are willful and hold on to the order, you will 100% lose your position.
A margin call has a huge impact on your confidence and your mentality, so I suggest that as long as a contract loses more than 30%, you should close the position and take a break to think about whether you have made a mistake.
A 20% fluctuation in the cryptocurrency market over two days is very normal and happens every day, so if you want to beat the market in the long run, you must avoid these factors that may cause you to fail.
Frequent trading is a path to failure, while truly successful individuals often possess a vision and understanding that transcends the average person. As George Soros said in The Alchemy of Finance: "True excess returns come from cognitive gaps, not from trading frequency."
I hope this article can help you escape the trap of frequent trading and find your own trading method.
Remember, trading is not gambling, but a battle of cognition. Only by constantly improving yourself can you remain invincible in the market.
