10 years! A full 10 years! I was tortured in the furnace of the crypto space, burning not savings, but souls! Is hope! In the first three years, the account was like a dam that had been eaten away, and more than 100 collapsed before my eyes! Those nights that were spent, those teeth that were gnawed, those heartbreaking roars in front of the trading records... have become imprinted on my heart.
In the past four years, the market has become my ATM! Hundreds of coins have been easily deposited. Don't ask about luck. This market only recognizes two points: deep cognition and strict discipline!
The Six Iron Laws of Trading
Trend is king, wave is minister.
When a MACD golden cross appears on the weekly chart, hold firmly even if the daily chart retraces; after a dead cross is formed on the weekly chart, even the most attractive rebounds are tempting to go long. Remember: The win rate of contrarian trading will not exceed 20%.
Position decides mentality.
The position of a single currency should never exceed 30%, and the leverage multiple should always be controlled within 3 times. People in full positions can never withstand corrections, and people in empty positions can never catch the market. A 50% position is the best state to maintain rationality.
Stop loss is more important than take profit.
Set a stop loss point before buying, you must reduce positions if it falls below the 20-day line, and you should resolutely clear your position if it falls below the 60-day line. I have seen too many people turn from profit to huge loss because of "wait and see again". Learning to cut meat is the beginning of maturity.
Look at the popularity of new coins and the market value of old coins.
For coins that have been launched for less than 3 months, focus on the growth of Twitter followers and the frequency of GitHub submissions; for coins that have been launched for more than 2 years, pay attention to the distance between the circulating market value and the historical high. When it is less than 30%, there is often a rebound opportunity.
The news should be interpreted in reverse.
Good news realized is bad news, bad news exhausted is good news. When Musk shouts for Dogecoin, you should decisively ship your coins. When regulators crack down on BTC, you can build positions in batches. The market is always creating emotional traps.
Profits must be withdrawn.
Withdraw 200,000 for every 1 million earned and convert it to fiat currency for fixed deposits. No matter how beautiful the numbers are in the crypto space, they are floating profits if they are not converted into the balance in your bank card. Withdrawal is the real profit.
III. Practical Guide to Technical Indicators
(1) EMA moving average system
Give up MA and use EMA, which is more sensitive to short-term trends. Set three lines: 5-day, 20-day, and 60-day:
The 5-day moving average crosses above the 20-day moving average, forming a golden cross, and both are above the 60-day moving average. A 30% position can be established.
When the 5-day line crosses below the 20-day line and forms a dead cross, you must reduce your position by 50% regardless of profit or loss.
The 60-day line is the watershed between bull and bear markets. After falling below it, you should be at least empty for 3 months.
(2) RSI resonance with Bollinger Bands
When the RSI drops below 30 and the price touches the lower Bollinger Band, it's a short-term rebound signal; when the RSI breaks through 70 and the price breaks through the upper band, it's likely to correct. But be aware: small coins often continue to be overbought after the RSI is overbought, and the trading volume needs to be considered.
(3) Abnormal Trading Volume Password
When the trading volume increases by more than 3 times during an increase, it means that the main force is entering the market and you can chase the rise.
When the trading volume suddenly increases during a decline, it is a panic selling. Don't bottom fish.
When the trading volume gradually shrinks during sideways movement, it means that a change is coming. Be prepared for both directions.
10 Blood and Tears Advices for Newcomers
Don't touch contracts, 99% of liquidations come from leverage.
Don't believe in "internal news", everything you hear is a trap.
Mainstream exchanges are 100 times safer than small platforms. The handling fee is more expensive, but it can save your life.
Fixed investment in BTC in a bear market and fixed investment in USDT in a bull market are the easiest ways to make money.
Learn to read the white paper. If you can't find the use of the token in 5 minutes, pass it directly.
Add a few high-quality communities, but don't listen to others shouting orders, just look at the information gap.
Deleting the market software from your phone can help you hold long-term coins.
Reward yourself first after making a profit, and then invest in the market to maintain positive feedback.
Doing only 3-5 trades per year will result in a much higher win rate than frequent trading.
Remember: If you've been in the crypto space for more than 5 years, you've surpassed 90% of people.
The market is always changing, but human nature has never changed. The red and green columns in those K-line charts are essentially a game of greed and fear. I was able to climb up from three liquidations, not because of luck, but because I repeated and did simple things carefully.
You may still be losing money now, but as long as the direction is right, every step is closer to profitability. The door to the crypto space is always open to those who understand discipline. The key is whether you are willing to put down luck and embrace the rules.
Recognize the pitfalls of the crypto space and stick to the trading rules.
I. The Illusion of Getting Rich: The Most Expensive Cognitive Tax in the Crypto Space
In every late-night crypto trading group, there are always people forwarding K-line screenshots of "100x coins". These carefully cropped local bull market curves are like the siren songs of sirens, bewitching speculators. An unknown project token suddenly rises by 500%, and a college student achieves financial freedom with living expenses. These beautified get-rich-quick legends are essentially carefully designed cognitive traps.
The typical pattern of market maker operation is constantly being copied: creating a wealth effect by pulling the market → attracting retail investors' FOMO emotions → completing the harvest by shipping at a high level. A certain animal currency project completed a crazy game from zero to a market value of 10 billion in three months, and eventually returned to zero after the founding team cleared their positions, leaving hundreds of thousands of accounts with zero balances.
Data doesn't lie: CoinMarketCap statistics show that 93% of the newly launched tokens in 2023 halved in price within three months, and 79% of the projects stopped updating their code within one year. These numbers reveal the truth of the get-rich-quick myth - the collective illusion created by the survivor bias.
II. The Alchemist's Stone of Wealth: Cracking the Survival Password of the Crypto Space
The blockchain technology revolution is restructuring the value Internet, but 99% of cryptocurrencies will eventually return to zero. True value discovery requires penetrating the bright packaging of the white paper and seeing the substance of technological innovation. When most people are addicted to the cryptocurrency trading game, a few sober people are studying the breakthrough progress of zero-knowledge proofs, analyzing the TPS data of Layer2 solutions, and tracking the real adoption rate of decentralized storage.
Peter Lynch's "turning over stones theory" is still effective in the crypto space: turning over 100 stones may find 1 bull stock. A researcher from an institution found that the development activity of a certain privacy protocol project was 3 times that of its competitors by tracking GitHub code submissions. This project eventually rose 10 times against the trend in the bear market.
Position management is Noah's Ark to cross the bull and bear markets. A professional trader uses a "532" configuration strategy: 50% allocation of Bitcoin and Ethereum, 30% layout of mainstream public chains, and 20% for new track exploration. This structure allowed him to control losses within 15% in the 2022 bear market, far below the average market decline.
III. The Time Compound Interest: The Ultimate Algorithm in the Crypto World
When most people are pursuing "double in one month", the real wise men are practicing the snowball strategy of "30% annualized". A crypto fund achieved a 47x return in the complete bull-bear cycle of 2018-2023 through a cross-cycle fixed investment strategy, proving that slow is fast in investing.
On-chain data analysis reveals an amazing pattern: addresses holding Bitcoin for more than 3 years have a profit probability of over 95%. These "diamond hand" investors have experienced at least one drop of more than 50% and ultimately earned an average of 8.3 times the excess return in the 2021 bull market.
Building a cognitive moat is more important than chasing hot spots. A DeFi depth researcher spent 300 hours studying the automated market maker mechanism and foresaw its revolutionary value when Uniswap was first launched. The early participation of $10,000 became $2.7 million in two years, which is the best footnote to the compound interest of knowledge.
In this 24-hour uninterrupted trading digital jungle, the real wealth code has long been written in the genes of the blockchain: technological innovation never stops, market fluctuations always exist, and human greed is eternal. When we put down the delusion of "one coin villa by the sea" and turn to cultivate the blockchain value network with the mentality of an industrialist, time will eventually give the most generous rewards to the patient. Remember: in the crypto world, living long is ten thousand times more important than earning fast.
Trading rules
1. Cherish your chips, never lose them all, you will win if you don't leave the table. This market does not rely on luck to make profits, but on your sitting, experience, accumulation, persistence, and logic to make profits.
2. Learn to review and summarize. You must reflect. You must summarize every day. It is best to form text.
3. Local dog is a financial game, political perspective > money perspective ≈ cultural perspective > pure construction perspective, joining the election narrative Pnut]] > Sotheby's Ban ≈ traditional culture cult > ordinary project party issues coins (the project party's money > the project party's strength) / pure meme
4. When you can't help but want to show off your order, it's time to take profit.
5. Keep your position emotionally stable, don't self-FOMO, if it is not a top-level narrative angle, withdraw your profits at any time, don't have a pattern if it is not a top-level narrative, just be profitable.
6. If you don't get on the leading coin in the first instance, don't go for the second. Wait for the second phase of the leading coin. Believe in the strength of the strong!
7. When you encounter a hot market, rush in as soon as possible and don't be afraid to chase high prices. When you encounter a certainty opportunity, you should judge the top by market sentiment, not price. (For example: Trump)
8. You must withdraw your principal when you double your investment. This market is not about who earns more, but about who lives longer.
9. Look at the narrative with dynamic thinking. The development of the narrative often proceeds in the opposite direction of static thinking logic because there are external forces.
10. Only add to positions in an upward trend, do not bottom fish in a downward trend; there are eighteen layers of hell below the bottom.
11. Memes are essentially a game of attention. Think about who will see a coin and who will pay for it.
<p data-pid="dLP5tgwb">12. Opportunities will always exist and the next one will be better. If you miss it and don't operate well, keep your principal and wait for the next opportunity.
13. Establish your own trading logic. You must bet heavily on opportunities that belong to you, and don't envy money outside of logic.
14. What prevents you from making money is not the market situation, but your own greed, fear, impatience, and hesitation. Not going up, turning from profit to loss, and selling off are all not managing your own emotions.
15. Don't touch garbage, and don't distract yourself. You have to give your limited energy to the most valuable one.
16. Prejudice in people's hearts is a mountain. Never be prejudiced. Treat new things and new narratives with an open mind. For narratives that you don't understand, start with a small position first. The mentality of researching after getting on the bus is completely different. Even if you don't get big results in time after getting on the bus, you won't completely miss it and destroy your mentality.
17. Small narratives must be run intraday. 3-5M is basically the top of the small narrative. Most local dog small narratives basically can't reach 1M. A big narrative of 200-300 million is a top. Further up depends on emotional fermentation.
18. Don't go to the old market with small pools that suddenly rise sharply, because the people who ambushed before have already entered in advance, and now entering is to provide them with exit liquidity.
19. Keeping the principal is the first principle, let the profits run, and you have a chance to eat a big golden dog.
20. Long-term trading should not be too high on your cost line and be FOMO to add too many positions. Reversely copying the bottom will infinitely increase the cost.
21. When the market value/LP and trading volume of a token are severely out of balance, when the market value is very low and the trading volume is very high, the best strategy is to add some LP to earn transaction fees.
22. The primary market is a market where you can win big with small investments. Never think about winning big with big investments, let alone winning small with big investments.
23. Force quantification of each transaction: for example, 1.5 times the cost is 50%, and then sell 10% for every 1.5 times the increase. It is forbidden to add positions. It is a bit similar to the cap sister's playing method. Buying 1000u to 100M with 100k can also get 130k of excess income, and the risk is greatly reduced (the reason for 1.5 times the cost of 50% is that it may not be able to reach 2 times in many cases, but top opportunities like trump can be considered without paying the cost)
24. Before buying each coin with a heavy position, you must think about whether you can bear the risk if it returns to zero.
25. Use small positions to win big without stop loss, and use large positions to win big must set a stop loss.
26. The top profit earners are often KOL small accounts. You need to buy with these small accounts and let the KOL large accounts help you exit liquidity.
27. Do not add positions. If you are trapped, avoid adding to average the cost, which is often counterproductive in short-cycle speculation.
28. After a big loss, you must immediately summarize. It is best to write it down word by word to give yourself time to calm down. Don't rush to make a comeback, it is easy to get carried away and rush around. This situation may also occur after a loss. You are unwilling to leave the market and blindly add positions to bet on a rebound.
29.. It is forbidden to add positions at high positions.
30. Meme is a track where you can win big with small investments. Don't copy the bottom (there will always be newer, better and more awesome narratives for everyone to fomo) Only eat the first wave.
In this rule, red is the highest level, and blue is the second highest.
Finally, the most important thing is to persist in sitting, reviewing, researching, and constantly learning. More than 12 hours of sitting, scanning the chain, and thinking every day will eventually bring you the results you want. If you can't bear these hardships, don't do this business. Remember, we are the most powerful trading geniuses, we will definitely do it. We will all get the big results that belong to us. Let us encourage each other.
In crypto trading, there is a particularly practical but seemingly stupid method, which is actually very powerful and can help you make money steadily.
If you want to trade well in cryptocurrencies, there are three things you must never do.
When trading cryptocurrencies, don't rush to buy when the price is rising. You have to learn to think in reverse. When others are afraid, you have to be brave and look for opportunities to buy. Conversely, when others are so excited, you have to be careful and think about whether it's time to withdraw.
Never put all your money on one coin when trading cryptocurrencies. The risk is too great. If something goes wrong, it may be all over. Diversified investment is the way to make money steadily.
Never operate with full positions in crypto trading. You have to keep some money in your hand. There are many market opportunities. If you are in a full position, you can't move once you encounter good opportunities or need to adjust your strategy. That's a big loss! Leave some money, respond flexibly, and the opportunity cost is low.
When trading cryptocurrencies, stability is the top priority. Don't think about making a lot of money all at once. Take it slow. Learn this stupid method and you will be guaranteed to live long in the market and make money.
Next, let us enter the wisdom mnemonic of short-term trading.
Mnemonic 1: High-level consolidation, or breeding new highs; low-level wandering, or predicting new lows. Wait and see and wait for the direction to become clear before taking action. This is a prudent approach.
Mnemonic 2: When the market is sideways, keep your heart as still as water. Most people fail because they can't stand loneliness. Only by adhering to this tranquility can they achieve extraordinary things.
Mnemonic 3: K-line sunny or cloudy, opportunity to buy and sell. A daily negative line may be a good opportunity to buy; a daily positive line should be considered to reduce holdings, which is the method to follow the market rhythm.
Mnemonic 4: Slow fall, slow rebound; rapid fall, rebound is expected. Market fluctuations have their own laws. Understanding this will allow you to seize the initiative.
Mnemonic 5: Pyramid-style position building is the true meaning of value investing. Add positions layer by layer, steadily, and wait for the flowers to bloom over time.
Mnemonic 6: After rising and falling, there must be sideways movement. At this time, there is no need to sell all because of the high position, nor is there any need to heavy position because of the low position. Because, after sideways movement, a change will come. If it turns from a high position to a decline, you should stop the loss in time to preserve your strength and wait for a future battle.
On this investment journey full of unknowns and challenges, may we all become the most calm observers and the most courageous pioneers, sailing to the shore of wealth with wisdom as our boat and patience as our sail.
Crypto newbies must see: hard-core strategy of position management and trading mentality.
As a newbie in the crypto space, you have to learn two hard skills: position management and trading mentality. If you practice these two tricks well, you can gain a firm foothold in the crypto space and making money is no longer a dream!
First, let's talk about position management, which is a great trick to protect your wallet. You have to learn to set a safety line for yourself. Once you make some money, quickly put a "protective cover" near the opening price - a stop-loss order, so that even if the market turns its back on you, your principal can be protected. Especially when trading small altcoins, you have to be smart and enlarge your take-profit position when the price rises, and you have to follow the price movement. At the same time, don't forget to put on the "protective cover".
Never get carried away because you made a little money. You have to know when to stop. If you accidentally lose money, don't get upset and gamble again, which will only make you lose more. Remember, follow the trend and don't always think about bottom fishing and picking up cheap bargains. The real bottom is what the market says, not what you guess.
You have to have a fixed trading system, don't change your mind every day, which will only make you dizzy. Be patient and don't always think about chasing the rise and killing the fall. The correction is a good opportunity. Also, control your position and leverage, don't forget yourself when you make money, and stop when you should.
Let's talk about trading mentality, which is the key to determining whether you can last in the crypto space. When you encounter a floating profit that turns into a floating loss, you have to be calm and don't let your emotions cloud your judgment. Remember, cryptocurrency trading is about mentality. You have to learn to compete with your own psychology and not be swayed by temporary gains and losses.
If you want to do well in the crypto space, you have to keep learning and enrich yourself. Summarize every day, learn from practice, and improve your trading skills. Only in this way can you gain a firm foothold in this volatile market and make a lot of money.
In short, position management and trading mentality are the two magic weapons of crypto trading.
Newbies, if you want to make money in the crypto space, you have to practice these two tricks well.
