Ten years! A full ten years! I have endured in the crucible of the crypto world, burning not just savings but my soul! The first three years, accounts collapsed like a dam gnawed by pests, with over 100 going down right before my eyes! Those sleepless nights, those shattered teeth, those heart-wrenching screams in front of trading records... have all become permanent imprints on my heart.
In the last four years, the market has become my ATM! Hundreds of coins easily generated income. Don't ask about luck; this market only recognizes two points: deep understanding and strict discipline.
Six trading iron rules at the bottom of the box.
Trends are king, and waves are subjects.
When a weekly MACD golden cross occurs, even if the daily line pulls back, you should hold firmly; after a weekly death cross forms, no matter how tempting the rebound is, it’s just a trap for buyers. Remember: the win rate of counter-trend operations will not exceed 20%.
Position determines mentality.
The position in a single coin should never exceed 30%, and the leverage should always be controlled within 3 times. Those who are fully invested can never withstand corrections; those who are not invested can never catch the market; a 50% position is the best state for maintaining rationality.
Stop losses are more important than taking profits.
Set stop-loss points before buying; if it drops below the 20-day line, reduce your position; if it drops below the 60-day line, decisively liquidate. I've seen too many people turn profit into huge losses because of 'just wait a bit longer'; learning to cut losses is the beginning of maturity.
Look at the heat for new coins, and market cap for old coins.
For coins launched less than 3 months, focus on Twitter follower growth and GitHub submission frequency; for coins launched over 2 years, pay attention to the distance from circulating market cap to historical highs; when below 30%, there is often a rebound opportunity.
The news must be interpreted in reverse.
Good news turning into bad news, and bad news turning into good news. When Musk promotes Dogecoin, act decisively to unload; when regulatory pressure hits BTC, instead, you can gradually build a position; the market is always creating emotional traps.
Profit must be withdrawn.
Withdraw 20% every time you earn 1 million, convert it to fiat for a fixed deposit. No matter how beautiful the numbers in the crypto world, if they don't turn into bank account balances, they are just unrealized gains; cashing out is the real peace of mind.
Three, technical indicators practical guide.
(1) EMA moving average system.
Give up the MA and use the EMA, which is more sensitive to short-term trends. Set three lines: 5-day, 20-day, and 60-day.
If the 5-day line crosses above the 20-day line forming a golden cross, and both are above the 60-day line, you can build a 30% position.
If the 5-day line crosses below the 20-day line forming a dead cross, regardless of profit or loss, reduce your position by 50%.
The 60-day line is the watershed for bulls and bears; breaking below it means at least three months of cash holding.
(2) RSI and Bollinger Band resonance.
When RSI drops below 30 while the price touches the lower Bollinger Band, it’s a short-term rebound signal; if RSI breaks above 70 and the price breaches the upper band, a pullback is likely. But be careful: small coins often show RSI overbought before continuing to be overbought, so volume analysis is needed.
(3) The password of volume anomalies.
When the volume triples during an increase, it indicates that the main force is entering; you can chase the rise.
When trading volume suddenly expands during a drop, it indicates panic selling; do not catch the falling knife.
During sideways movements, trading volume gradually shrinks, indicating an impending change; be prepared for both directions.
Ten blood and tears advice for newcomers.
Don't touch contracts; 99% of liquidations come from leverage.
Do not believe in 'insider information'; anything that reaches your ears is a trap.
Mainstream exchanges are 100 times safer than small platforms; the fees may be higher, but they can save your life.
In bear markets, dollar-cost average into BTC; in bull markets, dollar-cost average into USDT; this is the simplest way to make money.
Learn to read white papers; if you can't find the token's use case in 5 minutes, pass directly.
Join a few high-quality communities, but don’t listen to others' recommendations; only look at information asymmetry.
Deleting market software from your phone can help you hold onto long-term coins.
After making a profit, reward yourself first, then invest in the market, maintaining positive feedback.
Make only 3-5 trades a year, and your win rate will far exceed frequent trading.
Remember: surviving in the crypto world for over 5 years means you have surpassed 90% of people.
The market is always changing, but human nature never changes. Those red and green bars in the K-line chart are essentially a game of greed and fear. I can rise from three liquidations, not by luck, but by repeating and seriously executing simple principles.
You may still be in loss, but as long as the direction is correct, every step brings you closer to profit. The door to the crypto world is always open to those who understand discipline; the key is whether you are willing to let go of luck and embrace the rules.
Recognize the pitfalls of the crypto world and adhere to trading rules.
One, the illusion of sudden wealth: the most expensive cognitive tax in the crypto world.
In every late-night crypto group, there are always people sharing screenshots of 'hundredfold coins'; these carefully cropped partial bull market curves are like the siren's song, luring speculators. A certain unknown project's token suddenly surged 500%, a university student achieved financial freedom with living expenses; these beautified stories of getting rich are essentially carefully designed cognitive traps.
The typical model of market manipulation is continuously replicating: creating wealth effects through price increases → attracting retail FOMO sentiment → unloading at high positions to complete the harvest. A certain animal coin project achieved a crazy game from zero to 10 billion market cap within three months, ultimately returning to zero after the founding team liquidated, leaving hundreds of thousands of accounts with zero balances.
Data does not lie: CoinMarketCap statistics show that 93% of tokens launched in 2023 halved in price within three months, and 79% of projects stopped updating code within a year. These numbers reveal the truth behind the myth of sudden wealth—collective illusions created by survivor bias.
Two, wealth alchemy: cracking the survival code of the crypto world.
The blockchain technology revolution is reconstructing the value internet, but 99% of cryptocurrencies will eventually go to zero. True value discovery requires penetrating the glossy packaging of white papers to see the essence of technological innovation. While most people are obsessed with speculative currency games, a few awake ones are studying breakthroughs in zero-knowledge proofs, analyzing the TPS data of Layer 2 solutions, and tracking the real adoption rate of decentralized storage.
The 'stone flipping theory' of investment master Peter Lynch remains valid in the crypto world: flipping over 100 stones may reveal 1 bull stock. A certain institutional researcher tracked GitHub code submission volumes and found that a privacy protocol project had 3 times the development activity of competitors; ultimately, this project surged 10 times against the trend in the bear market.
Position management is the Ark of Noah through bullish and bearish markets. A certain professional trader uses a "532" configuration strategy: 50% allocated to Bitcoin and Ethereum, 30% to mainstream public chains, and 20% for exploring new tracks. This structure kept their losses within 15% during the 2022 bear market, far below the market average decline.
Three, time compounding: the ultimate algorithm of the crypto world.
When most people pursue 'doubling in a month', the real wise ones are practicing the '30% annualized' snowball strategy. A certain crypto fund achieved 47 times returns over the complete bull and bear cycle from 2018-2023 through a cross-cycle investment strategy, proving that slow is fast in investment philosophy.
On-chain data analysis reveals an astonishing pattern: addresses that held Bitcoin for over 3 years have over a 95% chance of profit. These 'diamond hands' investors have endured at least one 50%+ drop and ultimately gained an average of 8.3 times excess returns in the 2021 bull market.
Building a cognitive moat is more important than chasing hotspots. A certain DeFi researcher spent 300 hours studying the automated market maker mechanism and foresaw its revolutionary value when Uniswap was just launched. A $10,000 early investment turned into $2.7 million two years later, illustrating the best annotation of knowledge compounding.
In this 24-hour non-stop trading digital jungle, the true wealth code has long been written in the genes of blockchain: technological innovation never stops, market fluctuations are eternal, and human greed is unchanging. When we let go of the delusion of 'one coin villa by the sea' and instead deeply cultivate the blockchain value network with the mindset of an industrialist, time will ultimately reward the patient. Remember: in the crypto world, surviving long is a thousand times more important than earning fast.
Trading rules.
Cherish your chips; never lose it all; you can only win if you don't leave the table. This market does not profit by luck; it’s your patience, experience, accumulation, persistence, and logic that lead to profit.
Learn to review and summarize; reflection is essential, and daily summaries are a must, preferably written down.
The low-quality tokens are financial games, where the political angle > monetary angle ≈ cultural angle > pure construction angle, joining the narrative of the elections is peanut > Sotheby's Ban ≈ traditional cultural cult > ordinary project coin issuance (project party's money > project party's strength) / pure meme.
When you can't help but want to share profits, that’s when it’s time to take profits.
Maintain stable emotions in your holdings; do not self-FOMO; for non-top narratives, profit can be withdrawn at any time; for non-top narratives, profit is good.
If you don’t get in on the leading coin immediately, don’t go for the second; wait for the second leading coin, believing that the strong will continue to be strong!
When encountering hot trends, dive in without fear of chasing highs; when faced with a certain opportunity, use market sentiment to judge the top, not the price. (For example: Trump)
Doubling must take out the principal; this market is not about who makes more, but who survives longer.
Dynamic thinking looks at narratives; narrative development often goes in the opposite direction of static thinking logic due to external forces.
Only join in rising trends, do not catch falling knives; there are eighteen layers of hell below the bottom.
Memes are essentially a game of attention; think about who will see a coin and who will pay for it.
<p data-pid="dLP5tgwb"> Opportunities are always there, and the next one may be better; if you miss one, don’t fret, preserve your principal and wait for the next opportunity.
Establish your own trading logic, and place heavy bets on your own opportunities, without envying money outside of your logic.
What hinders your profit is not the market situation, but your own greed, fear, impatience, and hesitation. Not entering, turning profits into losses, and selling out too soon are all signs of not managing your emotions.
Do not touch garbage; disperse your efforts. Allocate your limited energy to the most promising one.
The prejudices in people's hearts are a mountain; never be biased. New things and narratives should be approached with an open mindset. For narratives you don’t understand, initially place a small position; the mindset after getting in is completely different. If you don’t get big results in time, it won't completely ruin your mindset.
Small narratives must run intra-day; 3-5M is basically the peak of small narratives, most low-quality small narratives rarely reach 1M, while large narratives top out at 200-300 million; beyond that, it depends on sentiment fermentation.
Do not enter a suddenly surging old project with a small pool; those who have already positioned themselves will exit before you, and entering now only provides them with exit liquidity.
Keeping your principal is the first principle; let profits run, and only then can you have the opportunity to catch the big gains.
Long-term trading should not exceed your cost line; FOMOing too much will raise costs indefinitely; counter-trend buying will infinitely inflate costs.
When a token's market cap/LP and trading volume are severely imbalanced, when the market cap is very low while trading volume is very high, the best strategy is to add some LP to earn transaction fees.
The primary market is a market where small bets can yield big returns; never think about big bets against big bets, and even less about big bets against small ones.
Quantitatively force every trade: such as taking out 50% when reaching 1.5 times the cost, then selling 10% for every 1.5 times increase, prohibiting averaging down. This is somewhat similar to the cap and trade approach; buying 1000 units at 100k to 100M can also yield 130k in excess returns, significantly reducing risk (the reason for taking out 50% at 1.5 times is that often it may not reach 2 times, but top opportunities like Trump can consider not taking out).
Before buying heavily into any coin, consider if I can bear this risk if it goes to zero.
Betting big without a stop loss is risky; betting big with a stop loss is a must.
Many of the top profit makers are KOL's secondary accounts; you need to follow these secondary accounts to buy, and let the KOL's main accounts help you exit liquidity.
Do not average down; if trapped, avoid increasing the position to average down; this often backfires in short-term speculation.
After a large loss, immediate reflection is necessary; it’s best to write it down word for word to give yourself a moment of calm. Do not rush to turn things around; it's easy to get impulsive. This situation can also occur after losses when one is unwilling to exit and blindly adds to their position betting on a rebound.
Meme is a track to bet small and win big; do not catch bottoms (there will always be new, better narratives for everyone to FOMO into); only eat the first wave.
This rule: red is the highest level, blue is secondary.
In conclusion, the most important thing is to persist in sitting patiently, reviewing, researching, and continuously learning. Over 12+ hours of focused sitting, scanning chains, and thinking will ultimately bring you the desired results. If you can’t endure these hardships, don’t enter this line of work. Remember, we are the best trading geniuses, and we will definitely succeed. We will all achieve our big results. Let’s encourage each other.
In trading coins, there’s a particularly practical but seemingly silly method; in fact, this trick is quite powerful and can help you earn steadily.
To trade well in crypto, there are three things you should never do.
When trading coins, never rush to buy when prices are rising; learn to think in reverse; when others are fearful, be brave and look for buying opportunities; conversely, when everyone is excited, be cautious and consider whether it’s time to withdraw.
Never bet all your money on one coin; this is too risky. Once something goes wrong, it could all be over. Diversify your investments; if one side doesn't shine, let the other side shine; this is a solid way to make money.
When trading crypto, never operate with a full position; you must keep some spare funds. There are plenty of market opportunities; with a full position, if you encounter a good opportunity or need to adjust your strategy, you won't be able to act, which is a huge loss! Keep some money aside for flexibility, and the opportunity cost will be low.
In crypto trading, stability is key; don’t think about making big money all at once, take it slow, learn this simple method, and you will survive in the market for a long time and make money.
Next, let’s delve into the wisdom sayings of short-term trading.
Saying one, high-level consolidation, or nurturing new highs; low-level wandering, or indicating new lows. Quietly observe the changes, wait for the direction to become clear, and then act, which is the way of being steady.
Saying two, remain still during sideways movements, keep a calm mind. Most people fail because they cannot endure solitude; only by maintaining this tranquility can extraordinary achievements be made.
Saying three, K-line fluctuations signal buying and selling opportunities. If the daily line closes down, it may be a good buying opportunity; if the daily line closes up, consider reducing your holdings, which is the way to follow the market rhythm.
Saying four, slow declines, slow rebounds; sharp declines, anticipated rebounds. Market fluctuations have their own rules; understanding this can help you seize opportunities.
Saying five, pyramid-style building of positions, the essence of value investing. Layer by layer increase, steadily build positions, using time to exchange for space, quietly wait for the flowers to bloom.
Saying six, after rises and falls, there must be sideways movements. At this time, there is no need to fully exit due to high positions, nor to heavily invest due to low positions. Because after sideways movements, a shift will come. If it turns down from a high position, then you should stop loss in time to preserve strength for another battle in the future.
On this investment road full of unknowns and challenges, may we all become the calmest observers and the bravest travelers, using wisdom as a boat and patience as a sail, sailing towards the shore of wealth.
A must-read for crypto beginners: hardcore strategies for position management and trading mindset.
As a newcomer to the crypto world, you need to learn two hard skills: position management and trading mindset. If you master these two skills, you can stand firm in the crypto world, and making money will no longer be a dream!
First, let's talk about position management, which is a trick to protect your wallet. You need to learn to set a safety line for yourself; once you make some money, quickly place a 'protective cover'—a stop-loss order near the opening price, so even if the market turns against you, your principal can be preserved. Especially when trading those small altcoins, when the price rises, you need to be smart, enlarge the take-profit point, and follow the price movement, while not forgetting to place that 'protective cover'.
Never get carried away just because you made a bit of money; know when to take profit. If you accidentally lose, don't get impulsive and invest out of spite, that will only lead to greater losses. Remember, follow the trend, don't always think about catching bottoms; the true bottom is determined by the market, not your guesses.
You need to have a fixed trading system; don’t change your mind every day, or you will just get confused. Wait patiently; don’t always think about chasing highs or selling lows; corrections are good opportunities. Also, manage your position and leverage well; don't forget to stop when you make a profit.
Let's talk about the trading mindset, which is key to whether you can last in the crypto space. When encountering floating profits turning into floating losses, you need to remain calm and not let emotions cloud your judgment. Remember, trading is about mindset; you must learn to compete with your own psychology and not let temporary gains and losses control your emotions.
To do well in the crypto space, you must keep learning and enriching yourself. Summarize daily, learn from practical experiences, and improve your trading skills. Only by doing so can you stand firm in this unpredictable market and earn abundantly.
In summary, position management and trading mindset are the two major secrets of crypto trading.
For beginners, if you want to make money in the crypto world, these two tricks must be practiced well.
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