From losing 800,000, then relying on 2,000 USDT to slowly climb back! Now trading cryptocurrencies supports my family, with over 34 million in my account!
That year in the bear market, I lost a full 800,000. I held on during the day, but completely collapsed at night. My friend list was cleared, my contact list went silent, no one understood, just me spinning in place.
During that time, I really wanted to give up, feeling that the crypto world was too far away from me.
Until one night I came across a saying: 'Losses are just the beginning; chaos is the endpoint.'
At that moment, I felt like I was awakened.
I took the last 2000 USDT I had as my final chip, not to gamble, but to completely start over.
I started to review each trade one by one, summarizing them line by line, and then I realized: losing money is not due to bad luck, but because I wasn't 'trading' at all.
Not cutting losses, heavily betting, chasing highs and lows, frequently switching coins, operating based on emotions!
To put it bluntly, I am not making strategies, but guessing sizes.
This time, I am only doing two things: maintaining pace, strict execution.
These 6 ironclad rules of practical combat can help you lose less than a house in a bear market if you understand just one; if you can achieve three, you can shed 95% of the retail traders.
The first rule: the longer the sideways movement, the more explosive the breakout, but keep a close eye on the 'breaking point'.
Don't think that sideways movement is stagnant; that's where the bulls and bears are wrestling. Cryptocurrencies that have been sideways for over 30 days, once they break out with volume above the upper bound, often have more than 30% room to run; but if they break below the lower bound without volume, run quickly, that’s the main force secretly dumping.
The second rule: a sharp rise with a long upper shadow is not an opportunity but a trap.
A big bullish candle suddenly shoots up, but the tail is dragging long; this is not about taking off, it's the main force dumping goods from a height. If this 'shooting star' appears more than three times, regardless of what happens next, it is a trap to lure in buyers; entering is just picking up the leftovers.
The third rule: 'Red three soldiers' during a decline is mostly a flash in the pan.
Three consecutive small bullish candles look like a rebound? Don't be foolish; most of the time in a bear market, this is the main force doing a 'false rebound', tricking you into buying the chips. The real bottom should be 'green bars shrinking + volume shrinking doji', that is the signal of a thorough drop.
The fourth rule: if trading volume suddenly expands more than tenfold, be alert regardless of whether it's rising or falling.
Usually, trading several tens of millions every day, suddenly one day it spikes to billions; this is not the arrival of an opportunity, but the main force is 'washing the trades'. Either they want to raise the price to sell, or they are creating panic to accumulate. At this time, it's better to watch more and act less, wait until it settles down to say anything.
The fifth rule: trading cryptocurrencies is not about guessing rises and falls but calculating 'profit-loss ratios'.
Don't always think about buying at the lowest and selling at the highest; that's something only deities can do. Before placing an order, calculate clearly: if I'm wrong, what's the maximum I could lose; if I'm right, how much can I earn? If this ratio is below 3:1 for a trade, it's better not to do it; over time, you'll find that minimizing losses is equivalent to making profits.
The sixth rule: 'waiting' is the highest level in the crypto world.
Wait until the trend is clear before taking action, wait until the signal is confirmed before entering the market, wait until others are in panic before being greedy. 90% of losses stem from 'inability to resist'; it's not that there are few opportunities, but that you are too impatient. Those who can control their hands have long made a fortune.
The crypto world has never lacked stories of getting rich quickly, but those who survive are the ones who understand the rhythm. It is not that you are unlucky; it's that you are always doing the wrong thing at the wrong time.
I have been in this circle for ten years, witnessing too many go to zero overnight, and also seeing too many slowly becoming rich through dumb methods.
A brother who lost eight figures raised a fatal question: how difficult is it to live by trading?
How difficult is it?
Using ten years to compress all the psychological torment of a lifetime into just a few rounds;
Just enduring is not enough; you also need to reflect on yourself every day, change yourself. Whatever you change, you can see it in your principal.
Little change leads to fast losses; more change leads to slow losses; complete change leads to profitability.
What needs to change is human nature, human instinct, which is written in the genetic code, is the underlying program; Homo sapiens became the dominant species on Earth relying on nature and instinct; however, the same nature and instinct applied to trading in the market leads to liquidation.
Human nature tends not to think, relying on instinct, being greedy for small advantages and forgetting principles, being strict with others but lenient with oneself, finding all kinds of excuses, taking shortcuts and breaking rules.
Holding onto floating losses, harvesting floating profits, lacking patience while placing orders and wanting results, gambling with heavy positions, making up your mind before placing an order and forgetting everything afterward, accumulating emotional pressure leading to impulsive actions, and frequently trading against the market;
There are many issues, each requiring finding the root cause and correcting them one by one.
Some things are easy to handle; losing once or twice means you won't do it again; some are tough, losing dozens or hundreds of times is hard to change. There are even many mistakes that you are not aware of.
What the market needs are traits that go against human nature, deeply thinking about the essence of the market, establishing standardized processes, consistently handling the ever-changing market, even when facing possible losses, to analyze rationally before acting, and to see through the ever-changing market to its essence.
On one hand, it is about changing oneself,
On the other hand, it's about discovering various characteristics of trends and their roles in the market; the ability to see through the essence when faced with an ever-changing market.
These are all solid skills; without years of deliberate thought and practice, it is impossible to achieve.
Of course, for the same thing, everyone's perception and feelings are different, and their assessment of its difficulty also varies.
Essentially, it is a somewhat mystical profession with no need for others to supervise, with no upper or lower limits on income.
From 100 Bitcoins to not squeezing into the morning rush: those who have endured the night in the crypto world understand that 'believing' is worth more than the value of the code; consensus is the foundation.
What you think of as the crypto world is planting a seed and waiting ten years to open the door—only to find a forest ahead.
But the reality of the crypto world is that you just planted that seed, and after a night of wind and rain, only half of it is left in the soil the next day.
That whole year, you woke up every night, not from needing to pee, but from your heart racing.
You pull out your phone, the screen light stabbing your face:
One thousand, three thousand, five thousand... back and forth, like a night that never dawns.
Later, you finally couldn't stand it anymore, telling yourself: 'Back to nine thousand, even if I lose, I'll accept it, let it end here.'
As a result, you just cut your losses, and a few days later, the coin you held for over a year suddenly skyrockets.
Rushing towards numbers you never dared to imagine.
And you, standing downstairs, looking at the shirts of financial freedom drying on someone else's balcony.
They say DOGE is air, it's a bubble, it's code with infinite issuance and no value.
But have you ever thought that the crypto world is never an economics textbook, but rather a battlefield of hearts?
Why is Bitcoin worth 200,000 each?
Not because it has gold backing, but because we all 'believe' it is valuable.
Consensus is the hardest currency in this circle.
I once owned over 100 Bitcoins.
It was not after a surge, but when many people still did not know the term 'blockchain'.
I went from part-time trading to full-time trading, not because I am some genius,
It's because I have endured too many nights of 'waking up needing to pee but still wanting to check the market'.
The greatest freedom after having money is not to squander it, but to finally be able to 'not be in a hurry'.
You no longer have to squeeze into the crowded subway during rush hour, no longer have to look at your boss's face, no longer have to struggle over whether to add pearls to a cup of milk tea.
You begin to have time to think, read, and wait.
You become competent, not because you are smart, but because you can afford to lose.
Why is it now easier to pump the market?
Because the retail traders have been shaken off the bus, and the chips are already concentrated in the hands of a few.
Through simple wash trading, you can stir up a frenzy.
If you have nothing, I would actually advise you to pay attention to the crypto world.
It's not about rushing in blindly; it's about learning to look, learning to wait, and learning to stay calm when others are in fear.
The 'life and death tribulation' of crypto contracts: isolated position techniques crush all-in, leverage control techniques exposed!
In the high-tech battlefield of crypto contracts, there is a fundamental yet easily overlooked technical principle that I only fully comprehended through countless cycles of liquidation and recovery: the all-in mode is the 'black hole' of technical trading, which will devour all risk control strategies; the isolated position model is the secret weapon for technical traders to advance steadily and cautiously!
Why so certain? From the underlying logic of technical risk control, the isolated position model gives traders the ability to finely adjust margin and liquidation price dynamically, like equipping the trading system with an intelligent risk control engine. Even with 10x leverage, the calculation model for the liquidation price in the isolated position model is more transparent and quantifiable, allowing traders to adjust their positions in batches and strategically based on key levels derived from technical analysis, avoiding a complete collapse due to a single price point misjudgment, which is crucial in technical trading.
Now, I will analyze from technical aspects based on my personal experiences:
Assuming a certain cryptocurrency is currently priced at 100 USDT, we use technical analysis tools, combined with historical volatility and market sentiment, to quantitatively assess the risk-return ratio at different leverage multiples:
10x leverage: from a technical risk control perspective, the liquidation price fluctuates within a range of 10 USDT above and below 100 USDT. This means that within this price fluctuation range, any sudden technical pullback or abnormal movement of the main funds can trigger liquidation. At this time, if there is no flexible adjustment mechanism of the isolated position model, once the price touches the liquidation price, funds will instantly drop to zero.
20x leverage: after significantly increasing the leverage, the technical risks grow exponentially. The liquidation price narrows down to a range of 5 USDT above and below, which poses a high demand for traders' technical analysis abilities. Any slight deviation in technical indicators or interference from market noise can lead to liquidation. In practice, this high leverage is often accompanied by short-term high-frequency trading strategies, but without the protection of the isolated position model, frequent trading and extremely narrow liquidation ranges will expose funds to extremely high risks.
2x leverage: in comparison, the liquidation price under 2x leverage is in a wide range of 50 USDT above and below. Analyzing from a technical trading perspective, this provides ample room for technical adjustments for traders. Even if the market experiences significant short-term fluctuations, traders have enough time to flexibly adjust their positions and margins based on changes in technical indicators, avoiding forced liquidation.
In fact, spot trading is essentially a 1x leverage contract trading; when the price drops to zero, losing 100 USDT is technically similar to a 1x leverage liquidation in contract trading.
The choice of leverage is not fixed but needs to be flexibly adjusted using technical analysis methods, in conjunction with the dynamic changes in market conditions. In day trading, due to the shorter time cycle, market fluctuations are relatively concentrated; we can refer to the price difference between the highest and lowest in recent days, using volatility indicators and other technical tools to reasonably calculate the leverage.
If market fluctuations can reach thousands of points, by setting a reasonable leverage through precise technical analysis, the liquidation price can maintain a safe distance from the current price, providing enough technical buffer space for trading.
For medium to long-term trading, due to the longer time span, the uncertainty factors in the market increase, making price fluctuations more complex and difficult to predict. From the perspective of technical risk control, at this time, one should reduce leverage to leave more room for technical adjustments and financial buffer space to cope with possible technical reversals and sudden market events.
Different cryptocurrencies have vastly different technical characteristics and market performance, and the choice of leverage should vary by person and by coin. Taking popular coins as an example, their 24-hour volatility can reach up to 30%. If you still stubbornly use 20x high leverage at this time, from the perspective of technical risk assessment, liquidation is almost the inevitable result.
Many beginners often overlook this, blindly pursuing high returns brought by high leverage, while ignoring the huge technical risks that lurk behind, ultimately losing everything; this is also a painful lesson I once experienced.
Trading cryptocurrencies means repeating simple tasks persistently over a long period, mastering a method until it becomes second nature; trading can be like any other industry, where practice makes perfect, allowing you to make every decision without hesitation.
