A few years ago, I made about 4 million with a capital of 50,000. I had never worked after graduating from college.

I have been playing in Kunming and Dali, not buying a house or a car, and spending 1500 a month. Why enter the market?

If you want to change your destiny, you must try the cryptocurrency market. If you can't make money in this circle, ordinary people will have no opportunity in their lifetime.

How I made money: starting capital of 50,000, doing projects in college, affiliate marketing, task completion, delivery, app participation, and various small tasks to accumulate 50,000.

Entering the cryptocurrency market, I think BTC is too expensive, so I have been playing with ETH, which has leverage, and then there are altcoins and spot trading.

Choose coins and manage positions well.

Management. Just follow a simple mindset consistently: when the market is bad, incur a small loss; when the market comes, make a big profit.

In 2024, my capital increased 50 times. If it weren't for drawing funds twice to buy a house, it should have reached 85 times.

I can say that I have used 80% of the market's technical methods and will share the most practical ones from real combat—the Bollinger Bands.

The 22 golden rules of buying and selling.

And the following five major skills, which have proven effective! A profit of 30% in a month.

There is a saying in business: 'Do not act without familiarity.' The same applies to the cryptocurrency market. Before engaging in real trading, one must master some basic operational knowledge and skills. The following knowledge is crucial for friends who want to showcase their skills in the cryptocurrency world.

Skill One

Trading requires honesty and integrity. You may wonder how trading relates to this. Generally, traders like to flaunt their profitable trades and never disclose their losses. Because they do not understand that losses are also part of profits. Every aspect of trading requires you to approach it with an honest heart.

Skill Two

Trading must adhere to rules. The ancients said, 'Without rules, nothing can be accomplished.' Of course, trading also has its rules. If you violate these rules, you must pay the price of your freedom. Trading cannot be emotional or impulsive; you must understand when you can trade and when you cannot.

Skill Three

Trading requires patience. Open your trading software, first observe the market trend, check the day's data releases and current trends—short-term, medium-term, and long-term. Then, start making a trading plan, including entry points, stop-loss points, and profit points.

Skill Four

Trading requires thought. Develop the habit of thinking while trading. Some good habits in trading must be cultivated through thousands of trades. Some habits from simulated trading, once brought into real trading, are irrelevant as long as they are beneficial to trading; if they hinder your trading, adjustments must be made.

Skill Five

Don't expect to buy at a low price or sell at a high price. Some people always want to buy at a low price and sell at a high price. This urgent desire to earn money is very dangerous and often backfires; the greedy gain nothing.

The 22 golden rules for buying and selling using Bollinger Bands.

1. Bullish arrangement. All three bands are upward. Continuing for a longer period. Prices gradually rise between the middle and upper bands.

2. Bearish arrangement. All three bands are downward, continuing for a long time. Prices gradually decline between the lower band and the middle band. Sometimes they may break through the lower band.

3. Box formation. The three bands are approximately parallel, with prices oscillating between the upper and lower bands, called a large box. Prices oscillate between the lower band and the middle band, called a small box.

4. Divergent Arrangement. The upper Bollinger Band diverges upwards while the lower one diverges downwards, gradually spreading apart. After a certain period, the upper band begins to slope downwards while the lower band slopes upwards, slowly converging. After reaching a certain point, it begins to diverge upwards and downwards.

The divergent arrangement of Bollinger Bands is relatively complex and requires careful analysis. Mastering this analysis method can help us quickly gain profits and avoid getting trapped.

Bollinger Bands have downward channels (bearish arrangements) and upward channels (bullish arrangements). These arrangements are easy to identify since the three bands are either upward or downward. But what about the divergent arrangement? It has four stages.

First Stage: Constriction Phase.

In this stage, the upper and lower Bollinger Bands converge towards the center, with the opening getting smaller. This means that the sideways movement of the price is nearly over, and the volatility is decreasing. The price range is narrowing, and the price will face a change. It may change upwards or downwards. If it changes upwards, it will be the main upward wave of the coin. If it changes downwards, it will be the main downward wave of the individual stock. We consider this stage to be the best time to buy coins because it skips the lengthy sideways phase and directly enters the rising initiation phase. However, the key is not to buy coins that are about to change downwards. So how to identify?

I want to tell everyone that there are two key points:

First, the middle band must not go down; it can only go up or remain flat. Even a slight downward move is unacceptable.

Secondly, the price must break through the middle band from below, with a bullish line breaking through; a false bullish line or a bearish line will not suffice; it must be a bullish line.

Identify whether the middle band is going down. If you can't see it in the chart, record the middle band's number daily. The middle band is the twenty-day line in the candlestick chart.

Every day, the digital feedback is available. Mastering these two points can help avoid buying coins that are about to change downwards.

Second Stage: Rising Phase.

The hallmark of this stage is that the upper and lower bands separate into a 'V' shape, moving outward. The price rises along the upper band. The angle of the upper band indicates the strength of the rise. The steeper the angle, the greater the upward force. The shallower the angle, the slower the rise. The operational strategy at this moment is to hold stocks. If you haven't bought in yet, you can only chase the buy when it just forms the 'V' shape. If the 'V' shape has already turned for several days, the risk of buying increases. As long as the stock price does not leave the upper band, continue to hold the coin.

A steep angle may only rise for a few days before ending. A shallow angle may rise for a long time, and there will be fluctuations in between, which is called a washout; be careful not to be washed out and earn less. Those who grasp this stage well can achieve twice the result with half the effort.

Third Stage: Divergence Phase

At this time, the indicator is that the price begins to leave the upper band, forming a sideways pattern. The distance between the upper and lower bands is increasing, which looks like a large encirclement on the candlestick chart. The distance between the upper and lower bands is getting further apart. The price forms a horizontal line, gradually approaching the middle line from the upper band, which is moving upwards, gradually approaching the price. The price oscillates more widely, jumping up and down, neither rising significantly nor falling significantly, with daily fluctuations. We call this a sideways market. It can last from a few days to several months.

The operational strategy at this stage is to sell immediately if the price does not return to the upper track three days after leaving it. Selling coins is the main strategy. If you get stuck during this time, self-rescue methods should be used to get out. You can also stop-loss sell. The loss at this moment is not significant because the individual stock has not entered a downward channel; it is just in a sideways market. Of course, stop-loss should be executed when the market is oscillating upwards. This opportunity occurs daily at this stage.

Fourth Stage: Constriction Phase

Return to the first stage. The basic operational state of coins is generally like this.

1. Lower Band Buying Method. When the price falls below the lower band and then consolidates for two to three days before moving away from the lower band and heading sideways, this can be seen as a stabilization after a drop. At this point, buying is advisable as the opportunity clearly outweighs the risk. The risk of the individual stock has been sufficiently released. However, buying at this position does not immediately mean profit. This is a good time for medium to long-term purchases. The individual coin may still consolidate sideways for a while or may immediately reverse back above the middle band. At this moment, the Bollinger Band’s three bands are still heading downwards, characterized by the price moving away from the lower band and consolidating sideways. Pay attention; it must move away from the lower band and then consolidate sideways. If it is still on the lower band, it may still fall. The lower band line is below the price line. Pay attention to this.

Many friends are unwilling to buy coins here, believing they must wait a long time. I believe that engaging in cryptocurrency is real investment, and one cannot view it through the lens of speculation. For investment, we can compare it to bank interest. Investing once can yield returns several times greater than bank interest, which is already quite good. Buying coins here can at least yield a profit of ten percent, which is the minimum. So why not wait? Just keep a calm mindset. If you stand on one mountain looking at another mountain, fearing you might get stuck again.

2. Lower Band Buying Law Two:

Another situation is when the Bollinger Bands are running in a box formation, and the three bands are approximately parallel moving forward. At this time, if the price drops to the lower band, it will lightly touch the lower band and bounce back up. At this point, you can buy at the lower band. When the price runs to the middle band, you can sell. This is a short-term operation. The key is that the three bands must be flat and not sloping down. If they are sloping down, it is the first situation, and such operations should not be conducted. Pay attention to the analysis. Of course, you can also wait until the stock price reaches the upper band to sell, but it will take longer. Especially for some coins that may consolidate sideways for a long time.

3. Constriction Method: This method has been explained multiple times. However, many friends do not understand it. Many see something that is not constriction and mistakenly buy it, leading to being stuck. The constriction method skips the time the coin is consolidating sideways and buys before its main upward wave arrives. If one grasps this point well, the returns come quickly, and one can achieve good profits. The key point of this rule is that the individual stock price must break through the middle band, which must be slightly upward or flat; it absolutely cannot be downward. Even a slight downward slope is unacceptable.

The upper and lower bands converge towards the middle, and friends must understand why the upper and lower bands converge. The width of the Bollinger Bands represents the amplitude of price fluctuations. When the upper and lower bands converge, it means that the amplitude of price fluctuations is decreasing, indicating a potential change in market direction. Remember, a decrease in price fluctuation amplitude indicates a change is imminent, including for the overall market. Since it is a change, it may move upwards or downwards. Therefore, the key here is the middle band: if the middle band is moving downwards, after convergence, it may change downwards, indicating a significant drop. If the middle band is moving upwards, the price may go up, indicating a significant rise. If you judge incorrectly here, you may end up trapped. Huge profits or huge losses hinge on this.

I have repeatedly emphasized this, but I may not have made it clear; some friends still buy when the middle line is going down. This must be analyzed clearly. Two points: one is that the middle line is going up. The second is that the price breaks through the middle line from below. A red line, not a bearish line.

The key to judging the constriction rule also has a characteristic: after the upper and lower bands converge, they must spread apart again, developing into a 'V' shape, with the upper band going up and the lower band going down, increasing the price's volatility. It must spread into a 'V' shape moving outward; this forms the main upward path. If the upper band does not spread upwards into a 'V' shape but instead runs horizontally, it turns into a box formation, meaning it is not a major upward wave, and the price will likely return after hitting the upper band.

If this trend forms, we sell when the stock price breaks through the upper band. We buy near the middle band and sell at the upper band. We will definitely not get stuck; we just missed the main upward wave. Therefore, the upper and lower bands must separate into a 'V' shape. Such opportunities are the best.

1. The significance of moving averages. Moving averages are the average cost line of the cryptocurrency price over a certain period. For example, to calculate the five-day moving average, add up the closing prices of the last five days and divide by five to get the five-day cost price, which is marked on the candlestick chart. The next day, add the current day's closing price, subtract the closing price from six days ago, and divide by five to get the five-day cost price for the second day. This continues to form the trend of the five-day line, whether upwards, downwards, or flat. The rest is similar.

2. Bollinger Bands. The Bollinger Bands use the twenty-day line as the middle band, and the upper and lower bands are calculated using a formula. Then, three bands are drawn on the candlestick chart, called Bollinger Bands. In the trading system.

You can change the main chart indicators.

3. Application of Bollinger Bands. Bollinger Bands can indicate buy and sell points. The parameters of Bollinger Bands can be set by oneself, commonly using twenty. You can also use nineteen, twenty-one, etc.

4. Bollinger Band Buying Points

Low Position Method. This refers to a situation in a bearish arrangement where the price drops below the lower band, and then after consolidating for a few days, it moves away from the lower band. This is called buying at a low position. The conditions are that it must have fallen below the lower band and the price begins to consolidate sideways with small fluctuations, generally after three days of moving away from the lower band.

2. Constriction Method. In a divergent arrangement, when the upper band slopes downwards and the lower band slopes upwards, and they constrict to a very small width, the middle band must be flat or upward. When the price breaks through the middle band from below, this is known as the constriction method. The conditions are that the bands must constrict, the middle band must be upwards or flat, and the price must break through the middle band from below. All three must align.

3. In box formations, when the price touches the lower band or approaches the lower band, that is a buying point.

5. Bollinger Band Selling Points.

1. In a divergent arrangement. When the price rises along the upper band but ceases to rise when the volume increases, manifesting as a doji or upper shadow line, the price begins to leave the upper band and consolidates sideways. Sell under these conditions: the price rises along the upper band, followed by a bullish line with a long upper shadow, or a doji, or a small bearish line. When the price leaves the upper band, it should not remain at the upper band.

2. In box formations, when the price touches the upper band, crosses above it, or fails to reach the upper band and then goes down, these are all selling points.

3. In a bullish arrangement, as long as the three bands are not horizontal, continue to hold, regardless of fluctuations. Sell when the bands become horizontal.

Before each trade, everyone must first ask themselves three questions:

First, think about the reason for each trade you open.

Second, do you often encounter profitable trades turning into losses?

Third, do you often hold positions to the point of liquidation and not know what to do? These three questions are unavoidable for all traders. Cryptocurrency friends have all encountered these issues to varying degrees; everyone has gone through this, especially beginners, who are often quite blind. The essence lies in their failure to establish mature trading thinking and a trading system.

What is a trading system? It is a personal methodology for trading, opening positions, closing positions, increasing or decreasing positions, taking profits, and stopping losses—essentially a set of personal rules. The direct benefit of having such a system is that all your trades can be traced back to a rationale, significantly reducing the chances of mistakes and the amount of losses. Additionally, you do not have to monitor the market in real-time; by strictly following the system, you will have clarity on your targets and losses, allowing you to remain composed regardless of market fluctuations.

So how to build your own trading system? The most important thing is to have a good mindset. The cryptocurrency market is a 24-hour trading market where trends can change dramatically, and volatility is immense. It requires strong psychological qualities when trading. A person's trading habits, psychological endurance, strategy execution ability, and ability to overcome greed and fear vary, determining that everyone's suitable trading system is different.

From my long-term summary, an excellent system must contain the following characteristics:

First, the frequency of opening trades must not be too high. Many people in the cryptocurrency market are eager to get rich; if they don't open a trade for a day, they feel they will miss out on a big opportunity. However, trades should depend on the market rather than time. Blindly opening trades without market conditions will only lead to losses. There are many opportunities in the cryptocurrency market, but most are not attainable; no one can capture every fluctuation. 'Waiting' is key. Learn to wait, seize your opportunities, and reduce the frequency of stop-loss orders, and profits will naturally increase significantly.

Second, overcome greed. Greed is the most taboo thing in cryptocurrency trading, especially in contracts. The market fluctuates daily; for every rise, there will inevitably be a fall. I have seen too many people, whose trades could have doubled, end up with losses due to greed preventing them from taking profits or even resulting in liquidation.

Third, strict take-profit and stop-loss. This is the most important operation in contracts, and it is also the reason why my personal return rate reached 11570.96%. Before analyzing the market and opening a trade, always consider the take-profit and stop-loss positions, especially the stop-loss position, and calculate whether the risk-reward ratio is worth it. When you feel confident, set these two positions. Regardless of how the market fluctuates, you will remain composed. The stop-loss position must be strictly adhered to to preserve capital, and the take-profit position should be executed in batches to lock in profits.

Fourth, manage your position control when opening trades. Why is position control important? A simple calculation can clarify this: if you make a 20% profit on one trade and incur a 20% loss on another, with a 50% accuracy rate, after 40 cycles, your assets can be halved, and considering fees, the remaining amount is even less, resulting in loss of all assets. Therefore, it is crucial to manage position control. Fixing the capital is a good choice; withdrawing profits is a good habit because only what is withdrawn is truly yours; what remains in the exchange is merely unrealized gains.

Fifth, practice and review. Once you have learned to control your mindset, position, funds, and candlestick operation techniques, you still need to practice and summarize your reviews, which is the most critical and essential link in building your system. Practice leads to true knowledge, and reviewing can lead to improvement.

Reviewing trades means performing a review of each trade, weekly reviews are also essential. Notes and real trades can greatly assist everyone in summarizing, enriching their reasons for opening trades, and improving take-profit and stop-loss points.

A trading system is not established overnight but is summarized through continuous trading practice. No one inherently understands candlestick patterns or contracts; it is all learned through constant exploration. Who hasn't lost money and paid tuition? The important thing is that tuition shouldn't be paid in vain; learning from failures gives wisdom. By extracting experience from losing trades, one naturally knows what not to do and what to do in similar market conditions next time.

The above is a summary of my over ten years of experience and technology in cryptocurrency trading. It may not apply to everyone; each person needs to combine it with their own practice. As a trader, the most frightening thing is not having technical problems but lacking awareness, falling into these trading traps without realizing it! There is no invincible trading system, only those who can use the trading system invincibly! This is the truth; the trading system must ultimately return to the individual!

I am Xiao Xun.

, after experiencing multiple bull and bear markets, I have rich market experience in various financial fields. Here, we penetrate the fog of information to discover the real market. Seize more opportunities to uncover true value opportunities, and don’t miss out on regrets!

Xiao Xun only engages in real trading; the team still has positions available, so hurry up to join.