I am 32 years old this year, started trading coins at 22, and by 2023-2024, my funds reached eight figures. My current lifestyle includes staying in high-end hotels costing around 2,000 yuan, and my luggage and hats might have symbols from the crypto world. This is much more comfortable than what the older generation experiences in traditional industries or the post-80s in e-commerce.
I have almost never experienced troublesome businesses where people argue; there are fewer worries.
The most important aspect of trading coins is having a good mindset; technical skills are secondary.
1. In most cases, Bitcoin is the leader of price fluctuations in the crypto world, while strong coins like Ethereum can sometimes break away from Bitcoin's influence to form unilateral trends; altcoins generally cannot escape its impact.
2. Bitcoin and USDT move in opposite directions; if USDT rises, be cautious of Bitcoin dropping; when Bitcoin rises, it is a suitable time to buy USDT.
3. Between midnight and 1 AM, there is often a spike phenomenon, so domestic traders can set a low buy price for their favorite coin and a high sell price before sleeping, which might get executed while they are lying down;
4. Every day between 6-8 AM is a good time to judge whether to buy or sell, and also to assess the day’s price fluctuations. If the price keeps dropping between midnight and 6 AM, and continues to drop during that time, it is a good time to buy or add positions, and the day will likely rise. Conversely, if the price keeps rising during that period, it is a selling opportunity, and the day is likely to fall;
5. 5 PM is an important attention point according to rumors in the crypto world; due to time zone differences, American traders are waking up to work, which might cause fluctuations in coin prices. Indeed, some significant rises or falls have occurred during this time, so pay special attention.
6. There is a saying in the crypto world about 'Black Friday', and there have been several occasions when the market dropped on a Friday, but there are also instances of significant rises or sideways movements, so it's not particularly accurate; just pay attention to the news.
7. If a coin with a certain trading volume drops, don't worry; patiently hold, and you will definitely break even, usually within 3-4 days, at most a month. If you have extra USDT, buy in batches to lower the price; this will speed up the break-even process. If you have no extra money, just wait; it won’t let you down, unless you really bought I coin;
8. Holding the same coin for long-term spot trading yields greater returns than frequent trading; it depends on whether you have the patience to hold. I bought Dogecoin at 0.089 and it has increased more than 20 times since then.
What preparations do skilled traders make to ensure profits?
Before trading:
1. Is it in line with the current trend?
2. Is there technical support from candlestick patterns?
3. Have you analyzed the Bollinger Bands oscillation indicators?
4. Is the planned position size too large?
5. Have you set the stop-loss price?
6. Have you planned the price levels for adding positions (in the case of floating profits)?
7. Have you set the take profit price?
8. Place the order.
After trading:
1. When it reaches the stop-loss level, strictly execute the stop-loss price, regardless of whether this position turns out to be correct or incorrect later;
2. After closing a losing position, never reverse; adjust your mindset before analyzing the market again.
3. After failing to add positions with floating profits, strictly adhere to the principle of 'do not exit until you have made 10,000 yuan; when making the last cent, you must exit' as a remedy.
4. After closing a position with huge profits, avoid entering the market immediately to make trades; analyze again after calming down from the joy.
From starting to support my family, here are the key experiences I've summarized:
Choose cryptocurrencies: Clearly define which cryptocurrencies you want to trade, such as Bitcoin (BTC), Ethereum (ETH), etc.
Position management: Decide your holding quantity based on your capital management strategy and risk tolerance.
Trading direction: Determine whether to go long (buy) or short (sell), referring to market trends and technical analysis.
Entry timing: Choose a suitable entry point based on technical indicators, support levels, and resistance levels for decision-making.
Stop-loss strategy: Set a loss exit point to control risk. Usually set the stop-loss level below the entry price.
Take profit setting: Determine a profit exit point to ensure gains. Typically, set the take profit level at the target price.
Emergency response: Develop a strategy for unexpected events, such as handling measures during major news or market fluctuations.
Post-trade summary: After trading, summarize, record logs, reflect on experiences, and adjust trading strategies. After planning is completed, the important thing is execution, maintain patience, and strictly follow trading rules.
Quietly wait for the market to develop in the direction you expect. The final result may only be two types:
Losses: Summarize lessons learned, enhance resilience; losses are a normal cost of trading.
Profit: Lock in profits, consider adding positions or adjusting stop-losses to pursue more gains.
Thus, a trading process is completely concluded.
If you plan to trade coins long-term but do not understand the technology and have not found effective trading tips, you might as well try this super simple 'foolproof' strategy. Even if you are a complete novice, you can easily start, with a success rate of up to 80%. Whether buying or selling coins, just follow the method.
First, you should choose coins that are currently rising or at least stable; those that are falling or showing a clear downward trend should be passed over directly.
Then, divide your money into three parts. When the coin price breaks above the 5-day moving average, carefully buy one-third. Wait until it breaks above the 15-day moving average, then buy another third.
If it can also break through the 30-day moving average, buy the remaining one-third as well. This step must be strictly executed; do not be lazy. Next, if the price does not have the strength to continue to break through the 15-day moving average after crossing the 5-day moving average, but does not drop below the 5-day moving average, hold steady and do not move; if it breaks, sell quickly.
Similarly, if the coin price breaks above the 15-day moving average and then lacks the strength to continue rising, as long as it does not drop below the 15-day moving average, hold onto it. If it breaks, sell one-third first; if the portion corresponding to the 5-day moving average still holds, continue to keep it.
If the coin price breaks above the 30-day moving average and then drops, follow the rules mentioned above—sell if you need to. Similarly, this applies when selling coins.
When the price is high, if it breaks below the 5-day moving average, sell one-third first.
If it no longer drops, continue to hold the remaining 60%.
However, if the 5-day, 15-day, and 30-day moving averages all get broken, then you need to liquidate all positions; do not hesitate. This foolproof strategy is simple, but the key is to stick to the rules. Once you buy, the rules for buying and selling must be set; only by strictly following the rules can you make money!
Frequently drifting in the crypto world, I am often asked: how can one make money?
My answer is eight words: do not make small profits, do not incur large losses. The wording is simple, but practicing it requires enough resilience.
Let me give an example:
You enter the market with 20,000, and after opening your position, the price of the coin rises to 21,000. Overjoyed, you decisively take profits, securing a 5% gain, feeling very pleased.
Unexpectedly, the market surged to 25,000… you made 5%, but missed out on a massive wave of 50%!
After reflecting on your pain, you tell yourself: this time, I must make a big profit! Therefore, when the coin price falls back to 20,000, you decisively enter the market. The price climbs to 21,000 again, and you suppress the urge to take profits, quietly reminding yourself to learn from the lesson and hold on! However, the situation changes suddenly, and the price not only drops back to the starting point but also plunges to 19,500.
Unfortunately, you can only stop-loss and exit.
How many retail investors struggle throughout their lives, making small profits while missing out on major market trends or getting stuck in losses without realizing it?
So, is there a holy grail that can eat both large and small? Frankly speaking: no.
This is a single-choice question. For me, I choose not to make small profits, but to remain patient and dormant.
Trading is essentially a practice that spans across time. Whether short-term trading or long-term positioning, its essence lies in capturing a wave of 200% market movement and striving to retain most of the fruits. When the next opportunity arises, capturing another 200% means you have quadrupled your gains!
As long as you can maintain profits, the compound interest snowball will be unstoppable. Conversely, no matter how glorious the past may have been, if all profits are eventually given back, what significance does it hold? In the trading field, there are no missed opportunities, only losses and profits as endpoints.
Perhaps some people catch a glimpse of the path and feel that wealth is imminent. However, just reaching the path only means an increased probability of profit.
Practicing this rule of not making small profits truly tests one's temperament, determination, and courage; it is indeed stringent:
Can you endure the long wait just for that perfect point for the golden strike?
The anxiety of missing out, the impulse to cash in when floating profits appear, and the fear of losses when holding onto positions…
All must be repeatedly tempered in the furnace of time. If you are determined to enter this path, be extremely cautious and dare to use profits to practice and experiment.
Indeed, being able to find the way is far superior to blindly crashing into the crowd. After all, too many people spend their whole lives without ever seeing where the road is.
To trade short-term, focus on the 5-day moving average:
1. The 5-day moving average strategy is a short-cycle trading strategy focusing on one moving average to capture buy and sell points, suitable for cycles of 4 hours and daily, applicable for ultra-short-term trading.
2. Short-term trading emphasizes strong operations; once the strength is gone, decisively exit the market, prioritizing operations on coins above the 5-day moving average.
3.5-day moving average has sensitivity, speed, and intuitiveness, making it the first choice for short-term trend indicators, capable of judging the strong performance of cryptocurrencies.
4. You can closely follow the 5-day moving average in your operations, trade boldly, and once the price fluctuates around the 5-day line or if the direction of the 5-day line changes, you can immediately make a buying or selling decision.
There are several short-term trading methods for trading coins:
1. Technical analysis: Use chart analysis, trend analysis, and other technical indicators to determine price trends, including support levels, resistance levels, moving averages, etc., to find opportunities for buying and selling.
2. News-driven: Pay attention to news and events in the market, analyze and predict their impact on the cryptocurrency market to buy or sell quickly.
3. Day trading+: Profiting by capturing short-term price fluctuations, typically completed within a day.
4. Breakout trading: By observing changes in trading volume when prices break through resistance or support levels, determine the market direction and buy or sell at the right time.
5. Swing trading+: Utilize the characteristic of significant price fluctuations to conduct medium to short-term buying and selling operations.
Let me say it again, I have never seen anyone become a big shot just by trading coins, not a single person—trading coins won't make you a big shot, leverage won't make you a big shot either; luck does not exist in the crypto world. Your understanding must be in place first for it to become your best wealth-building tool; otherwise, you will end up becoming its slave.
After over 10 years of trading coins and experiencing four bull and bear markets, I believe that truly preserving wealth and being a steadfast believer in Bitcoin, accumulating Bitcoin diligently, will naturally bring wealth closer to you!
Trading coins is about repeating simple tasks and consistently using one method for a long time until you master it. Trading coins can be like any other industry—practice makes perfect, allowing you to make decisions without thinking.
Remember: it's not 'smart money' that makes profits in the crypto world, but 'hard work'. If you can fully understand these iron rules, control your hands, endure, and execute steadily, your trading journey will become wider, transforming from the harvested 'leek' into the meat-eating 'hunter'.
May you stay clear-headed in this crazy world; remember to fear when others are greedy; keep rational when others are fearful.
Finally, a reminder: the crypto world is risky, and operations require caution; however, as long as you master these 'foolish methods', you can stand firm in the market.
