I have been trading cryptocurrencies for 10 years, making 1.1 small goals. I want to change my fate and must try the crypto world. If you can't get rich in this circle, ordinary people will have no chance in their lives. Recently, I was fortunate to share tea with a big shot in the crypto world and discuss the trends of the crypto market.
What he said deeply shocked me.
It turns out that he once blew up his account due to making contracts within three days, losing as much as 50 million. This experience was undoubtedly a profound lesson for him.
Looking back at my own journey in the crypto world, it has been full of ups and downs. I initially entered the market with 50,000, and during the bull market, I made tens of millions; then from tens of millions back to over 2,000, now at 1.1 small goals; and now, I am waiting for the next bull market to come, aiming to reach 3 small goals.
My cryptocurrency trading method is not complicated but extremely practical. In just one year, I turned my assets into 8 figures. My secret is to only trade one type of setup, decisively enter when the opportunity arises, and not to trade without a setup.
Over the past five years, I have maintained a win rate of over 90%, thanks to my patience and precise judgment.
In the cryptocurrency world for 10 years, the key to being here now is having your own discipline during big drops and strictly executing it. Today, I share the 'six major classics' of winning in cryptocurrency trading that have been repeatedly summarized and practiced over the years. If you decide to trade cryptocurrency for a living, these six classics are recommended for collection and repeated memorization.
These six points sound simple, but very few can actually achieve them. Why? If you cannot overcome human weaknesses, you will never earn your first five million in your life.
Trading coins based on 'feelings'
Many people around me have asked me how to trade, what strategies to use, and what the core philosophy is. My usual response is to rely on feelings.
At first glance, it seems like I am giving a perfunctory answer, and naturally no one would believe me. If relying on feelings could really make money, then why do most people in the market lose money while only a few make money? Is my feeling really more accurate than others? Actually, no. How to trade is indeed a difficult question to explain in a few words, so I simply used 'feelings' to respond.
However, this 'feeling' is not the same as that 'feeling.' The 'feeling' I refer to is a comprehensive term derived from a series of parallel factors considered through thought. Due to the many factors, I collectively refer to the decision-making results as feelings, rather than the simple emotional feelings we usually understand, like thinking it will rise or fall.
Under this decision-making logic, I will not purely rely on technical analysis or fundamental analysis or trading experience to make trading decisions.
First, fundamental analysis in trading is the most lagging; the market may have reacted long ago before fundamental changes can be detected, or the fundamentals may have changed long ago without any market reaction. Secondly, technical analysis is also lagging, but it is much better than fundamental analysis and can often quickly signal market reversals to assist in entering and exiting trades.
The only thing with a leading effect is experience, which can predict market trends, make preemptive judgments, and take corresponding actions as soon as technical signals are given, either stopping losses or entering trades in a timely manner.
Therefore, the 'feeling' I speak of is not that simple; it is a collection of a series of complex signals. This 'feeling' is only an important part of my trading decision-making process, not the whole. Once the 'feeling' comes, I must also consider a series of other factors, such as cost-effectiveness, fund usage, risk management, etc. Only when all these factors are in place can I finally decide whether to execute a trade. Thus, trading based on 'feelings' is still quite reliable.
Core investment logic: Based on the 'feeling' generation model above, as a subjective trader, I have found an investment and trading model suitable for myself. Please note that I distinguish between investment and trading.
The investment here refers to choosing mainstream coins with larger market capitalization for a longer period and holding them, with lower operation frequency, capturing large swings at the weekly level to achieve high sell-low buy, realizing returns in both fiat and cryptocurrency. Trading refers to small position operations in mainstream coin contracts and small-cap altcoins, with relatively high operation frequency and much shorter cycles, generally capturing 4-hour level swings to achieve considerable returns in cryptocurrency, with annualized returns of around 100% being relatively easy to achieve.
As for altcoins, their price increases are generally substantial, often not less than 2-3 times. Therefore, the investment timing for altcoins should be when the market truly heats up; small funds can be positioned as if buying a lottery ticket. Through this combined strategy, a win-win situation can be achieved.
1. Large position spot investment can genuinely capture the substantial price increase dividends.
2. Small position contracts isolate risk, even in case of accidents, it won't cause systemic risk;
3. Futures contracts are a medium to short-term approach, replacing frequent operations with spot trading, avoiding the risks of chasing highs and cutting losses.
Of course, the maximum premise for the above strategies to be applicable is that we believe the bull market for cryptocurrencies has not ended yet, and there is still significant room for market value increases. Personally,
This strategy shows that I firmly believe in the great opportunities in the cryptocurrency field, which is a coin-based philosophy. More precisely, unless a major bull market comes, I will always be a coin-based investor; when a bull market arrives, I may switch to fiat-based.
Trading psychology—overcoming human weaknesses.
Every cryptocurrency trader must have a strong inner self after being tempered by the market; otherwise, it will be impossible to become a qualified cryptocurrency investor, and making money will be extremely difficult.
Everyone knows that the cryptocurrency market has two significant characteristics: trading 7*24 hours all year round; extremely high volatility. A trading market where these two points coexist can only be found in the cryptocurrency world, which brings great opportunities but also high risks.
Therefore, to make money in the cryptocurrency world, in addition to the decision-making logic and investment trading logic mentioned before, one must maintain a stable mindset and learn to restrain the human instincts of greed and fear. Greed and fear are also the two main characters in trading psychology, leading to the majority of trading behaviors.
As a trader, one must face the psychology of getting rich quickly, which is greed. 'Beginners die chasing prices, experienced traders die bottom-fishing,' this statement illustrates the consequences of greed.
This kind of greed exists in stock markets, cryptocurrency markets, and all financial markets. In any financial market, there are countless stories of getting rich, and it is precisely this psychology of getting rich that drives people to trade. Once they start trading, they want to make money immediately, which is especially common in the cryptocurrency world, with retail investors often thinking they can turn 10,000 into 1 million.
The desire for quick wealth has easily clouded their judgment. They rush forward with money, never considering the risks. In the end, those who want to quickly earn 100 times either end up with nothing after being cut by altcoins or are liquidated in futures contracts with losses of 10X or 20X.
The strong desire for quick riches is a significant reason why most retail investors get 'cut'. Little do they know, the market always follows the 80/20 rule: a minority profit while the majority lose. I estimate that in the cryptocurrency world, it might even be 90/10.
If you think seriously, you will easily understand that very few players in the cryptocurrency world who truly make big money do so in a few days or through a single wave; they are all players who have been at it for a long time before making money. In short, it is necessary to exchange time for space. The appreciation space of crypto assets still exists, whether hoarding coins or trading. As long as there is enough patience, giving up the psychology of getting rich and controlling greedy desires, there will always be a chance to succeed.
Contrary to greed is panic, but they are like twin brothers, inseparable. Whether chasing highs or cutting losses, the root cause lies in the trading psychology at play. Retail investors' minds have a million directions in a minute; they rush in when prices rise and hurriedly sell when prices drop. In reality, prices do not fluctuate much; it’s just that the inner demons amplify that panic. The result is that retail operations become like two sine waves with a phase difference of 180 degrees, eternally out of sync, as if targeted by big players, becoming counter-indicative. Exhausted and constantly cutting losses.
I believe everyone has experienced this, beginners often do this, and even experienced traders may do the same when they are not in the right state. The root cause is a psychological issue, specifically the trading psychology, which shows how important trading psychology is for traders.
It is important to remind that this psychological growth journey is not something that can be mastered just by reading others' articles; it is a true inner cultivation during the trading process, requiring careful experience, repeated practice, and correction to gain rewards.
It can also be definitely described as a war without gunpowder, a game between human nature and the market. Overcoming the weaknesses of human nature is essential to winning the war; hence the saying 'trading is counterintuitive.'
100U rolling to 10000U! The optimal strategy for small funds to make a comeback, aided by a triple strategy.
In the cryptocurrency world, small funds can also have big dreams! Today, I will share a superb strategy that can roll 100U into 10000U, which is very suitable for small funds to quickly achieve asset appreciation. However, it is important to remember that luck also plays a role in cryptocurrency investment, and managing risk is always the key!
First phase: 100U boldly passing three barriers.
In the initial stage, only use 100U each time, targeting hot coin types for speculation, while strictly setting profit-taking and stop-loss points.
The goal is to achieve a three-step jump: 100U → 200U → 400U → 800U.
The maximum number of attempts is three! Because in the cryptocurrency world, luck is indispensable. Even if you can profit nine times in a row, a single liquidation can wipe out all your efforts.
If you successfully pass the three barriers, with the principal rolling from 400U to 1100U smoothly, you can enter the next stage.
The profit-taking and stop-loss methods at this stage:
Take profit: Set a fixed profit target ratio. When the price of a hot coin rises to 20%, decisively take profit, turning 100U of principal into 120U. If the price continues to rise later, there will be no regrets, because the target profit of this trade has been achieved. Gradually accumulate, achieving growth from 100U to 200U, then to 400U, 800U.
Stop loss: To control risk, set a strict stop-loss ratio. Once the price of a hot coin drops by 10%, immediately stop loss and exit, even if the price rebounds later, do not look back. For example, if you invest 100U, when the price drops to 90U, resolutely sell to avoid greater losses. Small funds in the cryptocurrency world are inherently fragile, and a significant loss may lead to an inability to continue trading.
Second phase: three strategies launched together.
When the principal reaches 1100U, adopt the following three strategies in combination to comprehensively enhance investment efficiency and safety:
Ultra-short trades (quick hits).
Trading level: 15 minutes.
Trading targets: Only choose Bitcoin (BTC) and Ethereum (ETH).
Advantage: Potentially high returns.
Risk: Relatively high, suitable for participation with small positions (investing 10%-20% of the principal each time).
Strategy trades (stable returns).
Trading level: 4 hours.
Leverage usage: 10 times leverage, controlling the amount invested at around 15U each time.
Investment strategy: Use the profit portion to dollar-cost average into Bitcoin (BTC) with a fixed weekly investment.
Advantage: Risk is within a controllable range, which helps gradually accumulate principal.
Trend trades (medium to long term)
Trading level: daily or weekly level.
Investment strategy: Patiently wait for appropriate entry points, setting a higher profit-loss ratio (e.g., 1:3).
Advantage: Once the market conditions are captured, returns are substantial, especially suitable for operations under major market fluctuations.
Cautions: Remain calm and patient while waiting for opportunities, and avoid frequent operations.
The profit-taking and stop-loss methods at this stage:
Ultra-short trades:
Take profit: Since ultra-short trades pursue quick profits, when Bitcoin (BTC) or Ethereum (ETH) rises by 10% in a 15-minute level trend, you can take profit. For instance, if you invest 110U (10% of principal), you can close the position after a profit of 11U, securing the profit. You can also combine technical indicators, such as when the 15-minute candlestick chart shows a clear reversal signal, like a top divergence, to take profit early.
Stop loss: To prevent losses from significant price reversals, set a stop-loss ratio of 5%. When the price drops by 5%, quickly stop loss. If you invest 110U, when the price drops to 104.5U, decisively sell to protect remaining funds.
Strategy trades:
Take profit: Since we are using the profit portion to dollar-cost average into Bitcoin (BTC), we can set a long-term profit target. When the overall profit of the dollar-cost averaged Bitcoin (BTC) reaches 50%, partially take profit, for example, selling 50% of the dollar-cost averaged positions to lock in profits. Meanwhile, adjustments to the profit-taking point can be made based on market conditions and technical indicators of the 4-hour level, such as the MACD indicator showing a death cross, etc.
Stop loss: Given the use of 10x leverage, to control risk, set the stop loss at 20% of the investment amount. When losses reach 3U (20% of 15U), immediately close the position to stop loss, avoiding further losses. Additionally, it can be combined with key support levels on the 4-hour candlestick chart; for example, when the price drops below important moving averages, take early stop losses.
Trend trades:
Take profit: Since a higher profit-loss ratio has been set (e.g., 1:3), when the profit reaches the target set by the profit-loss ratio, such as a price increase of 30% (with a stop loss of 10%), conduct a profit-taking operation. Meanwhile, in the daily or weekly level trend, it can be combined with price movements and technical indicators, such as when obvious top signals appear, such as head and shoulders patterns, to take profit early. Additionally, partial profit-taking can also be considered; when profits reach a certain level, sell part of the position to lock in profits, while continuing to hold the remaining position for potentially higher returns.
Stop loss: Strictly execute according to the set stop-loss points. When the price drops to 10% (corresponding to a profit-loss ratio of 1:3), resolutely stop loss. In daily or weekly levels, if the price effectively breaks below a crucial support level, such as an upward trend line, even if the stop-loss ratio has not been reached, you should decisively stop loss to avoid greater losses.
Strategy summary.
The core of this strategy lies in achieving rapid snowball growth through small funds, while employing a triple strategy to effectively diversify risks. Friends, be sure to remember to reasonably control your positions and strictly follow the profit-taking and stop-loss discipline; do not be greedy!
Three things you must never do in cryptocurrency trading:
1. Don’t chase highs; learn to operate counter to the trend.
Many people always think of 'chasing hotspots'; seeing a price rise, they rush in, often ending up trapped. Remember: When others are greedy, you should be fearful; when others are fearful, you should be greedy. A price drop may actually be a good opportunity to pick up bargains, so develop a habit of buying low.
2. Leverage is a double-edged sword, use cautiously!
Leverage can amplify profits but can also lead to instant liquidation. For example: Using 10x leverage to buy 10,000, a 10% drop in price leads to a complete loss. Rather than thinking about 'getting rich overnight', it's better to first practice with your own funds, and once you have experience, use leverage cautiously.
3. Never go all in with full positions.
Putting all funds into one position leaves no way out if the direction is wrong. The market will always present new opportunities, and the cost of full position operations may be much higher than expected—such as missing other potential profit points.
The market will not punish you, but it will certainly teach you.
Some say that the market is the fairest teacher. It will not punish you for making mistakes, but it will repeatedly teach you the same lesson until you truly learn.
There are no 'secrets' in trading, and no 'shortcuts' in the market.
Many people think that the way to make money is hidden in some mysterious book or held by top traders. But in fact, all the answers are laid out plainly: trends, support and resistance, capital management, execution…… The core of trading is simply doing these simple things to the extreme.
Rather than struggling to predict, it's better to focus on the present.
Those who try to guess market fluctuations every day often end up either blowing up or doubting themselves. The key to trading is not prediction but execution. You cannot control whether the next trade will be profitable or not, but you can ensure that by consistently adhering to your trading rules, your win rate will naturally be on your side in the long run.
Profit depends on patience, and losses require decisiveness.
When entering the market, who doesn't want to 'guarantee a profit'? But the truth of trading is: you must accept losses to truly make money. Losses themselves are not scary; what’s scary is stubbornly holding onto losses without admitting defeat. True profit does not come from frequent operations but from seizing the right market conditions and patiently holding onto profits.
The more frequently you watch the market, the faster you may lose.
Many people mistakenly believe that closely monitoring the market and frequent trading can improve their win rates. However, the reality is that doing so will only increase your anxiety and make it harder to control your actions. Those who truly earn money often understand the importance of maintaining distance, waiting for the market to present opportunities, rather than exhaustively chasing every fluctuation.
The more stable the trading, the more 'boring' life becomes.
True experts do not act out of passion, but rather rely on discipline and patience. For them, trading is a tedious process of repeatedly executing strategies—rules unchanged, mindset steady, not elated by profits nor distressed by losses. They are more like calm executors rather than impulsive gamblers.
Living longer in the market is more important than running faster.
Trading is like a marathon; those who win in the end are not the ones who run the fastest, but those who can persist to the end. Those eliminated by the market are not unintelligent but simply did not survive. Real experts are not primarily concerned with short-term profits but with how to control risk, maintain pace, and always qualify to continue playing.
Lastly, I want to say: Trading is not the market testing you; it's you perfecting yourself.
The market will not reward your diligence, nor will it treat you specially because of your efforts. It remains unchanged; the only thing that can change is you.
Sharing insights from trading cryptocurrency for many years, from 10,000 to 10 million: How to achieve stable profits?
Over the past few years, turning 10,000 in capital into 10 million U, this journey is full of trials and experiences. Below are some key insights I hope will inspire everyone:
1. Capital management is the cornerstone of success.
Divide the funds into five parts, only using one-fifth each time, and set strict stop-loss lines—each trade loss should not exceed 10% of total funds.
Control losses to within 2%. Even if there are five consecutive mistakes, the total loss will only be 10%, but once you seize an opportunity, the profit can easily cover the losses.
2. Go with the trend, do not go against the current.
· Do not rashly bottom-fish during price declines; most cases are traps for luring buyers; patiently wait for clearer signals.
· Also don’t rush to sell during the upward process; this may be a 'golden pit', buying low is more stable and reliable than bottom-fishing.
3. Stay away from coins that surge in the short term.
Whether mainstream coins or altcoins, continuously surging coins are rare, most will fall into stagnation or even retracement after a surge. Do not hold on to the illusion of betting on high-priced miracles.
4. Make good use of technical indicators.
· MACD+ is a practical tool: Consider buying when the DIF line and DEA line form a golden cross below the 0 axis; conversely, consider reducing positions when they form a dead cross above the 0 axis.
· Supplementing positions should be systematic: absolutely do not supplement when in loss, only increase positions when in profit, otherwise, you may get deeper into trouble.
5. Trading volume is the soul of the cryptocurrency market.
· Pay attention to low-volume breakouts; this is an important market signal.
· Persist only in trading rising trend coins, observe the 3-day, 30-day, 84-day, and 120-day moving averages; an upward turn often indicates a confirmed trend.
6. Review and adjust strategies.
After each trade, a review must be conducted to re-examine the holding logic and flexibly adjust the operational strategy based on the weekly candlestick trend.
I will share some iron rules of the cryptocurrency world:
One, only participate in irreversible upward trends of the market.
‘Only participate in the irreversible upward trends of the market’—the market is the fact. The market cannot be questioned or challenged; the trend is irreversible. As an investor, one must dare to admit mistakes and correct them at any time, reject uncertain market conditions, and trade those trends that even the big players must follow. One must understand to go with the trend.
Two, refuse frequent trading.
The casino is open 24 hours, so there is no need to trade frequently. There are many logics such as timing, trial and error, and position control. We advocate waiting like a hunter for the perfect opportunity rather than recklessly investing as soon as prey is spotted.
Three, do not be superstitious about technical indicators.
First, we must acknowledge that any technical indicator has its lag.
For example, when the MACD indicator signals a golden cross for buying, the coin has likely already risen significantly, and at the moment of the golden cross, you might just be buying at the top!
Four, buy and forget the cost price.
When you start either shorting or going long, your cost price has no relation to any subsequent operations, because whether to sell depends on market trends, and it has nothing to do with whether you are still profitable now. If the setup is good, continue to hold; if the setup deteriorates, reduce positions or even liquidate.
Five, participate with money you can afford to lose.
Use spare money to trade cryptocurrency. Investment involves risks. Investors can increase their investments after mastering the profitability techniques of the game. Before that, always use money you can afford to lose; borrowing money often leads to disastrous losses!
Six, if you make a profit, cash out on time.
Without cashing out, everything is just numbers. Cryptocurrency investors are like gamblers who have not left the casino; even if they temporarily make a lot of money, they cannot be considered winners. You can only say you laughed last when you extract cash from the market. In the cryptocurrency world, cashing out on time is a good habit.
There is a simplest method of trading cryptocurrency that almost guarantees 100% profit.
From then on, I started to seriously study cryptocurrency. There is a senior around me who used to run a supermarket, and then he got into the cryptocurrency world. From then on, he began to seriously study trading cryptocurrency and achieved a turnaround in life through cryptocurrency trading; now his assets have reached 8 figures.
He uses this method, which is actually very simple, going through 4 steps: choosing coins, buying in, managing positions, and selling out. Every detail will be explained clearly to you!
The first step is to open the daily chart, focusing only on the daily level. Choose coins with MACD golden crosses, preferably selecting the golden crosses above the zero axis, as this yields the best results!
The second step is to switch to the daily chart, where you only need to look at one moving average, called the daily moving average; hold above the line and sell below.
The third step after buying is when the price of the coin breaks above the daily moving average, and the volume is also above the daily moving average, buy in fully.
The fourth selling step is divided into three details.
The first is the increase of the band, when it exceeds 40%, sell 1/3 of the overall position.
When the overall wave increase exceeds 80%, sell 1/3; when it drops below the daily moving average, clear all positions.
The fourth step, which is also the most important, is since we are using the daily moving average as our buy-in basis, if the price directly drops below it due to unexpected situations the next day, we must sell everything and not entertain any illusions!
Although our method of selecting coins has a very low probability of breaking down, we still need to have risk awareness! After selling, wait for it to stand above the daily moving average again before buying back!
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