My personal experience is that the end of trading cryptocurrencies is not liquidation but becoming rich.
It's not that I'm keen on trading cryptocurrencies, but rather that I'm keen on making money and striving to improve the living standards of myself and my family. The ways to make money in this world are nothing more than a few types:
1. Starting a company leads to overcapacity, overshadowed by the pandemic, and rampant competition; starting a business these days is equivalent to seeking death.
2. Individual buying and selling and starting a small food stall can work, but you can't rent a good location, and a poor location has no business. Street-side vendors can work, but can you really endure the hardships and greasy days?
3. Self-media entrepreneurship is in a crazy spiral; the number of self-media fighting for traffic is more than the traffic itself. It seems those big accounts are glamorous, but the hardships behind them are known only to themselves. For example, I answer questions wholeheartedly, yet can’t get even a few perfunctory likes.
4. Working your job is certainly fine, which is like having a crisis shield (boss) to bear it, but a job can only give you a salary; can it give you wealth? It cannot. Of course, if you are a technical expert, a high achiever, or a sales champion, then it is possible.
However, 99% of the world is not like that.
Six years ago, Aze gave up a high-paying job in the eyes of friends and relatives to trade coins full-time, only because I had a flash of insight and understood the secrets within!
At this moment, with the aim of helping others while helping myself, I am publishing the trading methods I have distilled; each one is a precious insight built from real experiences and money. Understand and comprehend them, and you’ll avoid falling for 4 years!
After years of crawling and rolling in the coin circle, I have summarized many classic quotes, hoping to help both new and old investors.
First, do not hold onto positions; the profits gained from holding will eventually be returned to the market due to 'holding'.
Second, do not guess tops and bottoms; profits gained from guessing will eventually be returned to the market because of 'guessing'.
Third, do not guess tops and bottoms, because you might still be halfway up the mountain.
Fourth, do not rely heavily on news, as this is just 'guessing' tops and bottoms.
Fifth, do not easily leave the market when you are making profits, as you might be running halfway up the mountain.
Sixth, do not get excited when you see big bearish or bullish candles, as they may just be a 'performance' for the retail investors.
Seventh, do not think that what you see in the market is the last wave of the market and act recklessly; as long as your capital is still there, there will be market movements every day.
Eighth, do not trade frequently; it not only makes you lose sight of the big direction and increases the probability of making mistakes but also raises trading costs, which is not worth it.
Ninth, do not trade against the trend; if you are right, hold tightly; if you are wrong, run quickly.
Tenth, do not buy in low out of greed, and do not sell out of fear when prices are high; if the trend has not changed, do not act rashly.
Eleventh, do not treat trading as your main job; do not stare at the market. The time spent staring at the market is inversely proportional to profit.
Twelfth, do not blindly trust others' opinions; ultimately, only you are the one worth believing.
Thirteenth, do not make big mistakes; missing opportunities is not a big mistake, and making a mistake is not a big mistake as long as you stop loss; only holding high leverage and making mistakes that lead to liquidation is considered a big mistake. No matter how many times you were right before, as long as you make one big mistake, all the previous correct ones become zero, and compound interest will be interrupted.
Fourteenth, to gain something in the coin circle, you must stay away from those who consume your attention. The proportion of such people is higher among females. Spending all day chatting with such people will only waste your time and energy, and in the end, you will gain nothing.
Fifteenth, if you don't have enough understanding, even following others won't help you earn money, because countless facts have proven that changes in the coin circle are too fast to keep up with.
Not reviewing trades in coin trading, even with mountains of gold, is in vain. While there’s time, let me share 4 iron rules with everyone; only after understanding can you trade coins to support your family!
Recently, the market has been unpredictable, with many opportunities slipping away. 'When soldiers come, let the generals block; when water comes, let the earth gather' is the quality a qualified coin trader should possess. After ten years of trading experience, I have summarized six iron rules of the coin circle to share with everyone!
The only enemy on the road of trading coins is yourself.
Investing is actually a high-threshold industry, but you only need a phone/computer, a phone number, and an ID card to enter the CEX cryptocurrency trading market. However, this does not mean you can earn money. The cryptocurrency market is ultimately made up of people, and human greed, anger, ignorance, sloth, and doubt are all vividly expressed here.
01 About gambling and altcoins
Playing with altcoins is gambling; holding onto Bitcoin is the right path. This is a rather peculiar argument in the current market, and dollar-cost averaging Bitcoin is also strongly recommended by many big names. However, how many of those big names' early success stories can be separated from altcoins, even CX coins?
Listening to big names touting dollar-cost averaging Bitcoin, then starting to do it without understanding, isn’t that gambling?
Whether it’s gambling or not has nothing to do with the coin type; the essence of a gambler's mentality is this: ignoring the current trend and operating based on their greed, fear, and hope. For many, the coin circle is simply a big casino; many also believe that the A-shares are a casino.
Viewing the market and the coin circle with this mentality, such people shouldn’t even stay here; wouldn't it be better to go have fun in Macau? Looking at the market with a gambling eye will inevitably lead to a miserable result. The moment you step into the market with a gambler's mentality, you are already being drawn into the web of karma, and a tragic ending is already predetermined; no matter how you struggle, it’s all a gamble.
Returning to Bitcoin and altcoins, some people belittle the altcoin community. Without the early altcoin Ethereum, could Bitcoin have today’s achievements? Bitcoin, as a pioneer, and the later altcoins have a symbiotic relationship rather than a competitive one. Bitcoin itself cannot fully unleash the potential of blockchain; it needs altcoins to extend and expand. Comparatively, for ordinary investors, quality altcoins are actually a better choice because of relatively higher odds.
However, one basic fact is that, in the long run, altcoins that can outperform Bitcoin in terms of growth are rare. Of course, in any market or era, the ones who become legends will always be a small minority.
02 About contracts and technical analysis
Like altcoins, contracts are also a monster; futures contracts in the coin circle are basically equivalent to a casino.
I previously had no exposure to contracts; external voices claimed that trading contracts was simply giving away money, with numerous cases of bankruptcy reported, leading to a huge misunderstanding of contracts. It wasn't until I started engaging in contracts earlier this year that I discovered they are a very good tool.
The main reason that contracts are criticized is due to liquidation, which only depends on the person. I only invest a small portion of the total principal in contracts, dividing the capital into 10 parts for operation, and setting stop-loss for every trade. Although I haven't won money, after playing hundreds of times, I haven't faced liquidation down to zero. Most people trade without a trading system, for example, when a reverse market appears, there is no stop-loss mechanism, instead, they fantasize that a reversal will occur immediately, thinking, if not liquidated, who will be?
Contracts, as a tool, are inherently neither good nor bad; it depends on the user.
Because of my exposure to contracts, I had to engage in technical analysis. Like everyone else, I used to think that technical analysis was just nonsense, only to be wise after the event. It was still like that until I got involved myself and realized it wasn't the case. Technical analysis is not about making predictions; that's a sham.
The essence of technical analysis:
Technical analysis is essentially a translator; there are too many factors influencing coin prices in the market, and you don't know which factor has the greatest weight, but all factors will form a definitive result: the price. Technical analysis describes what has happened in the market through price, which is the value of technical analysis, a language that humans can understand.
The biggest change that technical analysis has brought me is knowing how to avoid risks. For example, I recently bought an IEO coin that increased nearly 8 times. In the past, I would either sell in fear of heights halfway through, losing out on subsequent profits, or hold on after experiencing the peak and getting trapped; now this coin has already dropped by half. This time, by using a simple moving average system, I discovered that this coin had shifted from a bullish market to a bearish market in a larger timeframe, with a high risk of decline, so I sold in time and preserved most of my profits.
People are easily influenced by external voices, resulting in rejecting or liking something they have never understood; this is a disease that must be changed.
03 About greed and fear
Be happy with others' gains and sad with your own losses. When the price rises, it’s a revolution; when it falls, it’s a scam. Emotions are always the biggest obstacle on your investment path because they disrupt all your plans. In fact, many people have trading plans; when their planned selling point appears, they sell in time, and when their buying point appears, they buy. But with emotions involved, the results are often contrary.
For example, during the 312 crash, many said that their trading systems had sell signals before 312, but because of the market's excitement and endless expectations for Bitcoin's halving, they didn't want to miss out on the halving market, greed took over completely, and 312 became the biggest retribution, turning endless joy into infinite sorrow.
No trend is worth fearing or being surprised by. If you still fear or are surprised by any trend, it indicates that you are still being controlled by emotions, and you should continue to refine yourself in the current trend, letting all this fear and surprise turn to dust.
How to eliminate greed and fear? One common method is to be continuously washed by the market. Here I have a better and more convenient method—Zen's topic of contemplation.
I consider myself a half-hearted Zen enthusiast, meditating daily on the topic of 'who is chanting the Buddha’s name,' but I doubt and ponder who exactly is doing the chanting. This is the topic of contemplation, and this method can also be applied to various thoughts, such as 'who is initiating the greedy heart,' and then follow it down; you will quickly have a question about where this thought originated. Actually, at this point, the current greed has already disappeared.
The same applies to 'who is in fear,' 'who is happy,' and so on.
04 Summary
People are easily disturbed by external factors and will inexplicably reject or like something they have never understood. Emotionally, they are very sensitive to the fluctuations of K-lines, while the true voice of the market is always in the present.
Investing is very similar to practice; through various methods, one sharpens the mind and clears away layers of fog to grasp the truth. Investing is a form of practice, and on the path of practice, your only enemy is yourself.
What are the five useless laws for trading coins?
What are the five useless laws for trading coins?
Should novices trade in spot or contracts?
The five useless laws of the coin circle:
1. Can buy, but can't hold large positions, it's useless.
2. Can hold large positions but can’t keep them, it’s useless.
3. Holding onto positions until the bull market ends and still not selling is useless.
4. Those without a trending large position are useless.
5. Holding onto a trending position but can't keep it is useless. The market can give you countless multiples, but going to zero only requires one time. Stability is the main tone.
Everyone envies seizing opportunities to get rich, but still, follow your own pace.
Seeing others make money sometimes makes you think you can too, but when you participate yourself, you might just lose money. Analyzing afterwards can sometimes be quite meaningless; being able to make a decision from the perspective at that time is the most important.
Those who know 'to act in unity with knowledge' do not blindly act either short or long, right or wrong.
The development of trading mindset is somewhat related to trading experience; one can use real trading as a way to accumulate experience from other traders. To do well in trading, technique has never been the most important factor; to do well in trading, technique has never been the most important factor. Technique can only lead you to the door; ultimately, what determines success or failure is still courage, mindset, and luck.
In this circle, it’s not about who earns more or faster.
What is more important is who lives longer, makes fewer mistakes, and avoids mistakes.
Here, I would like to remind new friends entering the circle again, seeing these real trading masters making money seems very easy, while you cannot see how many detours others have taken and how much price they have paid to succeed.
Then I fantasized that I could reach others' levels in a short time, thus pouring a lot of money in and ending up bankrupt.
Let go of the idea of getting rich overnight, or even the idea of being eager for quick success; take one step at a time and learn.
With a poor mindset in trading coins, even having millions can lead to losing everything.
Trading coins is about mentality. Trading in the coin circle is a psychological game, a contest of intelligence among millions, and an intense psychological battle.
The fluctuations in the coin market reflect the psychological changes of both parties to some extent; in a sense, trading coins is about psychological quality.
In the long run, the final winners in the coin market are mostly those with high psychological quality and a calm mindset.
Trading coins starts with curiosity and interest, then moves to technology, then to unexpected insights, unique perspectives, judgment, wisdom, and ultimately trading mentality and realm.
"The most important thing in trading coins is mindset, second is mindset, and third is still mindset." Success lies in mindset, and failure also lies in mindset.
At a certain period, the emotions of participants, the madness and rationality of participants will play a decisive role in buying and selling in the coin market.
Without good psychological quality and a calm mindset, it is ultimately hard to become a big winner.
Sometimes, market trends can only be understood clearly afterwards; why couldn’t it be understood beforehand?
Why is it always losing?
Aside from technical reasons, you can also look for reasons in your mindset—when prices rise, you always want them to rise further, and greed replaces rationality; when prices fall, your mindset is unstable, always fearing that they will fall further, and fear blinds your eyes.
Some people often oscillate between excessive confidence and lack of confidence; mistakes often happen when overly confident, and errors also occur when lacking confidence, which may ultimately lead to a complete loss of confidence.
Some say that the good mindset for trading coins is not to be happy with rises, not to be sad with falls, not to be happy with profits, and not to be sad with losses. It’s easier said than done. Most people entering the coin market are ordinary people; they rejoice when they buy in the right direction and worry when they buy in the wrong direction. This is human nature. What should be pursued is a sense of mental peace.
When buying correctly, do not be blindly optimistic or lose yourself. When buying incorrectly and losing money, do not be blindly pessimistic or disappointed, as this increases psychological burden and leads to loss of judgment, resulting in further mistakes.
Maintain a good mindset; no matter what happens, your mindset should not be affected. This way, you gain a little more calm, a little less impatience, a little more rationality, and a little less blindness, keeping the mind clear and not letting market changes affect your mindset.
With a good mindset, there will be good results.
Still the same sentence, if you don’t know what to do in a bull market, click on Aze's avatar, follow, and learn about spot planning, contract strategies, and share without charge.
