I was born in 1988, I trade cryptocurrencies full-time, my assets are in the tens of millions, and I withdraw 100,000 yuan from the crypto market every month. I feel it has no impact at all, living a leisurely and carefree life, free from deceit and intrigue, living the life I want.
Now my daily routine is to get up at 7:30 and go for a run, rain or shine.
In the morning, I usually review yesterday's trades and update myself on the news from the night before, combining it with my positions and specific circumstances to make swing trades, or operate short-term with small funds to enhance my market feel. Then I conduct a 2-hour review summary, which is the most important task of the morning, aimed at being able to make a good profit in the evening!
Today I will share my trading strategies and insights with friends in the cryptocurrency community.
There is a saying: Standing on the shoulders of giants saves you ten years of effort.
If you are determined to make trading cryptocurrencies your primary profession, this article will be your stepping stone; it is short but profound!
If you want to survive in trading for the long term, you must consider investment risks and any possible situations. The core of leveraged trading is that when in profit, one should gradually increase positions and amplify them; when in loss, one should gradually reduce positions to minimize losses. This is the essence of trading!
Core Principle One: The truth of trading is not about getting rich overnight, but about earning long-term and living long.
Core Principle Two: A common mistake investors make is frequent trading, never looking for good trading opportunities. As long as there is volatility, they enter the market, which is undoubtedly wrong and will only lead to missed opportunities and frequent losses.
Core Principle Three: 'There’s a saying: I can pull you back from the cliff, but I can’t stop you from jumping off every time.' Impulsiveness is the source of all problems; trading signals must be followed. Not being impulsive is the primary element of risk control. Learn to manage risks.
Core Principle Four: Do not let profits cloud your judgment. The ability to maintain profitability is key; human desire seeks more and forgets risks, leading to self-destruction. Therefore, one must always remain clear-headed. Be cautious when losing money, and even more cautious when making money.
Core Principle Five: Everyone has a gambling mentality, and they like to enter and exit positions based on their arbitrary judgments. The importance of setting stop-loss and take-profit is known to all investors, but regrettably, many people know they should set stop-loss and take-profit yet still frequently get trapped or lose their profits.
Core Principle Six: When facing significant setbacks and losses, one always hopes to immediately recover; the more one trades, the larger the positions become, trying to turn the disadvantage around in one go. Once you do this, it is equivalent to failure. After setbacks, one should immediately reduce trading volume or stop trading. It is not about how much you can earn back now, but about regaining your confidence.
Core Principle Seven: It doesn’t matter if you make a mistake; the main thing is to get out quickly. 'As long as the green mountain remains, we need not worry about firewood,' conserve your strength, find the cause, and come back stronger!
Core Principle Eight: Trading must be diversified to cope with market changes. Those who make mistakes are the ones without strategies in trading. When wrong, they complain about difficulties in trading and platform operations, always asking why? Isn't life just uncertainty? Never lose on strategy.
Contract risk
The poison of contracts is worse than that of snakes. Contracts are only suitable for a small number of professional investors and require huge resources and energy to survive in the cryptocurrency market.
You may not believe it, but I have been invited by exchanges countless times to bring fans to their platforms for contract trading, offering me an 80% rebate. Why so much? Because trading platforms want everyone to engage in contracts.
Because you can lose so much in contracts, while exchanges can make so much money.
I summarized the reasons why most people are not suitable for contracts:
First, risk. In any investment, we should first consider not making money, but the risk.
How to control risk within a reasonable range is the premise for whether you can make money; the cryptocurrency market is a highly volatile and risky market.
The market fluctuates violently up and down. If we invest in spot trading, as long as we do not invest in junk coins or cx coins, it will never go to zero, and there is hope for a comeback. But once you start trading contracts, regardless of the multiplier, your risk is 100%. In such a risky market, amplifying risks through contracts makes you think you can handle it?
Second, the market can be manipulated.
Everyone who participates in contracts thinks they are engaging in a fair game, but in reality, this game means that most people have already lost just by participating.
Basically, many people in the cryptocurrency market store their coins in exchange accounts. Your coins are actually held by the exchange, which can arbitrarily use all your assets, similar to how we deposit money in a bank, and the bank can lend our money out.
What does the exchange do with the coins?
They can use large amounts of chips to manipulate the market.
Why manipulate the market?
Because these chips can be used to control market fluctuations, leading you to liquidation.
All your trading data has already been statistically compiled by big data and placed on the desk of the exchange's decision-makers. You are merely a lamb waiting to be slaughtered. Many may have noticed that cryptocurrency market trends are very strange, often spiking in the middle of the night. A single spike can lead to numerous liquidations, and the timing is often at midnight when you are asleep, with no time to supplement your margin, leading to liquidation. Therefore, ordinary people basically have no chance of survival in contracts.
Many people may say they are doing well in contracts now, but that's because others don't think highly of you. Once they do, you're finished.
Third, human nature.
Speaking of human nature, we all know why gambling is addictive.
Why do many people still not quit gambling even after their families are torn apart by it?
Because of human nature.
The temptation to amplify profits by 100 times is simply too great; turning 10,000 into 1,000,000 can elevate your life to a new level.
Because the temptation in front is large enough, the greed in human nature will make people unconsciously rush forward.
It doesn't matter if you lose; you always think you can recover next time. After recovering, you will stay away from this place of disputes.
Then, after getting desperate and losing all capital, you start borrowing; if you can't borrow, you sell your house and car. The final outcome is likely still a liquidation.
Many people in the cryptocurrency community have taken extreme measures, choosing to go to the rooftop simply because they believe they can never repay the debts they've incurred. Tragedy unfolds this way.
Fourth, contracts are only suitable for professionals.
The professional knowledge and data required for contracts are extensive. Many quantitative institutions in the cryptocurrency market are engaged in contract trading.
They have big data, a group of the smartest people in the world, and are more likely to collude with exchanges privately to exploit retail investors. That’s how they can survive in the cryptocurrency market.
Most people are ordinary; their financial knowledge, resources, capabilities, and cash reserves are actually negligible.
We are unable to enjoy some resources from the core layer of the cryptocurrency market.
Therefore, engaging in contracts is basically a matter of life and death.
Even after saying so much, many people will still try contracts.
However, you must try with a small position; the key is not to be greedy. Once you decide to go big, you will embark on a path of no return.
Finally, I want to offer some advice to friends who have entered or have not yet entered this market:
1. Do not blindly follow trends; remember to firmly protect your capital.
2. Regardless of your reason for entering this industry, please first ask yourself why you want to participate and what changes it can bring to you.
3. Regardless of whether you are entering this industry for employment or investment, consider what to do if the company goes bankrupt. Remember to find a backup plan before coming here.
4. It is easy to start a business but hard to maintain it; development is even harder. Please prepare for the long term.
5. Just listen to the matter of trading currencies; never take it seriously. Not everyone has the opportunity to become a billionaire.
6. If you are already in, then stick to your views and do not change easily.
7. Do not believe any rumors or incitements; do not even trust anyone's conclusions, as they may very well be words meant to get you to invest.
8. Never invest in platform projects; even if you buy, the valuation is already very high, and you may have helped others exit early.
Moreover, the quality of the project is superficial; success or failure lies in the internal and future development.
Not every investment mogul succeeds in every project they invest in.
9. When you want to buy a project, make sure you grasp all the information you can about the project and analyze it seriously for three days; the conclusion will be clear.
10. Do not participate in any short-term hot projects; currently, blockchain projects are still very immature. FOMO and panic selling are major taboos!
This is the trading experience that Lao Qi wants to share with everyone today.
Often, you lose many opportunities to make money because of your doubts. You are afraid to boldly try, to engage, to understand. How can you know the pros and cons unless you take the first step? A warm cup of tea, a word of advice; I am both a teacher and a good friend to chat with.
Meeting is fate; knowing each other is destiny. Follow me; I am @加密老七 , wishing you good luck!