Ten Years Summary of Cryptocurrency Trading: Ten Core Insights
After more than a decade of practice, I have accumulated assets worth tens of millions through steady operations starting from a small amount of capital. Here are ten key insights for medium to long-term investors to consider.
Capital Control: If the capital amount is not large (such as within 200,000), seizing one major uptrend per year is sufficient, and there is no need for all-weather full-position trading.
Cognitive Boundaries: Investors should not expect returns beyond their own understanding. First, hone your mentality and operational abilities through simulated trading to avoid significant losses due to emotional outbursts in real trading.
Realizing Gains: When encountering significant positive news, do not sell on the same day; a high opening the next day is often the time to realize gains, so sell at the appropriate time.
Holiday Risks: Reduce positions moderately or stay out of the market one week before major holidays, as historical data shows that the market tends to correct during holidays.
Medium to Long-term Strategy: Keep sufficient cash on hand, sell during highs, and buy during pullbacks for rolling operations, which is more beneficial for capital appreciation.
Short-term Trading: Focus on trading volume and chart characteristics; active varieties can be traded, while inactive ones should be avoided.
Market Rhythm: If a decline is slow, the rebound is usually also slow; if a decline accelerates, the rebound is often rapid, so grasp the rhythm.
Stop-loss Awareness: Cut losses promptly if the direction is wrong; protecting the principal is the foundation for long-term survival.
Technical Application: Short-term trading can refer to 15-minute candlestick charts and KDJ indicators to find relatively clear buy and sell points.
Specialization First: There are many techniques and methods, but mastering a few is sufficient; avoid being greedy and causing dispersion and mistakes.
These ten principles are not universal, but they provide a clear framework for capital management, risk control, and trading rhythm, which is the core basis for long-term stable profits.
