Cryptocurrency good mindset = rationality + learning + self-awareness + firm belief
Cryptocurrency profit = in-depth research on projects + prediction of market fluctuations + control of human weaknesses + lifelong cultivation of mindset
Technical analysis and trading strategies can be mastered through time accumulation, but only the cultivation of mindset is a lifelong hurdle for most investors. Investment talent lies not in skills but in mindset; knowledge can be mastered in a few years, but emotional management requires lifelong practice.
The essence of cryptocurrency profit, 5% comes from technology and analysis, 95% depends on mindset. How many times could profits have been taken but were instead lost to greed? How many times should losses have been cut but were stubbornly held onto out of fear? Human weaknesses are infinitely magnified in fluctuations.
To overcome greed, one must remember: The reasonable benchmark for annual returns in the cryptocurrency world is 10%-20%; over 30% falls into a high-risk zone, and over 50% often means biting the bullet. Short-term surges inevitably come with the risk of sharp declines; cashing in is true profit. Those who flaunt their gains are either only talking about profits and not losses, or are purely fabricating images — your funds should be controlled by yourself; investing is not a competition; profit is success.
Fear stems from a misunderstanding of fluctuations. Blindly increasing positions during declines and panic selling during rises is essentially a lack of a trading system. Establish clear entry and exit rules, substituting strategy for emotion, to transform fear into respect.
The cryptocurrency world is a magnifier of human nature, and also a training ground. When you see the mountain as a mountain, pursue skills; when you see the mountain as not a mountain, comprehend the principles; and when you finally see the mountain as a mountain again, you will realize that the true essence of profit lies not in predicting rises and falls, but in mastering your mindset.
Fear and greed coexist and are interdependent. Those who are greedy will surely also fear. Those who do not want to cash in on the virtual coins they have earned are also the ones who panic and sell when they lose money.
What does a pullback mean?
Pullbacks are corrections of value and releases of bubbles. No matter what cryptocurrency, pullbacks enhance the margin of safety. Although declines cause anxiety, they can squeeze out excess, revealing truly valuable projects. For investors, making good use of pullbacks is to grasp the key to wealth.
We should not fear pullbacks but rather seek layout opportunities amidst fluctuations. The essence of the crypto world is to excavate undervalued quality projects, buy in value troughs, and exit in bubbles when overvalued.
The reasoning is simple and clear: If you only focus on the rise and fall of the candlestick, you will naturally be swayed by short-term fluctuations. Truly mature investors know to measure the market with value metrics, treating each pullback as a sowing season.
2. Breaking the crowd trap
Investment decisions are often swayed by market emotions, which is a common ailment of retail investors. Data shows that 80% of losses stem from chasing popular coins; projects that everyone praises often have inflated valuations, experience violent price fluctuations, and ultimately become a meat grinder that slaughters trend followers.
The cryptocurrency world always follows the 80/20 rule. When a certain project becomes a topic of casual conversation, when the homepage of exchanges is repeatedly recommending it, when communities are filled with myths of instant wealth — this is a danger signal. Real opportunities are often hidden in neglected corners, nurtured in disagreements, and perish in consensus.
Remember: The bottom forms in silence, and the top is built in frenzy. When even the market aunties are discussing a certain altcoin, it's time to be alert to exit signals.
3. Cultivating holding power
When you cross the chasm of greed and fear, breaking free from the shackles of herd mentality, you will encounter even more elusive enemies — restlessness. This mentality is like an invisible killer, specifically targeting experienced investors.
Clearly building positions at the bottom but exiting early due to short-term fluctuations, clearly escaping the top but returning to the battlefield due to FOMO emotions. Impulsiveness manifests as inconsistency: Doubting strategies after a slight pullback post-buying, negating judgments after a slight rebound post-selling.
You must understand that the accumulation of wealth in the crypto market requires time to settle. Quality projects will not change their value trajectory due to short-term emotions, just like Bitcoin has withstood dozens of halving events and still stands tall. True investment masters often sow seeds when no one is watching and reap when all eyes are on them.
Maintain strategic determination, remain indifferent to short-term fluctuations, and let time become the discoverer of value. When you can hold steady in silence and awaken in the noise, you have truly grasped the survival principles of cryptocurrency investment.
The best way to overcome restlessness is to believe in the rules and trust in the truth.
Good company + Good performance + Good management = Good stock price; this is beyond doubt; the only uncertainty is time. The impatience of investors means they cannot wait for time; everything requires waiting.
You cannot expect the right things to happen in the short term. Just like studying hard and insisting on exercising are good things, but you can't say that if you read for a day you will immediately achieve success, or if you run for a day you will immediately lose weight.
You have done the right thing, and then you need to wait; this is the truth.
4. Restrain yourself; ultimately, what you need is to restrain yourself.
When you truly begin to understand the futility of greed and fear, understand not to follow blindly, and finally, understand the importance of self-control.
After establishing a complete investment mindset system, what you need to do is truly accept these things, truly let your understanding and the knowledge you have learned become your inner thoughts.
Learning is a surface phenomenon; reading and thinking can make your soul's surface very substantial, but how much you can transform this knowledge into your own still requires a struggle with yourself.
Without learning, your soul's surface is a blank slate; learning can make the surface of your soul rich, but how much you can transform this knowledge into your own depends on your struggle with yourself.
For many people, the ultimate result of their hard work is reaching the point where they can speak confidently, but they cannot apply the knowledge they can articulate in practical situations.
This distinction means that you have memorized all the knowledge, but you cannot digest it and create new knowledge.
Restraining oneself is a deeper reflection and consideration.
Trading cryptocurrencies is about repeatedly doing simple things; consistently using one method over a long time can lead to mastery, making trading cryptocurrencies like other industries — skillful and intuitive, making decisions without hesitation.
High levels of patience require at least the following conditions:
1. A stable mindset, not being overly concerned about gains and losses.
2. Strategic vision, insight into the general trend.
3. Rich experience, understanding human nature and the nature of the cryptocurrency world.
4. Firm confidence and independent judgment ability.
Becoming a master trader is not difficult. Understanding candlestick charts in three minutes means you won't be cut like chives anymore!
1. What is a candlestick?
Candlesticks, also known as 'candlestick charts', may look like little sausages, but they are actually the 'prophets' of the cryptocurrency world!
In simple terms, a candlestick is a visual representation of price fluctuations over a certain period (like 1 hour or 1 day) drawn with a 'candle'. Its four key data points: opening price, closing price, highest price, lowest price.
Body: The body of the candle, colors are classified into two types:
Red (bullish candlestick): Closing price > Opening price → The coin price has risen!
Green (bearish candlestick): Closing price < Opening price → The coin price has fallen!
Shadow: The 'little braid' that extends from the top and bottom of the candle:
Upper shadow: The distance between the highest price and the body → The 'ceiling' where bulls and bears fight.
Lower shadow: The distance between the lowest price and the body → The 'floor' where bulls and bears fight.
For example:
If there is a long red bullish candlestick, it means buyers are too fierce, directly kicking the coin price from the floor to the ceiling!
If there is a long green bearish candlestick, it means the sellers are fierce, kicking the coin price from the mountain top into a deep pit!
2. What secrets are hidden in the body parts of candlesticks?
1. Body length:
Large bullish candlestick: Thick body → Buyers are frantically buying, the trend may continue to rise!
Large bearish candlestick: Thick body → Sellers are frantically selling, and the trend may continue to fall!
Small bullish/small bearish: Thin body → Bulls and bears are evenly matched, and the market may fluctuate!
2. Length of shadow:
Long upper shadow: Dropped down after rising halfway → This could mean 'the immortal points the way', or it could be a signal of a peak!
Long lower shadow: Dropped halfway and was pulled back → Could be a 'golden pit', or it could be a precursor to a rebound!
Mnemonic:
The longer the shadow, the more twisted the bulls and bears!
The longer the body, the clearer the trend!
3. Common candlestick patterns; after watching, you'll instantly understand market emotions!
1. Doji star:
Extremely small body, upper and lower shadows are roughly the same length → Bulls and bears
Break even, the market is about to change!
Occurrence position:
After rising too much → It may reach a peak!
After dropping too much → It may reach a bottom!
2. Hammer line:
Long lower shadow, small body → Dropped to the floor and someone bottom fished → May reverse!
(Suitable for bottom fishers!)
3. Hanging man line:
Long lower shadow, but appearing after continuous rises → Beware of the main force raising prices to offload!
(Run fast!)
4. Red three soldiers:
Three consecutive small bullish candlesticks → The trend is steadily upward → Follow along!
5. Black three crows:
Three consecutive small bearish candlesticks → The trend is downward → Stay far away!
4. Practical tips, even beginners can use!
1. Look at the volume:
Candlestick big rise + trading volume surges → Real breakthrough, just do it!
Candlestick big rise + trading volume shrinks → Pulling up to offload, run fast!
2. Find key levels:
Support level: If it has dropped to a certain position multiple times and rebounded → It may be time to bottom fish!
Resistance level: If it has risen to a certain position multiple times and then dropped → It may reach a peak!
3. Don't be greedy:
Don't guess a single candlestick randomly; look at combinations of three or more!
For example, 'Morning Star' (drop → small star → rise) is a reversal signal, but a single small star is useless!
5. Summary
Summary: Candlesticks are the 'electrocardiogram' of the cryptocurrency world. Understanding the body, shadow, and patterns can help predict rises and falls!
Don't blindly believe in a single candlestick; combining trading volume and key levels yields a higher success rate!
The 10 rules I have built with blood and tears
BTC is the anchor, ETH is the bones, altcoins are the skin: Bitcoin sets the market direction, Ethereum can occasionally lead the rise, but altcoins are all at the mercy of the main force, rising quickly but falling even faster;
USDT abnormal fluctuations = alarm: If stablecoins suddenly rise in premium, first check if Bitcoin is about to fall; don't blindly chase long positions;
2 AM is the 'harvest window': The main force chooses to insert needles while everyone is asleep; you must set stop losses before sleeping, don't hold onto luck;
Morning session 6-7 o'clock direction: If it continues to fall at this time, dare to bottom fish with light positions; if it continues to rise, don't chase it, there's a high probability of a pullback;
Pay close attention to the market after 5 PM: After the Americans open, market fluctuations will double; either watch the market or reduce your positions;
A changing situation on Friday: It could be a day to make big money or a day to lose everything; reduce half your positions early on Friday afternoon;
Long needle market is a 'filter': If a candlestick has a long upper shadow or long lower shadow, don't panic, the success rate of reverse trades can reach 75%;
Offline wallets are 'lifesaving money': If profits exceed the principal by 25%, immediately transfer part to an offline wallet — exchanges are not banks, there is always risk;
Leverage of more than 5 times = gambling with your life: The higher the leverage, the lower the margin of error, using 10 times leverage to open a contract is basically waiting to be liquidated;
Long positions are steadier than short positions: Holding mainstream coins for 2-3 years can yield returns that outshine 98% of short-term players — don't stare at the market every day; the more you watch, the more chaotic it gets.
A trading system is like a knife; it helps you find entry points, stop-loss points, and take-profit points, but whether you can use this knife well depends on you: Will you adjust the take-profit line out of greed? Will you hold on to positions out of fear of loss?
99% of people do not make money, not because they lack methods, but because they lack their own trading systems — either blindly following others, making random purchases, or entering the market based on feelings; if they make a profit, it's luck; if they lose, it's inevitable.
So how do you build your own trading system? It’s actually like an excellent hunter finding prey: First, choose a good ambush spot (key support and resistance levels), understand the prey's habits (the volatility patterns of the currency), prepare the tools (stop-loss and take-profit rules), wait until the prey is within range (meets signal), then take action — not blindly, not impatiently.
After trading cryptocurrencies for over ten years, I have gained insights from making waves and identifying peaks and troughs. Choose the right mainstream themes, pay attention to how to hold valuable coins at low positions under the backdrop of a rising trend; victory will ultimately belong to you!$ETH $BTC #币安HODLer空投XPL
