During the 6 years of professional cryptocurrency trading, there have been ups and downs, from debt to now financial freedom, a leap in class. Throughout this period, I've made money, lost money, done everything from 土狗 to ICO and mining, experienced countless pitfalls. It's said to be a game of long and short, but it feels more like managing one's mindset. There are surprises, there are disappointments, it's a magical circle, a place full of charm. I've summarized countless methods and strategies, and in the end, there is only one way to make money, which is simple and brutal: buy in bear markets and sell in bull markets, ensuring a profit without loss.
Core Survival Principles
Only use money you can afford to lose
Wait for the opportunity like a cheetah.
5x leverage is the golden ratio.
Preserving your principal is preserving your hope.
Core strategy: high leverage + precise targeting + strict stop loss.
1. Only trade BTC/ETH - high liquidity, fewer spikes, the battlefield for big funds is your opportunity.
2. 20x leverage - turning 1000U into 20,000U, requiring just a 5% fluctuation, but remember: set a stop loss when placing an order; the liquidation line is your bottom line.
3. Breakout chasing method - wait for a major consolidation breakout (4 hours or more), enter the market immediately when the price breaks the previous high/low, and catch the momentum.
In the core of cryptocurrency trading, only those educated enough by the market will understand.
The core of trading is position management:
All trading behaviors must be conducted under appropriate position management.
Big earnings at the right time.
Minimize losses when losing.
This is the guarantee of stable capital growth.
Because humans are always driven by emotions to make rational decisions.
No matter how you say your decisions are rational.
It must always be driven by emotions.
Your direction carries your subjective assumptions.
All technical indicators will also show bias due to your judgment.
We make money in the market.
We must thank the market.
It's not that we are so strong ourselves.
It's because the market has made us taste sweetness.
Everything is a matter of chance and discipline that leads us to victory.
The key here is position management.
Living longer increases the chances of winning.
This is a game of probability.
Not anyone's ATM.
The difference between speculation and gambling is the difference between discipline and animal instinct.
A violent rolling method to turn 1000U into 20,000U: the ultimate play for small capital to turn around, three principles of position control.
Initial position of 200U to test the waters - don’t go all in right from the start; save enough bullets.
Immediately withdraw 300U to recover the principal - continue to play with the market's money.
Tiered profit harvesting - earn 30% first, secure 1/3, and then hit back after breaking the previous high.
(My 'pyramid scaling method' can reduce the risk of liquidation by 80%).
The devil is in the details.
Golden time to strike: closely monitor the high liquidity peak of the US market (9 PM to 12 AM).
Leverage locked at 3-5 times - no crossing the line even if tempted.
Move the stop loss by 0.5% - this is your lifeline.
(Last year used this set on PEPE to achieve 7 times return in 18 days).
Mindset determines everything.
Account up to 3000U? Withdraw 1000U to secure profits! Remember:
The most terrifying thing in a bull market is not missing the opportunity but watching profits slip through your fingers.
Small capital wanting to turn around?
It’s not about luck; it’s about this set of rolling techniques!
When others are still hesitating, you have already rolled your profits into a snowball...
99% of those eager to profit in the crypto circle usually go through three stages.
The first stage is a journey of experience, often resulting in small profits followed by large losses, or all the profits earned being given back.
The second stage is solidifying beliefs, making small gains, summarizing experiences and lessons learned after exposure to new things, and thus forming a rhythm that belongs to oneself.
The third stage is the moment that can truly change one's fate, relying on strategy, timing, discipline, and perhaps a bit of luck, one might earn considerable wealth.
Those who can return with a full load and retire successfully in the first stage are truly rare; more people exhaust their principal and cannot reach the shore of success, and being able to persist on the 'table' is already remarkable.
In short, during an uptrend, everything seems beautiful; during a downtrend, everything appears bleak.
Therefore, when information floods in like a tide, one should remain humble and avoid impatience.
The more eager you are to operate, the more losses you often incur. Strive to cultivate a good mindset, exceptional discernment, and high concentration in your work!
Almost 100% profitable dumb method to earn 20 million? These are the seven iron rules I've exchanged for with blood and tears.
I've finally realized - the simplest methods are often the most profitable. Today, I will show you my trading diary:
1. Night battle rule.
Daytime market behavior is like a drunk dancing, with messages flying around and market makers drawing lines. I only open the trading software after 9 PM every day; by then, the candlestick line is clean and the direction is clear.
2. Withdraw to prevent getting high.
Earn 1000U? Withdraw 300 to the bank first. I've seen too many people go from tripling their money to zero, just because of the words 'wait a bit more.'
3. Indicator trio.
MACD golden cross and death cross.
RSI overbought and oversold.
Direction of the Bollinger Band opening.
Three indicators and two resonances before taking action; this is a lesson learned at the cost of 200,000.
4. The art of moving stop loss.
When monitoring the market, move the stop loss up by 3% every time it rises by 5%. Always set a hard stop loss of 3% before sleeping. Last year's crash on March 12 left my account unharmed, thanks to this strategy.
5. Friday withdrawal day.
Every Friday without fail, take 30% profit, the rest is battlefield funds. After 8 years, the interest alone has been enough to buy a house.
6. The law of time and space in candlestick charts.
For short-term views, look at 1 hour: consider only after two consecutive bullish candles.
For sideways markets, look at 4 hours: ambush near support levels.
Remember: the market is three-dimensional, don't look at the candlestick chart with a two-dimensional perspective.
7. Four bloody admonitions.
❗Leverage over 10 times = suicide.
❗Hitting altcoins = giving money to market makers.
❗More than 3 trades in a day = signs of losing control.
❗Borrowing money to trade cryptocurrencies = irreversible disaster.
Seven ways to die in cryptocurrency trading! Be cautious in a bull market!
The virtual currency bubble has confused countless people, leading them to invest without hesitation. Some even choose to resign from their jobs, putting all their savings into the wave of cryptocurrency trading, and then documenting their trading diaries online.
It can be said that those who start trading cryptocurrencies usually find it easier to make profits, and this feeling of quick wealth is hard to resist, further igniting their greed and the hope of earning even more wealth. However, even if the virtual currency bubble does not burst, speculators face enormous risks of losses. Now, let's take a look at the seven most common 'ways to die' for traders!
The first way: die from buying the dip against the trend.
The sharp decline in virtual currency prices often becomes a litmus test for traders' greed. Some traders excitedly see the market drop and impatiently choose to buy the dip against the trend, but they do not realize that the so-called bottom is not the end but a bottomless pit.
This pit may hide more uncertainties and risks underneath, just like an endless abyss; once one falls into it, they may end up in endless trouble, buying in again and again, falling into being stuck.
It can be said that buying the dip against the market is one of the main reasons for many traders' losses. In a clearly declining market trend, some traders mistakenly believe that the price of virtual currencies has dropped to a level that attracts new speculators, and therefore a rebound should occur.
However, the actual situation is often that the more one buys the dip, the more they lose, until they can no longer bear it; not only the previous profits are wiped out, but the principal may also be completely consumed.
Taking Bitcoin's volatility in 2013 as an example, it soared from a few dozen dollars to about $1,000, then plummeted to over $100. This roller coaster market caused countless traders to go bankrupt.
The strategy of buying the dip can only succeed in a consolidating or upward correcting market; at other times, such behavior usually leads down a road to death. This is exactly why we often emphasize the importance of trading with the trend. Correct trend-following can lead to multiple successes in a consolidation, while trading against the trend, even if done correctly numerous times, may result in irreparable losses if done wrong just once.
The second way: die from leverage.
In the virtual currency bubble, some traders have tasted sweetness and are eager to increase their investment for more profits. However, lacking excess funds, they start to consider borrowing money or financing for trading, thereby increasing leverage.
Currently, the common leverage ratio is 5 to 10 times, which means traders can borrow more funds to invest with limited principal. Taking 5 times leverage as an example, if the principal is 300,000 yuan, the trader can borrow 1.2 million yuan and then buy virtual currencies with all funds. Regardless of whether the price of virtual currencies goes up or down, it will magnify profits or losses by 5 times. Specifically, if the price of virtual currencies rises by 10%, then the trader's profit will be 50%; conversely, losses will also be magnified by 5 times. This means that if the trader's losses reach 20% of the principal, liquidation will occur, and both the principal and borrowed funds will be wiped out. Generally, traders do not start with high leverage; rather, they begin with lower leverage ratios. However, repeatedly making money will gradually make them relax their vigilance against risks, blindly believing that virtual currencies will only rise and not fall, ultimately leading to total loss. Taking the period from 2017 to 2018 as an example, Bitcoin continuously broke through important price points, reaching a peak of $18,000, and many people increased their leverage ratio in this process, hoping Bitcoin's price would further rise to $30,000.
However, Bitcoin eventually fell from $18,000 to around $10,000, and leveraged traders faced liquidation, suffering painful losses. In short, this behavior is seeing some traders become rich overnight and then chasing short-term profits, only to bet on the wrong direction.
The third way: die from candlestick charts.
Virtual currency trading employs candlestick charts; although this knowledge originates from the stock and futures markets, the candlestick charts for virtual currency cannot be entirely applied to the experiences of the stock and futures markets. Due to various uncertainties, relying solely on charts for trading could lead to severe losses.
For example, in 2013 and 2017, the Chinese government cracked down on virtual currencies, leading to a sharp decline in their prices; in 2017, the South Korean government also took action to suppress virtual currencies, which similarly triggered a significant price drop.
In short, virtual currencies cannot obtain formal recognition from central banks of various countries, lacking legal status makes them susceptible to various policy impacts. This impact cannot be predicted in advance through candlestick charts, making it difficult to avoid risks. In addition, there are illegal activities such as market manipulation and price rigging in virtual currency trading.
In regulated stock and futures markets, such behavior is strictly prohibited and supervised. However, virtual currency trading is still in a relatively barbaric era, with various evils rampant; the role of candlestick charts in such an environment is relatively small and may even become a tool used by evildoers to lure traders.
The fourth way: die from chasing highs and cutting losses.
Due to the instability of candlestick charts and the lack of other more reliable trading methods, the vast majority of cryptocurrency traders tend to adopt the strategy of chasing highs and cutting losses. It is well known that chasing highs and cutting losses may yield substantial profits in the short term, but in the long run, the probability of losses is higher.
In the stock market, the probability of long-term profitability is about 10%, which even includes some value investors. In the futures market, the probability of long-term profitability drops to 1%. In comparison, trading virtual currencies is even more difficult. Although many traders currently claim to have achieved certain profits, whether the proportion of those who can sustain profitability will exceed 1‰ is a big probability question, and most traders may ultimately suffer losses in the market.
Moreover, although some people realize the instability of chasing highs and cutting losses and want to hold virtual currencies for the long term, human nature is inherently greedy and fearful. They feel afraid of falling prices and greedy for rising prices, leading to inconsistency between actual operations and rational expectations.
Only a very few can overcome this nature, conquering greed and fear. However, most people continuously repeat their mistakes in a loop, akin to a goldfish's 7-second memory, making it difficult to truly change.
The fifth way: die from not stopping losses.
For some traders, they firmly believe that no matter how drastically the price of virtual currencies falls, it will eventually rebound. They hold on and refuse to sell, even claiming they won't sell even if they die, remaining calm in the face of any crash, believing that miracles always exist.
However, for certain virtual currencies, holding on and refusing to sell may indeed lead to heavy losses. Take Zhonghua Coin as an example; it once dropped from a high of 35 yuan to 0.5 yuan, then collapsed and was suspected of being involved in a pyramid scheme, with 260 million yuan in funds evaporated. This can be considered the most tragic way to die for cryptocurrency traders.
Traders who are prone to pitfalls mainly fall into two categories: one is those who have just started trading cryptocurrencies, as the ignorant are fearless and are unaware of the cruelty of this way of dying, which leads to their funds being inexplicably consumed; the other is veterans who have been in the cryptocurrency circle for some time, having experienced multiple trades and overall made some profits.
Having become accustomed to the volatility of virtual currencies, some even view crashes as an opportunity, growing bolder, but fail to realize that the variety of virtual currencies is extensive, and one careless mistake could lead to liquidation or collapse. Many tokens have experienced liquidation due to policy crackdowns, causing previous gains to plummet instantly.
The sixth way: die from high-frequency trading.
Many traders are keen on high-frequency trading, frequently buying and selling in pursuit of substantial profits through price differences. However, the end result is often continuous losses. Why does this happen? Theoretically, if each trade earns 1%, and as long as one ensures to successfully make a profit once a day, the daily return rate would be 1%.
Within a year, this will bring a profit of 365% or even more. If considering the effect of compound interest, this number is even more astonishing. However, in reality, successfully trading once a day seems simple, but it is actually an extremely difficult task.
This is because the price of virtual currencies fluctuates greatly, making it difficult to make accurate predictions in short-term trading, and high-frequency trading lowers the success rate. A lower success rate leads to more losses, and an increase in losses affects the trader's mindset, which worsens and leads to even more and larger losses, forming a vicious cycle.
For example, imagine the consequences of frequently changing lanes on a highway; almost everyone knows that such behavior will eventually lead to trouble. The principle of high-frequency trading in virtual currencies is similar to this. Additionally, high-frequency trading incurs more transaction fees, and the actual profits may not cover these fees, which is a common problem.
The seventh way: die from blindly following the crowd.
Many cryptocurrency traders lack a deep understanding of virtual currencies; they just heard about the possibility of making money and rushed in. After exposure, they often blindly worship some big influencers' statements, such as Bitcoin will eventually become fiat currency, the number of virtual currencies is limited and will not depreciate, the future of the 21st century belongs to virtual currencies, etc. This viewpoint is widely present on social media like Sina Weibo, Xueqiu, Zhihu, forming some 'spiritual leaders' who promote cryptocurrency trading.
Many people believe it to be true; some resign to trade cryptocurrencies, and some even sell their houses and borrow money to trade. However, the final result is that they did not make money, and their jobs and careers were wasted.
Take the famous figure in the cryptocurrency circle, Li Xiaolai, for example; he once promoted the token EOS, helping it raise $185 million in just five days. However, later EOS announced to clarify its relationship with Li Xiaolai, denying him as a co-founder or director of the project, which was shocking. Many virtual currencies seek out big influencers to stand on their platforms to lead traders to mistakenly believe that the technology of that virtual currency is robust, has broad prospects, and will see a surge. The blind faith in so-called emerging virtual currencies, based on fictitious big influencer recommendations, is often just a prelude to death.
A single tree cannot become a forest; a lone sail cannot sail far! In the crypto circle, if you don't have a good circle and first-hand information from the crypto world, then I suggest you follow Lao Wang, who will help you profit without investment and welcome you to join the team!
