In this complex and chaotic world, the ways to make money seem limited:
Firstly, starting your own business. However, with overcapacity and severe industry competition, starting a company today is akin to taking a risky gamble.
Secondly, individual entrepreneurship. For example, opening a small food shop, but high-quality storefronts are difficult to rent, and remote locations may have few customers. While mobile vendors in the streets may be feasible, can you bear the life of sleeping outdoors and being covered in grease?
Thirdly, self-media entrepreneurship. Similarly facing fierce competition, there are many self-media individuals competing for traffic, and behind the seemingly glamorous influencers lie untold hardships. For instance, despite my full efforts to share knowledge, I often only receive a few perfunctory likes in return.
Fourthly, working for someone else. This is naturally understandable, as having a boss can shield you from risks, but being an employee only brings stable wages and does not grant you true wealth. Of course, if you are a technical expert, highly educated, or a sales champion, you might have exceptions.
However, 99% of people in this world are not like this.
Six years ago, I resolutely gave up a high-paying position in the eyes of my friends and family and devoted myself wholeheartedly to the cryptocurrency trading career. It was at that moment that I suddenly understood and grasped the mystery behind it!
Now, in the spirit of helping others, I am publicly sharing the cryptocurrency trading secrets I have summarized. Each point is a valuable experience earned with real money; as long as you understand deeply, you will certainly avoid four years of detours!
If you can do these three things in the cryptocurrency market, it will be hard to lose money again!
First point: Do not look at market comments after placing an order.
There are always two voices in the market: one tells you that the market will fall; the other tells you that the market will rise. There will never be a day when everyone agrees on a bullish or bearish market. If that were the case, there would only be one kind of person in the market—everyone would be either making money or losing money, which does not comply with market laws. So after placing an order, do not think about how others are commenting on the market's rise or fall, as such conflicting opinions will shake your basis for placing orders, making you unsure whether to continue holding or exit early. Perhaps seeing opinions from others who are exiting just like you will give you confidence, believing you will make a fortune, but when the directions are inconsistent, it will create significant anxiety. This anxiety may lead to poor judgments and decisions!
Real investors, after capturing trading signals, do not pay attention to market fluctuations but strictly follow their trading plans to complete the transaction!
Second point: Do not fail to set stop-losses after placing an order and then lock positions after incurring losses.
Everyone knows that investing carries risks, and nothing is 100% certain. Therefore, when placing an order, you must set strict stop-losses. Setting stop-losses requires a lot of courage; many people refuse to admit defeat, believing their direction is correct. Admitting defeat would lead to substantial losses. However, the market will never show you any sympathy. After making a wrong decision, you should immediately protect your capital. What’s even more headache-inducing is locking positions—many people have experienced this. Locking in positions, releasing them, and then locking them again, leads to losses. They fear going short when the price drops and worry it may be hard to recover; they hesitate to go long when it rises, fearing it may continue to rise indefinitely. Locking positions is not just a simple loss of money, but also a tremendous psychological pressure and pain.
Third point: Do not easily add to your position after placing an order.
Many people like to keep increasing their positions, pushing forward with their orders. After the direction reverses, remember not to add to your position; wait for the next opportunity to build a position. If you keep adding to your position, then your stop-loss must move, and a moving stop-loss will only lead to larger position losses. Some might say that after hitting the stop-loss, the price moves in their favor again, which requires everyone to patiently wait for the right entry point. Usually, hitting such a stop-loss feels very unfair and frustrating. But have you considered that this kind of stop-loss is usually due to not properly grasping the entry point or improperly setting the stop-loss? Of course, if your trading plan is very thorough, appropriate position additions are feasible, but when you realize your trading plan is wrong, you must strictly adhere to your stop-loss and exit.
Successful investors do not rely on luck; only by respecting the market, fearing the market, following the market, and strictly adhering to trading discipline can one survive. In trading, avoid being overly optimistic. We must grasp the opportunity of winning more and losing less, abandon the mindset of gains and losses, and maintain an unbeaten position in the market.
A thousand words are not as good as a single profitable trade. Losing repeatedly is not as good as taking a decisive risk! Frequent operations are not as good as precise ones. Make every trade valuable. What you need to do is find me, and what I need to do is prove that what I say is not false. May our acquaintance start with words, align with character, be bound by skills, last in kindness, and ultimately be based on integrity.
Having traded for so many years, I've both made profits and incurred losses. First, let's summarize the main reasons for losses, some of which I have also experienced.
Leverage is a double-edged sword; used well, you can run faster than others; conversely, if not used properly, you will die faster than others.
After spending a long time playing contracts, you will find that trading in spot markets becomes very simple. Many newcomers hope for a single trade to yield huge profits, going from 10,000 to 1 million, doubling a hundred times, but then from 1 million to 500,000, losing 50%, and returning to 1 million means needing to double again, going back to 0 is just a single time.
Therefore, beginners are most prone to self-indulgence; after making some profits in the cryptocurrency market, they believe they are exceptionally gifted and, in excitement, go all in, only to return to zero. True traders who wish to survive in the cryptocurrency market never place themselves in a dire situation. From the moment they go all in or leverage heavily, they are destined to be losers. I hope cryptocurrency friends remain vigilant in leveraged trading!
Experienced players choose to stay completely out of the market when market trends are uncertain about rising or falling, and they do not hurry to operate. They enter quickly when the trend becomes clear, and they also enter with small positions, while many ordinary retail investors frequently trade with heavy positions in unclear market conditions, leading to constant losses. When faced with fierce market players, losses will be even greater.
Against the medium to long-term trend, holding onto positions will lead to death.
Many people believe that their losses in futures trading are due to extended trading cycles, thinking that playing short-term will be fine. However, when losses are clearly against the market and need a stop-loss, they often face a mental struggle: to stop or not? Sometimes, there is a sense of luck that prices will come back, but they end up holding onto losing positions for too long. Even more so, inexperienced traders who do not understand the trend may hope to average down by adding to their losing positions. In the end, as the market moves further away from their positions, they become more heavily invested and die faster, walking down the path of demise.
Do not over-leverage, do not hold onto positions, frequently trade, and chase highs and sell lows.
After many twists and turns, the amount you can profit from becomes smaller and smaller, until there is nothing left to profit from—death. Most losses leading to liquidation can be summarized into these three types, like being overly greedy, which is basically leveraging too much. Check out the top ten blind spots in futures trading below.
Full position trading—full positions always lose.
Frequent trading—lack of technical guidance.
Trading against the trend—small probability, high risk.
Locking positions in trading—refusing to accept the fact of losses.
Lowering and raising the average holding price—compounding mistakes.
Guessing tops and bottoms without setting stop-losses—looking for reasons for mistakes.
Trade long after short, and short after long—pursuing perfection is aimless.
Trusting news and blindly following trends—lacking understanding of the market.
Not good at self-reflection, doubting the market—causing fear of the market situation.
Establish a long-term trading plan— the future is uncontrollable.
Many times, trading in the cryptocurrency market is like driving on the road.
First, learn how to drive at a driving school. Once you know how to drive, if you don’t follow traffic regulations, you will eventually have an accident. Even if you drive according to traffic rules, you may be hit by others. There are pitfalls everywhere, so to drive safely, you also need to learn to avoid these pitfalls.
What are the trading rules and regulations in the cryptocurrency market?
See below for the eight pairs of correct and incorrect trading practices in cryptocurrency:
Act in accordance with the trend, and act against the trend at your own risk. (Once a trend is established, it is difficult to change in the short term.)
Use light positions as a correct approach, while heavy positions are incorrect—position sizes affect attitudes, and attitudes affect decisions.
Being content is correct, while being greedy is wrong—greed is the enemy, while being content brings happiness.
Using stop-loss to protect profits is correct, while letting things take their course is wrong—preserving capital is the priority, making profits is secondary.
Objective trading is correct, while subjective analysis is incorrect. Objective trading adheres to the rules.
Wait patiently and act at the right moment instead of being impulsive.
Adding to winning positions is correct, while adding to losing positions is wrong; profits are in the right direction, while losses are in the wrong direction.
Maintain a calm demeanor, and avoid being overly concerned about gains and losses. The essence of trading is a clash of human nature and mindset.
Is there really a method to earn continuously in the cryptocurrency market?
1. Strong cryptocurrencies that fall from high positions for nine consecutive days must be followed up in a timely manner.
2. Any cryptocurrency that has risen for two consecutive days must be reduced in position.
3. Any cryptocurrency that has risen more than 7% will still have a chance to rise the next day; you can continue to observe.
4. For strong bullish cryptocurrencies, wait until the pullback is complete before entering.
5. Any cryptocurrency that has been flat for three consecutive days should be observed for another three days; if there is no change, consider switching.
6. Any cryptocurrency that fails to recoup the previous day's cost the next day should exit timely.
7. In the rise ranking, if there are three, there must be five; if there are five, there must be seven. Cryptocurrencies that rise for two consecutive days should be bought on dips, as the fifth day usually provides a good selling point.
8. Volume and price indicators are crucial; trading volume is considered the soul of the cryptocurrency market. When the price breaks out at a low level during consolidation, it deserves attention; at a high level, if there is significant volume but no increase, you should decisively exit.
9. Only choose cryptocurrencies that are in an upward trend for trading, as this maximizes your chances and won't waste time. A 3-day moving average turning upward indicates a short-term increase; a 30-day moving average turning upward indicates a medium-term increase; an 80-day moving average turning upward indicates a main upward trend; a 120-day moving average turning upward indicates a long-term increase.
10. In the cryptocurrency market, small funds do not mean no opportunity. As long as you master the right methods, maintain a rational mindset, strictly execute strategies, and patiently wait for opportunities, you can achieve a wealth reversal in this land full of opportunities.
If your trading mindset is poor, even if you have millions, you will still end up with nothing.
Trading cryptocurrencies is all about mindset. Cryptocurrency trading is a psychological game, a battle of wits among millions, and an intense psychological war.
The fluctuations in the cryptocurrency market reflect the psychological changes of both parties involved in trading; in a sense, trading cryptocurrencies is a test of psychological quality.
In the long run, the ultimate winners in the cryptocurrency market are mostly those with higher psychological quality and a calmer mindset.
Trading in cryptocurrencies starts with curiosity, interest, then technical skills, followed by unexpected gains, unique insights, judgment, wisdom, and ultimately, the mindset and realm.
"The most important thing in trading cryptocurrencies is mindset, followed by mindset, and then still mindset." Success relies on mindset, and failure is also due to mindset.
During a certain period, the emotions of participants, the madness and rationality of participants, will have a decisive impact on buying and selling in the cryptocurrency market.
Without good psychological quality and a calm mindset, it is difficult to become a big winner in the end.
Sometimes market movements can only be clearly seen after the fact; why couldn’t you see it beforehand?
Why do I always incur losses?
Besides technical reasons, one can also look for reasons in mindset—when prices rise, one always wants them to rise further, allowing greed to replace rationality; when prices fall, the mindset is unstable, constantly fearing further declines, with fear clouding judgment.
Some people often waver between excessive confidence and lack of confidence, usually making mistakes when overly confident and also making mistakes when lacking confidence, which may ultimately lead to a complete loss of faith.
Some say that a good mindset for trading cryptocurrencies is not to be happy with price increases, nor sad with price decreases, not happy with profits, nor sad with losses. It’s easy to say this, but hard to do. Most people entering the cryptocurrency market are just ordinary humans; they feel happy when they buy in the right direction and troubled when they buy in the wrong direction. This is human nature. What should be pursued is a state of mental calm.
If you buy correctly, don’t be blindly optimistic and lose your sense of reality. If you buy incorrectly and lose money, do not be blindly pessimistic and disappointed, which would add to your psychological burden and ultimately cause loss of judgment, compounding mistakes.
Maintain a good mindset; regardless of what happens, your mindset should not be affected. This brings more calm, less impatience, more rationality, and less blindness, keeping the mind clear and not letting market changes affect your mindset.
With a good mindset, you will achieve good results.
I am A Xin. If you don't know how to trade in a bull market, click on my avatar, follow me, and I will share plans for bull market spot trading and contract trading free of charge.
