As an old hand in the crypto world, I have unknowingly traded in the crypto market for seven years now. Surviving in the crypto world until now is not easy! Those who follow the captain know that this month we made a profit of 1900 points, all from short-term and medium-term trades. Last month, aside from sei being buried, the total profit from short and long positions was also 1900 points. The night before Bitcoin plummeted, I shorted from 29400 to 25600, and two hours before Bitcoin rose, I reminded to sell at 27000 and then it surged to 28100! Because right now is not the time for a major bull market to start, long-term positions are not suitable. If I had guided you into long-term positions at the beginning of the year, I would have been done for long ago. So, trend first! The hook tripled in the first half of the year, ach doubled, and ftt and ssv also tripled, all planned in advance for you. However, I believe! When Bitcoin breaks 31800 this time, it will directly jump to 42000! Please seize the opportunity! I have also been beaten by market manipulators before and have experienced many liquidations. I have been confused and have countless times hidden alone in a dark corner, chain-smoking. This is the price of growth!
Even though I have played in the stock market for many years, and although there are many similarities between the crypto world and the stock market, there are still many differences. Looking back now, it wasn't that I had a problem with direction; my directional grasp has always been quite accurate. The problem lies in the crypto world, which really amplifies human greed infinitely. Without strong self-discipline, it's very easy to lose oneself. After all, there is a saying: one day in crypto is equivalent to one year in the stock market.
A day in the crypto world can accomplish what the stock market does in a year!
Today, I want to share a free summary of my years of trading experience, hoping it can help everyone. Of course, here I'll mainly provide a general overview. Depending on the reactions of the fans, if everyone thinks it's necessary to elaborate, I will later release three detailed articles to discuss these three points. In summary, there are three core points:
First, position management. This is the most important! If you haven't realized the importance of position management, it means you haven't left the beginner stage. You are still in a pure novice phase! If you're interested, you can take a look; of course, I will briefly explain it here, giving what I think is the simplest and most effective, easy-to-learn method! To put it this way, position management determines how long you can survive in the crypto world! Let me briefly mention that before you open a contract, you must have already thought about where to set your stop-loss, right? (Don't tell me you haven't even thought about your stop-loss before opening a contract). The size of your position depends on where you set your stop-loss. Think about it: if this trade hits the stop-loss, can you psychologically bear the loss? If you can't bear it, it means your position is too large; you need to reduce it! If you can bear it, it means your position is just right! This is particularly easy to calculate; you can figure it out right away. Don't use percentages for your position; that's really hard to calculate. It takes time to ask; many times, a good entry point is just that moment!
Second, develop good trading habits, which includes several points:
1. Always use stop-loss orders when opening positions; this is an unbreakable discipline for contract trading. If you can't follow this point, it's better to just give your money to the market manipulators and save yourself the trouble! Never hold on to a losing position with the hope of it turning around. Out of ten trades, if you get lucky once, you may feel proud, thinking you can hold on and recover, but just one time can wipe you out! Most people are actually of this type! 2. Maintain a good mindset. When trading, never get too carried away. Don't try to recover losses immediately after a loss and start trading frequently; this is very dangerous. I have seen too many people lose money, get carried away, and then try to recover their losses with constant risky trades, resulting in zero balance overnight. This goes back to what I mentioned earlier: when you open a position, you should have already thought about where to set your stop-loss. Then you know what your loss will be if the stop-loss is hit. This is something you should have considered before opening the position. So, if your stop-loss is hit, relax your mindset, maintain a good attitude, and look for better opportunities to fight again later.
3. Don't be biased from the outset. If you understand some technical analysis, that's best; if not, then you should definitely avoid biases from the start. I have encountered too many people with this mindset: I think it will drop; now the market manipulators are deliberately pushing prices up, and the main force is holding it up. I think it will rise; I don't believe it won't go up, so I enter a buy position. With so much good news coming out, how can it not rise? Now it’s deliberately dropping, forcing out the long positions. This is a typical case of bias from the outset. To put it harshly, it's being stubborn and not admitting defeat. The market changes rapidly; you can't just think, feel, or believe something. When the market changes, we must adapt our thinking in a timely manner! If you're wrong, you must admit it; if you take a hit, you must stand firm!
Third, in contract trading, you must pay attention to the risk-reward ratio! Many people do not have the concept of risk-reward ratio in their minds. If the first two points are key factors that ensure you can survive long in the crypto world, then the risk-reward ratio determines whether you can make big money in the crypto world. Many people trade contracts blindly, not forming a systematic approach, relying solely on feelings, and not leaving themselves an exit. For me, deciding to trade depends on two things: first, through technical analysis, I have a relatively strong confidence in whether the market will rise or fall, then I will trade. Second, even if I am not too confident in technical analysis and see more bullish signals but am not too sure, if the current entry point is good, and I predict the downside is limited while the upside potential is large, then I can trade. If either condition is satisfied, I will trade, and of course, if both conditions are met, that would be best. When I generally trade, I require a minimum risk-reward ratio of 1:3. For example, I made a long position a while ago; from a technical analysis perspective, I wasn't particularly confident, but it was decent, about 70% confidence! However, I saw that the risk-reward ratio was very high, so I went for it, and in the end, the risk-reward ratio reached 17 when I closed the position. That is, I made seven times my investment. Therefore, later, using the same position size to trade other contracts, I could make seven consecutive mistakes and still not lose my principal; my margin for error greatly increased. So, my mindset while trading improves, and with a better mindset, my trading accuracy also improves. If among those seven trades, I get just one right, then I make a profit; if I get two right, I make even more. Moreover, my market analysis accuracy is still very high. Therefore, the risk-reward ratio must be emphasized; this is fundamental to determining whether you can make big money in the crypto world. On the contrary, the common mistake is to take small profits quickly and stubbornly hold on to losses.
Even if you have the right direction, you won't make money. You say you aren't losing, but who is? In the end, the captain leaves everyone with a piece of advice: short-term trading is just experience speculation! Long-term is wisdom! Because right now is not the time for a major bull market to start, long-term is not suitable. If I had guided you into long-term positions at the beginning of the year, I would have been done for long ago. So, trend first! The hook tripled in the first half of the year, ach doubled, and ftt and ssv also tripled, all of which were planned in advance for you. However, I believe! When Bitcoin breaks 31800 this time, it will directly jump to 42000! Please seize the opportunity!