One day in 20 years, Master Li posted a dynamic
There is a screenshot on the dynamic post, which was sent to him by one of his fans. It seems that the person was shorting Bitcoin through contracts, and ended up suffering heavy losses due to a margin call. Then he sent a private message to Master Li to see if he had any way to save himself.
Seeing this situation, Master Li was helpless and could only sigh.
There are many investors in the cryptocurrency circle, most of whom are retail investors.
Most people are attracted by the wealth stories in the cryptocurrency circle.
However, for the majority of retail investors, not all money can be earned. For ordinary retail investors, it is impossible to participate in projects that require millions or tens of millions of yuan in capital. After all, such operations at the level of the rich are not something that retail investors can handle. So, how can we make money with just a little effort?
The price of a pound should be what the majority of retail investors are most concerned about.
Previously, Master Li had done an experiment to make a profit with a small account. In order to give inspiration to the majority of retail investors, Master Li made his operation process public.
In June of this year, Master Li registered an account and
I deposited one bitcoin, and the price of bitcoin was about 9,000 at that time.
After conversion, Master Li's capital is about 60,000 yuan.
In the first two months, Bitcoin fluctuated up and down without a significant increase. Therefore, the mage did not make much money during this period.
But starting from late July, the Bitcoin market suddenly came.
Master Li took advantage of the rising trend and added a low leverage of about 2 to 5 times. With this wave of market, he made three times the profit in one go. The principal increased from 1 bitcoin at the beginning to 4 bitcoins.
Because there was not much money in this account, Master Li did not operate it often. Later, for some reason, the IP of this account was frozen, so that the platform could not record Master Li's operations. So Master Li withdrew all 4 BTC in the account.
Later, Master Li authenticated the BM account, unfrozen it, and then he added another 2 BTC to it. The remaining 2 BTC remained in the spot account. Not long after, Bitcoin had another wave of market, and through low leverage, Master Li turned 2 BTC into 4.3
indivual.
With these two operations, Master Li made a profit in less than half a year.
500,000. This process is a classic example of making a small investment for a big gain.
Master Li made a summary of this operation. First of all, he emphasized that his operation was not due to good luck. Because for Bitcoin, there was no particularly big market in the past five months. The trend amplitude was only about 20% to 30%, and there was also a wave of decline, as well as a period of shock that lasted for several months. However, he made a profit by seizing two small and medium-sized trend markets. In this process, Master Li only went long and not short, and only played BTC, with a leverage of about 2 to 5 times.
The process is generally opening a position, testing a position, and increasing a position, that's it.
1BTC can generate 4BTC profit
Caught this wave from 11000 to 13000, from 2BTC to 4.3BTC
of income.
From Master Li’s operation, we can summarize the following four points:
experience:
First, in the process of cryptocurrency trading, operations should not be too frequent. From Master Li's operations, we can see that Master Li's operations are not many, only twice in 5 months. Even Master Li himself admitted that due to the small amount of funds in the account, he did not even spend too much energy to pay attention to this account.
This incident tells us that making money by speculating in cryptocurrencies does not require too much manipulation. It is enough to just seize the opportunity when it comes.
So, for cryptocurrency trading, being too diligent is not a good thing. The more operations you make, the more fees you pay, but the profit may not be much.
So, for cryptocurrency trading, being too diligent is not a good thing. The more operations you make, the more fees you pay, but the profit may not be much.
On the other hand, this kind of operation rhythm is not suitable for the majority of amateur traders.
After all, many amateur traders do not have the energy to watch the market all the time.
The second is to wait for an opportunity to act. The market of the cryptocurrency circle is ups and downs, unpredictable, and very volatile. Therefore, the ability to seize opportunities is very important. Don't rush to seize any opportunity, but once you make a move, you must ensure that you can make money 80%. Otherwise, once you miss the opportunity, not only will you not make money, you may even lose money. So every operation must be cautious.
Previously, the big guys in the cryptocurrency circle relied on long-term low leverage to make money by going long on Bitcoin. This method is generally stable, and low leverage can also ensure good profitability. However, once a black swan event occurs, it will cause heavy losses.
For example, in the 312 incident this year, Bitcoin once fell to 3,800 US dollars. At that time, due to the rapid decline, Xiong Zhen did not have time to cover his position, resulting in the collapse of his contract with a principal of 50 million.
Therefore, it is not safe to hold a low leverage for a long time. A sharp drop can make us lose all our capital.
Of course, when a crisis comes, it is also when an opportunity comes. If you catch it well, then you can basically make money. Take 312 as an example. If we can avoid the plunge on 312 and quickly enter the market after the plunge,
If you enter the market at $3,800, you can seize the golden opportunity to make money. Even if you don’t catch the 3,800 point, if you enter the market at $5,000, your current profit will double. Therefore, when investing in the cryptocurrency circle, we must be like a falcon, observe carefully, and kill with one strike.
The third is to use a small amount to win a big. When playing contracts, small funds are often needed to achieve good results. After all, when playing contracts with small funds, our mentality will be much better. If the operation is not good, the worst that can happen is that the position will be blown up. If you lose, you lose, just treat it as if you didn't win the lottery. But if we invest too much money, our mentality is often not so relaxed. We are afraid of being blown up every day, and even can't sleep well at night. Under pressure, we are often more likely to make mistakes.
I wonder if you have ever paid attention to the three-point shooting contest during the NBA All-Star Week. If you haven't, you can go online to look up videos of the three-point shooting finals over the years. Generally speaking, in the three-point shooting finals, the first player to play will have a psychological advantage. Once they play well, it is easy to bring great psychological pressure to the players behind them, which in turn causes the players who come on later to shoot abnormally. The same is true for investment. When there is pressure, it often leads to more mistakes.
Contracts are inherently a form of gambling, and facing huge uncertainties
When investing, controlling risks is what we should do most.
Investment is a technical job. Although everyone has the same opportunity, different people have different investment concepts and operation methods, and the investment results they get are also different. The most fundamental reason why an excellent investor can make a profit in the cruel market is that
They can see the essence through phenomena and can cleverly use human nature to make money.