Having traded cryptocurrencies for over 10 years, I lost 8 million in debt during the first six years but achieved financial freedom in the last four years. As someone who has gone from a novice to an experienced trader, I can say that I have tried 90% of the methods and techniques in the market and have faced all the pitfalls. However, the most practical approach is still to look at K-line patterns combined with the KDJ indicator. This is one of the essential skills for short-term trading and swing trading, and it’s the simplest and most practical method. Simpler methods often yield higher profits, applicable in both contracts and spot trading.
If you want to treat cryptocurrency trading as a second career to support your family, you must seriously study this article, which can help you avoid 10 years of detours!
Aside from solid technical skills, I have always adhered to the following iron rules of cryptocurrency trading (suitable for everyone):
1. Establish a good investment system. When entering a certain cryptocurrency, first ask yourself if you have an entry point, and when it's time to exit, ask yourself where your exit point is. This thinking system can benefit you for a lifetime, and it's a method to quickly grow in the crypto space.
2. Get used to entering during volume breakouts and pullbacks; this significantly reduces risk. Focus only on major cryptocurrencies and avoid speculative trades. Many times, this goes against human instincts; don’t be afraid to buy just because prices have risen. The more you hesitate, the more prices will rise. The strong will continue to grow stronger.
3. When selecting cryptocurrencies, don't limit yourself to daily charts; for long-term investments, you can choose weekly charts of coins that have exited the bottom. This way, even if your technical skills aren't top-notch and you hold for a longer period, you can still make a profit when you exit. The longer the bottom consolidation lasts, the higher the main players' costs, which is worth paying attention to. After entering a coin, if your account profits by 50%, consider reducing your position by 50%. This way, no matter how the market moves afterward, it doesn't matter; you can adjust your position down and re-enter when prices rise, making your costs quickly turn negative.
4. Always remember that opportunities arise during pullbacks, while risks emerge during uptrends.
5. When others are enthusiastic, we should step back. When others abandon something, we should pick it up.
6. For short-term operations, after sticking to a certain coin, if there is no expected trend within three days, it's best to exit. If you incur a loss of 20% after entering, you must unconditionally cut your losses.
7. The most important thing in the crypto space is to go with the trend and embrace it. Understand that price is not just about being cheap; the better the entry point, the more worthwhile it is to get involved. Avoid obscure coins and learn to follow the trend—trade new coins, not old ones.
8. If the coin price is entering a main uptrend but there is no significant increase in volume, once you enter and see a rise with decreasing volume, be patient and hold until there is a massive increase in volume before considering an exit. Decreasing volume indicates that the main players have a high level of control, and a large volume at high prices is a risk signal.
9. I firmly believe that those who can persist in the Bitcoin market for over five years truly love Bitcoin.
Interest is a necessary condition for doing something well, but be careful not to become too addicted to contracts. There are examples around Big Star of people whose marriages fell apart due to excessive trading. Compared to the crypto world, family is always the most important. I have a lot to say, but each word comes from the heart and carries weight. I share these nine key insights I've summarized over the years with friends in need, and I hope to reach more people. If you find this helpful, please like, follow, and share, which is the best support for me.
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