How much U do you need to earn to have no worries? A real answer from a ten-year cryptocurrency trader. There is no standard answer to this question, but based on my ten years of ups and downs in the crypto world—when you earn enough money that you don't have to compromise for life, and your mindset isn't enslaved by desire, worries will naturally disappear.
I currently have eight figures in assets, and my daily expenses, family companionship, and travel spending are basically not price-sensitive (for example, I can buy first-class tickets anytime, stay in five-star hotels, and dine at Michelin restaurants without hesitation), which indeed eliminates 'survival anxiety'. However, the DNA of cryptocurrency people is inscribed with 'ambition', and my goal is to strive for a 'small target' by the end of the year.
Why does 'enough' not equal 'satisfaction'? Earning 1 million U today could mean losing 2 million U tomorrow; only continuous earning can hedge against risk anxiety. The obsession with class leap: from millions to tens of millions, you will want to break into the hundreds of millions; when you reach the billion level, you will eye ten billion. Desire is a bottomless pit, the key lies in controlling the threshold—my bottom line is: never use liquidated assets to control risk.
The mindset rules earned through ten years of blood and tears:
Always leave an escape route: no matter how optimistic you are about the market, at least keep 30% in cash or stable assets (like BTC, ETH) to prevent a mindset collapse during a black swan event.
Phased 'realizing happiness': every time you make a significant profit, you must set aside a portion to improve your life (buy a house, travel, give red envelopes to family); the money in hand is the real thing.
Beware of 'wealth inertia': those who once turned their fortunes around with contracts or meme coins are prone to become addicted to shortcuts, but luck is conserved—I've seen too many people give back the money they earned by luck to the market with their skills.
True freedom is the ability to control desires. After ten years of trading cryptocurrencies, I’d like to share some experiences with everyone, hoping to help you:
1. A surge is a signal to exit, not a signal to enter.
Interpretation: When a certain cryptocurrency suddenly surges, it often indicates that market sentiment has reached a peak, and chasing the high at this time carries significant risks. Historical experience shows that surges are usually followed by pullbacks or crashes. Therefore, rational investors should consider gradually reducing their positions during surges rather than blindly chasing highs.
2. Avoid overweighting a single cryptocurrency position.
Interpretation: Diversification is a fundamental principle of risk management. If you bet most of your funds on a single cryptocurrency and it faces problems (like a crash or project failure), your overall position will be severely impacted. A reasonable position allocation can reduce risk and avoid an 'all or nothing' situation.
3. Don't diversify too much.
Interpretation: While diversification is important, excessive diversification can also cause problems. If you hold too many cryptocurrencies, it may be difficult to track each one’s dynamics, leading to missed opportunities or an inability to respond to risks in a timely manner. It is advisable to choose a few promising cryptocurrencies for focused investment and maintain a moderate level of concentration.
4. Build positions in batches and take profits in batches.
Interpretation: In spot trading, building positions in batches can help you average out costs and avoid being trapped at high levels due to one-time investments. Similarly, taking profits in batches allows you to lock in gains amid market fluctuations, avoiding missing selling opportunities due to greed.
5. Contract trading: large funds, small positions.
Interpretation: Contract trading has high leverage and high risk, so position control must be strict. Using large funds with small positions can reduce the risk of a single trade while keeping enough capital to respond to market fluctuations. This way, even if there are losses, it won't deal a fatal blow to your overall capital.
6. Set stop-loss and take-profit levels.
Interpretation: In contract trading, stop-loss and take-profit settings are essential risk management tools. Setting reasonable profit and loss ratios (like 2:1 or 3:1) can ensure you remain profitable in long-term trading. Even with a win rate of only 50%, as long as the profit-loss ratio is reasonable, you can still maintain overall profitability.
7. Combine technical and news aspects.
Interpretation: Successful contract trading requires not only technical analysis but also attention to market news and major fund movements. Technical analysis can help you determine entry and exit points, while news can allow you to anticipate changes in market sentiment. Combining both can improve your trading win rate.
I hope everyone can truly acquire wealth through their own abilities, rather than relying on luck, intuition, or even stubbornness after losses. If you resonate with this and want to know the latest news and analysis in the cryptocurrency world, you can follow my public account [Crypto Whale].
What are the four mindsets and five major skills that a successful cryptocurrency trader should have for long-term survival in the market?
1. Don’t be arrogant or complacent when making a profit.
An arrogant person often ends up destroying themselves in their pride. In the process of investing and managing finances, if someone becomes arrogant and complacent due to profits, there will always be a day of losses. The reason lies in the fact that arrogant individuals may disregard others' opinions and suggestions due to their minor achievements. Even when the market changes, they will stubbornly believe in themselves, thinking their decisions are always right while neglecting risk prevention, ultimately likely to suffer losses.
2. Don’t rush to recover losses.
Making profits and incurring losses in cryptocurrency trading is a normal phenomenon. After discussing profits, let’s talk about losses. Profits may make some people arrogant, while losses can trigger a desire to recover. However, recovering losses also requires timing; rushing to recover can lead to irrational decisions. For example, some people rush to recover by betting all their trading funds on a cryptocurrency that seems promising. However, the market is inherently unpredictable and uncontrollable; if that stock drops, not only will they fail to recover, but they may also incur even greater losses.
3. Don’t be greedy for quick profits.
Using cryptocurrency trading to accumulate wealth is a long process. If during this process one is both greedy and seeks quick profits, it is basically impossible to achieve wealth growth. Both of these mentalities will cause one to blindly pursue profits, losing rationality when faced with high returns. However, high returns also mean high risks; blindly investing will only lead to failure. Only by pursuing stable growth of wealth can one balance risk and profit.
4. Don't worry about gains and losses.
Investors who worry about gains and losses often struggle for a long time before investing, fearing their money will result in losses. Once they finally make the decision to invest, this mentality becomes even more pronounced. If they see a decrease in their account balance, anxiety will set in, and if the decrease is too much, they will either withdraw their funds or seek rumors to try to recover quickly, which usually ends in losses. Similarly, if they hear news of platforms collapsing or withdrawal difficulties, they will worry about the safety of their investments, and even if their platform shows no issues, they may choose not to invest anymore, making it difficult to continue on the path of investment and finance.
Trading tips in the cryptocurrency world: in the vast ocean of cryptocurrency, there are actually many operational tips; phrases are much better than the dullness of reading.
Market analysis tips.
• Strong turnover phase.
• Strong chasing rise phase.
• Oscillation upward phase.
Buying tips.
1. A needle at the bottom, the timing to buy. 2. Three armies unite, looking forward to the market. 3. Two-pronged approach, buying without fear. 4. The white dragon emerges from the water, suitable for short-term trading. 5. Five suns march, the price rebounds.
6. Holding multiple lines, good prospects appear. 7. Three sticks support the ground, the market hits the bottom. 8. Two rods connect the bottom, a rebound is imminent. 9. A giant sun enters the sea, buy with confidence.
• Buying tips one: A needle at the bottom, the timing to buy.
• When the price falls to a low level, if a 'long lower shadow small body' candlestick appears one day, it is called a 'needle at the bottom'.
Cryptocurrency investment and trading must-read: eleven market rules and mindset rules to help you navigate the market with ease!
1. Trend reversal signals: In a downtrend, if there are three consecutive bullish candlesticks, it indicates a rebound; in an uptrend, if bearish candlesticks do not exceed three, it serves as a warning signal for trend reversal.
2. Breakout guide: In a fluctuating market, an increase in volume often accompanies a breakout; waiting for two consecutive bullish volumes to exceed previous bearish volumes can provide an opportunity for early entry.
3. Holding cryptocurrency tools: A strong currency holding strategy, simple and straightforward, as long as the daily line does not break the upward moving average, it is essential to hold on, ignoring technical indicators to avoid being affected by high-level dullness.
4. Candlestick pattern interpretation: A medium bullish candlestick paired with two doji candlesticks usually signifies a continuation of the uptrend and is a typical bullish pattern for strong cryptocurrencies.
5. Market anomalies: The market often proves that the views of the majority are incorrect; smoke released by major players and market tops often appear when everyone is optimistic.
6. KDJ indicator signals: When facing consecutive large bearish candlesticks, if the KDJ's J line is below -12, it indicates that a short-term rebound is imminent; it is recommended to wait for the rebound before making a judgment.
7. Characteristics of breakout bullish candlesticks: When breaking upward, a bullish candlestick turnover rate of around 8% is a healthy attack volume; too large or too small may trigger a pullback.
8. Resilient mindset: During trading difficulties, it is essential to remain calm and endure the pain of rebirth to welcome the beauty of renewal.
9. Risk control: Avoid being fully invested, leave some leeway; the market carries risks, act cautiously, and leave room for error correction.
10. Emotion regulation: Maintain the right mindset; treat market fluctuations calmly and rationally, avoiding emotions from affecting decisions.
11. Learning and communication: Don’t isolate yourself, share and communicate with others; even if opinions are wrong, it's part of growth, leading to mutual progress.
These past few days, I have been preparing for a significant order that is about to begin!!!
Comment 8, hop on!!!
The impermanence brings impermanence!!!
Important things should be said three times!!!
