(From a loss of 3 million to a profit of 40 million: My insights on trading)
Hello everyone, I am Guǐyǎn, an old player in the crypto circle for ten years. Today, I want to share my story and my experience of going from a loss of 3 million to a profit of over 40 million.
1. Lessons from a 3 million loss
In 2017, like many newcomers, I entered the crypto circle with dreams of wealth. At that time, the price of Bitcoin soared, and ICO projects were everywhere. I was swept away by the market's frenzy, investing all my savings and even leveraging.
However, reality hit me hard. In 2018, the market plummeted sharply, and Bitcoin fell from nearly $20,000 to $3,000. My account went from profit to loss, ultimately losing 3 million. During that time, I couldn't sleep, spending every day in regret and self-blame.
Insight One: The market does not always have bull markets; greed is the greatest enemy.
Don't be blinded by short-term surges, and don't easily use leverage. Leverage is a double-edged sword; it can make you rich quickly or bankrupt you instantly.
2. Learn and change
After incurring losses, I did not choose to give up but began to reflect on my mistakes. I realized that trading is not gambling but requires solid knowledge and rational judgment.
I began to systematically learn blockchain technology, study Bitcoin's white paper, and understand underlying logic such as consensus mechanisms and smart contracts. At the same time, I also began to pay attention to market sentiment, capital flow, and macroeconomics.
Insight Two: Investing in yourself is the best investment.
Only by continuously learning can you survive in this ever-changing market. Technical analysis, fundamental analysis, market sentiment analysis—these are all essential skills to master.
3. Strategy that made 40 million in profit
Through learning, I gradually formed my own trading system. Here are some key strategies I've summarized:
(1) Value investing, not speculation
I began to focus on the long-term value of projects rather than short-term price fluctuations. I would study the project's team background, technical strength, application scenarios, etc., and only invest in projects that truly have potential.
(2) Build positions in batches to diversify risk
I no longer invest all my funds at once; instead, I use a batch-building strategy. At the same time, I will diversify my funds across different assets to reduce risk.
(3) Strictly execute stop-loss and take-profit
I set strict stop-loss and take-profit points for myself. Regardless of how the market fluctuates, I will execute according to my plan to avoid emotional trading.
(4) Patiently wait for opportunities
The market is never short of opportunities; what's lacking is patience. I will patiently wait for the right entry point instead of blindly chasing highs and cutting losses.
Insight Three: Strategy is more important than luck.
Only by formulating and strictly adhering to your trading strategy can you remain undefeated in the market.
4. Cultivating the right mindset
From loss to profit is not only a victory of strategy but also a victory of mindset. Here are some insights I've gained in mindset management:
(1) Accept losses
Losses are part of trading; no one can always be profitable. The important thing is to learn from losses rather than being defeated by them.
(2) Stay calm
Market fluctuations can easily lead to emotional loss of control. Whether in profit or loss, maintain calmness to avoid impulsive decisions.
(3) Contentment brings happiness
Don't pursue overnight wealth; instead, set reasonable goals. Contentment brings happiness, allowing you to go further in the market.
Insight Four: Mindset determines success or failure.
In investment, while technology is certainly important, the mindset is the key factor that determines success or failure.
5. Advice for friends and followers
If you are also confused in the crypto circle, here are my suggestions:
Don't borrow money to trade crypto: Use spare money to invest, and don't let yourself fall into a debt crisis.
Don't blindly follow the trend: Think independently and don't let market noise sway you.
Keep learning: The market is always changing; only by continuously learning can you keep up with the times.
Help others: Share your experiences and lessons to help more people avoid detours.
6. Final insights
Going from a loss of 3 million to a profit of over 40 million has made me realize that investment is not just about accumulating wealth but also about growing mentally. The crypto circle is like a vast ocean; some sink here while others are reborn. I hope my story can provide you with some inspiration and strength!
In summary: The core of preventing losses in the crypto circle is one phrase—
"Don't be greedy for high returns, don't touch what you don't understand, and don't listen to strangers' persuasion"
Following this method, although you may not achieve mythical returns, you can steadily outperform 90% of the market participants.
Information filtering: Refuse to be a 'news retail investor'
1. Focus on the code, not the story
- Check project GitHub updates daily (a real technical team will frequently submit code)
- Treat Twitter influencers' calls and WeChat group insider information as gossip
2. Block three types of noise
- Exchange platform pop-ups "Recommended coins for soaring prices"
- Social media advertisement for "10,000 people build warehouse group"
- Friends privately message "insider information"
Ultimate mindset: Treat yourself like a Pi Yao
1. Accumulate coins in bear markets, realize profits in bull markets
- Gradually buy Bitcoin in the year before halving (reference historical cycles)
- Gradually sell Bitcoin after breaking previous highs (e.g., $69,000 in June 2021)
2. Use spare money to invest, forget the account password
- Only invest money that won’t affect your life if lost
- Stockpiling coins then deleting the exchange app, checking the market once every six months
The market will not punish you, but it will certainly teach you.
Some say that the market is the fairest teacher. It will not punish you for making mistakes, but it will repeatedly teach you the same lesson until you truly learn.
There are no 'secrets' in trading, and there are no 'shortcuts' in the market.
Many people think that the method to make money is hidden in some mysterious book or held by top traders. But in fact, all the answers are out in the open: trends, support and resistance, capital management, execution… The core of trading is merely executing these simple things to perfection.
Instead of struggling to predict, focus on the present.
Those who try to guess the market's ups and downs every day often end up either liquidating their positions or doubting themselves. The key to trading is not prediction, but execution. You can't control whether the next trade will profit or lose, but you can ensure that by consistently adhering to your trading rules, your winning rate will naturally be on your side.
Profit comes from patience, while loss requires decisiveness.
When entering the market, who doesn't want to make 'guaranteed profits'? But the truth about trading is: you must accept losses to truly make money. Losses themselves are not scary; what is scary is stubbornly holding on to losses without admitting defeat. True profit does not come from frequent trading, but from capturing the right market conditions and patiently holding profits.
The more you stare at the market, the faster you might lose.
Many people mistakenly believe that closely monitoring the market and frequent trading will increase their winning rate. But the reality is that this will only make you increasingly anxious and harder to control your hands. Those who truly make money often know how to keep their distance, waiting for the market to present opportunities instead of exhausting themselves chasing every fluctuation.
The more stable the trading, the more "boring" life becomes.
A true expert does not rely on passion and impulse but on discipline and patience. For them, trading is a tedious process of repeatedly executing strategies—rules remain unchanged, mindset stays calm, not getting carried away by profits or overwhelmed by losses. They resemble a calm executor rather than an impulsive gambler.
Surviving in the market is more important than running fast.
Trading is like a marathon; the one who wins in the end is not the fastest runner but the one who can persist through the entire course. Those eliminated by the market are not less intelligent, but they didn't survive. A true expert cares not about immediate profits, but about how to control risks, maintain rhythm, and always qualify to continue playing.
Finally, I want to say: Trading is not the market testing you; it is you refining yourself.
The market will not reward your hard work, nor will it treat you specially because of your efforts. It remains unchanged; the only thing that can change is you.
"Buying at the bottom halfway up the mountain? Unveiling the traps set by market makers, a must-read for retail investors!"
Buying at the bottom sounds tempting, but in practice, many people find themselves buying halfway up the mountain, not only failing to earn but getting trapped even deeper. Today, let's talk about why this happens and how to avoid pitfalls.
First, when you see a coin that has been falling for several months suddenly produce a big bullish candle, many people might think: "Finally at the bottom, let's buy in quickly!" But once they enter the market, they find the price drops again, and they bought in halfway. Why does this happen?
Because such big bullish candles are often a trap set by market makers. The goal of market makers in pulling up prices is either to reach their cost price or to acquire more low-priced chips. They pull the market up just enough to give hope to those who were trapped before, prompting them to sell and recover. This way, the market makers can acquire more chips at a lower price. Therefore, after a big bullish candle, prices often pull back or even drop further. If you chase the rise at this time, it is easy to get trapped.
There is another situation where market makers still have unsold stock or feel the selling price is too low, so they will deliberately pull the market up to attract those who like to chase highs to enter and take over.
So when is the real bottom-buying opportunity? One reliable situation is when the coin price declines sharply, a huge trading volume suddenly appears at the bottom, and the price quickly rebounds within 15 to 30 minutes, forming a "spike" line. This usually indicates that market makers are accumulating at the bottom. Because during a rapid drop, retail investors do not dare to buy, only market makers will buy in large quantities at this position.
Bottom buying is not just about rushing in when you see low prices; it’s about understanding the true market situation. The tricks of market makers are many, and a big bullish candle might be a trap, whereas a volume surge after a sharp drop is the real opportunity. I hope these experiences can help you avoid detours and not buy in halfway up the mountain!
Investment is a complex discipline, a comprehensive game that involves skills, techniques, mindset, and human nature. In this process, those with strong risk awareness, good risk management, and effective risk control measures are the ultimate winners.
1. Funds without time limits are a prerequisite for investment.
Funds must be absolutely free and without deadlines. Having a self-owned fund without interest pressure is a prerequisite for investing.
2. Use market traps to win
When you want to go long, a bear trap is your best opportunity.
When you want to short, a bull trap is your paradise.
3. Safety is fundamental to surviving in this market
Avoid over-trading: (avoid frequent trading and excessive single-trade margin)
4. The market is the best place to cultivate oneself; human greed, fear, and foolishness are constantly being illustrated in the capital market. Cultivating oneself in this great dye vat is the greatest benefit of the market.
To defeat the market is to conquer your own greed, fear, and foolishness.
5. Not every trade will be profitable
Every trade carries the risk of loss. Don't daydream; take earning money seriously, and never let your guard down. Focus on capital management.
6. Trading psychology is crucial. Stay emotionally stable whether making profits or incurring losses.
7. Successful trader mindset:
Don't care about money; accept the risks of trading and investing. Equally accept both profitable and losing trades, enjoy the process, and never feel deceived by the market. Always aim to improve your skills; as your skills improve, your account profits will also increase.
Keep an open mind, treat all viewpoints equally, do not get angry, summarize every trade, there is no need to conquer or control the market, have confidence and self-control, only take on risks that you can afford, trade with your own funds, take responsibility for all trading outcomes, maintain calmness during trading, be capable of facing reality, not care about market direction, and trade in accordance with the trend.
If you're stuck in a trade, how do you recover?
Loss recovery, as a term in the crypto circle, refers to selling coins when their price rebounds back to near the buy-in price to recover capital. Learning to cut losses is to truly learn to hunt; learning to recover losses is to truly understand crypto trading.
Next, I will introduce methods for recovering losses, generally divided into two types.
1. Active loss recovery strategy
1. Cut losses
If you realize that buying was a serious mistake, especially if you bought at the peak of a previous surge, you must have the determination to cut losses quickly to protect your capital. The crypto market has many opportunities; as long as you do not suffer significant losses, you can always earn back.
2. Change coins
If the coins you hold are trapped and in a weak position with further downside potential, if you accurately judge that another coin has significant upside potential and a stronger trend, you can decisively swap coins to offset losses from the old coins with profits from the new ones.
3. Short selling
When it's determined that you're deeply trapped and unable to cut losses, and if the overall market or a specific coin has further downside potential, you could consider shorting, selling the trapped coin, and then buying back at a lower price to effectively lower your cost.
2. Passive loss recovery strategy
1. Averaging down
When the buy-in price is not high or when you are optimistic about the future market, you can use the averaging technique. However, ordinary investors can usually only handle one or two rounds of averaging, so timing is crucial.
2. Lying flat
When deeply trapped with a full position, unable to cut losses or add to the position, the only option is to wait passively. As long as it is your own money, not borrowed or loaned, you have the patience to wait. Do not blindly give up in a fit of emotion, recklessly add to the position, or easily cut losses and act recklessly.
Even the most diligent fisherman will choose to safely guard his boat during the stormy season, patiently waiting for the storm to pass; sunny days will eventually come. Follow me, I will not only give you fish but also teach you how to fish. The door to the crypto circle is always open for you. By following the trend, you can embrace a smooth life. Remember, this is your wealth guide!
Hello everyone, I am Guǐyǎn. I have been in the market for many years and am well aware of its opportunities and traps. If you are struggling with investments and feel aggrieved by losses,
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