In the last bull market, I made 42 million. Let me share my experience of earning my first pot of gold in the crypto world.
A man born in the 90s, graduated from university in 2012, worked in Shenzhen, and entered the crypto world in early 2016.
Currently, I have two houses and two cars in Guangzhou, and taking out 100,000 for consumption each month is not a burden. Most of my other assets are in exchanges.
In fact, trading is an extremely tedious task because after a long time in it, the period of passion has passed. It is no longer a phase of excitement due to fluctuations.
1. [Staying up late] That is basic operation; for our group, it is not even called staying up late, it's just a normal routine. So you often see so-called genius traders looking young but having potbellies, appearing ten years older. Fortunately, I still pay great attention to appearance since I rely on looks for a living. Hahaha~
2. [Casual] It's not as you imagine, filled with bright lights and wine every day. More often, it is actually a casual state. Even when going out to play, I cannot fully engage; an anxious state urges me not to stop, because too many people trust us, and every bit of trust is a pressure for us, which in turn pushes us to improve. Every day is not about feasting and socializing but about endlessly watching the market, keeping up with news, and reflecting and summarizing. At least that is how I am. The messages on my phone are endless.
3. [Pressure] As for pressure? Haha, from initially solving the pressure problem to now increasing the ability to withstand pressure. Some people ask why we always pay attention? Because contracts are mainly focused on short-term trading, so we basically look for suitable opportunities. Then there are replies to various questions from others, I'm still very nice, haha, and the price differences are still very large, those who understand know.
Lastly, let me talk about my trading principles:
1. Say goodbye to feeling trading and respect market emotions.
2. Strictly set stop-loss positions; the stop-loss position must consider the market and also be based on your acceptable loss.
3. Stick to your original views; if you are wrong, you pay the price.
4. Trading is not about who makes more money, but about who goes further.
Finally, I hope everyone who brushes through this article can conquer their own humanity because trading is a struggle against human nature.
To summarize what I have done well:
If you achieve these three points in the crypto world, it will be difficult to lose money again!
First point: Do not look at market comments after placing an order.
In the market, there are always two voices: one tells you that the market will fall, and the other tells you that it will rise. There will never be a day when the market uniformly sees a bullish or bearish trend. If that were the case, there would only be one type of person in the market, either all making money or all losing money, which does not conform to market laws. Therefore, after placing an order, do not think about how others in the market comment on the future rise or fall because such conflicting opinions will shake your basis for placing orders and make you uncertain whether to hold or exit early. Perhaps seeing opinions that align with your decision to exit will give you confidence, believing you will make a lot of money, but when directions are inconsistent, it can make you particularly anxious, and making wrong judgments and decisions under such a tense mindset!
Real investors, after capturing a trading signal, do not care about market changes and strictly follow their trading plan to complete the transaction!
Second point: Do not stop-loss after placing an order and then lock the position after losing.
Everyone knows that investing involves risks, and nothing is 100% certain, so when placing orders, strict stop-loss rules must be established. Stopping loss requires great courage; many people do not want to admit defeat and believe their direction is correct because admitting defeat will lead to significant losses.
However, the market will never give you any sympathy; after making a wrong decision, you should immediately protect your capital. What is even more frustrating is being locked in a position; many people have experienced it, locking and unlocking, then locking again. It drops, and you don't dare to go short, fearing that it will be hard to rise again.
It's gone up, but I don't dare to sell. What if it keeps going up? Locking positions is not just a simple loss of money, but also immense psychological pressure and pain.
Third point: Do not easily increase positions after placing an order.
Many people like to keep adding positions and charging forward. When the direction reverses, remember not to add positions; wait for the next opportunity to build positions, because if you keep adding positions, the stop-loss will inevitably move, and moving the stop-loss will only increase the losses. Some may say that after the stop-loss is triggered, the trend then follows their direction, but this requires everyone to patiently wait for a position-building point. Generally, such stop-loss triggers are due to not grasping the building position correctly or inappropriate stop-loss settings. Of course, if your trading plan is very comprehensive, appropriate position increases are feasible, but when you discover that your trading plan is incorrect, you must strictly stop-loss and exit.
Successful investors do not rely on luck; only by respecting the market, fearing the market, adapting to the market, and strictly adhering to trading discipline can one survive. When trading, do not be overly wishful thinking. We must firmly grasp the opportunity to minimize losses and maximize gains, and abandon the mentality of gain and loss to maintain an undefeated position in the market.
For short-term trading in cryptocurrencies, you must remember three iron rules!
First, when you make money, you must protect your profits. For example, if you buy a coin and it rises more than 10%, you need to be cautious. If it later drops back to your buying price, you should sell immediately. If you earn 20%, you need to set a rule that this time your profit cannot be less than 10% before selling, unless you can be sure that this is a short-term high point; otherwise, do not sell easily. Similarly, if you earn 30%, you must at least hold on to 15% of your profit before selling. This way, even if you do not have the technical ability to judge the peak, you can still let your profits roll.
Second, if you lose money, you must decisively stop-loss. If you buy a coin and lose 15% (this number can be set by yourself, but 15% is a suitable reference), you should quickly cut your losses and leave. This is to stop losses in time, so you don’t fall deeper. If it rises later, that’s okay; it means your entry point was not correct, which is a wrong trade, and mistakes must come at a cost, which is the loss. Remember, every time you open a position, you should set a stop-loss; this is an essential condition for trading.
Third, if the coin you sold drops, you must buy back at the original price. If you sell a coin and it drops, and you are optimistic about it, then buy back the same quantity of coins. This way, the quantity of your coins remains unchanged, but you have some extra capital. If it does not drop much after selling and you do not buy back, and later it rises back to your selling price, then you must unconditionally buy back.
Although doing this may waste some transaction fees, it can avoid a lot of missed opportunities.
This principle can be combined with the stop-loss principle, which means buying back when the price rises to the original price, and stopping loss if it drops again. If you find that the price of this coin is consistently unstable after operating like this multiple times, then you need to select a different price point.
In short, trading and short-term operations must follow principles; fast entry and exit do not mean blindly messing around, chasing hotspots does not mean randomly bumping, taking profits does not mean being timid, and staying in cash does not mean exiting the market. Don't be too entangled with the lowest and highest prices for buying and selling points; just be close enough.
A thousand words are not as good as a profitable trade; repeatedly fighting and failing is not as good as taking a bold step! Frequent operations are not as good as precise trades; make every trade valuable. What you need to do is find me, and what I need to do is prove that my words are not false. May our acquaintance begin with words, align with character, deepen with technology, last with kindness, and ultimately be based on integrity.
Three major principles for short-term trading in the crypto market.
Profit withdrawal principle: When you buy a coin, after buying, if you make more than 10%, you should start implementing the capital protection principle + (if it drops back to the buying price, immediately sell unconditionally). If you earn around 20%, then you must ensure that this transaction earns at least 10% before selling. To maximize profits, when you earn 20%, you must set a rule that you won't sell unless your profit doesn't drop to only 10%. Unless you are very certain about a technical peak, otherwise, do not sell. Similarly, if you earn 30%, you must sell unconditionally if it drops to earning 15%. This principle is to let profit withdrawal help you roll your profits without technical judgment of the peak.
Capital protection principle: When buying a certain coin, after buying, if you see a gradual loss of 15% (this number varies by person, but 15% is recommended), you should cut your losses and exit. This is to stop losses in time; if it rises again later, it's no problem. After all, that time was an incorrect entry point, a wrong trade. Mistakes must come at a cost; the cost is the loss, and losses will make you remember. Remembering means you won't keep chasing. We must ensure that we do not let mistakes evolve into pain. Therefore, setting stop-loss immediately upon placing an order is a very necessary condition in futures.
Original price buy-back principle: The principle of buying back at the original price works as follows: If you sell and it drops afterwards, and you are optimistic about it, you should buy back the same quantity of coins. Remember, it's the same quantity because you sold at a high price. Therefore, you have the same quantity but more capital. Then if you sell the coin, it drops and you do not buy back, and it later rises back to your selling price, you must unconditionally buy back. Doing this only wastes transaction fees, but can avoid many missed opportunities. This principle can be repeated with the capital protection principle: buy back at the original price when it rises back, and protect capital if it drops again. If you keep doing this repeatedly and find that you no longer need to operate at the current price, it proves that your selected point is not a support or resistance level and is easy to break through. You should choose another point.
In short, short-term trading must follow some basic principles, especially noting that fast entry and exit do not mean frequent entry and exit; chasing hotspots does not mean blind selection; taking profits does not mean being timid; staying in cash does not mean staying away from the crypto market. For buying and selling points, do not insist on the lowest and highest prices.
These days I'm preparing to launch a divine order!!!
Comment 168 get on board!!!
Impermanence brings impermanence, brings impermanence!!!
Important things are said three times!!!
