I entered the crypto market with 100,000 yuan and, after experiencing a decade of trials and tribulations, now rely on trading coins to support my family's livelihood. Throughout this process, I have distilled eight golden rules specifically to help retail investors quickly grasp the essence of investment. Though not lengthy, each word carries profound meaning, and once understood, it may help you avoid years of twists and turns in your investment journey.
These rules all stem from my years of exploration and practice in the market. Today, I wish to share them freely, hoping that each reader can draw wisdom from them, reducing the hardships of exploration and early writing their own glorious chapter in the crypto world.
There is a seemingly 'foolish' but extremely stable method in trading coins that can almost consume all profits. Below are the core principles and six rules for short-term operations to help you seek victory steadily.
Trading Rules
1. Cherish your chips and never go all in. You can only win if you stay at the table. This market does not profit from luck; it is your patience, experience, accumulation, persistence, and logic that will yield profits.
2. Learn to review and summarize; it is essential to reflect. You must summarize daily, preferably in writing.
3. Lesser-known coins are a financial game; political perspective > monetary perspective ≈ cultural perspective > pure construction perspective. Joining the narrative of major elections is more advantageous than traditional cultural cults or ordinary project teams issuing tokens (the project team’s funds > the project team’s strength) / pure meme.
4. The moment you can't resist wanting to take profits is when you should take them.
5. Maintain emotional stability in your holdings; do not self-FOMO. From a non-top narrative perspective, profits can be withdrawn at any time; non-top narratives do not have a structure, just seek profits.
6. If you haven’t entered the leading coin in time, do not chase the second leader. Wait for the next leading opportunity; believe that the strong will remain strong!
7. When encountering popular trades, rush in immediately without fear of chasing highs. When facing certain opportunities, judge the peak based on market sentiment, not price (e.g., Trump).
8. Always take out your capital when it doubles. This market is not about who earns more but about who survives longer.
9. Dynamic thinking looks at narratives; the development of narratives often goes in the opposite direction of static logical thinking due to external forces.
10. Only join in an upward trend; do not bottom-fish in a downward trend; there are still eighteen layers of hell below the bottom.
11. Memes are essentially a game of attention. Think about who will see a coin and who will buy into it.
<p data-pid="dLP5tgwb">12. Opportunities are always available, and the next one is often better. If you miss an opportunity, preserve your capital and wait for the next chance.
13. Establish your own trading logic; you must place heavy bets on your own opportunities and not envy the money outside of your logic.
14. What prevents you from making money is not the market conditions, but your own greed, fear, impatience, and hesitation. Not entering, losing and selling too late, all stem from the inability to manage your emotions.
15. Avoid junk; spread your energy. Allocate your limited energy to the most promising opportunities.
16. Prejudice in the human heart is a mountain; never be biased. Approach new things and narratives with an empty cup mindset. If you don’t understand a narrative, start with a small position, and your mindset will change after researching post-entry. If you don't achieve significant results after entering, it won't completely ruin your mindset.
17. Small narratives must run within the day; 3-5M is generally the ceiling for small narratives. Most small narratives for lesser-known coins typically don't reach 1M, while significant narratives peak at around 200-300 million. Beyond that, it depends on the emotional ferment.
18. The sudden surge in old coins and small pools is not unexpected, as those who had already set up their positions entered early. If you enter now, you are merely providing them with liquidity to exit.
19. Preserving capital is the primary principle; let profits run to have a chance at significant gains.
20. For long-term trades, do not let your average cost rise due to excessive FOMO in adding positions; counter-trend bottom-fishing will infinitely raise your cost.
21. When a token's market value/LP and trading volume are severely unbalanced, and the market value is very low while trading volume is very high, the best strategy is to add some LP to earn transaction fees.
22. The primary market is a place where small bets can yield large returns. One must not think about making large bets but rather small ones.
23. Force quantification of every trade: for example, take out 50% at 1.5 times your capital, and sell 10% for every subsequent 1.5 times increase. Prohibit averaging down, somewhat similar to the approach of top traders. With 100k, buying 1000u to 100M can still yield 130k excess returns while significantly reducing risk (the reason for taking 50% at 1.5 times is that often it may not reach 2 times, but top opportunities like Trump can consider not withdrawing capital).
24. Before heavily investing in any coin, consider if you can bear the risk if it goes to zero.
25. Take small risks without stop loss; for large risks, you must set stop losses.
26. Many top profits come from KOL's smaller accounts. You need to follow these smaller accounts to buy, letting the KOL's larger accounts help you exit with liquidity.
27. Do not add to positions; if you are stuck in a position, avoid averaging down. In short-term speculation, this often backfires.
28. After a significant loss, you must immediately summarize the experience, preferably writing it down word for word to give yourself time to calm down. Do not rush to recover; it's easy to get impulsive. This situation may also arise after a loss when one is reluctant to leave the market and blindly adds positions hoping for a rebound.
29. Prohibit adding to positions at high levels.
30. Meme is a track of small bets yielding large returns; do not bottom-fish (there will always be newer, better, more impressive narratives to FOMO into). Only ride the first wave.
These rules: Red is the highest level, blue is the second.
In conclusion, the most important thing is to persist in patient sitting, reviewing trades, conducting research, and continuously learning. Daily 12+ hours of patient sitting, scanning the blockchain, and thinking will ultimately bring you the desired results. If you cannot endure these hardships, do not enter this field. Remember, we are the most capable trading geniuses, and we will surely succeed. We will all achieve our significant results. Let us encourage each other.
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If you are blindly guessing trends in the market alone, and it always backfires! If you lack technical and news support and only look at drop lists and popularity rankings to make trades! Then it will not last long. Follow me, I post one or two trades daily. Take profits when they arise.