Let me introduce myself briefly; everyone calls me Brother Kun. I entered the cryptocurrency space in 2014 with less than ten thousand yuan. Through the use of altcoins and contracts, after several ups and downs, I have now accumulated profits exceeding 1000 times, and I am now a professional trader in both the cryptocurrency spot and contract markets, making over ten million in profits in the market just in 2019.
Although I joined in 2014, I really only started making profits from 2019 as a professional trader. Over this more than six years, I have grown from a small 'leek' into a big 'leek.' Therefore, I understand the hearts of the small 'leeks' the best. Today, I come to share some valuable insights not to show off, not to write a personal biography, but to document my trading journey and share trading philosophies, hoping to provide skills that allow small 'leeks' in the cryptocurrency space to avoid detours and achieve financial freedom sooner.
The first four years of trading coins were a history of blood and tears, suffering an 80% loss. After reflecting on the pain, I summarized ten iron rules, strictly implemented them, and ultimately turned the tide! I share this with all traders; feel free to take it.
1. Always keep records
Try to record your feelings and operational details at that time, because words do not lie. Only through real records and careful summaries can you find direction for your next correct decision. To be honest, experiencing and witnessing such historical moments is a rare growth opportunity. In other words, this experience is the necessary path to becoming a mature investor. As the saying goes, only through personal experience can one gain a broader perspective. During the investment process, 'seeing is believing' is both an illusion and the only magical power that can truly allow people to believe and accumulate knowledge and experience. If you do not fully utilize and absorb this historical experience, it would truly be a waste of this precious opportunity.
2. Never go all in
Whether in the cryptocurrency space or the stock market, truly mature investors will not choose to go all in all the time.
Because black swan events—those extreme situations—will definitely happen, especially in volatile markets like the cryptocurrency space. This is a seemingly simple principle, but it is very difficult to execute in practice.
Of course, you may have various reasons for going all in, such as having little capital or thinking the assets you just bought are about to rise. Regardless, you will always feel reluctant to let your money sit idle, with the impulse to invest it at any moment. I completely understand this feeling. But reality is always mercilessly teaching us those who go all in.
Therefore, I decided to set aside at least 15% of my position after the next wave of increases. I originally wanted to set aside more, but I know I might not be willing to part with it, so I will take it slow; after all, cultivation is not achieved overnight. This reserved capital will only be invested when the market experiences a decline of around 30%.
3. A crash is the best test of human nature
A crash is both a mirror reflecting human nature and a touchstone for it. Just as most people can share joy but find it difficult to share suffering, every crash not only causes coin prices to plummet but also reveals the truth of human nature.
In the past, I helped several strangers make several times their money; some were grateful and insisted on transferring coins to thank me, while others felt powerful when they made money but blamed me when they incurred losses.
This recent crash has made these differences particularly evident. Of course, I'm not foolish; after this, I am clear in my mind about how to treat these people.
4. Always buy coins that you can hold with peace of mind
To be honest, the reason I didn’t panic this time is that for so many years, whether buying coins or trading stocks, I have only bought those assets that I believe are completely fine to hold for over five years. This has become my amulet for a good night's sleep.
Of course, I must admit that the various fluctuations in the market recently tempted me, and I bought some small coins. However, since the amounts were small, I can accept it even if they go to zero, so I didn't panic too much. I hope everyone can remember and follow this principle, as it will help you avoid a lot of trouble and greatly improve your quality of life. Only by holding truly quality assets can you achieve real peace of mind.
5. An eternal bull market in the heart
Another reason I am not panicked is that I already have the confidence of a hundred thousand dollars, so I am not afraid at all. I won't elaborate on this. In this industry, where so many elites and capitals have been continuously invested for over ten years, it is inevitable that it will change the world.
So, don’t scare yourself worrying about Bitcoin going to zero. If it were going to go to zero, it would have done so long ago. Oh, by the way, if you are familiar with history, you will understand a basic principle: reformers throughout history are often the targets of scorn. That’s why Bitcoin has been sentenced to 'death' multiple times.
But interestingly, Bitcoin is still resilient and can even be said to be thriving. This alone proves its strength. Neither the world's strongest governments nor the wealthiest individuals can truly bring it down. Doesn't this echo Nietzsche's famous saying: 'What does not kill me makes me stronger.'
6. After every crash, there will be a surge
Looking back at Bitcoin's history, after each large drop of around 40%, there is almost always a strong rebound, usually between 20% and 30%, often occurring in a short time (like the next day or the day after). So don't be afraid; be brave and enter the market when others are panicking, believing in historical patterns rather than being scared by the current drop.
7. Try to stay away from contracts and leverage
On May 19, 600,000 people were liquidated, and I was one of them. Data shows that within just one hour, the amount liquidated reached 6 billion dollars, with a total of 18.3 billion dollars liquidated in 24 hours. This fully demonstrates that leverage and contracts during a crash are a true 'meat grinder.' If you use high leverage, no amount of money is enough to lose. If you're not sure, keep your position small; also, the money made from contracts is usually based on luck. Be sure to enjoy it in time because today it's your money, and it could very well become someone else's tomorrow.
8. Don't let news sway your investment decisions
When the market is doing well, whether in your thinking or media reports, it seems to be filled with positive news; but during crashes, all sorts of sensational news emerge, usually appearing in a 'adding insult to injury' manner, leaving you no chance to breathe until you have thrown away your last chips.
Therefore, during extreme panic in the market, absolutely avoid looking at negative news; it provides no help. Remember the fourth principle we mentioned earlier—what we buy are always things we can hold for at least five years, so don’t be led by others or bad media. Also, during crashes, avoid all the panic messages in group chats; those small retail investors are already terrified and just want to drag you into the panic, so block them!
9. Believe in the power of cycles
The investment market is friendly to some people because they deeply understand how powerful the force of cycles is. As long as humanity continues to develop, a bull market will inevitably follow a bear market. Even without mentioning the cryptocurrency market, looking back at modern human history, has any financial crisis truly brought us to our knees? Not to mention financial crises; even disasters like world wars that devastated the physical world saw people around the globe recover at an astonishing speed.
Therefore, during a favorable cycle, you must have confidence. Entrust yourself to historical trends, patiently wait for the right moment to come, and let the bullets fly a little longer~
10. Always respect the market and dare to forge new paths
Market fluctuations will always be more severe than you imagine, whether rising or falling. For example, when Ethereum surged to 4300, how many people were willing to sell (I sold half at 3500, but unfortunately bought some altcoins later)? Now that the price has returned to around 1600, how many people dare to enter? This is one of the core reasons for successful investing: walking the path that others dare not take to achieve excess returns! Although this principle is basic, it is as difficult as a personal Odyssey in practice. In a bull market, everyone thinks trading coins is easy; just buy a coin, and it will multiply several times or even ten times. But when the market surges, people may truly understand the meaning of 'guarding your coins as if guarding a harem.'
I hope the brothers who read this can find inspiration and discover their own ways to profit. Let's meet at the peak!
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