After 10 years of trading coins, I reached a peak of 5 million, then lost everything in a few weeks and was despondent for half a year. I returned to the crypto world, opened a new account with 50,000 and grew it to where I am now. In fact, the so-called enlightenment from trading coins means being calm and composed regardless of market conditions, emotional state, or profit curve!
I've used 80% of the methods and techniques in the market, but the most practical is still bottom fishing! Today, I will share everything, which will surely help you turn from recovering losses to making profits.
If you want to become a master in trading coins, you must first get started! If you can do the following points, starting out should not be an issue.
1. Be absolutely honest; do not deceive yourself.
The crypto space might be the fastest place in the world to get slapped in the face; it does not tolerate lies and self-deception. Only those who are truly honest can survive here.
If the crypto world has taught me anything, it is that honesty requires courage, and courage is the noblest quality in the world. Many people's lives are filled with deception, cunning, and lies, losing the courage to face themselves honestly, creating a perfect explanation system of 'everything is someone else's fault.'
First, you need to clearly understand why you are buying cryptocurrencies and why you are selling virtual coins.
When you buy in, do you really understand its fundamentals, or did you just read an article by a big influencer on Xueqiu, or hear some so-called 'news' from a distant relative of a childhood classmate, feeling tempted to jump in because of its recent surge?
When you sell, is it because the fundamentals have changed, or are you scared and in pain from the drop, or panicking because of a rise, or losing patience seeing others gain more?
This is actually a very basic question. Most people can't make money in the crypto space because they haven't even passed this first hurdle; it isn't even a technical issue.
2. Know at every moment what you are doing and form a system and style.
When you can honestly face your buying and selling logic, you must further improve your trading system.
If you are a long-term investor, you should look at the fundamentals. For you, fundamentals are the only measure. If you are a trend investor, you should focus on strength and trends. For you, trends are the only measure.
3. Accept the drawbacks and risks of every system with openness.
In this world, there is no perfect trading system; every trading system has its drawbacks and risks.
As a long-term investor, you might feel extremely lonely, watching other popular sectors rise and rise, and you might face huge losses due to misjudging the fundamentals.
4. Patience is essential.
If you are a long-term investor optimistic about a sector and several coins, but they are not rising and even declining, while those you don't favor are hitting new highs every day, what should you do?
You are a trend investor, but recent hot stocks have not been following trends. Every time you see them about to break out and invest, they pull back the same day. Should you still stick to your trading system at this point?
5. You need to have a position and stop-loss system.
Since there is no perfect trading system in the world, you need to have a position control and stop-loss system.
Buying a coin with your entire capital and being down 40% is something only a novice would face. First, you shouldn't have gone all in when you bought, and secondly, you should have cut your losses when it fell.
6. Have the spirit to gamble and accept losses.
You are optimistic about a coin in the long term, but its price continues to drop. You firmly believe the market is wrong and keep buying more as it falls, only to find out later that the market was right and you were wrong; the coin's fundamentals have deteriorated, but you just didn't know it.
At this moment, you should not complain. You guessed the direction wrong, which led to losses; the coin was chosen by you, and the decision to hold firmly and buy more as it dips was yours. At this time, you should admit your mistake and stand tall while facing the consequences.
For most people, achieving the above is not guaranteed to make a fortune, but it definitely brings you closer to making money.
If you don’t plan to leave the crypto space for the next three years and intend to treat trading coins as a second career, you must read through these 9 iron rules. What I share are practical tips for making a living from trading coins. I believe after reading, you will avoid many detours.
Finally, let’s share a few experiences!
First, be clear about the rules of the market you are in.
But in the crypto market, with transaction fees, you have already lost the probability when you enter. You must expand the cycle and volatility space to reduce the impact of transaction fees. Don't underestimate transaction fees; they are a major reason for the failure of the coin-toss theory.
Therefore, in the crypto market, I have reduced my trading frequency to a few dozen trades a year. I calculate the number of trades like this: if I enter the market in two batches, I count it as two trades, not as one for entering and exiting.
Second, find your own trading method and only act when you're familiar with the timing.
We have many methods for entering and exiting the market, as well as numerous indicators to use. However, the more methods you have, the easier it is to make mistakes. The simpler and more singular the method, the more you can guarantee your win rate. I remember when we were training, the teacher didn't teach methods; he said everyone has their own, and it can't be taught or learned. I consider myself a mid-level trader; I can't make big money but never lose money. I have stable returns every month because my trading method seeks stability. Clients tend to like traders like me, who can profit steadily without causing devastating losses to them.
Some people enjoy both trend following and reversal trading; these are two different mindsets, and the chances of making mistakes are greater. I am best at reversal trading, so I will only wait for my opportunities and ignore the rest.
Third, buy low and sell high.
The simplest rule is this: when pork prices rise, everyone starts raising pigs, and pork prices will surely drop the following year. The market is cyclical; after a downturn, there will surely be a boom. Enter the market gradually during downturn periods when everyone is afraid, raise pigs when pork is cheap, and sell when prices rise; it’s that simple.
Fourth, capital management.
If you are going to fight a long battle, don’t invest all your funds in one go. If you plan for a quick resolution, make full use of your capital.
Control your risk. Trading institutions have risk control personnel to forcibly close positions. However, due to different trading methods, traders face varying degrees of losses. If you are trading trends and lose 10%, that's clearly a mistake; admit it and exit quickly. If you are doing reversals, a 10% loss is quite normal.
That’s about it; saying more is pointless. The best traders in the world have been through great storms. I've traded what you've traded and what you haven't, all 100,000 trades are genuine experiences summarized from practice. In trading, it's always easier to make money than to keep it. Failing to secure profits after winning is a big issue.
