How can a newcomer in the cryptocurrency space grow from 500 USD to 5000 USD?

Those who have been following trends over the past two weeks should be quite happy, as market sentiment has improved and there are fewer panic messages.

However, it is during times like these that we must be cautious.

To put it bluntly, this is all part of the market makers' strategy! For those who haven't secured profits yet, be sure to set moving stop-loss and take-profit orders, so that your gains don’t slip away again.

The next few days may be a bit unstable, but the rebound trend might last for another week. Remember, it’s a rebound, not a reversal.

Absolutely avoid frequent trading! I know many seasoned traders who make hundreds of trades a day.

According to big data statistics, day trading usually ends in zero.

To cope with frequent stop-losses, many people develop the bad habit of stubbornly holding onto the market and increasing their positions against the trend.

Due to the strange phenomenon of rebounds after a stop-loss, increasing positions against the trend can sometimes turn losing trades into profitable ones.

But this method is essentially a path to destruction.

If you encounter one extreme market situation, a small loss could turn into an irreversible liquidation tragedy.

During this time, those who are shorting the market seem to have made some profits, but in reality, most have likely gone to zero.

Those who can stop-loss may end up feeling lonely in their trades. Those who can't stop-loss will either be stuck deeply or have already gone to zero.

Moreover, they have paid a high transaction fee! Statistics show that transaction fees usually account for 30% to 40% of the total trading cost.

Only when there is a clear cost advantage can high-frequency traders potentially make a profit.

The real enemy is not the unpredictability of the market, but the invisible hidden costs.

For example, transaction fees and slippage, which accumulate as trading frequency increases, ultimately become the last straw that breaks the trader's back.

In comparison, swing trading and trend trading are more sustainable.

They focus on the core direction of the market, rather than the noise of short-term fluctuations.

The wisdom of trading lies in simplifying complexity and eliminating restlessness.

Being overly obsessed with short-term fluctuations can trap one in trivial details, neglecting the essence of trading.

Choosing larger cycles and focusing on trends and swings is an important step in letting go of a short-sighted mentality.

Only by doing so can you step out of the chaos of the market and truly remain calm and move forward steadily.

As a seasoned cryptocurrency investor, I, Tu Fei, share my experiences and insights. Interested in the cryptocurrency space but don’t know where to start? Follow me and check my profile to achieve freedom in this bull market.