Trading coins is actually very bloody: one makes a profit, two break even, and seven lose.
This is the only unchanging truth in this market.
If brothers are currently in a phase of loss and confusion,
And with funds under 500,000,
If you want to quickly open the situation in the coin circle through short-term trading,
So please read this post carefully.
After reading, I believe you will have a sudden realization about the essence of trading.
1️⃣ Control your desires, unity of knowledge and action.
For any doubts -- Public account: Feng Baobao is roasting sweet potatoes.
Everyone has greed, anger, and ignorance. When the market rises, they always want to make more profit, but when the market falls, they start to play dead and are unwilling to admit defeat.
Finally breaking free from a loss position, you directly become a cowherd. In this market, if you have no principles, you will definitely be swayed by the manipulators and your own emotions.
My principle is that each loss should not exceed 5% of the capital. If I profit, it should be at least 10-30%. Once I start to gain more than 20%, I will begin to take profits, ensuring that this transaction cannot lose. This way, even if your win rate is only 50%, over 100 trades, your return can reach 800%.
Is it difficult? The difficulty lies in human greed and fear, unity of knowledge and action.
2️⃣ Concentrate your investments and learn to go to cash.
The biggest pain point for retail investors: they can't go to cash, they average down in a weak position, they have little capital but many coins, and they stubbornly hold onto losses. For investments below 500,000, it's advisable not to hold more than 3 coins; for over 1 million, it can be controlled at a maximum of 5 coins. Those with a high-level moving average system trending downward, coins that are not strong and not in the mainstream track should be eliminated. Admitting mistakes may require great courage for you, but recognizing your errors is the beginning of our success.
Those who can buy are disciples, those who can sell are masters, and those who can go to cash are the founders.
When the market is bad, you must be able to control your hands. But when you truly believe in something, you must dare to go heavy. In fact, most of the profits in the investment market come from a few good coins.
My principle is that my holdings should never exceed 5 coins (BTC/SOL/ETH/BNB/Doge), even in a bull market. 20% is chosen in the bull market segment for leading coins, and the remaining 20% is always in cash waiting.
3️⃣ Volume and price are the only indicators that do not deceive.
Return to the basics, mastering volume and price is enough to help you outperform 80% of traders.
A significant volume breakout often indicates the entry of capital, usually leading to a big market movement. 0.5 times the volume indicates a clear reduction in volume; a new high with reduced volume shows that the main force has a high level of control, which can rule out the possibility of the main force unloading. In an upward trend, it is highly likely to profit.
If a coin's rise exceeds the previous day and the volume ratio is less than 1, it indicates there is still significant upward potential, and the probability of rising again the next day is very high. Conversely, if the volume is 1.5 times and it encounters resistance at a certain level, it often indicates a signal of reaching a peak. When studying volume, it must be combined with price; understanding the forces of bulls and bears is the key to mastering volume and price.
4️⃣ A sharp drop is the touchstone for a coin.
In a bull market, a sharp drop means a chance to catch the bottom, and it’s also a good time to select coins. If the market crashes and your coin only drops slightly or even not at all, it obviously indicates a gathering of funds refusing to drop. So, such coins can be held with confidence; there will definitely be returns.
If the market crashes and your coins drop significantly, but the next day the market rises and they surge, it is likely that the main force is washing the position by leveraging the market's drop. If the coin has good characteristics, you can buy it during a market crash and sell it when the market rises for short-term rebound profits.
5️⃣ Trend is king, follow the trend.
Once a trend is formed, it will not change easily. Novices die from trying to catch the bottom, while experts die from trying to catch the top. The wisest choice is not to guess, predict, or assume, but to follow the trend. If you cannot judge the trend, then look at the moving averages. The so-called moving averages should all be aligned at a 45-degree angle upwards. It’s hard to lose with such coins. If you are trading short-term, then look at the 5-day moving average; as long as it does not break below it, it will continue to be strong. The lifeline for a swing trade is the 60-day moving average. For coins in an upward trend, the first drop to the 60-day moving average often presents at least a short-term opportunity.
6️⃣ Buy at divergence, sell at consensus.
This is similar to the previous Ethereum ecosystem segment. When Ethereum rises, there will certainly be a differentiation because the main force wants to take profits when everyone is willing to take over, cashing out at high levels. So, it's important to sell when there's consensus.
Buying at a divergence, the principle of making strong coins is that the strong will always be strong. A coin can become a strong coin or a speculative coin only if it is favored by the market. Once someone sells this coin, more people will buy it, and it can continue to rise. This is reflected in the K-line shape as a reversal after the first bearish candle.
7️⃣ The more difficult the trading is, the more you need to remain calm.
Not everyone is qualified to walk the difficult road. Only those who can withstand the pain of rebirth are worthy of the beauty of rebirth. Many people suffer great losses just like I did. When I entered the market in 2017, I lost direction and didn't know where to go. I am very grateful for this experience because I stood up again, and I believe I won't fall again. In fact, when trading is going well, one should also remain low-key. Before the first half of 2017, my capital also exceeded one million. Few had money, but people became high-profile. Being high-profile only leads to blind arrogance and a gradual loss of awareness of risks.
8️⃣ Why do I choose to trade?
I was born poor and can no longer die in poverty. I don't know how many people are like me, coming from a rural background, wanting to change their fate. Previously, I made my first pot of gold in internet finance. After entering the coin circle in 2017, it seemed tailor-made for people like us. It doesn't require socializing or bowing low. If you have the ability, it becomes your ATM; if you don't, you must bear the consequences you expect. The coin circle is very fair. Of course, all breakthroughs and transitions are painfully difficult, but each failure is a step towards achieving financial freedom.
9️⃣ "A general's success comes at the cost of thousands of bones."
Trading coins is actually very bloody: one makes a profit, two break even, and seven lose. This is the only unchanging truth in this market. Many experts I know in the coin circle study Buddhism. With every major market movement, whether up or down, we choose to release life and donate. I know this is meaningless, but I seek a smooth flow of thoughts. If one day everyone succeeds, be sure to do something meaningful for society! To put it in a Buddhist way, this is cause and effect; to be serious, it’s about helping the world when one succeeds!
Ultimately, every brother in the coin circle or U.S. stocks will go through a transition from short-term speculation to long-term layout. This is not just a strategy adjustment but a key indicator of moving towards success and profitability.
$BTC $WLD $DOGE
