I have made a total of more than 40 million yuan from the cryptocurrency industry, starting with less than 100,000 yuan in capital. I did not look for a job for 9 years and traded in cryptocurrencies full-time. During this period, I experienced drastic market fluctuations, but the key was to seize several bull market opportunities.
Big data push is not accidental. Encountering this message indicates that your good luck is coming. Please leave a message "good luck, everything goes well, and the future is promising". In the next three months, let us witness the miracle together.
If you have less than 500,000 yuan in funds and are eager to quickly make a name for yourself in the field of digital currency through short-term operations, then please pay attention to the following content. After reading it, you may suddenly understand the true meaning of short-term operations!
I have been in the investment industry for ten years, and I have been speculating in cryptocurrencies for six years to support my family. It has always been a great regret in my academic career that I have never been involved in finance. Since the beginning of college, I have developed a strong interest in stocks, finance, foreign exchange and other fields through the Internet world. The red and green screen is like a palette of life, which makes me obsessed. With infinite longing for the market, I resolutely opened an investment account in my sophomore year, and gradually got involved in the cryptocurrency circle. Bitcoin and other digital currencies gradually came into my view. With the introduction of a classmate, I have a deeper understanding of this field, and my interest has become stronger. From then on, I embarked on an investment journey.
When I first entered the cryptocurrency world, like many novices, I was obsessed with technical indicators, constantly looking back at historical data to try to find patterns; I was keen on investing in low-priced coins or coins that had a sharp correction, thinking they were safer. However, these perceptions of the market were one-sided and wrong.
After all the ups and downs, I gradually realized that if you want to quickly gain profits in the market, short-term operations are the best way. Of course, the compound interest effect of the medium and long term cannot be ignored and needs to complement short-term operations.
My experience tells me: Don't be blinded by temporary profits. You know, continuous profit is the most difficult problem to overcome in the investment world. We must carefully review and analyze the success or failure of each transaction to see whether it is the favor of luck or the embodiment of strength. Only by establishing a stable and suitable trading system can we find the golden key to continuous profit.
There is a saying that I still remember: "If you don't occupy the ideological position, others will occupy it."
Today, I would like to selflessly share with you the valuable experience I have accumulated in my cryptocurrency trading career. These experiences are the essence of my long-term success in the market. As long as you study hard, you will definitely gain a lot, and your understanding of cryptocurrency trading will also undergo a subversive change!
Many people don’t know how to play contracts, and their positions are often liquidated. I have summarized my thoughts and insights on contract trading after more than 10 years of cryptocurrency trading.
1. Contracts are essentially just a tool
Before I first came into contact with contracts, I heard different opinions. Some people thought that contracts were like a flood and a beast, while others thought that it was a machine for making nouveau riche. But in fact, it is just a tool. The key lies in how to use it. Usually large funds will use it for asset hedging, but many people regard it as a way to get rich (I had this idea at first). This is a zero-sum market. If someone makes a profit, someone must lose. Coupled with the commission of the trading platform and the possible manipulation of the market by the banker, retail investors are in a difficult situation. It is not an exaggeration to say that contracts are like a meat grinder. If you want to survive in this field, you must master the survival rules, and only the fittest can survive.
2. Be sure to set a stop loss when opening an order (please repeat it three times in your mind)
The stop loss range can be between 1 and 100 points, depending on the position ratio.
3. The so-called "eternal profit method"
Set a stop loss at the original price, and use one-tenth of the position for a test position first. If the trend is judged correctly, continue to increase the position, and then take profit when there is a callback. It sounds good, but the reality is very cruel. First of all, it is extremely difficult to judge the trend. The market is mainly characterized by oscillating trends, and there are very few opportunities to capture unilateral market conditions. Secondly, even if the judgment is correct, continuing to increase the position will push up the original opening price. Once there is a small callback, the original price stop loss may be triggered, and the handling fees for frequent operations will also be incredibly high. Although the principal may be multiplied several times or even hundreds or thousands of times if done right once, doing so in the long run will ultimately just be working for the trading platform, and there is no sustainability at all, unless you make a profit and leave immediately.
4. Newbies often don’t like to set stop losses.
I have also gone through this stage. Once the emotion of loss aversion is magnified, people will place orders frantically, thus expanding the risk infinitely. Once the capital chain is broken, you can only watch the liquidation, and many times the liquidation has already occurred before you can react. Originally, you only wanted to earn one-tenth of the profit, but ended up losing all the principal.
5. There are methods to make permanent profits from contracts, but they are definitely not something that newcomers to this field can master.
Many people participate in contract trading in order to make big money with small funds, and there are only two ways to make big money: one is to win by position, that is, heavy position; the other is to win by amplitude, such as the big drop like 312 and 519, or the big rise from 10,000 to 60,000. To catch this kind of market, any analysis may be useless. There is only one way: not to stop profit. The most brilliant way to stop profit is not to stop profit, but this is extremely anti-human. 100 times or even 90 times may be a loss or no profit or loss, and I can't do it. If the position is small, you can't make a lot of money even if the amplitude is large; if the position is large, it is useless to have a small amplitude, and it is easier to blow up the position. All those who make a lot of money are masters who can balance positions and amplitudes.
6. The market is ever-changing, just like the ever-changing positions of soldiers and the ever-changing shapes of water.
The market will always develop in the direction with the least pressure. There is no essential difference between betting on trends and guessing the size. Learning more technical analysis may be useless. It is enough to read K-line and some basic things. Technical analysis is not difficult. Just remember this sentence: If the trend is upward, it will continue to rise; if the trend is downward, it will continue to fall; if it rises a lot but has few callbacks, it will rise higher: if it falls a lot but only rebounds a little, it will continue to fall. The larger the cycle, the more effective this law is. If you understand these, you will master the core laws of technical analysis.
7. What really makes people make big money must be in the trend.
There is nothing wrong with rolling positions in the trend and using small positions to trade back and forth in a volatile market, but if you develop this trading habit, it will be difficult to get rich in this life. Although short-term trading makes money quickly, it also loses money quickly. Over time, you may earn less than you pay in fees. If you think you are the chosen one, then go ahead and try it, but you must know that losing money often starts with winning money.
8. The timing of entry is very important. Many operations that lead to losses are caused by the fear of missing out.
When you don't have a position, during the decline, you should wait for a rebound before opening a short order. Remember not to chase the decline; the same is true when it is rising. Wait for a correction before entering the market, and don't chase the rise. Doing so may miss some strong trend markets, but it is safer most of the time. However, many people only see the profits but not the risks, and finally blame others for letting them miss out.
9. Don't be afraid.
Many people are afraid of losing money in the futures market and dare not open orders again. When they trade again, they become timid and hesitant. Losses will lead to too strong purpose in doing things, too eager for results, always thinking about making profits, always wanting to avoid losses, and wanting to do it right every time. This mentality is impossible to make profits. The ancients said "Don't be happy with things, don't be sad with yourself", which can be understood in the field of trading: don't be happy with profits and don't be sad with losses. When your heart is calm enough, you will achieve something. Just like your first day in futures trading, open orders with enthusiasm and passion. Don't be afraid of wolves in front and tigers behind. Stop loss when you are wrong, and hold on when you are right. Don't rush to get off before the trend reverses, otherwise you will only be left empty-handed.
10. Passion.
No matter what you have experienced, you must maintain enthusiasm and passion, and cherish a beautiful vision for life. Be as motivated as you were when you first started working, and love as boldly as you did when you first fell in love. Many things in life are like this, whether it is career or love, there may not be any results, and there is a high probability that there will be no results, but if you don’t work hard and don’t pay, there will definitely be no results. Just do what you should do, and don’t worry too much about the results.
11. Many people are always thinking about opening a position, or even operating with a full position. For them, being short is more painful than losing money.
In fact, the time of trend market is often very short, and controlling the retracement is the most important thing. How to control the retracement? The best way is to take a short break. Don't always think about taking advantage of every market. It is enough to seize one or two opportunities a year. It is normal to miss them, so don't regret it. As long as you are still in this market and live long, there will be more opportunities in the future. Time is the only code for retail investors. You must keep a normal mind and wait patiently. Making money is just a by-product, and enjoying life is the fundamental thing.
12. The philosophy and insights of trading.
In trading, what is more important is the mentality. Knowledge is like a set of moves, and the mentality is the inner strength. Just like Qiao Feng can beat several Shaolin monks with Taizu Changquan, it is because he has deep inner strength. It is not very useful to be able to see clearly. What is important is what to do after seeing clearly, what to do after seeing wrong, how to maintain the determination to hold positions, how to have a good mentality, how not to be afraid of missing out, how not to be afraid of retracements... If you always hold a mentality of wanting to win but afraid of losing, it is difficult to make money in this market. Some things may not be understood by newcomers for a while, but as long as you are in this market for a long time, you will know that these are the truths.
