I have been trading cryptocurrencies for 10 years, born in 1986, currently 38 years old. Among my net assets, about nine-tenths are earned from "trading cryptocurrencies."
As a veteran in the crypto space, I have unconsciously traded in this market for 10 years. Surviving in the crypto world until now is indeed not easy! I have also been beaten by market manipulators and experienced many liquidations, and I have been confused before, often hiding in dark corners, smoking one pack after another. This is the price of growth!
From entering the crypto world with 5 to making 10 million, then going into debt by 8 million, to making a profit of 20 million, and now achieving financial freedom, I primarily mastered contract skills. Trading contracts in the crypto world is like playing with your heartbeat; it’s thrilling and more exciting than riding a roller coaster.
After multiple experiments, I have summarized the possibility of turning 3000 yuan into 1 million, as well as the path that ordinary people can realistically take!
1. Contracts are essentially just a tool.
Before I started getting into contracts, I heard various opinions; some thought contracts were like a flood beast while others believed they were a means for the nouveau riche. But in reality, it is just a tool, and the key is how to use it. Normally, large funds use it for asset hedging, which is to protect against losses; however, many people treat it as a shortcut to wealth (I initially had such thoughts too). This is a zero-sum market; if someone profits, someone else must lose. Coupled with the transaction platform’s cuts and possible market manipulation, retail investors find themselves in a difficult position; saying contracts are like a meat grinder is not an exaggeration. To survive in this field, one must master the survival rules; only the fittest can survive.
2. When opening a position, it is essential to set a stop-loss (please repeat this in your mind three times).
The stop-loss range can be between 1 to 100 points, which should be determined based on the position size.
3. The so-called 'eternal profit method.'
Set stop-loss at the original price, first use one-tenth of the position for trial trading. If the trend judgment is correct, continue to increase the position, and then take profits during pullbacks. It sounds beautiful, but the reality is very harsh. First, judging the trend is extremely difficult; the market mainly exhibits volatile movements, and the opportunities to catch a one-sided trend are few and far between. Secondly, even if the judgment is correct, continuing to increase the position will raise the original opening price, and once there is a slight pullback, it may trigger a stop-loss at the original price. The transaction fees from frequent operations can also be astonishingly high. Although doing it right once may multiply the principal several times or even hundreds or thousands of times, doing this long-term will ultimately just make you a worker for the trading platform, with no sustainability, unless you make a profit and leave immediately.
4. Beginners often dislike setting stop-losses.
I have also gone through this stage. Once the emotion of loss aversion is magnified, it can drive people to trade frantically, thereby infinitely expanding risk. Once the capital chain is broken, you can only watch helplessly as your account is liquidated, and many times you may be liquidated before you even realize it. What started as a desire to earn a tenth of the profit ends up losing all the principal.
5. There are methods for always making money with contracts, but they are certainly not something that beginners in this field can master.
Many people participate in contract trading to make big money with small funds. To make big money, there are only two paths: one is to win by position, which means heavy trading; the other is to win by magnitude, such as during significant declines like 312, 519, or substantial rises from 10,000 to 60,000. To take advantage of such magnitude movements, any analysis may be useless; there is only one method: not taking profits. The most brilliant profit-taking method is not taking profits, but this is extremely counterintuitive. You may lose out 100 times or even 90 times without making a profit or loss, and I cannot achieve that. If the position is small, no matter how large the magnitude, you can’t make big money; if the position is large, a small magnitude is also useless, and it is more likely to get liquidated. All those who make big money are experts at balancing position and magnitude.
6. The market changes unpredictably, just like the army has no constant formations, and water has no constant shapes.
The market always develops in the direction of least resistance. Betting on trends and guessing sizes are essentially the same; learning more technical analysis may not help. Being able to read candlesticks and some basics is usually enough. Technical analysis is not actually difficult; just remember this phrase: if the trend is upward, it will continue to rise; if the trend is downward, it will continue to fall; if there is a large rise but little pullback, it will rise even higher; if there is a large decline but only a minor rebound, it will continue to fall. The larger the cycle, the more effective this rule is. Understanding these principles means mastering the core laws of technical analysis.
7. What truly allows people to make big money lies within the trend.
Engaging in rolling positions within a trend is fine; however, if you develop a habit of trading back and forth with small positions during volatile markets, it will be very difficult to hope for wealth in this lifetime. Short-term trading can bring money quickly, but losing money also happens quickly. Over time, you may find that what you earn is less than the transaction fees paid. If you think you are the chosen one, then go ahead and try it, but know that losing money often begins with winning money.
8. The timing of entry is very important; many losses stem from the fear of missing out.
When there is no position, during a decline, wait for a rebound before opening a short position; remember not to chase the fall. The same goes for an upward trend; wait for a pullback before entering, do not chase the rise. Doing so may cause you to miss some strong trend movements, but most of the time it is safer. However, many people only see profits and ignore risks, and in the end, they blame others for missing out.
9. Do not be afraid.
Many people in the futures market are scared of losing and no longer dare to open positions. When they trade again, they become hesitant and indecisive. Losses can lead to excessive purposefulness in actions, a strong desire for results, always thinking about making a profit, and trying to avoid losses. This mindset makes it impossible to profit. The ancients said, 'Do not rejoice in gains, nor be saddened by losses.' In trading, it can be understood as: do not rejoice in profits or be saddened by losses. When your heart is calm enough, you will achieve success. Go into trading with the same passion and enthusiasm as your first day in futures; do not be afraid of wolves behind or tigers ahead; if you are wrong, set a stop-loss; if you are right, hold on. Don’t rush to exit before the trend reverses, or you will only miss out.
10. Passion.
No matter what you have experienced, maintain enthusiasm and passion, with a beautiful longing for life. Be as full of fighting spirit as you were on your first job, and love boldly as you did on your first love. Many things in life are like this; whether in career or relationships, there may not always be results, likely there won’t be results. But if you don’t make an effort or contribute, then there will definitely be no results. Just focus on doing what needs to be done, do not overly worry about the outcome.
11. Many people think about opening positions every moment, even trading at full capacity. For them, being in cash is more uncomfortable than losing money.
In fact, the duration of trending markets is often very short; controlling drawdowns is the most important thing. How to control drawdowns? Staying in cash is the best method. Don’t always think about capturing every market movement; seizing one or two opportunities in a year is enough. Missing out is completely normal; there’s no need to regret. As long as you are still in this market and survive long enough, there will be plenty of opportunities in the future. Time is the only code for retail investors; you must maintain a calm mindset, wait patiently, making money is just a byproduct, enjoying life is fundamental.
12. The mindset and insights of trading.
In trading, what’s more important is the mindset; knowledge is like techniques, while the mindset is inner strength. Just like Qiao Feng can easily defeat several Shaolin monks using the Taizu Changquan due to his deep inner strength. Being able to see accurately is not very useful; what’s important is what to do after seeing it correctly, what to do after seeing it wrong, how to maintain composure in holding positions, how to have a good mindset, how not to fear missing out, how not to fear drawdowns... If you always hold a mindset of wanting to win and fearing to lose, it is very difficult to make money in this market. Some things newcomers may not grasp for a while, but as long as you spend enough time in this market, you will know these are truths.
Currently, the market is full of turmoil; walking alone is lonely. Follow me for daily spot potential layouts and bull market strategy layouts.
