I have been trading cryptocurrencies for ten years and made 30 million. If you want to change your destiny, you must give the cryptocurrency circle a try. If you can't make money in this circle, ordinary people will have no chance in their lives.
I believe that first and foremost, an excellent trader must be patient to withstand prosperity!
"Five is poor, six is desperate"; this is always the case. In cycle theory, how many months can you trade in a year?
"Five is poor, six is desperate, and seven may not turn around." Every year in May, June, July, and August, I am in cash.
So when is the right time to enter the cryptocurrency market?
First, enter the market at the end of September and clear positions by the end of November.
Second, enter the market before the Spring Festival and clear positions in April.
Three: Execute the above two iron laws, of course, excluding specific scenarios of small-cap coins that main players manipulate.
Fourth, next you need to learn how to find hundred-fold coins; in a bull market, that means getting rich.
Starting trading cryptocurrency is a blood and tears history, suffering a huge loss of 80%. After deep reflection, I summarized six iron laws that I strictly follow, ultimately turning the tide! Sharing this with all cryptocurrency traders; feel free to take it.
In the turbulent sea of the cryptocurrency market, true experts do not rely solely on techniques but rather on a deep understanding of market rules and strict adherence to them. Here are their six iron laws to help you navigate the world of cryptocurrency trading smoothly while managing risks!
1. Market fluctuations are unpredictable, and mindset is key: Do not hastily declare peaks during an uptrend, nor declare bottoms during a downtrend. Just like whether Bitcoin can reach $150,000 can only be revealed when the market is frenzied. What you think is the bottom may just be a brief pause; the true bottom is always unfathomable.
2. Gradually build positions; stability is king: Experts never rush to achieve results when building positions; every buy and sell is controlled within 1%. This strategy allows them more opportunities to make mistakes, lower costs, and reduce risks.
3. Dare to chase the highs, achieve the extraordinary: In the cryptocurrency circle, fearing high prices is a sign of a cursed life. Understand that the main players' costs in a cryptocurrency are far from as simple as you imagine. Costs such as promotional expenses, chip costs, development costs, etc., can be multiples or even tens of times the investment. Therefore, daring to chase the highs is essential to seize real opportunities.
4. In a bull market, don't miss your chance: The bull market is the only opportunity for turning your fortunes around. Just like Buffett, even if he is smart, missing out on a bull market means he can only wait silently in a bear market. Therefore, in the crypto circle, seizing a bull market is seizing the key to wealth.
5. Technical indicators are for reference only: Technical indicators are often lagging and can only serve as references, not the main basis for buying and selling. During strong upward movements, while technical indicators may perform well, the price may already be high, so be cautious when chasing.
6. Confident and fearless in the market: Real cryptocurrency trading experts are full of confidence. They have experienced losses but have never been defeated. Because they firmly believe that they will eventually overcome the market, this belief is the key to their success.
Trading is not just a contest of techniques and luck; it is also a test of mindset and wisdom. Only those who master these iron laws and strictly adhere to them can stand undefeated in the cryptocurrency circle!
These are lessons learned from real trading experiences; behind each point is a period of hardship.
The purpose of sharing today is to help everyone avoid detours; it is important to take it seriously!
Now let's talk about whether it's better to play short-term or long-term in the cryptocurrency circle.
Trading is a form of practice; regardless of win or loss, the outcome is fair for everyone.
It's like a game of Snake; for us retail investors, everyone starts at a similar level. Whether you eat others or get eaten by others, everyone will ultimately find themselves in an ecological niche that matches their abilities!
Many people argue endlessly about long-term and short-term investments. I believe this is meaningless; short-term and long-term are like a person's two legs, both are necessary!
In a bull market, theoretically, you can definitely make money in the long term, but can you judge the peaks and troughs of the cycle? Can you hold a full position for the long term? In a bear market, theoretically, the short-term risk is low, but can you grasp every buying and selling point? First, no one can absolutely judge the transition between bull and bear markets, so purely discussing the above questions has many flaws!
It's difficult for anyone to come up with a suitable result on the merits of short-term versus long-term investments. I will share my views on this matter for everyone to critique! When we comprehensively judge that the market is at the end of a down cycle or the beginning of an up cycle, long-term positions can be entered. As for the amount to enter, it should be based on the capital you can afford to lose; I personally recommend about three layers of positions.
This also includes reserving part of the funds for adding to positions! If the market rises, we can enjoy the exponential growth of wealth in a bull market!
If the market falls, you won't panic due to being fully invested and feeling helpless! Short-term positions should not be neglected either. In a bear market cycle, aim for a 3% gain. In a bull market, with larger fluctuations, you can raise your profit expectations to 8-15% to gamble. If it turns out not to be a bull market, short-term positions can still provide some support.
Short-term trading also has the advantage of enhancing a trader's market sense and improving sensitivity to market changes! (Short-term trading includes both spot trading and contracts, and you should choose the method that suits you.) In a bear market, short-term trading is still possible; in a bull market, why not? A 100% increase in a wave could allow short-term experts to achieve a 300% profit!
Short-term and long-term investments are like a person's two legs moving forward alternately. If one leg hops, it not only tires you out but also doesn't allow you to go far! These two points are just prerequisites. How far you can go based on this depends on your own abilities, and the market itself is a place where the weak are preyed upon by the strong. It is natural for wolves to eat sheep. All your mistakes have nothing to do with the market; they are all your own faults. For issues we commonly mention, such as missing out, being trapped, and selling too early, I believe solutions can be found in the combination of positions!
Here are some opening position suggestions:
Option One: Fixed position ratio
You decide to adopt a fixed position ratio strategy. This means you will allocate the same proportion of funds to each investment, whether in low-risk or high-risk trades. For example, you might decide to keep the position of each trade at 5% of your total capital. This way, you ensure that you do not over-invest and maintain consistency in risk management.
Option Two: Variable position ratio
You decide to adopt a variable position ratio strategy. This means you will adjust the size of your positions based on the risks and potential returns of each trade.
For low-risk trades, you may allocate a larger proportion of funds, while for high-risk trades, you may allocate a smaller proportion. This allows you to respond more flexibly to market fluctuations and make adjustments according to the situation.
Option Three: Dynamic position management
You decide to adopt a dynamic position management strategy. This means you will adjust the size of your positions based on market conditions and your investment goals.
If the market is in a state of high uncertainty, you may reduce your position and conservatively manage risk. If the market trend is clearly upward, you may increase your position to pursue larger returns. This allows you to respond more flexibly to market changes and make adjustments accordingly.
The above are several common position management strategies. You can choose one based on your risk tolerance and investment goals. Regardless of which strategy you choose, remember that managing positions rationally is one of the keys to successful investing; it can help you balance risk and return and protect your capital from excessive exposure.
The last trading insight I have accumulated over ten years in cryptocurrency is a must-read for newcomers: secrets of trading cryptocurrency!
Trading cryptocurrencies is not as simple as you think; it's not just about buying low and selling high to make countless profits. A qualified cryptocurrency trader must not only understand economics, track news hotspots, understand national policies, and keep an eye on international situations, but also research the fundamentals and technical aspects of cryptocurrencies. Moreover, you must constantly struggle with your own fears and greed. You need to have a big heart, capable of enduring the ups and downs, from nothing to something, from something to nothing; withstand temptations and endure hardships. It can be said that those who survive in the cryptocurrency circle are basically resilient, invulnerable, and have been tempered by fire.
Three principles for making money:
Principle One: Strictly control your position at 50%; you can defend or attack. Never be fully invested. If you are fully invested and there is a significant drop, not even a deity can save you.
Principle Two: Once it has risen 2-3 times, you must first sell half to recoup your investment; then we can use the profits to slowly play with the big players. When we reach our target price, we can sell gradually. We keep 10% of our base position to avoid missing out on the benefits provided by strong players' urgent lifts.
Principle Three: When the market is frenzied and everyone is chasing the highs, you must gradually sell off your holdings in stages. Do not trust the numbers in your account; only the money in your pocket is yours; the account balance is just a string of numbers.
Three secrets to trading cryptocurrencies!
Secret One: Small cryptocurrency trading websites, which are not formal, do not invest large sums recklessly; if the website disappears, you will lose everything. If you want to play, go to reputable large sites like Huobi, Bit Era, etc.
Secret Two: Recently, there are many crowdfunding coins. Please be cautious; not all are uninvestable, but many are traps. Be careful, do not take chances, and understand clearly; it's not just about crowdfunding coins.
Secret Three: Recently, the cryptocurrency market has been relatively sluggish, and the big market is cooling down. Short-term operations should focus on observation; be careful when taking action. For long-term investments, you can choose high-quality coins ranked in the top 20 globally and build positions at lower prices in batches.
(Remember, do not be fully invested, meaning do not buy a lot of cryptocurrency at once. Invest too much money; you can first use half your funds to buy half of the cryptocurrency, control your risk and funds well. If the price rises or falls, you can timely add to your positions or cut losses. This approach will be more beneficial for making money. If you don't add to your position in time, you can minimize your losses. The goal of trading is to make money, so be prepared to avoid unnecessary losses.)
Finally, a crucial point: do not follow the crowd. Many newcomers start trading cryptocurrency and see someone saying to sell; if you don't sell, there will be a big drop. This is the dumbest thing to do because many people either have no assets or are trying to deceive newbies to create panic, forcing you to sell at a low price. Some people can't handle the anxiety and quickly sell all their assets. When you sell, those people buy at a low price, resulting in your losses. The one creating panic and buying at a low price profits. Trading advice from others is just that—advice; the key is to judge for yourself.
