Having traded cryptocurrencies for 10 years, I'm here to share my personal insights!
I am 38 years old this year. I started my cryptocurrency journey at 25, and by 2024-2025, my assets successfully rose to eight figures.
Looking back over the past ten years, I have hardly fallen into those business disputes filled with bickering and tension; I have much less to worry about, and precisely because of this, I have the leisure and patience to summarize my insights from these years. In my view, the mindset in cryptocurrency trading is of utmost importance, while the technical aspects are secondary.
Next, I will share my valuable experiences with everyone without reservation.
A day in the crypto world is like ten years in the human realm, showcasing its ever-changing nature.
I have been in the crypto world for 10 years. When I first entered, I suffered heavy losses, but over time I have had both losses and gains, and now I support my family with it.
Summarizing 10 points of experience for everyone's reference, making it hard to lose.
Stocks protected by manipulators:
When the market crashes, if the coin in hand doesn’t fall, it is likely being protected by manipulators. These coins may have solid fundamentals or potential good news, so hold on tight; the subsequent profit space is large.
Beginner's guide to moving averages:
Beginners should pay more attention to macro information when buying and selling. For short-term, look at the 5-day moving average; hold on above it and exit below it; for medium-term, focus on the 20-day moving average and operate similarly. Stick to a simple moving average strategy and act decisively.
Short-term response strategies:
If you buy a coin and don’t move it for three days, change it immediately. If it drops right after buying and loses 5%, decisively stop-loss and use funds efficiently to avoid further loss.
Opportunities for rebound after a sharp drop:
If a coin has halved from its high and has fallen for nine consecutive days, it may have little room to fall, and a rebound is imminent; decisively buy to catch the rebound.
Investment logic for leading coins:
To invest in the cryptocurrency market, one must chase leading coins, which have strong upward momentum and resilience against declines. Don’t hesitate because of high prices or significant drops; buy when an upward trend is established and sell when it reverses.
Bottom fishing and trend balancing:
Don't be obsessed with bottom fishing; falling coins may have no bottom. Investment should follow the trend, accurately grasp entry timing, and the probability of profit in an upward trend is high.
Building a trading strategy:
In the crypto world, don’t get carried away after making a profit; continuous profit is what’s difficult. After each profit, review whether the strategy was effective or if it was just luck, and build a strategy that suits you.
Using a cash position strategy:
When unsure about the market, maintain a cash position; capital safety is the top priority. Entering the crypto world is for the stable appreciation of assets, not for gambling-style investments. Trading is about success rates and profit-loss ratios.
Key points for investing in new coins:
In the early stages of new coins, due to market optimism, funds pour in to push up prices, but they may lack fundamental support. When market sentiment shifts and funds withdraw, it can lead to a sharp drop in prices, so investment must be prudently assessed.
Consensus and wealth in the cryptocurrency world:
Digital currencies develop through consensus mechanisms, and participants earn wealth through belief and effort, showcasing the power of consensus and the wealth-creating potential of the cryptocurrency world.
If someone is confused by market fluctuations and doesn’t know how to deal with being trapped, or feels misled during operations, remember to learn more.
In a market of fluctuating long and short positions, with emotions rising and falling, why is making money in the investment market so difficult? In fact, it’s not; on the contrary, making money is quite simple, it’s just that you have not yet grasped the winning way.
Fengchu helps people solve different problems every day. Some have mindset issues, some have operational problems, and some have cooperation issues. Regardless, although the problems are complex, as long as you handle them step by step with patience, they will ultimately be resolved smoothly. This is Fengchu's principle of handling affairs, and it is also a guide to facing investments; step by step, and with your feet on the ground!
Here at Fengchu is just a basic idea; I also advise new friends to set stop-losses and take profits during operations and stay away from being trapped!
| The way of financial trading |
The cryptocurrency market is a high-risk market, and while it creates high profits, it inevitably comes with high losses on the other side. Strictly executing discipline is the only way to avoid significant losses and move towards profitability.
Ironclad execution includes three aspects: strict stop-losses, strict control, and strict processes.
If a judgment error occurs and strict stop-losses are not implemented in time, it may lead to significant losses or even total collapse. In executing this discipline, one must be resolute and decisive; do not wait, do not look, and absolutely do not harbor any fantasies of luck. For successful traders, strict control over each loss is key to wealth. Generally, if you make mistakes three times in a row or more, you should temporarily withdraw and rest until your state is adjusted before re-entering the market.
The main reasons for ordinary traders' investment failures are as follows |
1. Loss of control over capital management and heavy trading (speeding without control will inevitably lead to crashing into a tree).
2. Not realizing the immense importance of discipline in the cryptocurrency market! (Dealing with stop-losses is not about decisively cutting losses, but allowing luck, procrastination, and hesitation to dictate behavior, ultimately resulting in huge losses when feeling fear.)
3. Not placing high importance on "stop-loss" trading discipline, being greedy for small profits, hoping for perfection, and fearing losses makes "stop-loss" appear meaningless.
4. Without a clear, scientific, and systematic trading method, relying on various vague techniques and market feel makes it difficult to escape the serious constraints and interference of human weaknesses.
5. Trading when personal physical, emotional, and mental states are poor, with many distractions in the surrounding environment, and unclear thinking can lead to significant trading mistakes.
6. Participating in high-risk varieties recklessly without years of accumulated trading experience.
7. The habit of averaging down (increasing positions on losing trades).
8. The habit of trading against the trend and trading recklessly (especially holding positions overnight against the trend). Traders must follow discipline, and this must be taken seriously!
| The core of trading |
1. Currency trading is not about commodities, but about human nature: adhering to consistent trading discipline and strategies;
2. The essence of currency trading = strictly controlling profit-loss ratios, closely following market trends, using constant small losses to test and capture major trends;
3. Successful currency trading = an effective trading system + correct execution + effective capital management;
4. The key to stable profits = establishing a trading system that suits you: one indicator + one concept = the secret weapon;
5. Effective capital management: Currency trading is like boxing; your boxing ability is not your striking power but your ability to take hits.
6. Correct execution is essential for successful futures trading.
7. The wise win before the battle; those who win after the battle are using poor strategies;
8. The key to making big money: long-term trading + adding positions in line with the trend = small losses and large wins;
No amount of talk can compare to a practical profit, and for those who are confused by the recent money-making opportunities, Fengchu wants to say if there are gold coins everywhere in the cryptocurrency world and some people are picking them up safely, why are you still hesitating on the sidelines?
Allowing followers and those who trust you to profit is the best way to fulfill promises, but in this process, Fengchu believes you will definitely face challenges from different market conditions. The only thing to do is to resist temptation and endure loneliness. The market fluctuates repeatedly, operations yield both losses and gains, and no one profits completely. This market is inherently unfair; momentary wins or losses do not determine success or failure. Without confidence, just earn it back; do not hesitate; the one who laughs last is the true winner.
Of course, if you have a reckless mindset, then failure is inevitable. Seeking to win steadily has always been emphasized by Fengchu, and if you want to profit steadily, then have a good talk with Fengchu!
Trading psychology - Overcoming human weaknesses
Anyone who trades in cryptocurrencies must have a strong heart after being tempered by the market; otherwise, they will never become a qualified cryptocurrency investor, and making money is even harder than reaching for the sky.
Everyone knows that the cryptocurrency market has two significant characteristics: trading 24/7 all year round; extremely high volatility. This market with both characteristics only exists in the cryptocurrency world, bringing both great opportunities and high risks.
Therefore, to make money in the cryptocurrency market, in addition to having the decision-making logic and investment trading logic mentioned earlier, one must maintain a stable mindset, learn to restrain the inherent greed and fear of human nature, as greed and fear are also the two main actors in trading psychology, leading to the vast majority of trading behaviors.
As a trader, one cannot escape the psychology of wanting to get rich quickly, which is greed. 'Beginners die chasing prices, while veterans die bottom fishing'—this saying speaks to the consequences of greed. This kind of greed exists in stock markets, crypto markets, and all financial markets. In any financial market, stories of sudden wealth abound, which is precisely what drives people to trade. Once they enter the market, they want to make money immediately; this is even more pronounced in the crypto world, where retail investors often think they can turn 10,000 into 1 million.
The desire for quick riches easily clouds their judgment; they rush forward with money without considering the risks. In the end, those who want to make 100 times quickly either get wiped out by altcoins or face liquidation from futures contracts that fall by 10 or 20 times. Greed and the rush to get rich are major reasons why most retail traders get chopped. Little do they know, the trading market always follows the 80/20 rule; a few people make money, while the majority lose. I estimate that in the crypto world, it might even be a 90/10 situation.
If you think seriously, you'll easily understand that very few players in the crypto world who have made significant money did so in just a few days or through one wave of the market; they all made money only after playing for a long time. In simple terms, it requires time to exchange for space. The appreciation space of crypto assets is still there. Whether hoarding coins or trading, as long as you have enough patience, abandon the desire for quick wealth, and control your greed, there will always be a day to succeed.
Panic is the opposite of greed, but they are like twin brothers, inseparable. Whether it’s chasing rising prices or frequent operations, the root cause is this kind of trading psychology at play.
In the minds of retail investors, there are a million directions in a minute. When prices rise, they chase in; when prices fall, they hurry to sell out. In fact, the price hasn’t fluctuated much; it’s just that the psychological demons amplify their panic. The result is that retail operations and market trends are like two sine waves with a 180-degree phase difference, forever out of sync, as if targeted by manipulators, becoming counter-indicative. Exhausted, they cut losses back and forth.
I believe many of you have had this experience; beginners often do this, and even seasoned traders will do the same when their state is off. The root cause is a psychological issue—trading psychology. It’s clear how important trading psychology is to traders. It’s important to remind that this psychological journey of growth is not something you can master just by reading others' articles; it requires real inner cultivation during the trading process, and only through continuous trading can you truly experience, practice repeatedly, and correct it to gain rewards.
It can also be described as a war without gunpowder, a game between human nature and the market. Overcoming the weaknesses of human nature is key to achieving victory in this war, which is where the saying 'trading is anti-human' comes from.
Want to double the account, want to eat big profits, want to successfully recover costs
Stay close to cut off losses and position in advance for the main upward trend of the bull market!