After seven years of trading, I peaked at 5 million, reaching over 9.6 million, but also experienced weeks of zero; I was in despair for half a year. I returned to the crypto world and started a new account with 50,000, which has grown to now. In fact, the so-called enlightenment in trading is being able to remain calm and composed regardless of market conditions, internal state, or profit curve!
I've used 80% of the methods and techniques in the market, but the most practical ones still involve bottom fishing! Today I will share everything; it will definitely help you achieve a path from recovery to profit.
To become a master in cryptocurrency trading, you must first get started! If you can do the following points, getting started won't be a problem.
1. Absolute honesty; do not deceive yourself.
The crypto world might be the fastest place in the world to get slapped in the face; it doesn't tolerate lies or self-deception. Only those who are sufficiently honest can survive here.
If the crypto world has taught me anything, it's that honesty is backed by courage, and courage is the noblest quality in the world. Many lives are filled with deception, cunning, and lies, losing the courage to face oneself honestly, practicing self-justification, and creating a perfect system of excuses blaming everything on others.
First, clarify the reasons why you bought cryptocurrency and why you sold virtual coins.
When you buy in, did you truly understand its fundamentals, or were you swayed by an article from a big influencer on social media, or a so-called 'tip' from a distant relative of an elementary school classmate who was excited by its recent surge?
When you sell, is it because the fundamentals have changed, or because you're feeling pain and fear from the drop, or panicking because of the rise, or losing patience seeing others make gains?
This is actually a very basic question. Most people can't make money in the crypto world, and it's not even a technical issue; they can't get past this first hurdle.
2. Know what you are doing at every moment, forming a system and style.
When you can honestly face your own buying and selling logic, you should further improve your trading system.
If you are a long-term investor, focus on the fundamentals. For you, fundamentals are the only measure. If you are a trend investor, focus on strength and trends. For you, trends are the only measure.
3. Accept the shortcomings and risks of every system with grace.
In this world, there is no perfect trading system; every trading system has its shortcomings and risks.
Engaging in long-term investment can be extremely lonely, watching other popular sectors rise and rise, and you may face huge losses due to misjudging the fundamentals.
4. Patience is very important.
If you are a long-term investor, and you have a long-term positive outlook on a sector and several coins, but they keep falling or not rising, while the sectors you don't favor keep hitting new highs, what should you do?
You are a trend investor, but the recent hot stocks aren't trending; every time you see a potential breakout, you buy in, only to see a pullback the same day. Should you still stick to your trading system?
5. You need a position and stop-loss system.
Since there is no perfect trading system in the world, one must have position control and stop-loss systems.
Buying an asset with all your funds, only to be 40% down, is a situation only a novice would face. First, you shouldn't have gone all in when you bought, and second, you should cut losses when it falls.
6. Have the courage to accept wins and losses.
You have a long-term positive outlook on a coin, but the price keeps dropping. You firmly believe that the market is wrong, buying more as it falls, only to find out that the market was right and you were wrong; the coin's fundamentals have deteriorated, but you just didn't know it.
At this point, you shouldn't complain. You guessed the direction wrong, leading to losses; the coin was your choice, and the decision to hold and buy more as it falls was yours as well. You should acknowledge your mistake and stand firm.
For most people, if they can achieve the above points, I'm not saying they will make a fortune, but they will definitely not be far from making money.
If you don't plan to leave the crypto world for the next three years and are determined to treat trading as a second career, make sure to read these 9 iron rules. What I share are essential insights for making a living from trading. I believe that after reading, you will avoid many detours.
Lastly, let’s share some experiences together!
First, be clear about the market rules you are in.
However, in the crypto market, with transaction fees, the moment you enter, you've already lost the probability of winning. You must extend the time frame and volatility space to reduce the impact of fees. Don't underestimate fees; they are a major reason the coin-flipping theory fails.
So in the crypto market, my trading frequency has dropped to a few dozen trades a year. I calculate trades this way: two separate batches of entry count as two trades, rather than entering and exiting as one.
Second, find your own trading method and only take action at familiar moments.
We have many methods for entering and exiting the market, and there are so many indicators to use. However, the more methods there are, the easier it is to make mistakes. Simpler and more singular methods can guarantee a higher win rate. I remember when we were trained, the teacher didn't teach us methods; he said everyone has their own methods, which can't be taught or learned. I am a mid-level trader, not able to make big money, but I never lose money, achieving stable returns every month because my trading method focuses on stability. Clients also prefer this type of trader, as I can achieve stable profits without causing catastrophic losses to them.
Some people enjoy following trends and also like to catch reversals; these are two different mindsets and increase the chances of making mistakes. I personally excel at making reversals, so I will only wait for my opportunity and ignore the rest.
Third, buy low and sell high.
The simplest principle is this: when pork prices rise this year, everyone will start raising pigs, and pork prices will definitely drop next year. The market is cyclical; after a downturn, there will be prosperity. During the market downturn when no one dares to enter, buy in batches, raise pigs when pork is cheap, and sell when pork prices rise. It's that simple.
Fourth, capital management.
If you plan to fight a long battle, don't invest all your funds in one go. If you're aiming for a quick resolution, make full use of your funds.
Control your risk. Trading firms have risk control specialists to forcibly close positions. However, due to different trading methods, traders face varying degrees of loss. If you're following a trend and you lose 10%, then it's clearly wrong; admit it and exit quickly. If you're trading reversals, a 10% loss is quite normal.
That's about it; saying more is useless. The best traders in the world have been through storms and waves. I've traded what you've done and what you haven't done, and every one of the hundreds of thousands of trades was real, summarized from practical experience. In trading, making money is always easy, but keeping money is hard. Failing to lock in profits after making them is a big issue.
Technique is the foundation of survival; teaching someone to fish is better than just giving them fish. The true charm of investing lies in leveraging small amounts for large returns. Holding onto profits you are sure of is fundamental to wealth management! Follow me for continuous sharing of insights from the crypto world and let's explore its wonders together!
