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I have been trading cryptocurrencies for 10 years, struggled for 4 years, and realized one thing: trading is simply a repetition. When you reach the peak, you will suddenly understand. Today, I unreservedly share the trend charts of my trading experiences to help those climbing the mountain below understand the truth and essence of trading!
As the old saying goes, 'Without windfall wealth, there is no wealth; without night grass, there is no fat horse.' Many people enter the crypto world hoping to make a big profit and reach the pinnacle of life. However, due to lack of the right methods, things often go awry, and in the end, they lose both their wives and soldiers. Thus, many people begin their learning journey, such as buying books, researching materials, or learning from experienced individuals, etc.
What kind of people can really master Bitcoin in the crypto world?
There are only two types of people: those with vision and those with insight.
(1) Visionary people can grasp the general direction of the future; insightful people can seize current major opportunities. In fact, it can be very responsible.
I can only tell everyone: you can only rely on your continuous trial and error to learn from losses, then take various detours and gradually navigate the river.
(2) There are actually many ways to earn money in the crypto world; some may be unrecognized by you, but there are definitely people who can make money. You just haven't seen it.
His growth is entirely the same as yours; without the solid roots laid in the early years, there will be no explosive phase later.
Any success is never accidental.
(3) If you want to earn steadily, you must go through a bottleneck period of several years; six months to learn techniques, one year to practice execution, and one and a half years to practice mindset.
During a bottleneck period, the most important thing is to minimize losses. If you are willing to invest time, energy, and good at summarizing, and have a good mentor,
With friends accompanying you, the journey in the crypto world becomes much simpler. A thousand miles of starlight, as always. Follow the public account (Crypto Sunny Day), and you will surely gain something. Helping others is like helping oneself; there is no bad market, only poor operations. I hope that regardless of how the market changes, we can always walk together, and ten years later, we can still look at the crypto world with a smile.
Having traveled through many twists and turns, I share some insights from my ten years of cryptocurrency trading experience, heartfelt words that can help everyone’s understanding and thinking in cryptocurrency trading.
Trading cryptocurrencies can turn great losses into great wealth!
One, about returns
Assuming you have 1 million, when your returns reach 100%, your assets will reach 2 million. If you then lose 50%, it means your assets will return to 1 million. Clearly, losing 50% is much easier than earning 100%.
Two, about price fluctuations
If you have 1 million, after a 10% increase on the first day, your assets will reach 1.1 million, but after a 10% drop the next day, your assets will remain at 990,000. Conversely, if you drop 10% on the first day and then rise 10% on the second day, your assets will still be 990,000.
Three, about volatility
If you have 1 million, earning 40% in the first year, losing 20% in the second year, earning 40% in the third year, losing 20% in the fourth year, earning 40% in the fifth year, and losing 20% in the sixth year, your remaining assets will be 1.405 million, with an annualized return of only 5.83%, even lower than the interest rate of a five-year treasury bond.
Four, about earning 1% daily
If you have 1 million and can earn 1% daily before exiting, after 250 days, your assets could reach 12.032 million; after 500 days, your assets could reach 145 million.
Five, about earning 200% per year
If you have 1 million and achieve a 200% return over five years, your assets will reach 243 million after five years, but such high returns are challenging to sustain.
Six, about achieving tenfold over ten years
If you have 1 million and hope to reach 10 million in ten years, 100 million in twenty years, and 1 billion in thirty years, you need to achieve an annualized return of 25.89%.
Seven, about averaging down
Suppose you buy a certain cryptocurrency when it is 10 yuan for 10,000 yuan, and now it has dropped to 5 yuan. If you buy another 10,000 yuan, your average cost will drop to 6.67 yuan, not the 7.5 yuan you might have imagined.
Eight, about holding costs
If you have 1 million and invest in a cryptocurrency for a 10% profit, when you decide to sell, you can leave 100,000 yuan worth of assets, making your holding cost zero. After that, you can hold long-term without pressure. If you are extremely optimistic about this cryptocurrency and leave 200,000 yuan worth of assets, you will find that your profit will increase from 10% to 100%. However, don’t get complacent because if the currency drops by 50% later, you may still incur losses.
Nine, about asset allocation
There are risk-free asset A (annual return 5%) and risk asset B (return -20% to -40%). If you have 1 million, you can invest 800,000 in risk-free asset A and 200,000 in risk asset B. Thus, your worst annual return would be zero, and your best return might be 12%. This is the prototype of the CPPI technique used in capital preservation funds.
Summary of practical experience: the 'secret weapon' of trading strategies
After years of trial and error in the crypto world, I have accumulated some practical trading strategies. The following sayings are the crystallization of my personal experience.
Entry Section
Testing the waters in the crypto world, preparing to take the lead; entering steadily, refusing to act recklessly.
Sideways Section
Buying at low levels during sideways movement is timely for heavy bottom fishing; selling decisively without hesitation when high levels are reached.
Volatility Section
Sell on spikes, buy on dips; observe during consolidation, and reduce trading.
Consolidation means using sideways movement instead of falling; hold tight to your assets, and a rally may come in the next second. Be wary of rapid rises followed by sharp drops, always be prepared to take profits; a slow decline may be a good time to gradually increase your positions.
Timing Section
Don’t buy on spikes; don’t sell on drops; during consolidation, don’t trade.
Buy on bearish candles, sell on bullish candles; contrarian operation is the key to standing out.
Buy on big drops in the morning, sell on big rises; don’t chase high in the afternoon after big rises, and don’t buy after big drops the next day; don’t sell at a loss during morning drops, and if the market is flat, take a break; average down during being trapped to seek preservation of capital; excessive greed is not advisable.
Risk Awareness Section
A calm lake can rise high waves; there may be big waves ahead; after significant rises, a correction is inevitable, and the K-line shows a triangle over many days.
In an uptrend, look for support; in a downtrend, look for resistance.
Holding a full position is a big taboo; stubbornness is not feasible. When facing uncertainty, one must know when to stop and grasp the timing of entering and exiting.
Trading cryptocurrencies is essentially about trading mindsets; greed and fear are the biggest enemies. Be cautious when chasing highs and cutting losses, keeping a calm and peaceful mind leads to freedom.
Besides sayings, I have also organized several extremely practical trading methods, which can benefit both novice beginners and experienced players.
Volatility trading method
Most markets are in a volatile pattern; utilizing high selling and low buying within a range is the foundation for stable profits. Use BOLL indicators and box theory, combining technical indicators and patterns to accurately identify resistance and support. Follow the principle of short-term buying and selling, and avoid greed.
Breakout trading method
After a long period of consolidation, the market will choose a direction; entering after a trend change can yield quick profits. However, one must possess accurate judgment skills for trend changes, maintain a steady mindset, and avoid greed and fear.
Unilateral trend trading method
After a market breakout, a one-sided trend will form; trading with the trend is key to profit. Enter during corrections or rebounds, referencing K-lines, moving averages, BOLL, trend lines, etc.; only with proficiency can you navigate smoothly.
Resistance and support trading method
When the market encounters key resistance or support levels, it often faces obstacles or gains support; entering at this time is a common strategy. Use trend lines, moving averages, Bollinger Bands, and parabolic indicators to accurately judge resistance and support levels.
Correction and rebound trading method
Significant price increases or decreases will lead to temporary corrections or rebounds, so seize the opportunity to profit easily. Mainly judging based on candlestick patterns, good market feeling can help you accurately grasp high and low points.
Time-based trading method
Morning sessions have low volatility, suitable for conservative investors; although order profit time is long, the market is easy to grasp. Evening and late-night sessions have high volatility, suitable for aggressive investors; they can earn quickly but face high difficulty and strict requirements for skills and judgment.
I hope these experiences and insights can help you. Remember, in the crypto world, the most important thing is to maintain a calm mindset and strict operational discipline. I wish you success in your future investments.
Bitcoin trading, large and small cycles determine entry points, with profits multiplied tenfold.
Previously, I talked about entry points in trading systems; choosing the right entry point is crucial for trading.
Anyone with practical trading experience knows that when the market fakes a breakout or the entry point is poor, leading to excessive stop losses, the only option is to reduce entry funds. A big market usually yields less profit.
Everyone needs to summarize their own entry methods; don’t mention those who enter based on random feelings.
A method I often use is to combine large and small cycles to find entry opportunities.
Since we are trend traders, our methods must include trend judgment, and then choose trading levels according to our trading style.
Therefore, I recommend using three periods: long, medium, and short to make judgments.
1. Large cycle: determine direction and analyze trends, assess whether it is in consolidation or trend, only engage in trend initiation and continuation phases, and wait during consolidation...
2. Medium cycle: operational level, holding level
3. Small cycle: entry level, stop-loss level
Choose large, medium, and small cycles based on your trading habits.
The following diagram reveals how to combine large and small cycles. The industry saying is to follow the large cycle, counter the medium cycle, and follow the small cycle.
Understanding trading in cryptocurrencies is a similar process, from losing seven to breaking even to earning one; it’s about focusing without distractions and not being greedy for various profit models. Firmly sticking to this trading system will eventually turn it into your ATM.
Where there are high mountains, there are paths for travelers; where waters are deep, there are ferrymen. I am Ah Gui, providing both 'fish' and sharing 'fishing' techniques, making your operations even better, becoming the sharpest blade in the market!
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