Many people disdainfully say that those who have experienced several cycles in the crypto space and made a lot of money are gamblers, lucky ones.
Let me tell you a truth, don't be jealous; those who have gained substantial wealth in the crypto world and maintained it are not lucky; don't be unconvinced.
I won't talk about how many pitfalls there were in ancient times; they were definitely more thrilling than now. Just speaking of now, those who made a lot of money and hold a lot of money, their actions regarding their large positions must have perfectly avoided all the following issues:
1. Open contracts.
2. Bought a large amount of non-Bitcoin.
3. Keep the market in exchanges.
4. High-frequency trading, trying to buy high and sell low.
Do not underestimate these four things; if you do not pay deep attention to the crypto space, you will not understand.
Those who can make a lot of money in the crypto space must have a deep focus on the market and have been continuously trading—these people, after making substantial profits, can maintain the above four principles, indicating they must have suffered significant losses in the above matters. After their cognitive journey, they can still gather significant funds in the crypto space without resorting to the aforementioned gambling methods. Would you say that is luck?
Most people in the crypto space have merely 'once made money'; because their means to make money are only the above few, they naturally lose because of these few. And when a person realizes that these cannot truly lead to wealth yet cannot find other ways to become rich in the crypto space, that is the problem.
Let me tell you that those who have truly made money in the crypto space and maintained it long-term must meet at least one of the following conditions besides avoiding the above pitfalls:
1. There is a flagship product in the crypto space.
No matter how knowledgeable you are, you will step into the above pitfalls and lose what you should lose. But the point is, you have a product that consistently earns money in cryptocurrencies. The function of this product is that no matter how many pitfalls you step into in the crypto space, as it earns in crypto, you will always recover the lost coins. As you slowly become smarter, you no longer step into those pitfalls, and thus your coins will gradually increase—representative figures like CZ, Brother Sun, etc., they all stepped into these beginner pitfalls, but the key is that they had products that helped them continuously earn back their coins, while you did not; that is the crux.
2. Have the ability to persistently dollar-cost average.
If you do not have the ability to create products, then the easiest thing for you to match is this. Don't say again, 'Bitcoin won't rise much anymore'; this is not your reason to gamble with a large position—when has Bitcoin ever run fast? Bitcoin was low before, but that was compared to now; the Bitcoin of that year compared to the mountain race of that year was also the slower one. So where are those mountains now? Give yourself 10 years; slowly invest the money you earn over the next 10 years, allowing your earnings in these 10 years to multiply by 5 or 10; this is the best way for ordinary people to open up the crypto world.
The premise here is to have a good locking mechanism, where you can only enter but not exit; a good investment environment, where you do not invest just because you have money today or skip when you don't; and if you think it's low, you invest heavily, while thinking it's too high means you can skip investment; you also need excellent off-exchange funding capabilities. The stronger your ability to make money, the more the above rules will benefit you.
None of the above premises can be missing. A person who can have the ability to turn the tide in the off-exchange market while being humble and obedient once entering the market is inherently an impressive person; this money is what you deserve.
3. And it has been locked.
I participated in an old fund and was locked for 5 years. During this period, the crypto space experienced so many ups and downs, but this money was locked, and I couldn't move it. Were there times when I needed money in reality? Of course, I also bought a house during this period; when the investment returns hadn't come back, I had to invest in other projects and even briefly turned to the bank for funds.
Later, the coins I held dwindled in the ups and downs of my investment and entrepreneurship, but when this fund distributed profits, I found that the shares added up to several hundred Bitcoins—although the fund still did not outperform if I had directly used this money for the national currency, the issue was that it indeed could not be held in the country. The percentage loss of this fund compared to my own holdings has become much smaller.
Such things are common in the crypto world; a certain loser bought coins and ended up in jail for hitting someone, but after coming out, his wealth exceeded 100 million—this is not a story; it is reality. If he hadn’t gone to jail, he would have long since lost it all.
From then on, I actively locked the maximum share of Bitcoin and have kept it locked until now. If you believe in Bitcoin, now is the time to convert everything you have into Bitcoin, actively lock it for 10 years, and then start from scratch; after 10 years, the result may likely outperform everything else you did in these 10 years that seemed more useful.
Again, I have never seen a big shot become a big shot through trading alone—none at all; you cannot become a big shot through trading, nor can leverage make you one. Luck does not exist in this space.
Your understanding of it must be in place first; only then can it become your best wealth tool; otherwise, you will end up becoming its slave.
Last month, there was a comment under an article saying that he sold his house at Ethereum +3600, betting on the upgrades in March and April, so he opened a 2x leveraged long position. I asked him why he opened it despite saying not to use leverage; he said he was optimistic about the future and felt that 2x would not explode; could Ethereum possibly drop by half again?
Yes. I am also optimistic about the future, but I respect the market; I will never open leverage here, not because I am cautious, but because I understand it, and he does not.
In the second half of 2024, I earned about 15 million trading Bitcoin. My capital multiplied by 50 times; if it weren’t for withdrawing funds twice to buy a house, it should have been 85 times. Today, I will share a few insights; these experiences are worth 60 million, and I hope they can help you.
1. Only do high-selling low-buying of BTC/ETH.
2. Mainly use the important moving average cluster above the 4H level to judge the entry points for short positions in batches. For example, if the MA60 moving average above the 4H level continuously suppresses the price, then use this moving average as the timing to enter short positions. Stop-loss: Set it above the previous high after a spike that subsequently falls, for example, if the resistance level is at 2440, and the spike reaches 2450, then set the stop-loss above 2450.
3. Generally, use the support level below the same level or one level higher as the point for entering long positions in batches. Stop-loss: Set it below the previous low after a downward spike followed by an upward pull; for example, if the support level is at 2320, and the spike reaches 2310, then set the stop-loss below 2310, around 2300.
4. Stop-loss principal: 20% of the total principal; if reached, no further trades will be opened for that day. Daily operations generally focus on two trades, with a single stop-loss controlled at 10%. The size of the position for each trade should remain consistent.
5. Try to enter the market in batches, do not invest all at once! Try to follow the trend when opening positions; if the main trend is bearish, try to open short positions, and vice versa.
① When the overall market trend is good, chase hot coins.
② Control the profit-loss ratio around 3:1.
③ Daily stop-loss drawdown is 15%-20% of the principal; if reached, no further trades will be opened that day.
④ Daily review.
6. Dumping market: Wait in cash for opportunities to enter in batches; if there are no opportunities, just stay in cash. In such a market, not losing money is equivalent to making money.
7. Protect winning stop-loss: When the conditions for opening positions that day do not show a stop-loss target and the same-level K-line patterns do not show any pattern destruction, you can choose not to implement a protective stop-loss! As long as one of the two does not meet the conditions, you need to have a protective stop-loss. ETH: Protect profits after 20 points floating profit; BTC: Protect profits after 350 points floating profit.
8. Moving stop-loss: ETH: Implement moving stop-loss after 35 points floating profit, using the 315-minute level for movement; BTC: Implement moving stop-loss after 500 points floating profit, using the 315-minute level for movement.
9. 1. Never think about going all in for a sudden wealth; 2. Only operate according to your own market! Learn to stay in cash; do not force trades; 3. Do not make overnight trades; 4. Try to avoid trades on weekends; 5. After being stopped out, control your mindset.
In the crypto world, if you manage your positions well, you will outperform the vast majority of people.
Next, I will introduce two methods of position management:
1. Left-side position management 2. 3. 5
1) Never use all your bullets at once; buy in batches.
(2) You can divide the funds into several parts. When you are uncertain about the bottom, buying in batches is the most suitable way to average the cost.
(3) The bottom for adding positions should be flexibly adjusted based on market conditions. Do not add positions too frequently, as that would negatively affect the averaging effect; 20%, 30%, or 50% for those keen on bottom-fishing are suitable for aggressive investors.
(4) The initial amount of capital entering is relatively small; if the buying price does not rise and continues to fall, gradually increase the position, and the proportion of added positions becomes larger, thereby averaging the cost. This method has less initial risk, and the higher the funnel, the more considerable the profit.
2. Right-side position management 3. 3. 2. 2.
1) Buy 1: When the 5-day moving average crosses above the 10-day moving average, increase by 30% of your position.
(2) Buy 2: When the price effectively breaks through the life line, continue to add 30% to your position when it retraces to the life line, ensuring that the total position reaches 60% at the early stage of the upward trend.
(3) Buy 3: Breakthrough necklines or other significant resistance levels, then retrace and stabilize again, indicating the reversal upward pattern is established; add 20% to your position. The total position should reach 80%, holding coins and waiting for an upward trend.
(4) Buy 4: When the market price reappears above the life line with a golden cross of the 5-day and 10-day moving averages, it is a typical signal to accelerate upward; at this time, you should also buy the remaining 20% of your position in a timely manner to maximize profits.
Ultimately, the difficulty in earning Q is not in the method, but in the execution.
A trading system is a weapon that enables you to achieve stable profits.
It can help you mark key positions, discover entry signals, and find trading opportunities that can make you money.
So, the point is, as long as you have a stable trading system, whenever an opportunity arises within the system, just act; if you lose, you can always take revenge, do what you should do, and leave the rest to the market. In the end, you will always cover losses with profits.
However, 99% of people's biggest problem is that they do not have their own trading system, so they fear losing money when trading, because once the money is lost, it cannot be regained. Even if they regain it by luck, they will ultimately lose it by skill.
So how to have a trading system?
I have been trading coins for over 10 years, starting with 50,000, and now I support my family through trading. It can be said that I have used 80% of the methods in the market, but only the following methods have been the most practical, allowing me to catch multiple tenfold and hundredfold coins! At least I earned 20% less!
