I have been trading cryptocurrencies for 10 years! Professionally trading for 6 years, over 1800 days. I started with 20 yuan of capital! After experiencing various pressures, pain, and confusion over the years, I finally gained enlightenment, simplifying my trading techniques in just three years to easily withdraw 48 million from the crypto space!
My journey in cryptocurrency trading (the five stages of trading growth)
1. [Entering the Crypto Space]
When I first came into contact with the crypto space, like everyone else, I relied on luck to see which coin looked good and bought it. I don't know if it was luck or if it was the novice protection period, but in the first half of the year, my assets grew several times. At that point, I became inflated!
However, it has been proven that when a person becomes too complacent, it may be when they stumble. Reality will ruthlessly slap you in the face. When my assets were halved in a single order, I realized that the trading market is ruthless, and good luck will not always favor you!
2. [Learning the Techniques]
After my biggest trading failure, I realized that relying solely on luck is not a long-term strategy; Lady Luck will not always be on your side.
At this point, I realized that trading requires solid professional knowledge and analytical skills. I began to reflect and learn. I read relevant books, was active on various information platforms, looked for opportunities and trading insights, and combined them with technical indicators to build my own trading system.
If you just entered the crypto space and are favored by Lady Luck, this is your best learning opportunity! During the novice protection period, learn more techniques to improve your analytical skills.
But when I felt that I had learned enough about trading, my assets did not achieve explosive growth. However, I did not incur excessive losses anymore and gained the ability to combat risks. Although trading techniques are not always effective, they have given me a deeper understanding of the market, and at this point, I began to seek the truth of trading.
3. [Realization of the Way]
When I realized that different trading indicators and systems are not the key factors determining profits and losses, I began to pay more attention to trading psychology. I found that many times, profit often lies in decisiveness and waiting, rather than rushing to trade and frequently opening positions. This actually resonates with the psychology of entering the crypto space.
At this point, I realized that predicting the market is incredibly difficult, so we need to become an independent trading system that follows our own trading logic. Gradually learn position management and leverage allocation, calculating returns on a monthly basis, no longer worrying about the gains and losses of a single trade.
4. [Gradually Stabilizing]
When you have a clear trading logic and a complete trading system, and follow the above principles, you will clearly accept losses and profits. Achieving a situation where you incur small losses and make large profits will allow you to become a stable trader and investor. At this point, you will gain recognition and respect from others, becoming a 'teacher' in the eyes of others.
At this moment, only a few black swan events would impact your trading logic, but black swan events are always rare; your trading logic is something you must adhere to.
5. [Proficient]
When trading reaches a level of mastery, handling indicators and market conditions becomes smooth and effortless. Profits and losses become a matter of course, and emotions gradually stabilize. You have intuitive abilities, no longer feeling excitement about trading, but rather aiming for continuous profitability. At this moment, I gradually took on the appearance of a trader, possessing the patience, perseverance, and trading wisdom that surpass most people.
The path of trading requires continuous learning and improvement. From entering the crypto space to becoming proficient, only by constantly honing your trading system and understanding the way of trading can you achieve stable profits in the market. No one trades without incurring losses, but the goal we are learning is to incur small losses and make big profits.
After ten years of ups and downs in the crypto market, I have distilled six invincible rules, concise and invaluable. If you aim for long-term development in the crypto space, this insight is something you must savor carefully; it will become the beacon on your path, helping you avoid pitfalls and is worth cherishing.
Here, Wu Ge also wants to emphasize that the journey of trading often challenges the limits of human nature; one must cultivate independent views and face fears with contrarian thinking; only in this way can fear dissipate. When faced with a dilemma, it is worth bravely choosing the path you have never taken; the balance of victory will naturally tilt in your favor.
Once you muster the courage to take that decisive step, you have already stepped onto the shore of success. Remember, destiny is the excuse of the weak, luck is the humility of the strong; only by actively seizing opportunities and facing life with a positive attitude can you rewrite the chapters of your destiny.
Destiny does not favor anyone, but it always favors those who live seriously and strive tirelessly.
Why do 80% of retail investors lose money in a bull market? Because they sell low and buy high, and chase up and down.
According to statistics, in the last bull market, 190 million retail investors earned only 6.7 billion in total. You might say that 6.7 billion is not small; I could have a small share of it and marry a freshly graduated college student! But don’t celebrate too early; retail investors can be divided into big retail investors and small retail investors. The big retail investors with accounts over 500,000 earned a total of 254 billion, while small retail investors with accounts under 500,000 lost a total of 250 billion. Do you see the problem? Trading stocks does not create wealth; it is merely a process of redistributing wealth.
And in a bull market, it only serves to mix the wine.
What does this mean? Alcohol gives courage to the timid!
It turns out that you never touched trading; after finishing this bottle of wine, you directly jumped in, daring to take half of your savings to invest in the trading market; this is what 'wine gives courage to the timid' means.
It turns out you have always traded lightly; after finishing this bottle of wine, you jumped in directly, daring to sell your house and car, heavily investing. This is what 'wine gives courage to the timid' means.
But once you sober up, you will still sell low and buy high, still chase up and down. The reason why the ugly duckling can turn into a swan is that it was always a swan; others can make money in the trading market because they know where to buy low and where to sell high, and you just happened to see them making money in a bull market. And you! Even if you are placed in a bull market, it is still hard for you to make money; don't be unconvinced! I give you an example; see if this is your own experience.
If I told Zhang San that the PDD he currently holds could rise from 2 yuan to 1000 yuan, and that it really could reach 1000 yuan in the future, Zhang San just needs to hold firmly and sell at 1000 yuan to achieve financial freedom.
Now the question arises, when it rises to 4 yuan, do you think Zhang San will sell? Of course, he will, because Zhang San is afraid; he feels like he's just a nobody, how can you trust what I say? 4 yuan might seem like the peak of this bull market to Zhang San; if he doesn't sell now, he might get trapped! So Zhang San sold PDD at 4 yuan, doubled his money, and bought a big gold bracelet for his wife and a brand new Apple phone for his daughter.
But the market did not follow Zhang San's expectations. After Zhang San cleared his positions, PDD not only didn't fall but instead rose, reaching 10 yuan, then 100 yuan, and finally 1000 yuan! At this point, do you think Zhang San would buy back in? Of course, he would, and he would buy even more! Because Zhang San is greedy; since he could make money the first time, he believes he can make money the second time. And after all, this is a bull market! Not to mention that his neighbors, Lao Wang and Xiao Li from the company, are also making money on their second try! So Zhang San took 80% of his cash and bought PDD again at a high price.
But the market did not follow Zhang San's expectations. After buying back in, PDD fell again and again, from 1000 yuan to 100 yuan. Do you think Zhang San would cut losses and decisively leave the market at this point? Of course not! Because Zhang San is both fearful and greedy; he fears his wife will find out he lost all of his daughter's tutoring fees, while he continues to long for the poetry and distant places of the future. So Zhang San doubles down, secretly mortgaging his house behind his wife's back, frantically adding to his position.
This time Zhang San was wrong again; the market still did not follow his expectations, and the PDD he held plummeted from 100 yuan to 50 yuan, then to 30 yuan, and down to 10 yuan.
So do you understand why Zhang San would sell low and buy high? Is the market targeting Zhang San? Is the market not following his expectations? The truth is that the piece of cake in trading is not meant for someone like Zhang San who knows nothing. I will emphasize again, trading itself does not create wealth; it is merely a process of redistributing wealth. So who can small retail investors like Zhang San earn money from? Who can earn money from small retail investors like Zhang San?
For example, it's like grabbing a seat; the rules are simple: whoever can grab one of the two seats left when the music stops is the final winner. It sounds simple, but when you confidently step onto the stage, you are shocked to find that your opponents include Schwarzenegger, who is 1.88m tall and weighs 107kg, and several strong men who are around 1.80m.
Think about whether trading is like this; although the rule for making money is to buy low and sell high, the ones eyeing the market are the institutions, the big players, the retail investors, and the tens of trillions of retail investors like you.
So you ask, why do we still trade cryptocurrencies? Why do we still do trading? According to your logic, isn’t that hopeless?
No!
Although you find it difficult to earn money from institutions and big players, can you earn money from other retail investors?
Although you can't outcompete Schwarzenegger, can you outcompete a few others for a seat?
If you encounter danger in the forest worrying about being eaten by a bear, although you can't outrun a black bear, can you run faster than your companions?
......
Big fish eat small fish; small fish can't just sit and wait to be eaten by big fish! They must find a crack in the stone to hide, eat some shrimp, and nibble on some seaweed.
So do you know where the cracks in the stones are? Do you know where the shrimp and seaweed are? Alright, that’s the content we wanted to share this time. In the next issue, let’s use real cases to test whether you have the ability to catch shrimp.
By 2025, my assets reached eight digits. Today I want to share some personal insights, hoping to help those of you exploring this path.
First of all, I want to emphasize that a good mindset is more important than techniques.
1. Capital Management:
If your capital is limited, then you need to be more frugal. You only need to seize one big opportunity for growth in a year. Don't always operate with full positions; leave some capital reserves to deal with unexpected situations.
2. Improve Cognition:
Returns are closely related to your level of cognition. Simulated trading can help you familiarize yourself with the market, but real trading with real money brings greater psychological pressure and challenges.
3. Take Profits in a Timely Manner:
When there is favorable news, if you fail to sell on that day, the next day's opening high will be the best exit opportunity. Favorable news often leads to large sell-offs, causing prices to drop.
4. Holiday Strategy:
As the holidays approach, reduce your positions in advance or simply do not trade. During the holiday period, market activity decreases, and there is a high probability that the big players will stir things up when liquidity is weak.
5. Medium to Long-term Holding:
When making medium to long-term investments, ensure you have enough liquid funds on hand. Sell appropriately when prices rise and buy more when they fall, which can reduce costs and allow for flexible strategy adjustments.
6. Choose Superior Coins:
In short-term trading, choose those coins with high trading volumes. Coins with poor liquidity may put you in trouble.
7. Understand market laws:
The market usually presents a pattern where a slow decline is often followed by a gentle rebound; however, after a sharp decline, there may be a quick rebound.
8. Strict Stop Loss:
Once you discover that the direction has reversed, you should immediately stop losses and not hold on to fantasies waiting for a recovery. Protecting your capital is the most important thing.
9. Use technical analysis tools:
For short-term traders, it is very important to frequently check 15-minute K-line charts and look for buy and sell points in conjunction with indicators like KDJ. Paying attention to indicators like MACD and RSI is also a good choice.
10. Focus on mastering a few skills:
There is no need to master all technical analysis methods; just focus on a few that suit you best.
Stick to the original aspiration of your ideals.
I put this at the forefront because the vast majority of those who just enter the market will leave within six months, or even three months. Those who can persist in the market for one or two years are few, just like an iron camp with flowing soldiers.
The reason why it is difficult for people to persist in this field of trading is mainly that trading is not like an ordinary industry where you can get by with average performance. If you are at work, even if you are not top-notch in the company, being an ordinary employee still gets you a stable salary. But trading is completely different.
Trading is like boiling a kettle of water; it doesn't matter if you heat it to 99 degrees, it must be brought to a full boil. Many people give up halfway, not because they know nothing about trading, but because they get stuck at 98 or 99 degrees and cannot break through the bottleneck.
Trading has a very low entry threshold, but a very high exit threshold. Of course, once you exit, what you gain is financial and mental freedom, and that reward is also very high.
Looking back on myself over a decade ago, I can say that I was like a young calf not afraid of tigers. Unlike most people who traded part-time, I started full-time, which was a huge pressure for a young person with no income.
No matter how difficult it was along the way, I never gave up. I don’t even know where my courage came from; perhaps it is the power of young people's dreams. The phrase I liked most at the time was: 'Though a million may oppose me, I shall go forth!'
When I was young, I was bold. I had nothing: no skills, no funds, no connections, no understanding of the platform or positions, but I still wanted to do it, regardless of what others thought or how they opposed me.
Fortunately, I was lucky and finally emerged from it. There are elements of luck and talent, but I believe the more important factor is my spirit of perseverance and the original aspiration of my ideals. Many times, whether to persist or give up is a matter of an instant, relying on that breath of determination.
Many people come to trading with a casual attitude, which is actually very unwise because in trading, it doesn’t just mean 'not bad'; it is either good or bad. If you're just playing around, it’s destined to lose money. If you truly want to rely on this for a living, you must be prepared for a tough battle.
This has nothing to do with whether you are trading part-time or full-time. We also have many part-time students who perform well. The key is your attitude toward trading; it cannot be just a casual learning of the surface; if you decide to learn, you must learn it well. If you decide to do it, you must do it best. Only with this mindset can you possibly become a qualified trader, because boiling water to 99 degrees is useless.
Establish a brand new trading discipline.
When you acknowledge that your existing problems are causing your losses, you can begin to establish a brand new trading life. You can start crafting the discipline of a winner.
If trading makes you excited or afraid, you cannot fully mobilize your intelligence. When excitement makes you euphoric, you will make irrational trades, leading to losses; when fear occupies your mind, you will miss the opportunities to profit. Professional investors use their brains to maintain a calm mindset; only amateur investors allow trading to make them experience joy and sorrow. In the market, emotional reactions are a luxury you cannot afford.
Greedy amateur investors trade too frequently, wanting to trade even when there are no good opportunities. Before they figure out what’s going on, a series of losses can destroy their careers.
Formulate a set of market analysis methods, meaning that 'if A happens, then B may also happen.' The market has many aspects, and you need to use several analytical methods to confirm trading decisions. Any matter should be checked against historical data and subsequent market performance, using actual currency. The market is constantly changing; different trading tools must be used for bull markets, bear markets, and sideways markets, and there must also be a way to distinguish the differences.
The mindset, feelings, and actions of winners are vastly different from those of losers. You must conduct a deep analysis of yourself, discard illusions, and change your previous thinking and behavior patterns. Change is difficult, but if you want to become a professional investor, you must work hard to change your personality.
The three major qualities of a trader:
First, enthusiasm. You must love this market; if you are only in it for the money and do not love trading, it will be very difficult to persist in this market.
Second, courage. This courage is not just the courage to open a position, but a recognition of the courage to admit your mistakes. When you are wrong, do you have the courage to decisively cut losses?
Third, discipline. For every trade you make, you must have a plan. Where is your stop-loss point? If it really reaches the risk control point, you must execute it without hesitation. These three points are very important. The success or failure of an investment depends on the trader's psychology, focus, and personal thinking patterns.
To become a successful professional investor, one must adhere to the following principles:
1. Make the decision to stay in the market for the long term, meaning you must be a trader for at least 20 years starting now.
2. Learn as much as possible. Pay attention to expert opinions, but also maintain a healthy dose of skepticism. Ask questions, rather than simply accepting.
3. Do not be greedy; do not rush to trade. Take time to learn. The future market will always have more good opportunities.
4. Formulate a set of market analysis methods; use concentrated analysis methods to validate trading decisions. Different trading tools must be used for bull markets, bear markets, and sideways markets, and there must also be a way to distinguish the differences.
5. Formulate a set of capital management plans. The primary goal must be to survive in the long term; the second is the stable growth of assets; and the third is to achieve high returns.
6. Be aware that the trader is the weakest link in any trading system.
7. The thinking, feelings, and actions of winners are very different from those of losers.
Trends and Sideways Movements:
1. The techniques for operating in a trending market and those in a sideways range are different, primarily in how to handle strong and weak relationships. When a trend is ongoing, you must follow the stronger side, meaning buying in an uptrend and selling in a downtrend. However, in a sideways range, you must reverse your operations: buy the weak and sell the strong, meaning buy when it reaches the support level and sell when it rises to the resistance level.
2. If the market is in a range-bound phase and you are waiting for a breakout, you must decide whether to buy in anticipation of the breakout, during the breakout process, or after a successful breakout. If you are using position management, you can buy 1/3 of your position in anticipation of the breakout, another 1/3 during the breakout, and the last 1/3 during a pullback. Regardless of the method used, you must apply the principles of capital management to avoid risks, meaning that the distance between the entry point and the protective stop-loss should not exceed 2% of the total capital.
3. In a trending market, the capital management techniques in a sideways range are different. In a trending phase, positions should be set low with wide stop-losses, but in a range-bound phase, positions can be set high with narrow stop-losses.
Use rules to solve stop-loss and opening positions, use trends to solve take-profit, use trends to interpret probability, use probability to solve belief, and use profits to increase confidence. In this way, you will surely become a winning trader!
Follow Wu Ge closely, use precise strategies for analysis, and select with huge funds using AI big data to keep yourself in an unbeatable position? The market never lacks opportunities; the question is whether you can seize them. Only by following experienced and capable people can we earn more!
