I’ve been trading crypto for 10 years, and it wasn’t until six years ago that I explored and found a trading system that suited me, and that was only after guidance from a mentor!
While I can't claim to be extremely wealthy now, I can say I have achieved stable profits and can steadily outperform over 80% of people.
Long ago, I understood that an excellent trading system could effectively help investors invest. I also realized that without a trading system, doing investment without any rules is destined to lose more than win.
However, summarizing a trading system is really quite difficult.
An excellent trading system is also counterintuitive; it requires you to overcome greed and fear, to be decisive, not to make subjective assumptions, and to execute strictly.
True crypto trading experts simplify to the essence, repeatedly doing simple things; this short-term trading model has a win rate as high as 98.8%. Learn this process to easily turn 100,000 into 10 million, focusing solely on this one model!
1. Diversification is not superstition; it is a lifesaver!
How exactly to divide?
For example, if you have 30,000 USDT, divide it into three parts, each part being 10,000 USDT. Use only one part for each trade, locking the remaining in your wallet as if it doesn’t exist.
Remember two numbers: Bitcoin maximum 10x, altcoins not exceeding 5x!
Even if you are sure it will surge, don’t be greedy! The higher the leverage, the easier it is for the exchange to wipe you out with a single spike.
For example, if you open a 10x position with 10,000 USDT in Bitcoin, a 10% drop would evaporate your account. But if you only open a 5x position, you would need a 20% drop to get wiped out, doubling the margin for error.
Position diversification has a hidden function: curing impulsiveness!
When people lose money, they are prone to 'revenge trading,' resulting in increasingly severe losses.
After diversifying your positions, even if you lose one position on a bad day, the remaining two can help you stay calm. Is losing 10,000 and losing 30,000 the same mindset?
2. High leverage = chronic suicide; don't be stubborn!
There are always people who refuse to accept it: 'Old Wang next door made a BMW overnight with 100x leverage; why can't I?'
Brother, Old Wang won't tell you that he's blown his account 10 times, nor will he say that his BMW was exchanged for his house deed.
The truth about high leverage boils down to two points:
1. The spike is a remedy for defiance: Exchanges love you high-leverage traders; a spike at midnight can wipe out your entire capital.
2. Mentality directly collapses: opening 100x and being anxious when the price fluctuates by 1%, can you still operate rationally?
Remember:
- Bitcoin exceeding 10 times = betting your life
- Altcoins exceeding 5x = giving away money
The lower the leverage, the more daring you are in holding positions and the more you can ride the trend!
Three major ways to die in contrary positions:
1. Stubbornly holding: 'I don't believe it won't drop!' — Result: capital lost completely.
2. Averaging down: 'If it drops again, I will add to my position to average down!' — Result: running out of ammunition.
3. Superstitious type: 'The K-line has formed a golden cross, it must reverse!' — The dealer hits you with a big bearish line to teach you a lesson.
The right posture: better to miss out than to give your head away!
Is the market going crazy? Just watch! Missing out doesn’t cost money, but going against the trend can be fatal.
A principle of trading solves two issues.
This principle is: buy strong, sell weak!
Why buy strong and sell weak? Are you also following this principle in your operations? If you don’t understand the reasons, think more about it; I won’t explain much here. Adhering to the principle of buying strong and selling weak will greatly increase your returns and reduce risks!
The first question is: the judgment of the trend!
We all know that trading should follow the trend, and the probability of doing it correctly is greater than 50%. So, which trend should we follow?
How to judge trends and trend changes? The issue of which trend to follow has already been resolved in trading methods because you have determined your operating cycle. Once you determine the trading cycle, discussing trends with others becomes meaningless, because different operating cycles may lead to different trend directions. Therefore, whatever others say about rising or falling has nothing to do with you. Just use your own trend judgment standards to make sense of it in your own cycle.
After understanding the trend, only trade in the direction of the trend; this solves the problem of following the trend! Of course, there are also standards for judging trend reversals, which are also aimed at following the trend! As for what method you use to judge, anything is acceptable!
Trend lines and moving averages are good; they are simple and clear, with no subjective judgment involved!
The second question: the structure of the trend!
Once you understand the basic structure of trends, the trends will be clear and understandable to you, no longer a tangled mess! So what is the basic structure of trends?
Is it Shen? Jia? You? Say? Finally it's say! Once you understand that the 'say' position is a perfect position for offense and defense, will you still trade blindly?
As mentioned, this is not a secret discussion; there is no issue of it not working once said. Because this is an unchangeable essence!
The Dao is the bones, supporting the framework of trading! The law is the sinews, connecting the inside and outside; the technique is the muscle covering it. Thus, trading reaches a complete state!
Patiently holding a position, waiting for trends and opportunities
Patiently wait for the market to show a truly perfect trend; do not make predictive interventions; 'timing is everything.' Buy at the right time and sell at the right time. Trading is not something that needs to be done every day. Those who think trading needs to be done at all times ignore one condition: trading requires reasons, and they must be objective and appropriate.
If you can avoid the turbulence of a 'major washout,' you can take home enormous profits.
Only when the market shows strong trending characteristics, or your analysis indicates the market is brewing a trend, can you safely enter a position.
The above are theories from predecessors; my understanding is that there are two reasons for entering a position:
1. A trend that can be clearly identified using your own analytical methods.
2. 'Certain' entry signals that have undergone sufficient testing and verification.
Knowing when to hold cash is wise; this statement has some truth. Holding cash isn’t difficult; it’s just when the trend lacks certainty, one should hold cash and not trade.
Patiently holding a position, waiting for the trend to conclude.
Trends are sustainable. My 'ideas' have never made me big money; it has always been my 'staying put' that earned me big money. Do you understand? It's about staying put! In an uptrend, your approach is to buy in and hold tightly until you believe the uptrend is about to end.
It is rare to find someone who can judge correctly and stay put. I find this is the hardest thing to learn.
'Following the trend' positions can yield significant profits, so don’t easily 'abandon ship.'
"Cut losses short and let profits run"; the purpose of patiently holding a position is to maximize profit, and the key is how to close positions. Solving how to close positions can solve the issue of patiently holding a position. After more than a year of repeated exploration, I've found a method.
Do not think about buying and selling at the highest or lowest points. Use a shorter time frame and exit on the right side. Although you may lose some profit, you can hold positions until the trend ends and maintain consistency in closing positions.
Tips for improving profit success
The market is a very magical place; it can bring immense wealth, but most of the time it brings joy and sorrow, margin calls, and exit losses. Today, let's discuss the tips that experienced traders use to succeed in the market.
Solve the following three problems, and you will be close to stable profitability.
1. What can ultimately allow investors to achieve sustained profits?
2. How can we improve the risk-reward ratio in investing?
3. What are the tricks for quickly flipping small amounts of capital?
To solve these problems, there is only one method: to establish a mature trading system of your own and increase the system's success rate to above 70%. In this way, consecutive losses can be controlled to within five times, and the system's risk-reward ratio can be set to 3:1 or even larger. With specific capital management strategies, one can achieve a winning goal in every ten trades.
To make a profit in trading, you must have a profound understanding and knowledge of your trading system. Firmly believing in your trading system, having the right mindset and a good trading attitude are prerequisites for investment success.
The investment market has repeatedly confirmed that 80% of people lose money; no one can change the natural laws of the investment world, as these are the eternal iron rules of investing. This does not mean the stock market is mysterious or difficult, but rather that most people have an irresistible nature; they doubt their trading system. This fatal nature ultimately leads to investment failure, while trusting the system is the most crucial part of trading. Only by trusting one's trading system can one find the key to unlock the door to wealth.
The entire secret to trading success lies in consistently adhering to your own trading system
Investment success is not about how powerful and excellent your tools are, but whether you can effectively use your trading tools. On the path to wealth dreams, the most effective strategy is to focus and persist with a good trading system. Focus and persistence can generate incredible power. When you can truly do this, you can create miracles that you wouldn’t believe possible.
Successful traders have a firm belief: they firmly believe that sticking to a successful trading system is the only way for small people to achieve great things. Doubting one's trading system is the beginning of investment destruction. Every successful investor possesses a unique quality: the correct mindset, a rigorous trading attitude, strong confidence, decisiveness, and an unyielding spirit in the face of failure. Even in the most difficult times for the system, they can trade strictly according to the system because they know that success requires a long-term vision, overcoming the short-sightedness of human nature, and having the patience and confidence to stick to a fixed profit model.
Using technical indicators to grasp the key to short-term trading, accurate interpretation of trading volume and trends
In the crypto market, short-term trading is the choice of many investors. However, despite the large number of participants, very few can truly profit. The reason lies in the rapid fluctuations of the short-term market; if one cannot grasp the necessary technical indicators and apply them reasonably in practice, it is difficult to achieve desired returns in short-term operations.
Today, Mr. Coin will share with you how to effectively apply short-term technical indicators to improve the success rate of short-term trading.
First: Pay attention to trading volume patterns.
Changes in trading volume can provide important clues about market trends. When trading volume shrinks, it usually indicates that buyers and sellers lack confidence in future trends, leading to decreased market activity. This situation can be subdivided into two categories:
1. Market pessimism: If most investors are not optimistic about future trends and sell off without any buyers, the market will experience a sharp drop in volume.
2. Market optimism: Conversely, if most investors are generally optimistic and actively buying but no one is selling, it can also lead to a sharp decrease in trading volume.
When trading volume is high, it usually indicates that the market is experiencing a trend change. At this time, there is significant disagreement between bulls and bears about the future direction, trading is active, and investors should closely monitor the next price fluctuation direction to judge which side may prevail and follow the trend.
Second: Observe the changes in trend patterns.
In addition to trading volume, investors should also pay attention to chart patterns. Several important patterns include W bottoms, head and shoulders bottoms, rounded bottoms, and rising channels. When these patterns break above the neckline, they can be seen as buy signals, but the following two points should be noted:
1. Effective breakout: Confirm that the breakout is not false.
2. Low-level breakouts are more reliable: Breakouts at low levels are relatively reliable, while high-level breakouts may be 'traps' created by dealers to manipulate market sentiment and achieve selling objectives.
Steady operations should generally wait for a breakout above the neckline, observe the market's pullback conditions, and then consider the entry timing.
Third: The application of moving average trends
Short-term traders generally use five-day, ten-day, and thirty-day moving averages. Key signals include:
· Golden cross: When the five-day moving average crosses above the ten-day moving average, it is usually seen as a buy signal.
· Death cross: Conversely, when the five-day moving average crosses below the ten-day moving average, it is a sell signal.
In addition, if the three moving averages show an upward trend, it indicates a strong bullish market, and investors can consider building positions during pullbacks. Conversely, if the moving averages trend downward, one should follow the trend and consider shorting.
Fourth: The use of technical indicators. There are numerous technical indicators in the market; investors do not need to be familiar with them all. Familiarity with a few common indicators is sufficient. Two commonly used indicators are Stoch and RSI:
Stoch Indicator: When the K value crosses above the D value twice at a low (around 20%), it is usually a good buying opportunity; when it crosses below the D value twice at a high (over 80%), forming a death cross, it is a selling opportunity.
RSI Indicator: When the RSI value is between 0-20, it indicates the coin is oversold, a buy signal; at 80-100, it indicates overbought, a sell signal.
It is important to note that technical indicators have lag, and cannot be used solely as the basis for trading decisions. Some strong currencies may continue to rise even when indicators are high, while some weak currencies may continue to fall even when indicators are low. Therefore, when using technical indicators, it is essential to consider other factors comprehensively.
Conclusion
Currently, the market trend is highly volatile, with frequent changes. Therefore, it is recommended for investors to adopt a quick in-and-out strategy and set stop-loss levels, which should be determined according to individual circumstances. If there are changes in the short-term market, be decisive in stopping losses to avoid larger losses. For short-term operations, any price fluctuations can present potential opportunities, but the premise must be ensuring the safety of the principal; otherwise, it will be difficult to achieve profitable opportunities.
The truth about making money in the crypto space: the power of belief
Belief is a kind of ability, the power of belief.
The road to success is never smooth, always full of bumps; just look at today's Huawei, and it becomes clear.
Investing in the crypto space is no different; no one’s success is simple, easy, or quick.
Every day, people say making money in the crypto space is as simple as breathing, that getting rich in the crypto space can happen to you and me. Such people either haven't achieved results themselves or have ulterior motives. We must not let greed blind our eyes.
Just like someone once asked a high monk: Buddhism says people have reincarnation and karma; how can we make people believe it?
A high monk asked: Can you see tomorrow's sun today?
Answer: I can't see it.
The high monk asked again: Do you believe there will be sun tomorrow?
Answer: I understand, life is always about believing first and seeing later.
So do you believe first and then see, or see first and then believe?
Leaders: believe first, see later;
Followers: see first, believe later;
Losers: see it and still don't believe.
Is trading in the crypto space any different?
You don’t believe in the laws of economic cycles? You don’t believe there will be bull and bear markets in the crypto space? You don’t believe we are in a bull market now? You don’t believe trading requires expertise? You don’t believe that cognition is a prerequisite for achieving results?
I believe those who can enter the crypto space are all smart people, but the financial market has never lacked smart individuals.
Smart people have many advantages, but one weakness is their tendency to be suspicious.
The insight and judgment of smart people, as well as their ability to detect and discover business opportunities, are much stronger than ordinary people.
But being smart, they often have built-in discernment and judgment in many situations.
When it is beneficial to oneself, one absolutely believes 100%, but once there is a hint of something adverse, they choose to believe intermittently.
Smart people won’t stubbornly insist on things, just like the rabbit in the tortoise and hare race or the monkey that picks sesame seeds but drops watermelons.
Take the crypto space as an example; I believe many people have had experiences with copy trading.
Believing once, continuing to believe the second time, by the fifth time, when the sixth time someone tells you risk is coming, and the bull market is nearing its peak, your doubts arise. What if you are wrong this time? Wouldn't that mean I earn significantly less?
There are also those who believe in this community today and that community tomorrow, who worship after one or two times, but start doubting when errors occur.
Yet very few truly focus on their own cognitive and skill growth. Did those who give signals just naturally know trading techniques and strategies?
Trading in the crypto space is not just about one transaction; this industry can be a lifelong career. As long as we have the capability, we will not be affected by time, place, age, or environment.
Isn’t it really worth your effort, attention, and continuous learning to master this ability?
If you believe, you will definitely achieve results; if you don’t believe at all, how can you talk about results?
Follow Su Ge closely, use precise strategy analysis, and leverage massive AI big data to select carefully, to ensure you remain undefeated? The market never lacks opportunities; the question is whether you can seize them. Only by following experienced and reliable people can we earn more!
