I have been trading cryptocurrencies for 10 years, starting with a principal of 68,000 earned from working, and now my assets exceed 80 million. I quit my job to trade cryptocurrencies full-time, relying solely on trading for a living, focusing only on spot trading and occasionally playing with contracts. Although I haven't turned 10,000 into two small targets like some others, I have managed to achieve this over 10 years.
If you are determined to treat trading cryptocurrencies as your primary career, this article will be your stepping stone; it is short but profound!
After 10 years of trading cryptocurrencies, this is the core trading secret that allows me to maintain stable compound profits.
Today, I will tell you how I managed to stop losing and make a small profit.
Do not frequently try and err in trading; this 'try' can be harmful.
This can easily lead to an attitude of 'losing is fine', as it’s just an experiment.
Then frequent trial and error lead to frequent trading, which in turn causes frequent losses, eventually small losses accumulate into big ones. Once emotions are involved in trading...
That is the beginning of destruction; trading must be mechanized and programmed. You must set a positive selection criterion for your entry.
Do not open trades unless your conditions are met.
This way, you can easily avoid frequent trading; you will find that you have more free time and more time to think.
Once you start making profits from trading, you can choose not to cash out immediately, but you must consider taking profits, target profit, trailing profit, form-based profit, and edge-based profit, depending on the situation.
I usually prefer trailing stops because once my selection criteria are met, it’s often a one-sided market.
So I used trailing stops to eventually capture a 10-fold return!
Three major tricks to making money in cryptocurrency: stability, swing trading, and leverage.
Conservative route
Suitable for the general player: only focus on mainstream coins like BTC and ETH, enter at low points with a disciplined monthly investment and hold for 1-2 years; when a bull market arrives, cash out profits.
Swing trading
For the experienced you: Seize the market's obvious trends; buying low and selling high is the way to go.
The strategy is: go with the trend, don’t be greedy when it rises, don’t panic when it falls, and remember to take profits and set stop losses.
Leveraged contracts
High risk, high reward: if the direction is right, you can profit quickly; if the direction is wrong, you have to bear significant losses.
Recently, strict risk control in the market; don't easily go all in; not blindly opening trades is the hard truth.
"Buying the dip halfway up the mountain? Revealing the traps of market makers, a must-read for retail investors!"
The concept of buying the dip sounds enticing, but in actual operations, many people find themselves buying at halfway up the mountain, not only failing to profit but getting stuck even deeper. Today, let's talk about why this happens and how to avoid pitfalls.
First, when you see a cryptocurrency that has been falling for several months suddenly show a big bullish candle, many people will think, 'It’s finally at the bottom; hurry to buy the dip!' As a result, once they enter, they find the price falls back again, and they are caught halfway up the mountain. Why does this happen?
Because such big bullish candles are often tricks from market makers. The purpose of market makers pushing prices up is either their cost price has been reached or they want to acquire more low-priced tokens. They push the price up a bit to give hope to those who were previously stuck, urging them to sell and release their tokens. This way, market makers can acquire more tokens at a lower price. Therefore, after a big bullish candle, the price often corrects and may even drop more. If you chase after it at this time, you are likely to get stuck.
There is another situation where market makers still have unsold stocks or feel the selling price is too low; they will deliberately push the price up to attract those who like to chase highs to take over.
So when is the real buying opportunity? A reliable situation occurs when the price of a coin falls sharply, a huge trading volume suddenly appears at the bottom, and the price quickly rebounds within 15 to 30 minutes, forming a 'spike' line. This usually indicates that market makers are buying at the bottom. Because during a sharp decline, retail investors are too scared to buy, only market makers will buy heavily at this position.
Buying the dip does not mean rushing in when prices are low; rather, it is essential to see the real market situation. There are many tricks from the market makers; a big bullish candle could be a trap, while a surge in volume after a sharp decline could be an opportunity. I hope these experiences help you avoid detours and not buy at halfway up the mountain!
Turning 2000 into 30 million through crypto? Let me share some real insights!
The core is one sentence: leverage trading to amplify profits! But don't rush into it; first, turn this 2000 into 300U (about 300 US dollars), and let's proceed in two steps.
Step 1: Start with a small capital to snowball (300U → 1100U)
Each time, take out 100U to play, focusing on recently popular coins. Remember two things: ① Cash out once you double your money (like turning 100 into 200 and then stopping) ② If you lose down to 50U, cut your losses. If luck is good, you can roll it up to 800U (100→200→400→800). But remember to take profit! At most, trade three rounds; once you hit around 1100U, stop. This stage relies heavily on luck, so don’t be greedy.
Step 2: Once you have more money, start using a combination punch (starting from 1100U)
At this time, divide the money into three parts to play different strategies:
1. Quick in and out strategy (100U)
Focus on 15-minute fluctuations, trading stable coins like Bitcoin/Ethereum. For example, if I see Bitcoin suddenly surge in the afternoon, I jump in immediately, aiming for a quick 3%-5% profit, just like a street vendor, making small profits with high volume.
2. Zen-like fixed investment strategy (15U weekly)
Every week, fix 15U to buy Bitcoin contracts (for example, if it's currently 50,000 dollars, and you believe it can rise to 100,000 in the long term). Treat it like a piggy bank; don't panic if it drops, just wait for half a year to a year; it's suitable for those who don’t have time to watch the market.
3. Main trend trading (press all remaining capital)
Seize the big market trends and act decisively! For example, if you find out that the Fed is going to cut interest rates, Bitcoin might soar; directly open a long position. But you must think ahead: how much to earn before cashing out (like doubling your investment) and how much to accept as a loss (maximum 20%). This strategy requires you to read news and understand technical analysis; beginners should not act recklessly!
Important reminder:
① Bet a maximum of 1/10 of your principal each time; never go all in!
② Each trade must have a stop loss!
③ At most, trade 3 times a day; if you're feeling itchy, go play a game.
④ Withdraw profits once you reach your target; don't think about 'making one more wave'!
Remember: those who turn their fortunes around with this method are ruthless - ruthless to others, but even more ruthless to themselves!
One trick to grow from 200,000 to millions! This set of the simplest cryptocurrency trading methods, 11 trading insights that anyone can use.
In the crypto space, where opportunities and risks coexist, some have achieved financial freedom while others have lost all their investments. As one senior in the market said, the secret to trading cryptocurrencies lies in maintaining simplicity; perfect one method to survive and profit.
Two years ago, I met this senior in Shanghai. With the simplest method, he has steadily earned over ten million from the crypto space. He emphasizes 'simplicity is key' and reminds us that complex thinking and excessive worrying often hinder accurate judgment. Those who incur losses often get entangled in confusion.
Here are a few classic tips he shared at that time. Though they seem simple and unadorned, they contain profound market wisdom. Once you master these key points, it’s not difficult to earn small profits, if not huge ones. The following is what this senior shared; let’s deeply understand it and apply it appropriately.
The above 11 rules for trading cryptocurrencies are hoped to be useful to you. Feel free to like, no pressure; as long as you understand and benefit from it.
Summary:
Trading cryptocurrencies is not an overnight success; it is not something that can be continuously profitable by relying on luck and following trends. Experience tells us that success lies in rationality and patience. Simplicity is key; the essence is to find a method that suits you, adhere to principles, and practice repeatedly, rather than chasing fleeting trends and quick profits. Stable profits stem from balanced mindset, risk control, and deep understanding of the market.
The teachings of the senior say: 'Less is more, simplicity is precision.' In the market, excessive trading and frequent judgments can weaken profit opportunities. Investors must remain calm when facing the market and truly grasp the essence of 'Dao' to cope with the changes in the crypto space. Let's encourage each other. Timing is more important than effort; as the saying goes, 'When the time comes, the universe works in harmony; when luck runs out, heroes are not free.'
The core of the cryptocurrency space is information, accurate information! Only high-quality primary signal sources can keep you undefeated in the market.
What to do if you're stuck in a trade?
Cutting losses, as a term in the crypto space, refers to the price of a coin rising back to the buying price to sell the cryptocurrency and recover the funds. Learning to trap is to truly learn to hunt; learning to cut losses is to truly understand trading cryptocurrencies.
Next, I will introduce methods for cutting losses, generally divided into two types.
1. Active strategy for cutting losses
1. Cut loss
If you find that buying was a serious mistake, especially if you bought at the peak after a significant rise, you must have the determination to cut losses and sell quickly to protect your capital. There are many opportunities in the cryptocurrency market; as long as you don't incur large losses, you can always earn back.
2. Swap currencies
If the cryptocurrency you hold is stuck and in a weak position, with further downside potential, if you accurately judge that another cryptocurrency has significant upside potential and better momentum, you can decisively switch to the new cryptocurrency to offset losses.
3. Short selling
When you are sure you are deeply stuck and cannot cut losses, and if the market or a certain cryptocurrency has further downside potential, you can adopt a short-selling strategy. First, sell the stuck coins and wait to buy them back at a lower position to effectively reduce costs.
2. Passive strategies for cutting losses
1. Averaging down
When the buying price is not high or you are confident about the future market, you can use the averaging technique. However, ordinary investors can usually only withstand one or two rounds of averaging, so the timing of averaging is crucial.
2. Lay flat
When deeply stuck with full positions and unable to cut losses or add to positions, you can only passively wait. As long as it is your own money, not borrowed or lent, you can have the patience to wait. Do not let emotions lead you to blindly add positions or easily cut losses.
Summary of Practical Experience: The 'Secret Weapon' of Trading Strategies.
After years of navigating the crypto space, I have accumulated some practical trading strategies. The following slogans are the crystallization of my personal practical experience.
Entry Strategy
Testing the waters in the crypto space, prepare to proceed cautiously; enter steadily and avoid reckless actions.
Sideways Market Strategy
When the price is low and in a sideways market, it's the right time to buy heavily; when the price is high and going up, sell decisively without hesitation.
Volatility Strategy
Sell on high fluctuations, enter on sudden drops; observe sideways markets and reduce trading.
A sideways market means to hold tight, as a rise might be just around the corner; during a rapid surge, beware of a drop and be ready to cash out; during a slow decline, it's a good time to gradually add to your position.
Timing of Buying and Selling
Don't buy on high; don't sell on a drop; don't trade in a sideways market.
Buy on bearish candles, sell on bullish candles; operate inversely to stand out.
Buy when there's a big drop in the morning, sell when there's a big rise in the morning; don’t chase highs in the afternoon if there's a big rise, and buy the next day if there's a big drop in the afternoon; don't panic-sell in the morning if there's a big drop, if it's stable, just wait; average down to break even, excessive greed is not advisable.
Risk Awareness Strategy
A calm lake can have high waves; there may be big waves coming; after a big rise, there must be a correction; the K-line forms a triangle over several days.
In an uptrend, look for support; in a downtrend, look for resistance.
Full positions trading is a big taboo; stubbornness is not advisable; knowing when to stop in the face of uncertainty and seizing the timing to enter and exit is crucial.
Trading cryptocurrencies is essentially about trading mindset; greed and fear are major enemies; be cautious when chasing highs and cutting losses; a calm mind leads to a comfortable state.
Besides the slogans, I’ve also compiled several practical trading methods that can benefit both novice and seasoned players.
Oscillation trading method
Most markets are in a volatile pattern; using high selling and low buying within range is the foundation for stable profits. Use BOLL indicators and box theory, combined with technical indicators and chart patterns to find resistance and support. Follow short-term trading principles and avoid greed.
Breakout trading method
After a long period of consolidation, the market will choose a direction; entering after a breakout can lead to quick profits. However, you need to have precise judgment skills for breakouts and maintain a stable mindset, neither greedy nor fearful.
One-sided trend trading method
When the market breaks out of a range, a one-sided trend will form. Trading in alignment with the trend is key to profit. Enter during corrections or rebounds, referring to candlestick patterns, moving averages, BOLL, trend lines, etc.; skillful application is essential.
Resistance and support trading method
When the market encounters key resistance and support levels, it often gets hindered or supported. Entering orders at this time is a common strategy. Use trend lines, moving averages, Bollinger Bands, Parabolic SAR, etc., to accurately judge resistance and support levels.
Retracement rebound trading method
After significant rises and falls, a brief retracement or rebound will occur, seizing the opportunity for easy profits. Mainly based on candlestick patterns, a good market sense will help you accurately grasp highs and lows.
Time-based trading method
Morning and afternoon sessions have small fluctuations, suitable for conservative investors. Although the time to profit is long, the market is easier to grasp; evening and late-night sessions have large fluctuations, suitable for aggressive investors, who can profit quickly but face high difficulty, requiring strict technical and judgment skills.
I hope these experiences and insights can help you. Remember, in the cryptocurrency space, the most important thing is to maintain a calm mindset and rigorous operational discipline. I wish you success in your future investments.
Understanding cryptocurrency trading is the same process, going from a seven-loss to a two-break-even and then to a one-profit. It is about being focused and not being greedy for various profit models; firmly stick to this trading system, and over time it will become your cash machine.
Having gone through rain, I want to help the newcomers to avoid the biggest risks!
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