I entered the market with a capital of 100,000 yuan. Over the years, I experienced all kinds of pressure, pain, and confusion. Finally, I had a sudden enlightenment and reduced the trading techniques to simplify them. It only took me three years to easily withdraw more than 20 million yuan in the cryptocurrency circle!
My Journey to Cryptocurrency Trading (Five Stages of Trading Growth)
1. [New to the cryptocurrency world]
When I first came into contact with the cryptocurrency circle, I was like everyone else, relying on luck to buy whatever coin I liked. I don’t know if it was because of good luck or the protection period for novices, but in the first six months, my assets increased by more than ten times. At this time, I was inflated!
However, it turns out that when a person is too proud, he may fall, and reality will mercilessly slap you in the face. When my assets were cut in half in one order, I realized that the trading market is ruthless and good luck will not always favor you!
2. [Learning of skills]
After the failure of my biggest transaction, I realized that relying solely on luck is not a long-term solution, and the goddess of luck will not always favor you.
At this time, I realized that trading requires real professional knowledge and analytical skills, and I began to reflect and learn. I read relevant books, actively browsed various information platforms, looked for opportunities and trading ideas, and combined with technical indicators to build my own trading system.
If you are lucky enough to be lucky when you first enter the cryptocurrency circle, this is your best opportunity to learn! During the novice protection period, learn more techniques and improve your analytical ability.
But when I felt that I had learned enough in terms of techniques, my assets did not achieve explosive growth. But I no longer suffered excessive losses and had the ability to resist risks. Although the trading techniques were not always effective, they gave me a deeper understanding of the market, and I began to look for the true meaning of trading.
3. [Sudden Enlightenment of Tao]
When I realized that different trading indicators and systems are not the key factors that determine profit and loss, I began to pay more attention to the psychology of trading. I found that many times, profits often lie in decisiveness and waiting, not in rushing to trade and opening orders frequently. This is actually the same as my psychology when I first entered the cryptocurrency circle.
At this point, I knew that it was extremely difficult to predict the market, so we needed to become an independent trading system and follow our own trading logic. Gradually, we learned position management and leverage configuration, and calculated the rate of return on a monthly basis, and no longer cared about the gains and losses of a single transaction.
4. [Gradually stabilize]
When you have a clear trading logic and a perfect trading system, and follow the above principles, you can clearly accept losses and profits. You can achieve the overall goal of losing small money and making big money, and become a stable trader and investor. At this time, you will gain recognition and respect from others and become a "teacher" in the eyes of others.
At this moment, only some black swan market conditions will have an impact on your trading logic, but black swan market conditions are always rare, and you must stick to your own trading logic.
5.【Handy】
When trading reaches perfection, indicators and market conditions are handled smoothly. Profits and losses become a matter of course, and emotions gradually stabilize. With intuitive ability, I no longer feel excited about trading, but aim to make continuous profits. At this moment, I gradually become a trader, with patience, perseverance and trading wisdom beyond most people.
The road to trading requires continuous learning and progress. From entering the cryptocurrency circle to becoming proficient in it, only by constantly honing your trading system and understanding the way of trading can you make stable profits in the market. No one does not lose money when trading, but being able to make small losses and big profits is our goal of learning.
If you don't think it's useless, you can say whatever you want to me!
1. Go with the flow! The small game obeys the middle game, the middle game obeys the big game, and the big game obeys the trend. When you are losing money, set up a good position to cover your position. If the trend goes bad, stop loss resolutely. Don't resist it, otherwise it is easy to cover more and more. When you make a profit and the trend is still there, you must let the profit continue to run. Try to add as much as possible. Don't run away after making a profit of 2% or 5%, just enough to make money for vegetables. In the long run, this way, you can minimize risks and maximize profits.
2. Capital division! Divide your capital into 5 parts, and only deposit one-fifth each time. Strictly set a stop loss of 10 points. If you make a mistake once, you will only lose 2% of the total capital. If you make 5 mistakes in a row, you will lose 10% of the total capital. If you are right, set a take profit of more than 10 points. Do you think you will be trapped by this operation?
3. Enter when there is disagreement, exit when there is agreement! This is just like the industrial mother machine sector some time ago. After the general rise, there will definitely be differentiation, because the main force will take advantage of everyone's willingness to take over and cash out at a high position. Therefore, it is necessary to exit when there is agreement and enter when there is disagreement. There is a principle for strong coins that the strong will always be strong. If a coin can become a strong coin or a monster coin, it must be a coin favored by funds in the market. Once someone sells this coin, more people will enter, and it can often continue to rise, which is reflected in the K-line pattern as the first negative reversal.
4. Understand human nature! As the saying goes, speculating in cryptocurrencies is speculating in human nature. We must understand human nature and get rid of being bound by it. Why is speculation difficult? It is because it is difficult to control yourself. If you want to be a leader in the cryptocurrency market, you need to know that the main force is not your biggest opponent, but you yourself. Investment has always been a tough battle, so you are the key to success.
5. Make a trading plan! Make your own trading plan in advance, and strictly execute it during the trading session. Don't let the market disrupt your operation plan. Combine it with the overall environment. If the conditions are met, participate. If they are not met, don't violate your plan. It is better to miss it than to make a mistake.
6. Control risks! I know that everyone comes to the cryptocurrency market to make a profit, but risk control should still be put first. Don't use all your assets to speculate in cryptocurrency, and don't go all in. If you don't have the principal, how can you expand your territory in the cryptocurrency market?
7. Stay away from junk coins! My advice is to try not to touch them, because the currency era has changed. Compared with the past, the current currency market system has been improved and standardized. In the past, junk coins were easily hyped by the main players, but now they are increasingly ignored and cheered by no one, because those coins with continuous losses will eventually be delisted. We are all smart people, so we should all know that the main players are not stupid, and retail investors are not stupid either, so everyone has gone to buy good companies.
8. Keep reviewing! I will keep reviewing every weekend. This is very important. I will review the daily ranking of gains, from the increase to the decrease of 5%, and then from the decrease to the increase of negative 5%. This will allow you to fully understand which coins are rising and which coins are adjusting in the market. After reading the corresponding time-sharing charts and K-line charts more, you will form a sense of the market, and naturally know how to go in the future. This will also enhance your understanding of the industry, themes, and individual coins.
9. No matter in which market, the iron-clad fact that trend is king is indisputable. Once a long-term trend is formed, it is difficult to change in the short term. Upward is bullish and downward is bearish. If you don’t understand, you can use a 20-day moving average as a trend line. If there is no reversal, you can continue to track and hold.
10. When entering the market, you must learn the relationship between price and volume. If you understand the trading volume, you will surpass most retail investors. The rise in both price and volume is the healthiest model. The main force has a high degree of control over the market, and there will be fewer main uptrends and washouts.
11. Don't hold too many coins. You can't chew too much. The weakness of many retail investors is not buying coins, but not knowing how to short-term. They know that the index is currently on a downward trend, but they still can't help wanting to buy coins at the bottom. It seems that the more coins they have, the more money they can make. However, they don't know that if the nest is destroyed, all the eggs will be broken. Sometimes, it is easier to keep the rhythm by focusing on one coin, and repeated rolling operations can actually yield higher returns.
12. Look at the market from top to bottom, from big to small. Most retail investors stare at the time-sharing chart all day long, and are distracted by the rise and fall of the time-sharing chart. Fear replaces rationality, and they lose their strategic thinking of the overall situation.
13. For coins that hit new highs, many indicator divergences will become invalid. For coins that are on an upward trend, it is enough to just look at the volume and the 10-day moving average. Strong coins generally climb along the support of the 10-day line. As long as they do not fall below this short-term lifeline, continue to hold and enjoy the joy of rising.
14. Human nature is full of greed, anger, ignorance, doubt and laziness. When the market is rising, people want to make more money. When the market is falling, they are unwilling to admit defeat. When the market starts again, they suspect that it is a rebound. In short, they are half a beat slower. In a bull market, they often become the cowherds. It is very important to have a closed-loop trading system in the market. Enter and exit according to principles, rather than being swayed by emotions. Measure risks and manage funds, rather than blindly invest heavily. Even if your analysis is poor, the system will correct you and let you return to the right path.
Finally, I want to say one thing: it is good to have ideals, but if you only think about them but don’t act, then everything is just wishful thinking. Now, immediately, start working on them, and make corrections while working, only then can you get substantial results! !
Perfect trading is like breathing, stay flexible, and don't trade every wave. Most traders will miss 70% of the market. Each investor has different energy, market knowledge, and trading skills. Don't expect to get every penny of profit in the market, don't think that you have to make as much as others, and don't think that you have to trade every wave. Perfect trading is like breathing, stay flexible, and don't trade every wave.
According to a study by a famous American academic newspaper, those 20% of people who make money have characteristics including but not limited to interest, belief, agility, perseverance, concentration, learning, discipline, etc. For investors in the cryptocurrency circle, what is the role of the 80/20 rule?
pattern
Some people can achieve huge profits in a short period of time, and some people can make the capital curve rise straight without retracement within a period of time. However, the trading system created by traders with great efforts may be extremely difficult at this stage. Trading according to the rules will be stopped at every turn, and trading according to the system will not make profits for a long time... Therefore, it is easy to get confused. Many people cannot persist and fade out of the market.
I have seen an investor before. He has developed a very good trading model. However, as long as the curve shows a slight retracement or the people around him achieve slightly exaggerated profits, he immediately becomes anxious and often gives up his position to pursue those methods that seem better. The person in charge is confused, while the bystander is clear. Only by standing at a higher perspective and objectively judging one's own system, the temptations one has been exposed to, and the doubts one has generated, can one distinguish which are problems and which are luck.
Insight
A friend's experience: After he entered the field of trading, he was first attracted to information research and conducted a long period of information research and development; then he discovered some confusions and began to study technical analysis; then he studied short-term trading and began to judge the trend of major funds.
His friends all advised him to be single-minded in doing things, to thoroughly understand a certain method, and not to change his mind frequently. Finally, he extracted his own views from his experience:
All analysis and research methods are unable to determine the market trend. All methods are looking for a reason for trial and error. There is no good or bad method.
Then, he embarked on another path. For a trader who has just entered the investment industry, the best experience is to understand and experience all the research methods and approaches in the market, see through their appearances, and understand their essence. Finally, among the many cruel truths, extract the essence and integrate your own system.
Only in this way can we stand out and move forward. Otherwise, we will be lost in the complex market illusions, drifting with the tide and unable to escape.
It is important to stick to your own thinking. The cryptocurrency market is still very small, and there are not many trading counterparts. The essential reason for being able to make money is to stick to your personal thinking. If you just go with the flow and follow orders, you'll be lucky if you don't lose money. It's extremely difficult to make money.
Therefore, contract trading must strictly abide by the trading disciplines that you set. You must not be greedy or take chances. You cannot be complacent because of a profit made by not complying with the rules on a certain occasion, nor be upset because you missed the market because of complying with the rules on a certain occasion. Discipline is ironclad and is the bottom line. You must strictly abide by it at all times.
All of this is to do a good job of risk management and reduce the probability of fatal errors. If you stick to the following points, making money will be a high probability event:
1. Reduce leverage
The actual leverage of the position must be controlled to not exceed 2-3 times. Of course, it is best to be around 1 times. And if it is a full-position mode, take-profit and stop-loss must be set to prevent the full position from being blown up due to large fluctuations like 9.25.
2. Learn to stop loss
This is very important. Let me repeat it again. A lot of money lost by retail investors is not due to stop loss, but due to liquidation. Market fluctuations are unpredictable. People who can make money basically make more money when they are right and lose less when they are wrong. Stop loss is to help you lose less when you are wrong. So it is the same for retail investors. If you make a mistake, you must admit it in time and stop loss. You must not hold the order. Set a loss ratio that you can bear, such as 15%, 30%, depending on your own situation. When you reach the maximum loss ratio, don't wait for luck, and don't think that you have lost so much anyway, so you can just hold it. In a word, you must stop loss no matter what. You may not feel it once or twice, or sometimes you may find that you shouldn't stop loss after stopping loss, but you will taste the sweetness over time. For example, before September 25, you kept opening more, although it was easy to hit the stop loss. You would feel very frustrated every time you stopped loss, but after looking at how many people had 2-3 times leverage liquidation in the market that night, you should be glad that your stop loss was so wise. In a word, stop loss is just cutting a part of your losses, but not stopping loss is equivalent to suicide.
3. Reduce the frequency
There is no need to explain this. Everyone should understand that the more you do, the more mistakes you will make. If you happen to suffer a large loss when you make a mistake, it will be even worse. Therefore, when it comes to trading, try to do the right thing, reduce the frequency of trading, try to seize opportunities with high probability, make fewer mistakes and suffer fewer losses. This is good for both profit output and mentality adjustment.
4. Fund Management
I think money management is the most important thing in trading. Mastering a good money management strategy can protect your principal, reduce drawdowns, keep profits, and ultimately increase your risk tolerance several times. Money management determines whether you can make money, and it is also the lifeline for the long-term survival of the trading market.
There are a few rules that I would like to talk about separately. (1) Never keep your capital in a position that is not fully invested. Even if you leave 10% of your capital in an empty position, you will be grateful for the discipline you have followed under extreme risks. I usually leave 10-20% of my capital in an empty position, and occasionally do short-term altcoin trading. Generally, the position is held for less than 24 hours, and I will just make a profit in the short term. (2) Contracts and spot trading must be separated, which is considered risk isolation. No leverage can be added to the spot part, and currency leverage is not allowed. You can only take advantage of the rising spot price. The contract part can account for 20-30% of the total capital. In a very certain trend market, it should not exceed 50%. The contract part is operated with low leverage, anchored to the currency-based income. After you can make stable profits in the contract market, the currency-based income is also considerable. (3) Avoid excessive dispersion of funds. Just concentrate your funds on a few relatively strong coins, don't spread them too thin, and reduce the number of simultaneous trading targets. For example, don't think about opening Bitcoin, Ethereum, EOS, and Litecoin contracts at the same time. That's what experts do, and their goal is to maximize profits. We retail investors first pursue profits, not maximization, and operating too many targets will only increase risks, not magnify profits. Therefore, it is best to concentrate your firepower on the basis of improving the winning rate. Doing so will easily generate profits, and make money much faster than dispersing funds to do a few targets.
5. Reflect frequently and summarize more
The whole trading process has only a few steps. Determine the long and short direction----find the entry point----determine the size of the opening position----add positions according to the market----stop profit and stop loss. Basically, these are the steps. After a transaction is completed, reflect on it frequently. During the whole trading process, focus on the link where you are weak. Make sure you have good disciplines to follow and execute in different trading links. Summarize the successful experiences and lessons in trading. If you persist for a long time, you will definitely gain something.
The above is what I want to express about contract trading. I did not talk about the skills and strategies of opening orders, but chose these seemingly common ideas and concepts. It is not because the skills and strategies are not important, but I think these basic thinking are more important, more practical, and must be mastered. They are like the foundation of a building. Only when the foundation is solid can the attic above be more beautiful. Therefore, on the premise of understanding these basic principles, you can have a certain technical analysis ability and master some skills and strategies for making orders. The currency market contract is your ATM.
But no matter what, contracts are a high-risk gambling market, safety comes first, and I wish everyone can make a fortune in the cryptocurrency world.
Follow Su Ge closely, use precise strategic analysis, spend millions of dollars on AI big data selection, and make yourself invincible? The market never misses opportunities. The question is whether you can seize them. Only by following experienced people and the right people can we make more!
