Undoubtedly, the post-2000s wealthy generation is the most typical model. But what I want to say more is the recent event on January 18 when Trump launched the Trump coin $TRUMP on the blockchain, 0xSun bought in batches at a very low price of $0.2 to $1.5, using $1 million to sell in batches in less than 2 days, ultimately earning nearly $27.5 million in profit. (0xSun is born in '98, entered the crypto space with 10,000 RMB in May 2021, a master's degree from a prestigious university, a well-known KOL on social media, and now has a net worth of A9) The terrifying returns for 0xSun in these two days: 33 times, $27.5 million, 200 million RMB.
How can a manual beginner conduct news trading in the cryptocurrency market?
1. Follow 'Equation News BWEnews' on Telegram (currently I feel this is the fastest news channel), ensure to unmute and turn on message notifications.
2. Be ready with the maximum loss you can accept on-chain (recommended to use gmgn) or on CEX (for example, 10 SOL).
3. Wait for 'Equation News BWEnews' to report, judging whether it is 100% driven for a newly launched token to rise (this step heavily relies on judgment).
I personally think that if the following conditions are met, it is highly likely to be 100% driven, and you can use your maximum loss capital for heavy investment attempts.
There are famous figures endorsing it (mainly Musk, the Trump family, or other well-known celebrities). This cryptocurrency is a newly launched token on the blockchain (launched ≤ 1 hour) ➕ currently has high volatility ➕ shows relative safety (the name has not been changed on the promotion ➕ gmgn detected a maximum risk of 1/4).
4. If the above conditions are met, buy in batches (buying in batches is to reduce the risk of misjudgment).
For example, you want to invest 10 SOL in this opportunity, and the current price is 0.1, so you can buy 3 SOL at 0.1. If this opportunity is truly what you believe to be a 100% increase, it should immediately rise to 0.15, and then you buy 2 SOL at 0.15, and for every additional 0.05, you buy 1 SOL until you finish buying. (Split into more than 10 batches to buy, although this will increase the cost price, it can greatly reduce the risk of misjudgment, because the process of buying in batches is itself a process of verifying the opportunity.) 0xSun did indeed invest 1M but divided it into more than 20 batches for buying (which can be checked via gmgn), just to hedge against the risk of Trump being hacked. Additionally, 0xSun's 1M is only 5% of his total position. So, while many outsiders may see that 0xSun 'won the gamble', in reality, 0xSun has always been controlling risks, more like what 0富 said, I believe it is a kind of 'bold caution.'
In terms of positions, he only moved a total of 5% of his position; when buying, the 5% position was not bought all at once, but first took 10% from within the 5% position (buying a little more when acquiring low-priced chips in batches), and when he saw it rise, he took 5% from the 5% position, and so on, slowly buying from $0.2 to $1.5. Buying while verifying.
5. When the expected profit is reached, sell in batches (selling tests human nature a lot).
Personally, I believe the difficulty of selling > > > the difficulty of buying at a low price, because the process of selling has to overcome human greed. A typical problem.
Can one earn a fixed profit multiple and leave at once?
I take a high multiple (for example, 20 times) and leave: the problem is that in many cases, if you have floating profits of 18 times and you don't leave, and then suddenly there's a waterfall after 18 times, what do you do? This is essentially still gambling, unless you have extremely strong judgment skills. I take a low multiple (for example, 2 times) and leave: the problem is, what if this cryptocurrency turns out to be a hundred times the value? Have you missed one of the few opportunities? Originally, you could go from 10,000 to 200,000, but instead, you can only go from 10,000 to 20,000. This can also be quite painful.
Floating profits are all bubbles; only cashing out is real.
This method is feasible for those with a high capital base to earn a low multiple, and can steadily earn quite a bit of money. Of course, for those without much capital, only a high multiple can turn things around. However, high multiples are often hard to grasp; missing out means 0, or even negative returns. My thought is that those without capital should strive to earn an average profit multiple.
So how can one earn an average profit multiple?
Actually, I don't know either (I just entered the space less than a month ago), so my thought is can I copy the work of the big shot 0xSun? I reviewed it, and 0xSun's selling was much steadier; he divided it into over 50 batches of selling, starting from $9 and reaching up to $50.
Therefore, my thought is that selling should also be done in batches. I still don't know how 0xSun judged the $9 sell price, nor why he divided it into more than 50 batches. But I think there are methods that can be adopted.
Monitor large holders with gmgn, manually follow their trades for selling: monitor large wallets such as 0xSun's wallet address; when they sell, you sell too. (In an automatic following method, large holders may kill your order, so be cautious.) My DIY beginner method: based on what you believe this market will at least double (this requires judgment, and judgment is based on a lot of practical experience; I think beginner novices might want to set this multiple lower), let's say you believe this market will at least double to 5 times, then you can do this.
5 times sell 5%, for every increase/decrease of 1 time, sell 5%, if it finally returns to 5 times, clear the position.
The first type, optimistic market, keeps rising: sell 5% at 5 times, sell 5% at 6 times, sell 5% at 7 times, ..., sell 5% at 24 times, this way you can achieve an average profit of 15 times. The second type, pessimistic market, rises a bit then falls: sell 5% at 5 times, sell 5% at 6 times, return to 5 times, clear the position, return to 4 times, return to 3 times, ..., and further falls are irrelevant to you, this way you can achieve the lowest 5 times profit without loss. The third type, complex market: I also can't judge this, it requires deeper understanding, continue to learn from the big shots.
