From initially entering the market with 200,000 yuan in capital, experiencing various pressures, pain, and confusion over the years, I ultimately came to a great realization, simplifying my trading technique and making it easier. In just three years, I easily withdrew 48 million from the crypto market!
My cryptocurrency trading journey (Five Stages of Trading Growth)
1.【Initial Entry into the Crypto World】
When I first entered the crypto world, like everyone else, I relied on luck to see which coin looked good and bought that coin. I don’t know if it was good luck or if beginners have a protective period, but in the first six months, my assets grew several times. At that moment, I became overconfident!
However, the reality proves that when a person is too proud, it may be the time they stumble. Reality will ruthlessly slap you in the face. When my assets were halved in one order, I realized that the trading market is ruthless; good luck will not always favor you!
2.【Learning the Technique】
After my biggest trading failure, I realized that relying solely on luck is not a long-term strategy; the goddess of luck will not always favor you.
At this point, I realized that trading requires solid professional knowledge and analytical skills, so I began to reflect and learn. I read relevant books, became active on various information platforms, sought opportunities and trading perspectives, and combined technical indicators to build my own trading system.
If you are just entering the crypto world and are favored by the goddess of luck, this is your best learning opportunity! During the beginner's protection period, learn more techniques to improve your analytical abilities.
However, when I felt that I had learned enough in terms of technique, my assets did not achieve explosive growth. But I no longer had excessive losses and had developed the ability to withstand risks. Although the technique of trading is not always effective, it gave me a deeper understanding of the market; at this point, I began to seek the true meaning of trading.
3.【Sudden Enlightenment of the Dao】
When I realized that different trading indicators and systems are not the key factors determining profit and loss, I began to focus more on the psychology of trading. I found that profit often lies in decisiveness and patience, not in rushing to trade and opening positions frequently. This actually resonated with my psychology when I first entered the crypto world.
At this moment, I realized that predicting the market is incredibly difficult, so we need to become an independent trading system, following 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 individual trades.
4.【Gradually Stabilizing】
When you have a clear trading logic and a complete trading system, under the adherence to the above principles, you will clearly accept losses and profits. Achieving overall small losses while making big profits, you will become a stable trader and investor. At this point, you will gain recognition and respect from others and become the 'teacher' in others' mouths.
At this moment, only some black swan events can impact your trading logic, but black swan events are always few; your trading logic is something you must adhere to.
5.【Proficient】
When trading reaches a level of mastery, handling indicators and market conditions becomes seamless. Profits and losses become a given, and emotions gradually stabilize. I develop intuitive abilities; trading no longer excites me, but rather, I focus on continuous profitability as my goal. At this moment, I gradually take on the appearance of a trader, possessing patience, perseverance, and trading wisdom that surpasses most.
The path of trading requires continuous learning and improvement. From the initial entry into the crypto world to becoming proficient, one can only achieve stable profits in the market by constantly honing their trading system and understanding the way of trading. No one is without losses in trading, but being able to minimize losses while maximizing profits is our learning goal.
After ten years of ups and downs in the crypto sea, I have distilled six invincible rules, concise and invaluable. If you aim for long-term development in the crypto world, this insight is a must-read. It will become a guiding light on your journey, helping you avoid pitfalls and is worth cherishing.
Once you muster the courage and take that decisive step, you have already stepped towards the shores of success. Remember, fate 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 fate.
Once you muster the courage and take that decisive step, you have already stepped towards the shores of success. Remember, fate 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 fate.
Fate does not favor anyone, but always favors those who live seriously and work tirelessly.
Why do 80% of retail investors lose money in a bull market? Because they sell low and buy high, because they chase the rises and sell on the dips.
According to statistics, in the last bull market, 190 million retail investors made only 6.7 billion in total. You might say that's not a small amount; if I can get a small share of that 6.7 billion, I could marry a freshly graduated college student! But don't be too happy just yet; retail investors can be divided into big players and small players. Big players with accounts over 500,000 made a total of 254 billion, while small players with accounts below 500,000 lost a total of 250 billion. Do you see the problem? Stock trading itself does not create wealth; it is merely a process of wealth redistribution.
And the bull market only serves to mix the drinks.
What does that mean? Wine gives courage to the timid!
So you never touched trading; after finishing this bottle of wine, you go straight to your head and dare to take half of your savings to invest in the trading market. That's wine giving courage to the timid.
So you have always been lightly invested; after finishing this bottle of wine, you go straight to your head and dare to sell your house, sell your car, and heavily invest. That's wine giving courage to the timid.
However, after sobering up, you will still sell low and buy high, still chase the rises and sell on the dips; you will still be the same as before. The reason the ugly duckling can become a swan is that it was a swan all along; others make money in the trading market because they know where to buy low and where to sell high, regardless of the market conditions. It's just that you happened to see them making money in a bull market. And you! Even if you are placed in a bull market, it's still hard for you to make money; don't be unconvinced! Let me give you an example; see if this is your personal experience.
Suppose I tell Zhang San that the PDD he currently holds can rise from 2 yuan to 1000 yuan, and that it really can rise to 1000 yuan in the future. Zhang San just needs to hold firm and sell at the right time when it reaches 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 will think, I’m just a nobody, how can I trust my words? 4 yuan may be the peak of this bull market in Zhang San's eyes; if he doesn't sell now, he may get stuck! So Zhang San sold PDD at 4 yuan, doubled his investment, and bought his wife a big gold bracelet and a brand new Apple phone for his daughter.
But the market didn't align with Zhang San's expectations. After clearing his holdings, PDD didn't drop but instead rose, reaching 10, 100, and even 1000 yuan! At this point, would Zhang San buy back in? Of course, he would, and he would buy even more! Because Zhang San is greedy; since he made money the first time, he surely can make money the second time as well. And this is a bull market! Not to mention that Wang next door and Xiao Li in the company are also making money in their second round! So Zhang San took out 80% of his cash to buy PDD again at a high price.
But the market did not fulfill Zhang San's expectations; after buying back in, PDD continued to drop, from 1000 yuan down to 100 yuan. Do you guess Zhang San will cut his losses and decisively exit? Of course not! Because Zhang San is both fearful and greedy; he is afraid that his wife will find out he has lost all the money for their daughter's tutoring while still dreaming of the poetry and distant places of the future. So Zhang San digs in deeper, secretly mortgaging the house behind his wife's back and frantically averaging down.
This time Zhang San was wrong again; the market still did not align with his expectations, and the PDD he held plummeted from 100 yuan down to 50, then down to 30, and finally down to 10 yuan.
So do you understand why Zhang San buys high and sells low? Is the market targeting Zhang San? Is the market not moving as he expected? The truth is that the cake of trading is not prepared for someone like Zhang San, who knows nothing. I will emphasize again: trading itself does not create wealth; it is merely a process of wealth redistribution. So, who can a small player like Zhang San earn money from? And who can earn money from small players like Zhang San?
For example, it's like competing for a bench; the rule is simple: whoever can grab one of the two benches on stage when the music stops is the ultimate winner. Sounds simple, but when you confidently step onto the stage, you’re shocked to find that your opponents are 1.88 meters tall and weigh 107 kilograms, like Schwarzenegger, along with several strong men around 1.8 meters.
Think about whether trading is like this; although the rule for making money is to buy low and sell high, the ones watching the market closely are the big players, institutions, hot money, and tens of thousands of retail investors like you.
So why do we still trade cryptocurrencies? Why do we still engage in trading? According to what you say, isn't that a dead end?
Not right!
Although it is hard for you to earn money from institutions and hot money, can you earn money from other retail investors?
You may not be able to compete with Schwarzenegger, but can you grab a bench from a few others?
If you encounter danger in the forest and worry about being eaten by a bear, even if you can't outrun the black bear, can you run faster than your companions?
......
Big fish eat small fish; small fish cannot just sit there waiting to be eaten! They need to find some rocks to hide in, eat some shrimp, and some seaweed.
So do you know where there are cracks in the rocks? Do you know where there are shrimp and seaweed? Alright, that's the end of our sharing for this session. In the next session, let's use real cases to test whether you have the ability to catch shrimp.
By 2025, my assets reached eight figures. Today, I want to share some personal insights, hoping to help those of you exploring this path.