I once thought I was an undaunted captain in the sea of coins, until that 'Black Swan of 312' caused me to sink. A position of 12 million was wiped out in half an hour; the cold touch of the mobile screen is still unforgettable.
But despair is often the catalyst for wisdom, leading to sudden enlightenment: the essence of contracts is probability games. With the remaining 800,000 capital, combined with the 'dynamic hedging model', in February of this year, I achieved an asset leap to 2.18 million in 60 days, with a growth of 272,900%!
Now, I will share this 'Storm Navigation System' free of charge—learning to dance with risk in the crypto space is the true way to survive.
In the cryptocurrency world, true experts are not necessarily those with exceptional skills; I strictly adhere to market iron laws.
Practical tips for cryptocurrency trading! Understand K-lines, and even beginners can enter the market accurately.
After years of struggling in the cryptocurrency world and stepping into countless pitfalls, I finally understand: to truly profit, K-line analysis is an indispensable core skill! Today, I share practical experience without reservation; it’s recommended to like and bookmark it for easy reference.
1. Trend is king! Instantly see through market direction.
Upward trend: Continuously appearing multiple green bullish candles, and the closing price keeps hitting new highs, indicating strong bullish momentum; going long in line with the trend has a higher win rate.
Downward trend: Continuously appearing multiple red bearish candles, and the closing price keeps declining; shorting is the wise choice at this time.
Reversal signals: Hammer, inverted hammer, morning star, engulfing pattern... Once these classic K-lines appear, they are often 'traffic lights' for trend reversals; seizing them is an opportunity.
2. Identify key levels accurately; enter the market without confusion.
Support level: The 'life-saving line' where price rebounds after multiple declines. When the price approaches the support level, combined with a hammer and other bullish patterns, act decisively to buy! Resistance level: The 'ceiling' where price retraces after multiple rises. If a hanging man or other bearish pattern appears, immediately short and exit.
Three, look at both volume and price to uncover the true intentions of the market.
Volume increase on rise: Price rises, trading volume increases simultaneously → strong buying pressure, strong buy signal.
Volume increase on decline: Price drops, trading volume surges → frantic selling pressure, act decisively to short and hedge.
4. Classic K-line patterns, accurately lock in buying and selling points.
Pattern characteristics operations.
Hammer: At the bottom of a decline, the lower shadow is exceptionally long (≥ 2 times the body); bottom-fish to go long.
Inverted hammer: The shadow line is on top, resembling an inverted 'hammer'; reversal to go long.
Three white soldiers: Three consecutive bullish candles, each closing price hits a new high; chase the trend and go long.
Bullish engulfing: A long bearish candle followed by a small bullish candle (completely wraps) indicates a bottom; go long.
Five, indicator resonance, double your win rate.
Moving average golden cross: 5-day moving average crosses above 10-day moving average → trend strengthens; enter to go long.
MACD golden cross: Short-term line crosses above long-term line → bullish explosion; follow along to profit.
6. Life-saving rule: If risk control is not done well, all profits are in vain.
Always set a stop-loss: Set a stop-loss point when entering (usually outside support/resistance levels) to avoid drastic drops and liquidation.
Position management: No single trade should exceed 10% of total capital; diversify investments; survive to laugh last.
Final reminder: K-line analysis is not a universal formula and should be flexibly judged in conjunction with news.
From liquidation to turnaround! 16 iron rules of trading cryptocurrencies to completely say goodbye to the fate of a retail investor.
1. Bull and bear strategy: Grasp altcoins fiercely in a bull market, hold tight to BTC in a bear market; this is the golden rule for traversing cycles!
2. Volume alert: A sudden surge in volume at the bottom is the 'start alarm' sent by the market; keep a close eye and don’t blink!
3. Moving average sniping: When an upward trending coin pulls back to a key moving average, act decisively; this is the opportunity heaven has given you!
4. Trading restraint: Don't be a 'trading maniac'! Capturing a few major trends a year is enough; greed leads to crashes!
5. Position red line: Never go all in! Leave enough bullets to make a comeback when the market suddenly changes.
6. Stop-loss decisiveness: Don't average down on junk coins! Cutting losses in time is not just a stop-loss but also a life-saving talisman for preserving capital.
7. Message clarity: It's okay to listen to rumors, but following blindly? You could end up buried in the pit in no time.
8. Focus on the track: Don't touch unfamiliar coins! Deeply cultivate familiar tracks to accurately grasp profits.
9. Emotion management: Stay calm when the market is crazy, and remain composed when the market is panicking; don’t let emotions dictate your wallet!
10. The truth about altcoins: Altcoins that rise a lot must fall, but those that fall a lot do not necessarily rise. Choosing coins is more important than luck!
11. Reverse thinking: When everyone rushes in, danger is quietly approaching; don’t be the last one holding the bag!
12. Wisdom of holding cash: Learn to wait with cash! When market signals are unclear, cash is the safest asset.
13. Avoid chasing hot spots: Don't chase fleeting trends! Blindly following trends will trap you!
14. System is king: Build a dedicated trading system and execute it strictly; this is the core password for stable profits!
15. Mentality triumphs: Investment is a marathon; maintain a calm mindset without impatience; laughing till the end makes you the winner!
16. Capital bottom line: Don't use life-saving money for trading! Invest with spare money; a stable mindset will naturally increase your win rate!
Profit is about persisting with the trend that others have given up on, seizing opportunities that others don't want, and doing what others dare not do. In investing, there is only giving up due to insufficient persistence, not complete failure. In trading, one may initially have a favorable direction, but as the market fluctuates, they may change their original direction; originally bearish, but due to a slight rise in the market, they exit and go long, ultimately delaying the downward trend and incurring losses. Such examples are countless in trading; any success requires persistence.
Becoming a highly defensive trader is a key transformation for novice traders on their trading journey. Many novices may initially be misled by a mentality of quick success, hoping to earn profits as quickly as possible, even trading with a 'get rich overnight' mindset. However, a more practical and feasible mindset should be: protect your capital as much as possible. These two mindsets cannot coexist; if you only focus on quick profits, your capital is likely to be lost even faster.
A rule from competitive sports applies to trading: offense is the best defense. In this context, it means only trading under favorable conditions and protecting capital at other times; stay away from the market. Newcomers may achieve success by luck in their first few trades, but luck cannot last; you should be wary of the 'newbie effect' trap.
Imagine if you held a gun; unless you are absolutely sure you can hit your target, you wouldn’t waste a bullet. The same principle applies to trading: preserve your capital strength and only deliver a 'fatal blow' when a truly favorable opportunity arises. In trading, maximizing capital protection is key to success. As long as you can effectively control risks, even when encountering strong entry signals yet ultimately ending in failure, the impact on capital will still be controlled within a reasonable range.
Frequently checking charts and constantly monitoring trades often adversely affects trading. In life, too much interference usually does not yield good results. If you keep trying to over-control trades, the result may be counterproductive and bring you more trouble.
Have you ever unconsciously increased your position or exited a trade early due to over-focusing on the charts? In retrospect, did you feel you were too impulsive at that moment? Such unplanned behaviors are often one of the reasons many people incur losses.
The simplest way is to set a trading plan and then forget about it. This is a principle I often emphasize to newcomers and one of the most valuable experiences I've gained: the less you interfere with your actions in trading, the better. Simply following your trading plan and letting trading proceed as planned is the true wisdom of trading.
The result of the last trade should not affect the next trade. This is an extremely important principle, but many people often easily forget it. They can be easily swayed by the result of the last trade. However, it needs to be understood that each trade is unique.
The results are randomly distributed. Suppose you made 100 trades, the gains and losses may not differ much. However, their distribution could not be so uniform. There may be consecutive losses of 5 or 10 trades; if these losses affect your mindset, the upcoming profitable opportunities may also be obstructed by your emotional state.
It is also important to note that after experiencing profitable trades, excessive confidence can have a negative impact on trading, just like the fear that follows a losing trade. Excessive confidence makes one more willing to take on excessive risks, and in the long run, its negative impact can be quite terrifying. Therefore, maintaining calmness in trading and not being swayed by short-term trading results is key to maintaining a stable mindset and achieving long-term success.
Simplify trading, and you will gain more.
In trading, moderation is key. Many traders often make the mistake of overdoing it. They overly analyze the market, over-interpret the situation, overthink, and overtrade overall, doing many unnecessary things. As a trader, learning to be appropriately 'lazy' is also important.
First, it is essential to clarify that favorable signals in the market are limited, and often very few over a period of time. Most of what you see and hear may just be 'market interference', which is noise and of no benefit to you. Learn to filter these signals and then select the truly beneficial 'high-quality signals'—this is a routine step in seeking opportunities.
Secondly, I suggest you learn the mindset of hedge fund traders for trading. They hold millions or even billions in funds, but they trade with very strict principles, like selecting diamonds from sand, only choosing the highest return opportunities. For those 'maybes' or 'seems like' signals, it’s better to stay away. In my 20+ years of trading experience, the best trades are always the most obvious and intuitive ones.
Before entering, have a clear exit plan.
In trading, no one tells you what to do. You must set your own rules, which means you must be responsible for your own actions. Many people lack this self-control, resulting in often losing their trading direction.
One of the most important tasks before trading is to determine the exit plan. It took me several years to realize: exiting is more important than entering. Observations show that many people exit impulsively, leading to either minimal profits or significant losses. Establishing a strict profit-taking and stop-loss plan is the best approach. Such a plan provides clear guidance, allowing one to remain calm and execute the plan regardless of profit or loss. This disciplined exit plan helps ensure clarity in trading and reduces impulsive and emotional impacts on decision-making.
Avoid worthless trades.
In the world of trading, worthless trades refer to trades where risk and profit are disproportionate, usually occurring in a state of blind and frequent trading. Such trades often lead to losses greater than profits, affecting the trader's mindset and even trapping them in a vicious cycle of losses.
Specifically, it manifests as traders facing a volatile market, seeing so-called 'opportunities' and rushing in without considering the profit and risk of the trade. Such blindly entering traders usually hold a lucky mindset, believing that even a small profit is still a gain. They ignore big risks while focusing on small profits, even thinking that any market movement is an opportunity not to be missed, subjectively magnifying small opportunities and impulsively trading. This attitude not only shows contempt and disrespect for the market, but also makes it hard to achieve good results.
For professional traders, they usually formulate trading plans and set stop-losses in advance to ensure that even if they incur losses, it will not significantly affect them. However, losses from worthless trades are different because such traders have shallow market knowledge, make random trading decisions, and lack careful consideration. These avoidable losses are more harmful than beneficial for the trader's growth.
High discipline.
High discipline plays a crucial role in financial market trading. It refers to traders following a set of clear rules and principles while trading to ensure effective risk management, achieve investment goals, and avoid adverse outcomes caused by emotions and arbitrary decisions. The level of discipline is directly related to the success of trading and is considered one of the key factors for successful trading.
I insist on emphasizing not letting emotions interfere with trading decisions. Every day, I spend only half an hour checking charts, deliberately avoiding getting lost in over-observation.
Market volatility. I advise traders to strictly adhere to their trading plans.
Avoid over-analyzing the market, as disciplined execution is the cornerstone of stable profits. By following the pre-determined plan, I can remain calm and avoid emotional decisions, thereby improving trading efficiency and stability.
Most of the time, you should stay away from the trading desk. A wise strategy on the trading path is to maintain distance from the market. Overtrading is often a shortcut to capital loss, and remembering this is crucial.
If you feel lost and helpless, not knowing what to do, then follow me. I need fans; you need references; guessing is not as good as following!