"Can trading cryptocurrencies really make money?"
Someone asked me this question, and after five years, I have provided a clear answer: Yes. But the premise is — you must understand the rules, maintain discipline, and control the rhythm. In this market filled with opportunities and risks, I have accumulated 10 experiences worth sixty million through practice; these experiences have not only brought me enormous wealth but I also hope they can provide you with practical reference. Today, I share these 10 experiences, hoping you can take fewer detours and progress steadily on your investment journey.
1. Small capital strategy: Focus on major upward trends, one big hit a year is enough to last a whole year
For players with capital under 200,000, accurately positioning for the major upward trend is the key to turning things around. The major upward trend is the best time for market sentiment and concentrated capital to explode; seizing it can yield excess returns. Don't go all in or be overly greedy; focusing on one core opportunity a year is enough to change your destiny. Patience and decisive action are the survival strategies for small capital players.
2. Cognition comes first: Simulated practice for the mind, real trading for survival
Don't start by risking real money. First, hone your cognition and mindset through simulated trading, clarifying your trading style and risk boundaries. Simulated trading not only familiarizes you with the market but also helps avoid common blind losses by novices. Only after mastering your mindset and skills should you enter real trading to truly protect your capital.
3. When good news is fully priced in, it becomes bad news
When major positive news is announced, the market often has already fully priced it in. At the moment the news is realized, the major players usually start to retreat, and prices may actually drop. Therefore, if you haven't sold on the day the good news is announced, you must decisively take profits when the market opens high the next day. Remember, the market trades on expectations, not reality.
4. Reducing positions before holidays is not superstition, it's statistics.
During long holidays, market fluctuations intensify, trading volume shrinks, and the cost for major players to wash out positions is lower. Historical data also shows that market performance before holidays is often poor, with risks sharply increasing. Therefore, choosing to liquidate or reduce positions a week before the holiday is more rational than stubbornly holding on. This is not superstition but practical experience based on statistics.
5. Mid to long-term iron rule: Cash is king, sell high buy low
The core of swing trading is to retain cash. During rising phases, dare to sell and lock in profits; during sharp declines, dare to buy and catch the lows. With cash in hand, you can respond flexibly to market fluctuations and opportunities will naturally arise. Mid to long-term players must learn to 'sell high and buy low' to keep funds flowing.
6. Core of short-term trading: Volume + price + patterns, activity is the first factor in selecting currencies
Short-term trading emphasizes speed, accuracy, and decisiveness. Only focus on highly active currencies and operate in conjunction with trading volume and price patterns. Active currencies have large fluctuations and many opportunities, making them suitable for short-term players. Other factors can be ignored; focusing on volume, price, and patterns can improve your win rate.
7. The speed of decline = expected increase, opportunities are hidden in the rhythm
The faster the decline, the stronger the rebound. A gradual decline usually only leads to weak rebounds, while a sharp decline often indicates a strong rebound. Understanding market rhythm and positioning for rebound opportunities after sharp declines can yield substantial profits. Sense of rhythm is the core skill of short-term trading.
8. Stop-loss is dignity and a tool for survival
In trading, stop-loss is the last line of defense for protecting capital. Set your stop-loss points, don't get tangled or attached, and timely stop-loss can avoid greater losses. Buying incorrectly is not scary; holding on stubbornly is deadly. Stop-loss is not just a strategy but also a matter of dignity and survival for investors.
9. Short-term weapon: 15-minute K-line + KDJ indicator
For short-term trading, it's recommended to use the 15-minute K-line chart in conjunction with the KDJ indicator to determine entry and exit points. KDJ can effectively capture overbought and oversold signals. Combined with K-line patterns, it allows for quick decision-making and rapid profit-taking. Short-term trading doesn't seek perfection, but rather speed, accuracy, and decisiveness.
10. It's not about the number of techniques, proficiency is the most important
Technical analysis doesn't require omniscience. Choosing two or three tools and mastering them is far better than having a little knowledge of everything. Mastering a small number of techniques, combined with strict discipline, can cope with the ever-changing market. In the cryptocurrency world, 'proficiency + discipline' is the key to survival and profit.
In the cryptocurrency world, where variables abound, making money relies not on luck, but on cognition, rhythm, and execution. These 10 pieces of experience are precious lessons that I have exchanged for five years of time and significant wealth.
There are no shortcuts in cryptocurrency trading, only making fewer mistakes and staying alive. If you're just starting out, keep these experiences in mind; perhaps each step will allow you to stumble less than I did back in the day. I hope you can seize opportunities and safeguard your wealth, progressing steadily on your investment journey.
