After 10 years of trading cryptocurrency, I want to share my personal insights with everyone!

I am 38 years old this year. I entered the cryptocurrency world at 25 and started my trading career. By 2024-2025, my assets successfully soared to eight figures.

Looking back over these ten years, I have hardly fallen into those petty business disputes, and my worries have decreased significantly. Because of this, I have the leisure and patience to summarize my insights over the years. In my view, the mindset in trading cryptocurrency is paramount, while technical skills are secondary.

Next, I will share my valuable experiences with everyone without reservation.




A day in the cryptocurrency world is equivalent to ten years in the human world, showcasing its ever-changing nature.

I have been in the cryptocurrency world for 10 years. Initially, I suffered heavy losses, but over time I experienced ups and downs, and now I support my family through this.

Summarize 10 points of experience for everyone's reference, making it hard to lose.

Coins supported by market makers:

When the market crashes, if the coins in your hands do not fall, there is a high probability that there is a market maker supporting the price. These coins may have solid fundamentals or potential good news, so hold on tight, as there is significant profit potential ahead.

Newbie moving average guide:

Newbies should pay more attention to macro information when buying and selling. For short-term views, look at the 5-day moving average, hold online, and leave the market when it breaks. For mid-term, focus on the 20-day moving average and operate similarly. Stick to a simple moving average strategy and act decisively.

Short-term response strategies:

For short-term buying, if a coin does not move for three days, change it immediately. If a coin drops right after buying and incurs a 5% loss, decisively stop-loss, efficiently utilize funds, and avoid losses.

Timing for rebound after overselling:

When a coin has halved from a high position and has fallen for nine consecutive days, it may have bottomed out, and a rebound is imminent. Buy decisively to catch the rebound.

Leading Coin Investment Logic:

Engaging in the cryptocurrency market means pursuing leading coins, which have strong upward momentum and resilience against declines. Do not hesitate because of high prices or significant drops; buy when the upward trend is established and sell during reversals.

Balancing bottom fishing and trends:

Do not be obsessed with bottom fishing; coins in a downtrend may have no bottom. Investments should follow trends, accurately grasping entry opportunities, as entering during an upward trend has a higher probability of profit.

Building a trading strategy:

Do not be complacent after a profit in the cryptocurrency market; continuous profitability is difficult. After each profit, review whether the strategy is effective or if it was just luck, and build a strategy that suits you.

Application of the empty position strategy:

When unsure about the market, keep cash on hand, prioritizing fund safety. Entering the cryptocurrency world is for stable asset appreciation, not for gambling-type investments. Trading is about success rates and profit-loss ratios.

Key points for investing in new coins:

New coins, in their initial stages, are driven up in price due to market optimism and capital influx, but they may lack fundamental support. Market sentiment can shift, and capital withdrawal can easily lead to price crashes, so investments should be evaluated cautiously.

Consensus and Wealth in the Cryptocurrency World:

Digital currency develops based on consensus mechanisms, where participants earn wealth through belief and effort, demonstrating the power of consensus in the cryptocurrency world and its wealth creation potential.

If someone is confused due to market fluctuations and doesn’t know how to deal with a trapped situation, or feels misled during the trading process, remember to learn more.

If someone frequently asks you whether to go long or short, then he is a big fool. If you often answer his questions without thinking, then you are an even bigger fool. Why? Because talking about trends without considering levels is being a rogue.

For example, when you open the daily chart of Bitcoin (Chart 1), the three moving averages show a bullish trend. The concept of 'Chen' tells us that we are not at the end stage yet, and the MACD has not diverged, indicating that we should go long; going long is the wisest choice. We should follow the big trend and go against the small.

However, when we open the 4-hour chart, the market starts to become unclear. The three moving averages are neither bullish nor bearish and begin to intertwine. Those who have studied our system's naked K-line course know that this is one of the trading ranges in the market where there is no trend. Therefore, both going long and short are possible; in other words, in this trading range, you can short high and go long low, treating every upward or downward movement within the range as an absolute reversal. Drawing a trend line to mark position 1 as a reversal from short to long is to capture the future profit from the upward movement at position 2, whereas making a reversal from long to short at position 2 is to capture the future profit from the downward movement at position 3.
Similarly, now that the market has returned to the bottom of the trading range, we need to short position 5, where the reversal from short to long is to capture the future invisible profit from the upward movement at position 6. Therefore, going long now is the wisest choice.



When we open the 20-minute chart, we will find that the three moving averages show a very clear bearish arrangement, and this downward force is quite strong, indicating a good trend. This is what we often refer to in our training camp as a 'good brother,' and the current bullish trend appears weak, aligning with the characteristics of a pullback trend. Therefore, our bias from the 20-minute chart should now be to short; shorting is the wisest choice. We must go with the big trend and against the small.

Therefore, as you can see, the cycles and levels we discuss are different, leading to different biases for going long or short. This is why talking about trends without considering levels is being a rogue, and discussing bullish or bearish without levels is being a big fool.

Two: Why do different cycles yield different results?

Why does this happen? Let me give you an example that will clarify it. Do you know about weather forecasts? Imagine now that Zhang San, Li Si, and Wang Wu are going on a trip, and they need to check the weather in advance. Zhang San plans to leave this afternoon for a nearby park to play for the afternoon. So Zhang San will pay particular attention to whether it will rain in the next few hours and whether the temperature is suitable. This is similar to the mindset of short-term traders who are very sensitive to short-term market fluctuations and must pay close attention. Li Si plans to leave tomorrow for a vacation in a city hundreds of kilometers away for a week, so he will check the weather forecast for the next week, giving him a rough idea of whether the coming days are suitable for going out or whether he needs to adjust his plans in advance. This is similar to mid-term traders in our market, who focus on market trends over a few days and formulate their strategies based on longer-term market dynamics.

Finally, let's say Wang Wu's travel plan is to embark on a self-driving trip across Asia and Europe, possibly spending a year on the road. Wang Wu will be more concerned about the climate conditions in the coming months to see if he needs to leave before autumn to avoid harsh winter weather. This is similar to long-term investors who care about long-term market trend changes and make plans based on the big picture.

If Zhang San, Li Si, and Wang Wu sit together and start blaming each other for not being able to check the weather forecast before understanding each other's travel plans, who do you think is the fool? Similarly, in the trading market, looking back at any time period from a hindsight perspective, the K-line trend ultimately follows only one path, one outcome.

We humans have invented various tools and methods to capture the trends and fluctuations in the market across different time frames. Different cycles reflect the market dynamics at different time scales, which helps traders formulate strategies based on their trading styles, while also understanding the market's performance and trends over different time periods.

This is similar to weather forecasts. The weather on a certain day and at a certain moment will only have one outcome. We don’t need to guess the weather for tomorrow; we just need to adjust our clothing preparations based on the general forecast to better adapt to our travel plans. So, is it being a rogue to talk about the weather without considering travel plans? Is it being a rogue to discuss trends without considering levels?

Three: How to solve it.

Now that you understand what it means to talk about trends without considering levels, what should you do? There are two methods.

The first method is to fix a set strategy, like drawing only one ladle of water from a river of 3000 weak waters. Choose the cycles that suit you best from many different cycle levels.

If you are an ordinary office worker who can only check the market once an hour, then that hour is your trading cycle, and the 4-hour chart is your trend cycle. You aim for profits below the 4-hour level. If you can only check every day, the daily chart is your trading cycle, and the weekly chart is your trend cycle, targeting profits below the weekly chart level. If you can check every five minutes, then the 5-minute chart is your trading cycle, and the 20-minute chart is your trend cycle, aiming for profits below the 20-minute level.

The second method is to forget the concepts of levels and cycles. Look at the market with a developmental perspective.

The bottom line that must be adhered to in contract trading.

Contract trading is highly risky, and the essence of making money under high risk lies in effective risk management. This is often stated as making more when earning and losing less when losing, and this principle is even more applicable in contract trading. Therefore, I will first discuss the importance of risk management in contract trading overall and then highlight some key risk management aspects.

It can be said that making money in contracts is both an easy and hard task. Earning is easy a couple of times, but the difficulty lies in long-term stable profits. In the face of the market, we are all small retail traders, so we should have lower expectations of ourselves—just look at the results and make money; don't pursue win rates, don't chase the lowest or highest points, and don't expect to get rich quickly. If a trade is opened, it's normal to be right or wrong; this shouldn't affect your mindset. Just cut your losses in time. If you earn less once, earn more a few times, take your time to accumulate, and never rush. These thoughts are like a sword of Damocles, potentially bringing disaster during certain market conditions.

Ultimately, the human nature in the trading market is just greed and panic. To make money, one must find ways to overcome these human weaknesses: do not be greedy when you should not be, and do not be afraid when you should not be.

It's important to stick to your own thoughts. The cryptocurrency market is still quite small, and there aren't many trading counterparts. The essential reason for making money is the persistence of personal thought. If you go with the flow and follow others, just not losing is already good, but making money is as difficult as climbing to the sky.

Thus, in contract trading, it is crucial to strictly adhere to your established trading discipline—do not be greedy, do not take chances. You cannot feel proud after profiting from a single instance of not following the rules, nor can you feel regret for missing out on a trend just because you adhered to the discipline. Discipline is ironclad; it is the bottom line to adhere to strictly at all times.

All of this is to ensure proper risk management and reduce the likelihood of fatal mistakes. By adhering to the following points, making money will become a high-probability event:

1. Reduce leverage.

You must ensure that the actual leverage of your position does not exceed 2-3 times. Of course, it’s best to keep it around 1 time, and if you are in an all-in mode, be sure to set take profit and stop-loss levels to prevent total liquidation in extreme fluctuations like those on September 25.

2. Learn to stop-loss.

This point is very important; I’ll reiterate: retail investors lose a lot of money not because of stop-losses, but because of liquidation. Market fluctuations are inherently unpredictable. Those who make money are usually the ones who earn more when they do right and lose less when they do wrong; stop-losses help you lose less when you are wrong. Therefore, retail investors are the same: when you make a mistake, you must recognize it in a timely manner and implement stop-losses. You must not hold onto losing positions. Set a loss percentage that you can tolerate, such as 15% or 30%, depending on your situation. When you reach the maximum loss percentage, do not take chances and wait; also, do not think that since you have lost so much, you might as well hold on. In any case, you must implement stop-losses. You might not feel it once or twice, and sometimes you might realize you shouldn't have stopped after doing so, but over time, you will taste the sweetness. For example, before September 25, if you were continuously going long, it would be easy to hit stop-losses. Each time you hit a stop-loss, you might feel frustrated, but looking back at the market that night, you will see how many people were liquidated with 2-3x leverage, and you should be grateful for your stop-losses being so wise. In summary, stop-losses just cut a little flesh, while not stopping losses is equivalent to suicide.

3. Reduce frequency.

This doesn't need much explanation; everyone should understand that the more you do, the more mistakes you make. If you happen to lose a lot when you make a mistake, it gets even worse. Therefore, in trading, strive to do the right thing, reduce trading frequency, and try to seize high-probability opportunities, making fewer mistakes and losses, which is beneficial for both profit generation and mindset adjustment.

4. Capital management.

Capital management is, in my opinion, the most important aspect of trading. Mastering a good capital management strategy can effectively protect your principal, reduce drawdowns, and safeguard profits, ultimately significantly enhancing your risk tolerance. Capital management determines whether you can make money and is the lifeblood for long-term survival in the trading market.

Here are a few rules to discuss separately: (1) Always maintain your principal without going all-in. Even if you keep 10% of your funds in cash, you will be grateful for your discipline in extreme risk situations. I generally keep 10-20% of my funds in cash and occasionally make short-term trades with altcoins, typically holding positions for less than 24 hours; (2) Separate contracts from spot. This is a form of risk isolation. The spot portion should not use any leverage; only benefit from the profits of spot price increases. The contract portion can occupy 20-30% of total funds, and in very certain trending markets, no more than 50%. The contract portion should operate with low leverage, anchoring on the returns in coin positions. After stabilizing profits in the contract market, the returns in coin positions can also be quite considerable; (3) Avoid excessive fund dispersion. Concentrate funds on a few relatively strong coins; do not spread too thinly, and reduce the number of simultaneous trading targets. For example, do not think of opening contracts for Bitcoin, Ethereum, EOS, and Litecoin simultaneously; that is something only experts do, aiming for maximum returns. As retail investors, we first aim for profit, not maximization, and trading too many targets only increases risk without enhancing profit. Therefore, it is best to focus efforts on increasing win rates while concentrating firepower, which makes it easier to generate profits than spreading funds across several targets.

5. Reflect frequently and summarize.

The entire trading process has only a few steps: determine the bullish or bearish direction—find the entry point—decide the size of the position—add to the position based on market conditions—set take profit and stop-loss. Basically, these are the main items. After finishing a trade, reflect frequently. In the entire trading process, identify which part you were weak in and focus on improving that aspect, ensuring you have good discipline to adhere to and execute at different trading stages. Summarize successful experiences and lessons from trading; long-term persistence will surely yield results.

The above is what I want to express about contract trading. I haven't discussed opening techniques and strategies, but instead chose to highlight these seemingly common thoughts and concepts. It’s not that techniques and strategies are unimportant; it's just that I believe these foundational thoughts are more important, practical, and essential to grasp. They are like the foundation of a building; only when the foundation is solid can the upper floors be more beautiful. Therefore, after understanding these basic principles, one can develop certain technical analysis abilities and master some techniques and strategies for trading. In the cryptocurrency market, contracts can become your cash cow.

But in any case, contracts are a high-risk gambling market, safety first. I wish everyone can make big profits in the cryptocurrency world.

Still, the same old story: if you don’t know what to do in a bull market, click on my avatar, follow me, bull market spot planning, contract secrets, and share for free.

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