Turning 500,000 into 9.6 million and then back to zero in a few weeks—this is not a fictional plot; it is the most profound lesson of my 7 years in crypto trading.
The morning when my account balance turned into a string of zeros, I stared at the screen in a daze all night. Later, I realized that the most counterintuitive truth in trading is that what makes you money is not the ability to predict the market, but the courage to recognize defeat.
One, leverage is a double-edged sword: stop loss is more important than liquidation price 100 times.
Many people obsess over calculating the liquidation price when opening contracts, forgetting a basic question: are you opening a position to make money, or to test your luck?
Opening a position with 1000U at 10x leverage and 2000U at 5x leverage both have a position value of 10000U, but the liquidation price of the former is further away—what does that mean? If the direction is wrong, even a distant liquidation price just delays the time to zero.
High leverage is like driving fast; a slight turn of the steering wheel can lead to a crash. I've seen too many newbies jump in with 50x leverage and lose all their capital within minutes—this isn't trading; it's giving money to the market. True contract players focus not on leverage multiples, but on stop-loss discipline:
Single trade stop loss must not exceed 2% of capital; this is the lifeline.
Set stop loss levels before opening a position; when the time comes, cut it without hesitation.
Use spot profits to trade contracts, and never touch borrowed funds.
What beginners should do first is to practice 'opening and closing signals' with spot trading. This signal doesn't need to be very accurate; even a win rate of 50% is fine—the important thing is to form a closed loop: open a position when the signal appears, exit when stop loss is triggered, and take profit when the target is reached. There are no forever effective signals in the market, but there is forever effective execution.
Two, the 12 golden standards for selecting hundredfold coins: from being overlooked to soaring.
In 7 years, I have encountered more pitfalls than the money I've made. From Magic to PPI, from KAS to BRC20 tokens, those truly capable of rising 100 times all hide similar secrets:
Market cap is the ceiling: public chains with a total market cap below 50 million, dapp protocols below 5 million. Coins with too high a market cap are like overweight people running; it's hard to accelerate. More crucial is the total market cap—if a large number of tokens are unlocked later, the whales can cash out without needing to pump the price; such coins should be avoided.
The track must have imagination: choose fields that can tell 'billion-dollar stories.' Meme coins look at community heat (refer to Dogecoin), public chains look at ecosystem potential (refer to ETH), and protocols look at pain points solved (refer to Uniswap). Too niche a track has no chance for speculation.
New narratives are the catalysts: 2021 was the year of Layer 1 public chains, 2023 is BRC20, and 2024 may be AIGPU computing power—never trade outdated stories. New narratives don't necessarily need to be about how advanced the technology is, but rather about getting enough people to believe 'this is the future.'
Treasure hunting in obscure places: coins that are hot topics everywhere, such as popular projects just listed on Binance, are basically 'peak upon listing.' Real hundredfold coins are often hidden in small exchanges, sometimes requiring cross-chain transfers or manual liquidity additions to purchase—these troubles are precisely the barriers that stop inexperienced traders.
The timing of listing hides secrets: coins listed at the end of a bull market or the beginning of a bear market often explode in the next bull market after 6-12 months of washing out. KAS washed out for 6 months and rose 100 times, PPI washed out for 9 months and rose 50 times—this isn't coincidence; it's the inevitability of market cycles.
The unit price must be low enough: coins with 3-5 zeros after the decimal point are inherently suitable for retail speculation. New traders do not understand market cap and only look at unit price—this is precisely the opportunity for early chip concentration.
Public chains take precedence over tokens: October 2021 saw more than ten hundredfold public chains (SOL, AVAX, FTM) already proving that the lifecycle of public chains is much longer than that of single tokens. Choosing top protocols on public chains is like opening a store in a prime location—foot traffic comes with a guarantee.
Team background is the bottom line: it's best if the founder is an old hand in the crypto circle (like a core member of Ethereum), and having backing from well-known institutions is even better. But beware of 'over-funding'—projects with excessively high valuations might have founders looking to cash out.
Stay away from counterintuitive models: concepts like stability and deflationary destruction are essentially mathematical games, and will ultimately crash. AMPL has trapped countless big players, serving as a warning.
Ecosystem is more important than concept: the reason why hot coins in Hong Kong (ACH, LINKDY) are fleeting is that they lack ecosystem support. Public chains are different; as long as they continue to build the ecosystem, there will always be reasons to speculate.
Circulation rate must exceed half: coins that have been listed for over a year with a circulation rate below 50% are likely controlled by whales, making it easy to pump and hard to sell.
Old coins need new stories: RNDR and CFX can rise again, relying not on outdated technology, but on aligning with new narratives (AIGPU, Hong Kong Web3). Old coins without new stories are like restaurants without new dishes, destined to be eliminated sooner or later.
Three, the overlooked trading tool: how Renko charts filter out 80% of noise.
Many people spend all day staring at K-line charts, unaware that TradingView hides a 'noise reduction tool'—Renko charts. This tool helps you break free from the confusion of candlestick charts and see the essence of trends.
Simply put, Renko charts only use 'bricks' to show price changes: if the price rises by a certain number of points (for example, 50 points), a green brick is drawn; if it falls by a certain number of points, a red brick is drawn. Its magic lies in completely filtering out the time factor and only focusing on effective price movements.
Practical application:
Identify trends: consecutive green bricks indicate an upward trend, while consecutive red bricks indicate a downward trend, which is 10 times clearer than candlestick charts.
Find support and resistance: areas with dense bricks indicate strong support or strong resistance.
Combine moving average strategy: 20-period moving average + Renko combination, go long when green bricks are above the moving average, go short when red bricks fall below the moving average.
Advantages and disadvantages coexist:
Advantages: reduces noise, clear trends, suitable for capturing major market movements.
Disadvantages: easy to misjudge in volatile markets, limited information (no candlestick patterns).
My habit is: use candlestick charts to find entry points, and use Renko charts to see if trends continue. When the color of the Renko brick reverses, it's a signal to take profit—this can earn more than 30% profit compared to simply looking at candlestick charts.
In conclusion: the ultimate realm of trading is inner peace.
From 500,000 to 9.6 million, and then starting anew from 50,000, my greatest gain has not been in skills, but in mindset. The market's ups and downs no longer affect my sleep, and account fluctuations no longer sway my emotions—this is the true essence of 'enlightenment'—profit is just a byproduct of correct operations.
If you are still anxious about profits and losses, remember this: stable profitable trading must be comfortable trading. Those operations that require staying up all night watching the market and go against the rhythm of life will eventually cost you dearly.
