When I met a senior in the crypto world, the 42 million value in his account shocked me - you have to know that when he entered the market ten years ago, his capital was only 100,000. During the conversation, he said something I remember to this day: "The crypto market is full of a crowd chasing highs and cutting losses; as long as you can control your emotions, this market is your ATM."
After ten years of trading, I finally understand: those who can make money in the crypto world see technique as just a tool; emotion is the foundation. Today, I’m sharing the "trading mindset + hard-core strategies" I've summarized from practice. Those who understand it can at least avoid three years of detours.
1. Master these few mantras; they are worth more than reading ten trading books.
The rises and falls in the crypto world seem chaotic but actually hide patterns. These mantras are the essence refined from countless profits and liquidations; memorizing them can help you avoid 80% of the pitfalls:
Entry mantra: Beginners should not go all in, entering in batches is safer. Even if you see a good opportunity, do not invest more than 20% of your capital on the first try, leaving room for mistakes.
Sideways mantra: When prices are low and moving sideways, quietly add to your position without making a fuss; when prices are high and moving sideways, decisively reduce your position without hesitation. Sideways movement is not the end, but the prelude to a trend change - either the big players have absorbed enough chips, or retail investors can't hold on anymore; it depends on which side you stand on.
Volatility mantra: Don't chase during a rapid rise; it's likely a trap. Don't panic during a rapid drop; it might be a shakeout. Real opportunities are often hidden in "slow declines"; during this time, gradually adding to your position can lower your costs significantly.
Timing mantra: Don’t sell on highs, don’t buy on lows, and watch more than you act during sideways movements. This is the simplest truth - when it can't rise, it will fall; when it can't fall, it will rise. There's no need to waste transaction fees in sideways markets.
Risk mantra: Full-position trading is like gambling with your life; don’t go against the trend in a one-sided market. I've seen too many people chasing highs during a bull market, only to be hit back to reality by a big bearish candle. Remember: surviving to wait for the next wave of market is more important than anything.
2. Super practical trading method: From oscillation to trend, there’s always one suitable for you.
The market in the crypto world can be categorized into three types: oscillation, trend change, and one-sided. Different market conditions require different strategies, which is the key to stable profits.
1. Oscillation trading method: "Buy low, sell high" within the range.
Most of the time, the market oscillates within a range. Open the BOLL indicator; the upper band is resistance, the lower band is support, and the middle is our "profit zone":
When the price hits the upper band and shows a "long upper shadow," decisively go short;
When the price hits the lower band and shows a "long lower shadow," decisively go long;
Set your stop loss at a position 3% outside the trading range; if you’re wrong, admit it; if you’re right, aim for the other side of the range.
The core of this method is "not being greedy"; it’s unrealistic to want to make big money in a sideways market. Earning 3%-5% each time is enough; small profits accumulate to make a big difference.
2. Trend change breakout method: Catching one wave can sustain half a year.
The longer the sideways movement, the stronger the breakout. When the market trades sideways within a range for over 20 days and the trading volume decreases, it signals a trend change:
Break above the upper band of the range and increase the volume; decisively go long;
Break below the lower band of the range and increase the volume; decisively go short;
Set the stop loss 3% in the opposite direction of the breakout point; for example, if breaking the upper band means going long, set the stop loss 3% below the upper band.
Last year, ETH broke out after trading sideways at 1200 for a month, and those who entered using this method earned 40% in half a month.
3. Resistance and support method: The "deciding hand" at key points.
The price fluctuations in the crypto world essentially revolve around "finding resistance" and "finding support." By drawing key levels with trend lines, moving averages, and Bollinger Bands, you can lay out your positions in advance:
The price falls to near the long-term average line (such as the 120-day line) and stops falling, showing a bullish candle. This is a support level, and you can go long;
The price rises to the previous high and stagnates, showing a bearish candle. This is a resistance level, and you can go short;
These points are often the "battlefield" of both bulls and bears. Once broken through, the trend will accelerate.
3. Narrow volatility (NR) candle strategy: A little-known "precise strike" tool.
Many people don’t know that TradingView hides a magical tool for capturing trend changes - NR candles. Simply put, it helps you find K-lines where "volatility is decreasing"; after such K-lines, a big trend often follows.
1. NR4 candle: The narrowest K-line in 4 days
When the volatility of a certain K-line is smaller than that of the previous 3 days, it signals NR4. At this point:
When the price breaks above the NR4 high and is above the 89-day moving average, go long;
When the price breaks below the NR4 low and is below the 89-day moving average, go short;
Set the stop loss at 1 point outside the NR4 low (for long) or high (for short). After 3 K-lines, regardless of win or loss, exit the position.
This signal is relatively frequent and suitable for people who spend 1-2 hours watching the market every day; earning 2%-3% each time is not difficult.
2. NR7 candle: The narrowest K-line in 7 days.
NR7 is less common than NR4 but has stronger explosive power - 7 days of narrow volatility indicates more intense bullish-bearish competition; once broken, the trend will be fiercer:
The breakout rule is similar to NR4, but the stop loss can be relaxed to 2 points;
Extend the holding time to 6 K-lines, giving the market enough space to explode.
Last year, BTC showed an NR7 signal after trading sideways for 7 days at 30,000, then surged directly to 42,000. Those using this strategy made a profit of over 30% on a single trade.
3. NR4/ID candle: Narrow + inside bar, a more precise signal.
If the NR4 K-line is enveloped by the high and low points of the previous K-line (an inside bar), it signals a stronger indication. At this point, you can consider the "high and low points of the previous K-line" for stop loss, which can increase the win rate by another 10%.
4. Mindset management: The "invisible wings" more important than technique.
I've seen too many skilled technicians get liquidated; in the end, it’s about the mindset breaking down. These four "mindset principles" can help you stay clear-headed in a crazy market:
After trading, stop and review for 24 hours: regardless of profit or loss, once a trade is completed, close the software and force yourself not to look at the market. Many people end up making more mistakes because they want to "earn one more trade" or "recover losses."
Do not engage with the market on weekends: Weekend trading volume is only 30% of usual; a single spike can easily wipe out your stop loss. It’s better to spend time with family or read a book; the market doesn’t lack opportunities but needs a clear mind.
Trade at fixed times: I only check the market from 8-10 PM every day when it's active and my focus is highest. At other times, do what you need to do; don’t let K-lines control your life.
Do not develop emotional attachments to coins: Don’t hold on just because you "like a project"; don’t short just because you "hate a coin that has dropped." The essence of trading is to make money, not to fall in love; maintaining indifference to assets allows for rational decision-making.
In conclusion: The ultimate secret to making money in the crypto world is to "do the opposite."
That senior who turned 100,000 into 42 million once said something heart-wrenching: "90% of people lose money in the crypto market, not because they are stupid, but because they are too 'normal' - when others are greedy, they are even greedier; when others are fearful, they are even more fearful."
True experts are all "abnormal": when others chase highs, they sell; when others cut losses, they buy; when others are glued to the screen until dawn, they are already sound asleep.
If you also want to make money in the crypto world, remember from today: Techniques can be learned, but emotional control can only be practiced. First, control your hands, then practice your techniques, and finally, you'll be able to control your money.#币安HODLer空投ERA #以太坊连续两日领涨
