Many people wonder why it’s difficult to profit in the market. Using high leverage requires extremely high stop-loss discipline, which must be adhered to; once you are wrong, stop loss immediately. The important stop-loss, not the liquidation price. All day discussing liquidation prices; when seeing someone post an order, the first thing they look at is the liquidation price. Is that why you open an order, to get liquidated?
Beginners should trade spot first; use the profits from spot trading for contracts. Many beginners jump straight into 50x contracts and lose all their money in a few minutes.
Establish a signal for opening and closing positions and then execute it. This does not mean that the signal has to be very accurate or have a high probability; just having one is enough. Because no signal can maintain a high win rate and high profit-loss ratio for a long time.
I have been trading cryptocurrencies for ten years, peaking at 5 million to over 27 million, and also experienced a few weeks of zeroing out and losing 6 million, feeling hopeless and depressed for more than a year. Later, with the guidance of a mentor, I regained confidence and returned to the cryptocurrency world, opening a new account with 50,000 and over three years of trading to the current 17 million.
In fact, the so-called enlightenment in trading cryptocurrencies means being calm and composed regardless of whether the market is good or bad, or regarding emotional state or profit curve!
I have used 90% of the methods and techniques in the market, but the most practical is still exploring 100x coins and analyzing their underlying logic! Today, I will share everything, and it will surely help you achieve a path to wealth from recovering your losses to making profits.
Methods and underlying logic for selecting 100x coins.
1. The circulating market value and total market value should be low. The total market value of a public chain is best under 50 million, and for DApp protocols, it is best under 5 million. Low circulating market value is easy to understand. If the market value is too high, the upward space is not large enough, so the lower, the better. Why must the total market value be low? Because the tokens will gradually be released in the next 1-2 years; if the total market value is too high, it means that the project side (the major player) does not need to push up the price; they can become rich just by unloading.
2. The ceiling of the track should be high. At least, in a bull market, the valuation should reach over 1 billion dollars. If it’s a meme coin, refer to Dogecoin; if it’s a public chain, refer to ETH, SOL, and MATIC; if it’s a DApp or protocol, refer to UNI, AAVE, LDO, etc.
3. New narratives, avoid participating in niche tracks. It’s best to solve real problems. A new narrative must be about long-term value discovery, not short-term speculative hype. For example, the AIGPU computing narrative now focuses on safer, faster, and more decentralized public chains, spanning multiple infrastructure tracks like the metaverse, chain games, and AR.
4. The 100x dark horse coins must be in places that go unnoticed. Because coins that everyone knows basically start high (like ICP) or have normal valuations (like ARB), do you think their unit prices can rise 100 times? When they open, the total market value is in the hundreds of billions or thousands of billions; even if it rises 100 times, it would catch up with ETH or BTC.
5. The liquidity of early 100x coins is usually very poor, typically found on-chain or in small exchanges. Therefore, many newcomers, when seeing others recommend early coins, do not research their value and keep saying they don’t want to go to small exchanges, thinking they look too much like low-quality coins, and buying is too troublesome; with no app, they don’t participate. This is all surface phenomena, failing to see the essence of value.
In 2021, when I bought magic, cross-chain was very troublesome. Later it rose tenfold in a month. In February 2023, when I bought ppi, it also required dual wallets for cross-chain; I tried many exchanges that did not support it, and later gate supported Espace withdrawals. Later, BRC20 tokens also had a high threshold requiring points and OTC, which was troublesome. In short, high thresholds are a necessary path for non-vegetables. Binance has no thresholds, but it is difficult to make money there; it’s all about unloading after launching. Refer to the recent trends of RDNT, GNS, PEPE, and FLOKI.
6. It is best for tokens to be launched in the late bull market or early bear market. When researching or buying, it is best if the launch and wash cycle is 6-12 months, and the circulation rate is greater than 50%. KAS was launched in May 2022, with a deep wash cycle of about six months, and this year saw a maximum rise of over 100 times. PPI was launched in May 2022, and after a deep wash cycle of nine months, it began to surge; currently, the circulation rate is about 60%, with a maximum rise of about 50 times this year.
7. Low unit price, many zeros after the decimal point. If the unit price suddenly rises to several hundred or thousands of dollars, it will scare away over 80% of retail investors. Especially in a bull market, new retail investors rushing in only look at the unit price and do not understand market value. Meme coins and public chain coins usually start at a very low unit price, with 3-5 zeros being normal.
8. It is best to invest in public chains or top protocols on public chains. The most profitable investments in the cryptocurrency world are public chains; during the bull market in 2021, more than ten 100x public chain coins emerged, such as Solana, Matic, Avalanche, and FTM, each with its own advantages. Many top protocols also emerged, such as UNI, AAVE, CAKE, and KVS. Why do I not participate in the hot coins in Hong Kong like ACH or LINAKDY? Because they are not public chains, and many of these projects have a short lifecycle; they are just a hype wave that ends. But public chains are different; they remain a hot topic, continuously building ecosystems and market value.
9. The founder, team background, investment institutions, and financing amount must be reliable. It is best if the founder is a well-known figure in the crypto world, like a core team member of Ethereum. For example, the founder of KAS is Y God, and the founder of ROSE is Professor Song. Having well-known institutions involved in the investment is equivalent to having additional endorsements. The amount of financing and project valuation are also very important; good public chain projects generally have high valuations in the billions.
10. Do not participate in violations of value investment logic. What is a violation of value investment logic? For example, stable AMPL, or a deflationary token on ARB, where the more you hold, the fewer coins you have. Whenever you see something like this, regardless of how innovative, do not participate; in the end, it will surely lead to chaos and you will be severely cut. AMPL cut many big V.
11. Avoid participating in old coins unless there is a very strong new narrative. For instance, RNDR and CFX are both old coins in this round, but their narrative is strong and perfectly aligns with the main theme of this new bull market. The former spans several hot tracks like AIGPU, NFT, chain games, AR, VR, and the metaverse, and its fundamental setup is hard to eliminate.
The latter is a better, faster, and safer public chain, and it is also backed by government resources. Additionally, Hong Kong aims to become the core of the new round of WEB3.0, making CFX a core target in the Hong Kong hotspot. Leaving aside this Hong Kong hotspot, it is also a relatively good public chain with its own ecosystem and value.
12. Choose track leaders; avoid selecting those lagging behind. For the Hong Kong hotspot, I choose CFX; for the ecological coins above, I choose the DEX token PPI, as the ecological coins on CFX are all incubated from PPI, thus being the leader of ecological coins.
If you have carefully read the 12 points above, you should understand that you do not need to look at all the coins mentioned above anymore, as they have already passed their market cycles, and it is highly unlikely to have a second wave of 100x or even 10x gains. What you need to do is to use these 12 iron rules to filter out new coins.
Beginners must learn! The contract candlestick chart that you must master for contract trading; once learned, you will navigate the cryptocurrency world like a fish in water.
Just getting into the cryptocurrency space and feeling overwhelmed by contract candlestick charts? Don’t worry! Today, we will teach you how to understand cryptocurrency contract candlestick charts in the simplest way, help you improve your trading level, seize market trends, and execute precise operations!
What is a contract candlestick chart?
First, we must know that candlestick charts are one of the most common chart types in cryptocurrency trading and an important tool for judging market trends. They are composed of time periods, opening prices, closing prices, highest prices, lowest prices, and other information, which can help you observe price fluctuations in the market.
Candlestick charts are divided into various time periods such as 1 minute, 5 minutes, 30 minutes, 1 hour, 4 hours, daily, etc. Shorter period charts are more suitable for short-term trading, while longer period charts are more suitable for medium to long-term operations.
Basic components of candlestick charts.
Each candlestick in the candlestick chart represents price changes within a certain time period. Each candlestick is primarily composed of **the body and upper and lower shadows**. Understanding these components will allow you to read more information from the chart.
1. Body
The body part represents the area between the opening and closing prices.
If the closing price is higher than the opening price, the body part is green or white, indicating that the market is rising.
If the closing price is lower than the opening price, the body part is red or black, indicating that the market is declining.
2. Upper shadow and lower shadow (Wicks).
Upper shadow: indicates the difference between the highest price and the closing or opening price during that time period.
Lower shadow: indicates the difference between the lowest price and the opening or closing price during that time period.
How to interpret the trends in contract candlestick charts?
Candlestick charts are not just made up of individual candlesticks; their combinations can help us judge market trends. By observing the shapes of candlesticks, we can predict potential market movements. Here are several common candlestick patterns:
1. Engulfing Pattern
Bullish Engulfing: a large bullish candle engulfs the previous small bearish candle, suggesting that the market will rise.
Bearish Engulfing: a large bearish candle engulfs the previous small bullish candle, suggesting that the market will decline.
2. Hammer and Inverted Hammer.
Hammer: a long lower shadow and a short body, usually appearing after a downtrend, indicating a possible market reversal upward.
Inverted Hammer: a long upper shadow and a short body, usually appearing after an uptrend, signaling a possible market reversal downward.
3. Doji.
Doji indicates that the opening price and closing price are nearly equal, with no significant body present, indicating uncertainty in the market, which may signal a reversal.
How to use candlestick charts for trading decisions?
1. Find support and resistance levels.
By observing the highs and lows in candlestick charts, we can find support levels (the level where the price may rebound when it falls) and resistance levels (the level where the price may retreat when it rises).
Support level: when the price drops to a certain level, buying pressure begins to increase, and the price rebounds upwards.
Resistance level: when the price rises to a certain level, selling pressure begins to increase, and the price falls downwards.
2. Determine the trend.
By observing the trends in candlestick charts, you can determine whether the market trend is upward, downward, or sideways.
Uptrend: typically characterized by continuously higher highs and higher lows on the candlestick chart.
Downtrend: typically characterized by continuously lower lows and lower highs on the candlestick chart.
Sideways market: prices fluctuate within a certain range, and the candlestick chart shows a relatively stable trend.
3. Combine with other technical indicators.
Candlestick charts are usually used in conjunction with other technical indicators, such as MACD, RSI, and moving averages, to help you more accurately judge buy and sell signals and market trends.
Common application techniques for candlestick charts.
1. Trend lines and channels.
By drawing trend lines (lines connecting lows or connecting highs) in the candlestick chart, you can intuitively see the market trend.
Uptrend line: connects a series of gradually rising lows, indicating a market uptrend.
Downtrend line: connects a series of gradually declining highs, indicating a market downtrend.
Price channel: composed of two trend lines, indicating that the price fluctuates within a range.
2. Candlestick pattern combinations.
Learn common candlestick patterns, such as triangles, flags, rectangles, head and shoulders, etc., which can help you determine the potential breakout direction of the market.
Triangle pattern: usually appears during a consolidation phase, with price fluctuations gradually narrowing, indicating that the market is about to break out.
️ Tips: How to improve your ability to understand candlestick charts?
Look more and practice more: only through continuous practice and review can you understand candlestick charts more accurately.
Use a demo account for trading: familiarize yourself with the changes in candlestick charts through simulated trading without worrying about losses.
Be patient: learning candlestick charts cannot be accomplished overnight; gradually accumulate experience to understand the deeper information in the market.
Summary: Understand the contract candlestick chart, easily grasp the market!
By mastering the basic components of candlestick charts, common patterns, and trading decision-making skills, you can better understand the market trends in the cryptocurrency world and make wiser trading decisions.
Whether you are a beginner in the cryptocurrency world or an experienced trader, candlestick charts are an essential tool for you! Through continuous learning and practice, you will definitely discover more trading opportunities and earn more profits!
After ten years of trading cryptocurrencies, you might need some investment and trading experience! I have organized my experiences for everyone to reference and learn.
The premise of our investments:
1. Ensure your own living security.
2. Family life must be guaranteed.
3. Invest money that you do not need in emergencies.
4. Do not borrow money to invest.
5. Invest money that you do not need urgently.
6. Invest with spare money and keep some cash on hand for emergencies.
Investment methods:
Full-time investment:
1. More time, be proficient in business.
2. More capital is needed.
3. You may appropriately invest more in high-risk, high-return varieties.
4. Focus on a specific investment variety to become proficient.
Part-time investment:
1. Less time, average business skills.
2. Capital can be more or less.
3. Invest in low-risk varieties for long-term investment.
Top 10 investment misconceptions:
1. Full position trading – a full position must lose.
2. Frequent trading – lack of technical guidance.
3. Trading against the trend – low probability, high risk.
4. Lock position trading – retail investors find it hard to control.
5. Lowering the average price of positions – making mistakes even worse.
6. Testing tops and bottoms without setting stop-loss – finding excuses for mistakes.
7. Go short after going long, and vice versa. Pursuing perfection without a goal.
8. Believing in news and blindly following the trend – lacking understanding of the market.
9. Not good at self-reflection, doubting the market – causing fear towards the market.
10. Develop a long-term trading plan – the future is unpredictable.
Concepts for successful investment:
1. Follow the trend; flowing water does not compete.
2. Focus on the big picture, start with the details.
3. Forget about costs; enter and exit calmly.
4. Be calm and composed, without urgency or anxiety about profits and losses.
5. Risk first; act within your means.
6. Keep calm, and wealth will gather.
Principles for beginners:
1. If you don't understand the market situation, consult your instructor rather than trading at random.
2. Do not take positions against the market; do not chase small profits, do not trade against rebounds in a downtrend, and do not trade against adjustments in an uptrend.
3. Do not trade in a consolidating sideways market.
4. Avoid over-positioning.
5. Be decisive with stop-loss, without hesitation.
Eight pairs of correct and incorrect investment markets:
1. Following the trend is right, going against the trend is wrong (once a trend is formed, it is hard to change in the short term).
2. Trading light positions is correct; trading heavy positions is wrong – position size affects attitude, and attitude influences decision-making.
3. Contentment is right, greed is wrong – greed is the enemy; being content brings happiness.
4. Protect profits with stop-losses, and don’t let things run wild – preservation of capital is first, profit second.
5. Objective operations are right, subjective analysis is wrong; operate objectively, follow the rules.
6. Cultivate patience, waiting and enduring is right; impatience and impulsiveness are wrong.
7. Increasing positions with profits is right; adding to losing positions is wrong; making a profit is the right direction; being stuck is the wrong direction.
8. Being calm and composed is right; being anxious about gains and losses is wrong. The essence of trading is the clash of human nature and mindset.
Brother Wen’s advice to investors:
1. Do not invest all your funds.
2. Timidity, impulsiveness, daring to lose but not to earn are not suitable for investment. Successful investors can control their emotions and maintain rigorous discipline.
3. Do not overtrade.
4. Face the market objectively; do not indulge in fantasies.
5. Make appropriate pauses in buying and selling; a leaf blocks the view of Mount Tai.
6. Do not blindly follow the trend.
7. When uncertain, temporarily observe.
8. Decide quickly; never get stuck or miss an opportunity.
9. Forget about past prices.
10. Patience is also an investment; learn to wait and know when to give up.
Mature trading judgment:
1. Stable positive returns.
2. Signals have stability and closure.
3. Controllability of risk.
4. Replicable trading patterns.
Brother Liang believes that establishing your own trading rules is the most important:
1. Don’t speculate whether the market is bullish or bearish; once the market gives a direction, there is generally a long way to go and will not easily change direction. Don’t wish for the market to reverse every day; focus on following the trend.
2. Observe the market direction and turning points, using long-term moving averages and pattern breakouts; conclusions should not be drawn from one or two days of candlestick data.
3. Clearly recognize the direction, control the position, exit promptly when wrong, and hold firm when right.
4. Learn to exit profitably.
5. Overcome fear and greed.
Summary of Brother Liang's over ten years of trading experience:
1. Focus on one variety.
2. The simpler the indicator, the better (moving averages, trend lines). Simplicity is beauty, and simplicity is stability.
3. Develop the habit of reviewing after the close.
4. Entry and exit indicators must be consistent.
5. Develop the good habit of trading on the right side.
6. Maintain a stable mindset and grasp the overall market trend.
7. Do not trade with heavy positions; even mature traders should trade with light positions.
8. In a trending market, take medium to long positions; in a sideways market, trade in segments.
9. Go long when the price is above the moving average, and go short when the price is below the moving average.
10. Understand the relationship between position volume and futures price: increasing positions in an uptrend means going long, while increasing positions in a downtrend means going short. Decreasing positions in an uptrend should reverse, and decreasing positions in a downtrend should also reverse.
11. When going long, focus on periods where the price has risen more frequently; when going short, focus on periods where the price has fallen more frequently.
The above are the trading experiences that Brother Liang shares with everyone today. Many times, your doubts cause you to miss many opportunities to make money. If you do not dare to try, to touch, to understand, how can you know the pros and cons? You can only know how to proceed with the next step after taking the first step. A warm cup of tea and a word of advice; I am both a teacher and a good friend who talks well with you.
Meeting is fate; knowing is parting. Brother Liang firmly believes that having fate means meeting eventually, and parting is destiny. The journey of investment is long; temporary gains and losses are just the tip of the iceberg. Remember that even the wisest can have their errors, and even the unwise can have their gains. No matter how emotional, time will not pause for you. Pick up your troubled heart and stand up to move forward.
In the cryptocurrency world, it is essentially a competition between retail investors and major players. If you don’t have cutting-edge news or first-hand information, you can only be at a loss! Those who want to layout together and harvest together can follow Brother Liang; like-minded cryptocurrency enthusiasts are welcome to discuss together.
