I have been trading cryptocurrencies for over ten years, from liquidation to achieving financial freedom, supporting my family through trading. By 2024, my capital has multiplied by 50 times. If it weren't for withdrawing funds twice to buy a house in between, it should have been 85 times.
Today, I will share my trading strategies and insights with my friends in the crypto space.
There is a saying: Stand on the shoulders of giants, and you will have to struggle for ten years less.
At the end of the article, I will also talk about the most important practical techniques!
For those who are fortunate to see this and want to improve their crypto trading skills, be sure to read carefully and consider saving this!
In the crypto space, you need to find a way to earn 1 million in capital first. The only way to earn 1 million from tens of thousands is to roll over your positions!
Operation Steps (Taking Bitcoin as an Example)
1. Initial Opening
Position Ratio: Do not exceed 10% of total funds for the initial opening (e.g., with 10,000 funds, the first opening is 1,000). Leverage + Choice: It is recommended to use 2-3x leverage to avoid high leverage risks. Stop Loss + Settings: Strictly set a stop loss of 2%-3% (e.g., if the opening price is $10,000, the stop loss price is $9,800), ensuring that the loss in a single case does not exceed 2% of total funds.
2. Increase Positions in Batches After Profit +
Conditions for Increasing Positions: Increase by 5%-10% (adjust according to trend strength), and if the trend is not broken. Increase Ratio: Each additional position should be 30%-50% of current total profit (e.g., if the first position profits 2,000, add 600-1,000).
Dynamic Stop Loss: After each increase, move the overall stop loss to the breakeven point (e.g., if the cost of the first position is $10,000, after adding the cost is $10,500, adjust the stop loss to $10,500).
3. Take Profit and Exit
Trend Continuation: If the trend continues, continue to increase positions proportionally until the target profit is reached (e.g., total funds double) - Take Profit Signal: When a clear top pattern appears (e.g., long upper shadow, reduced trading volume), breaks the trend line or key support level, exit in batches.
Key Points
1. Only roll long positions: Avoid counter-trend operations, as the bull market cycle in the crypto space is longer, and it is easier to capture the upward trend.
2. Isolated Position Mode: Use the exchange's "isolated margin +" mode to isolate the risk of a single position and avoid total liquidation.
3. Leverage Limitations: Even with a clear trend, do not exceed 5x leverage to avoid extreme fluctuations leading to liquidation.
4. Emotion Management: Do not chase high after missing an opportunity to add positions; wait for a pullback or the next trend signal.
Case Demonstration (Rolling Positions with 50,000 Capital)
1. Initial Opening: 50,000 capital, first investment 5,000, with 3x leverage to long Bitcoin (opening price $30,000)
2. First Profit: Bitcoin rises to $33,000 (+10%), profit 3,000. Increase position by 3,000 (total position 8,000). 3. Second Profit: Bitcoin rises to $36,000 (+20%), total profit 6,000. Add another 3,000 (total position 11,000)
4. Trend Continuation: Repeat adding positions until the target price (e.g., $40,000), final profit may reach 2-3 times the capital.
A Guide for Small Capital in the Crypto Space to Reach Millions: Detailed Core Strategies from Entry to Doubling
Part One: Starting Point - Start with Small Capital and Prepare Mentally
In the crypto space, starting with small capital to earn millions is not impossible, but before you decide to take this road, you must clarify your mindset. To succeed, you first need to understand - the crypto space is not a game of getting rich overnight, but a battlefield that requires continuous learning, patient waiting, and rational operation.
Many people enter the crypto space with dreams of getting rich, thinking they can invest a few thousand and then make millions in just a few months. However, this mindset often leads to hasty operations, blindly following trends, and ultimately being eliminated by the market.
Mindset Anchors:
Stay Rational: Do not pursue short-term windfalls, and be prepared for long-term battles.
Risk Awareness: No matter how confident you are, always set a stop-loss point before each trade to ensure that you will not be eliminated by the market due to a single failure.
Have you ever fantasized about getting rich overnight? I have too, but when I lost my first bit of money, I realized that this road is much harder than I imagined.
Part Two: In-depth Learning and Research, Laying a Good Foundation
In any investment market, knowledge is the weapon to win, and in the crypto space, project research is the most critical part. You need to know that blindly following trends not only leads to losses but also causes you to miss real opportunities.
Research Tools:
CoinMarketCap and CoinGecko: Used to check the market value, circulation, trading volume, and other basic information of cryptocurrencies.
Messari and Glassnode: Used to view on-chain data, historical performance of projects, and investment trends.
How to Research a Project:
White Paper Analysis: A project's white paper is its 'manual' for vision, technical roadmap, and application scenarios. A good project must have clear implementation scenarios and the ability to solve industry pain points.
Team Background: The technical background and previous project experience of the team are crucial. For example, the technical team of Ethereum founder Vitalik adds tremendous credibility to the project.
Investment Institutions: Support from top investment institutions often means the sustainability of the project. For instance, projects backed by a16z are usually highly regarded.
Community and Developer Activity: A long-term promising project must have a strong developer community and active technical updates. You can check code update frequency and developer participation through GitHub.
Part Three: Trading Strategy - Accurate Positioning, Rational Layout
The trading strategy is the core of the entire operation guide. How to make the right decision at the right time is the key to your success or failure. Many people lose money because they chase highs or miss suitable entry opportunities.
Strategy One: Build Positions in Batches, Avoid Risks
The market is very volatile; to seize good opportunities, building positions in batches is the best strategy. Do not invest all your funds in a single project at once; instead, enter the market gradually in stages.
Initial Position: When first building a position, invest at most 20%-30% of your planned total position. Maintain enough liquidity to add positions when the market pulls back.
Timing for Adding Positions: Use technical analysis tools (like candlestick charts, RSI, etc.) to add positions during market pullbacks or sideways movements.
Risk Control: For every investment, always set a stop-loss point to ensure that significant losses do not occur due to drastic market fluctuations.
Strategy Two: Follow Trends, Go with the Flow
In a bull market, going with the trend is key. Through technical analysis, you can identify certain cryptocurrencies' rebound points at important support levels. Meanwhile, pay attention to market sentiment for projects, such as Google Trends and social media discussions. When a cryptocurrency begins to attract significant attention, it may indicate that its upward potential has been unlocked.
Part Four: Timing - When to Take Action, When to Take Profit
In crypto investment, the worst thing is not knowing when to take profit. Many people see their funds rising but always wait for a 'higher' point. Once the market reverses, the previous gains evaporate instantly.
Take Profit Strategy:
Batch Take Profit: Just like building positions, take profits in batches. You can sell 50% of your holdings when your expected target is reached and keep part of the position for further observation.
Goal Setting: Set take profit targets based on the long-term potential of the project and market conditions. Do not be greedy for short-term windfalls. For example, when the project's increase reaches 3x or 5x, you can consider partial take profits.
Avoid FOMO:
Markets rise and fall; you cannot catch every uptrend. Therefore, once you have a good take profit plan, it is essential to execute it strictly and not change your decision due to short-term market fluctuations.
Part Five: Risk Management and Defensive Strategies - Always Prepare for the Worst
Risk management is an indispensable part of any investment strategy. No matter how optimistic you are about a project, always maintain risk awareness. Especially for small investors, a single failure can mean total exit.
Core Defensive Strategies:
Control Position: Never bet all funds on a single project; it is recommended that investment in one project does not exceed 20% of total funds.
Timely Stop Loss: When the market experiences adverse changes, decisive stop loss. For example, if the coin price falls below your set support line, sell immediately, even if it means a loss. Do not hold onto false hopes during a decline.
Risk Hedging: You can hedge risks by holding stablecoins (like USDT) or making multi-project portfolio investments to reduce losses from a single project's failure.
Conclusion: Keep Learning, Steady Progress, Achieve Wealth Goals
The crypto space is never a game of luck but relies on strategy, knowledge, and patience. Through the correct trading strategies, building positions in batches, timely take profits, and effective risk management, you can completely achieve the leap from small capital to financial freedom in the crypto space.
Remember, the most important thing is not to succeed every time, but to learn from failures and be fully prepared for the next market opportunity.
Success lies in continuous learning, adjustment, and execution. The world of cryptocurrency is full of opportunities but also traps. Only those who truly understand market analysis, control risks, and persist in learning can stand undefeated in this rapidly changing market.
How to Turn 10,000 into 10 Million at the Beginning of a Bull Market - The Technical Analysis Guide Series You Didn't Know About
The behavior of truly outstanding investors should be personalized and conducted according to their investment philosophy.
Like the invention of the steam engine brought great changes to human production and life, Dow Theory opened a new chapter in human investment, earning it the title of the progenitor among the five major technical analysis systems.
Speaking of which, you might wonder, 'Who founded Dow Theory? Who is Dow?' Charles Dow was the founder of the Dow Jones Financial News Agency and the first editor of the Wall Street Journal.
He worked on the trading floor of the stock exchange for several years. His personality was cautious, restrained, calm, and conservative, with a strong understanding and self-control. His financial knowledge is profound, and he possesses exceptional judgment. Great individuals are always objective and calm; Dow was almost never angry, which is an inherent factor in his becoming the founder of pioneering theories.
The articles published by Dow were organized into various chapters of Dow Theory by his assistant and successor, William Peter Hamilton, describing the immutable changes in financial markets objectively. This change, regardless of which financial market it is placed in, has the same scientific reference.
Have you ever noticed a very interesting phenomenon? There are two crypto spaces in this world. One is the real-life crypto space, which gradually reveals a clear image amid confusion and misunderstanding; the other is the fictional crypto space, the one that media likes to sensationalize, the one in the hearts of authoritative figures who pursue fame and profit, the one riddled with errors and rich in dramatic commentary. Those characters living in various rumors are no more real than the protagonists in any clichéd plot.
Those distorted images are vividly alive in various colorful rumors, just like your neighbor, but unfortunately, you have never truly seen what this neighbor looks like.
Here, I want to tell you a hidden truth, which is also the essence revealed in Dow Theory: 'No one can manipulate the main trend; the main fluctuations of the market are predictable.'
We can only objectively identify and follow the market's development trajectory, rather than fantasizing that the trend will conform to our imagination. Although some claim that the market is manipulated, this is still an illusion. Here, you receive the second hidden code: 'Wealth.'
In the world, as long as you master its rules, you will find the key to unlock the treasure vault. Western Dow Theory believes that a price is formed by the transactions between buyers and sellers, and the market's development occurs under support and pressure, causing the market to always be in a cycle of bull and bear markets. Bull and bear markets are each divided into three periods, and index movements are formed by the superposition of three types of movements, resulting in ever-changing prices during the three periods of bull and bear markets.
The main ideas of Dow Theory can be divided into two parts: one part summarizes and describes historical market rules, while the other part is the methodological thought of identifying rules. The former is centered on the description of the cyclical rules of bull and bear markets and the principle of triple movement, showcasing the overall operation mode of the market. The specific self-identification methods are based on Dow's definitions of trends and the principle of triple movement, including the decomposition of various trends and the self-identification of various trends' relative positions. The latter further identifies the relative positions of different parts in the same period, with the specific methods based on the mutual verification principle, allowing for a three-dimensional identification of which rules the market conditions at that time conform to those exhibited in the Dow model.
Mentality issues will accompany the entire trading process, but as traders, we cannot abandon human nature, nor is it necessary to do so. Therefore, psychological fluctuations are unavoidable.
So do not fantasize that one day your trading will be completely unaffected by your mindset; this is impossible and unrealistic.
What we ultimately need to learn is to coexist harmoniously with this mindset. When emotions fluctuate, just know that emotions have come; do not let them control your thinking and behavior, as this is the key to profitability in trading.
Life must experience ups and downs to achieve great enlightenment! As long as you do not give up, the more you try, the closer you get to success. What is truly great in life is not having done something, but having devoted your life to doing something.#巨鲸动向 $BTC
