That night, the heartfelt words of a senior mentor were like a morning bell and evening drum, enlightening me and clarifying my positioning, allowing me to deeply understand the eight stages that every cryptocurrency investor must go through. I used these stages as a mirror for self-reflection, and finally regained everything I once lost!
Perhaps in the eyes of the world, retail investors are always the weaker party, like fish on a chopping board.
If you are hesitating at the door of the cryptocurrency world, I sincerely hope my sharing can light a lamp for you. I believe I possess a certain ability to summarize and express, and I hope my experiences and insights can provide you with some valuable references. Now, let's get straight to the point!
In the journey of trading cryptocurrencies, when you face a difficult decision to sell, you might as well ask yourself: if your analysis is accurate, why is the market going against you? There's only one answer—that is your judgment has deviated, because the market is always right; it never makes mistakes!
The ultimate truth in this market:
Those who invest spare cash live the longest.
Those who know how to cut losses go the farthest.
Those who seize the trend earn the most.
Remember this bloody saying:
A bull market is an elevator for the poor, but the emergency stop button is never in your hands. Either learn to control it or wait for the crash.
Author: Sister Bit Cloud Boat
Link: https://zhuanlan.zhihu.com/p/1915775591468241394
Source: Zhihu
Copyright belongs to the author. For commercial use, please contact the author for authorization; for non-commercial use, please indicate the source.
Leverage is not the devil; not understanding stop-loss is!
People often ask me: "Which is safer, opening 10x with 1,000 US dollars or 5x with 2,000 US dollars?"
Seeing such problems, I know another poor soul trapped by the liquidation price.
The truth is often very simple: both methods essentially represent a position of 10,000 US dollars.
The difference lies only in your psychological endurance, yet novices always get tangled up: "The liquidation price of 10x leverage is closer; it's so dangerous!"
Wake up! The core of trading has never been about the liquidation price, but whether you strictly execute stop-loss.
High leverage dies quickly? That's because you close the screen like a gambler after opening a position.
The question that beginners love to ask: "Teacher, how can I quickly turn 200 US dollars into 10 times?"
And then they really did it quickly, achieving zero in just five minutes.
Blood and tears advice:
First, earn your first pot of gold with spot trading, then use the profits to play contracts.
If you can't even understand candlesticks, it's better to go directly to Macau and play games.
The essence of trading:
The entry signal is not important at all; you can go long on sunny days and short on rainy days. The key is whether you dare to mechanically execute and control your position like a robot.
Why is it that with the same 10x leverage: some make tens of thousands of dollars in three years, while others lose everything in three days?
The market specializes in treating various defiance but always rewards those cold players who practice 'mechanical execution + mathematical thinking.'
Your account balance is a true reflection of your understanding; don't blame the market for being cruel; if you must blame, blame yourself for being too naive.
If you decide to treat cryptocurrency trading as a lifelong career and aspire to achieve financial freedom through digital assets—these ten pieces of hard-earned experience should be etched into your DNA. Not many, but each word is worth its weight in gold.
When the leading coin falls for nine days in a row, don't hesitate; it's your turn to step in.
If any coin has a wild celebration for two consecutive days, it's time to calm down and take profits.
Coins that surge more than 7% in a single day often have inertia to rise the next day; let the bullet fly a little longer.
A truly strong coin will give you a second opportunity to enter; wait until it retraces to the right level before taking action.
If a coin has been sideways for three days, give it three more days of observation; if there's still no movement, change the battlefield.
If you haven't broken even after holding for two days, the market is reminding you that it's time to exit.
Remember this rule: if it rises for three days, it might rise for five days; if it rises for five days, it might surge for seven days. However, the fifth day is often the best time to cash out.
Trading volume does not lie—watch for low-level breakout volume, and if there's high-level volume without upward movement, run quickly.
Only trade coins in an upward trend: a 3-day moving average rising signals a short-term opportunity, a 30-day moving average rising indicates a medium-term outlook, an 80-day moving average rising suggests a major upward wave, and a 120-day moving average rising means a long-term bull market.
Having a small principal is not the problem; the problem is whether you have the patience to wait for the right moment and the courage to pull the trigger when you see an opportunity.
I have used this method to achieve stable profits for five years, with a 90% win rate coming from three words: wait, precise, and ruthless. The market always has opportunities; just be afraid that you run out of bullets and confidence too soon.
