I've been trading cryptocurrencies for 10 years, 6 years professionally, over 1,800 days. Initially entering the market with 200,000 yuan, I've experienced all sorts of pressure, pain, and confusion over the years. Ultimately, I achieved enlightenment, refined my trading techniques, and simplified them. In just three years, I've easily withdrawn 48 million yuan from the cryptocurrency market!
My Journey to Cryptocurrency Trading (Five Stages of Trading Growth)
1. [Newcomer to the cryptocurrency world]
When I first started trading crypto, like everyone else, I relied on luck and bought whatever coin caught my eye. I don't know if it was luck or the newbie's protection period, but within the first six months, my assets grew more than tenfold. At that point, I was brimming with pride!
However, it turns out that when you get too complacent, you're just as likely to stumble. Reality can mercilessly slap you in the face. When my assets were halved in a single trade, I realized that the trading market is ruthless and that good luck won't always be on your side.
2. [Learning of skills]
After the failure of my biggest transaction, I realized that relying solely on luck is not a long-term solution, and the goddess of luck will not always favor you.
At this point, I realized that trading requires real expertise and analytical skills, and I began to reflect and learn. I read relevant books, actively browsed various information platforms, and looked for opportunities and trading ideas. Then, I combined them with technical indicators to build my own trading system.
If you're new to the cryptocurrency world and have been blessed by luck, this is your best opportunity to learn! During the novice protection period, learn more techniques and improve your analytical skills.
But when I felt I had learned enough, my assets didn't explode. However, I no longer suffered excessive losses and had developed the ability to withstand risk. While trading techniques weren't always effective, they gave me a deeper understanding of the market, and I began to search for the true meaning of trading.
3. [Sudden Enlightenment of Tao]
Once I realized that different trading indicators and systems weren't the key factors determining profit and loss, I began to focus more on the psychology of trading. I discovered that profits often come from decisiveness and patience, not from rushing into trades and opening orders too frequently. This actually mirrors my initial psychology when I first entered the cryptocurrency world.
At this point, I knew predicting the market was incredibly difficult, so I needed to develop an independent trading system, following my own trading logic. I gradually learned position management and leverage allocation, and calculated returns on a monthly basis, no longer focusing on the gains and losses of individual trades.
4. [Gradually stabilize]
When you have a clear trading logic and a sound trading system, and follow the principles above, you can clearly accept both losses and profits. You can achieve a strategy of making small losses and large profits, becoming a stable trader and investor. At this point, you will gain recognition and respect from others, becoming known as a "teacher."
At this moment, only some black swan market conditions will have an impact on your trading logic, but black swan market conditions are always rare, and you must stick to your own trading logic.
5.【Handy】
When trading reaches mastery, indicators and market conditions flow seamlessly. Profits and losses become natural, and my emotions gradually stabilize. I gain intuition, no longer driven by excitement about trading, but instead focused on consistent profits. I'm gradually becoming a true trader, possessing patience, perseverance, and trading acumen that surpasses most.
The road to trading requires continuous learning and progress. From entering the cryptocurrency circle to becoming proficient in it, only by constantly honing your trading system and understanding the way of trading can you make stable profits in the market. No one does not lose money when trading, but being able to make small losses and big profits is our goal of learning.
A practical guide to violent rolling and contract trading in the cryptocurrency world!
Last year, I used a capital of 28,000 yuan and made 3.7 million yuan through three rollovers. This was by no means luck, but rather the result of violent positions and precise hunting!
Today I am going to break down this gameplay for you, but let me make it clear first, 90% of people simply can’t handle it. Either their hands are shaking and they dare not rush in, or they are too greedy and fall flat on their face!
Why can't 99% of people make 1 million?
Do you think it depends on technology? On information? You are totally wrong!
There are two ways to really make a lot of money:
Opportunity identification (no more than 3 times per year)
Position violence (a gambling nature that dares to win and lose)
How do most people do it?
I usually only make enough money to buy a lunch box when I use a 5% position in spot trading. But when the real opportunity comes, I am too timid to take the plunge and can only watch others make money.
The core of rolling position: just win 3 times in your lifetime!
Three fatal opportunities in the cryptocurrency circle (miss it and wait a year):
After a 70% plunge, the stock went sideways for three months (a signal for bottom-fishing funds to enter the market)
Breakout of key weekly resistance level (trend start signal)
A reversal after extreme market panic (you take the brunt of the losses when everyone else is selling)
Catch it once and your capital will be multiplied at least 10 times!
3 Types of People Who Will Destined to Die from Rolling
Those who worry about gains and losses: they run away when the price goes up 20%, and sell when it goes down 5%, and they never make big profits.
No-brained leverage: Starting with a 10x all-in bet, then blaming the market for being a scam when the position goes bust
Over-trading: want to roll over once a week, and end up paying all the transaction fees to the exchange.
The most ruthless rolling position practice (double your money by following the instructions, one wrong step will lead to bankruptcy)
Step 1: Build a position — Don’t go all in right away!
Only select BTC, ETH, SOL (large market capitalization, strong liquidity)
The first position should not exceed 20%, leaving 80% of the bullets for key points
Step 2: Boosting – Breaking through previous high + doubling volume
If the price breaks through the previous high and the trading volume increases by 2 times, increase the position by 30% directly.
Exit signal: If the closing price falls below the 7-day moving average, close half of the position; if it falls below the 14-day moving average, exit the entire position.
The biggest enemy of rolling positions is greed!
When you make 1 million, you dream of 2 million. When you make 2 million, you dream of 5 million. In the end, you lose all your profits. A truly ruthless person never hesitates when it's time to take profits!
Contract Trading Pitfalls Avoidance Guide
Attention, futures traders! Do you often find yourself opening trades only to see the opposite direction, only to see your profits soar as soon as you close them? Even when you've predicted the right direction, you end up losing everything? This comprehensive guide to futures trading, including practical pitfall avoidance, will help you thoroughly understand the underlying logic, hidden rules, and funding rate traps of futures trading, saving you money.
Do you think a contract is about buying or selling Bitcoin? Wrong! A contract is a "betting agreement." The exchange is merely the banker, and all your profits come from the losses of other gamblers!
Go long = bet on rising prices
Opening a short position = betting on a fall
But the question is - why did you still get your position liquidated in the end even though you got the direction right?
The 3 dark secrets that exchanges don’t want you to know!
Do you think funding rates are just a transaction fee charged every 8 hours? Naive! When the rates are extremely high, the exchange is forcing you to take sides!
Fee rate > 0: Longs give money to shorts
Fee < 0: Shorts give money to longs
Practical Tip: If the fee rate is > 0.1% three times in a row, don’t go long! It’s likely the exchange is about to rip off long positions!
Forced liquidation price ≠ theoretical liquidation price!
Do you think a 10% drop in the price of a 10x leveraged position will result in a liquidation? Wrong! The actual liquidation price will be much closer to the theoretical value!
Why? Because the exchange charges extremely high liquidation fees, which can eat up all your margin!
Leverage not only magnifies profits, but also handling fees and funding fees!
Many people think that if they use 100x leverage, they will earn 100x. That’s too naive!
Transaction fee: opening + closing position, calculated based on transaction volume after leverage!
Funding fee: Also calculated based on leveraged positions, high-frequency trading can drain your capital!
Core Strategy: High leverage is only suitable for short-term sniping. Positions held for more than 4 hours will be harvested by the rate!
Rolling and full-position modes
Rollover is the ultimate weapon of the full-position model. Using profits to continue opening positions, you can earn a hundred times more when the market cooperates! However, once the market reverses, the full-position model will be completely wiped out!
My advice: When rolling over, only add 50% of your profits to your position, and always leave a way out!
Why are you always targeted?
90% of margin calls occur at a few key price points. Do you think it's just bad luck? Actually...
Most people don’t lose to the market, but to their own weak execution!
How many people have lost their lives to despair during the market volatility? It’s too numerous to count!
The Origin of Trading Philosophy: "Weakness Overcomes Strength" Learned from Classics
In (Tao Te Ching), (The Art of War), (Selected Works of Chairman Mao) and (Ghost's Gift), I touched upon the most essential methodology of trading.
These classics seem to belong to different fields, but their core is surprisingly unified - the true trading wisdom is hidden in the philosophy of "using weakness" rather than "using strength".
The Tao Te Ching teaches that "the weak can use the Tao." This isn't a teaching about weakness, but rather a demonstration of the wisdom of adaptability. The market is like water; seemingly unyielding fluctuations are actually chaotic. Attempting to "overcome" it with force is like trying to stop a chariot with a mantis arm.
The "subdue the enemy without fighting" and "a good warrior has neither wisdom nor bravery" in (Sun Tzu's Art of War) are precisely the projection of this "using weakness" thinking in the military field - the most brilliant strategy is never to confront the market head-on.
The principle of "holding only the right positions and only increasing your investment in the right positions" in "Ghost's Gift" aligns with the concept of "ultimate softness" in the "Tao Te Ching." This "ultimate softness" means adapting to the terrain like water: following the market's upward trend and decisively withdrawing from it when it falls, maintaining a lightness that follows the market through fluctuations.
This strategy seems passive, but in fact it conforms to the law of all things "retreat 1 and advance 2", and the capital curve naturally shows a step-by-step growth.
But the method is easy to learn, but the state is difficult to achieve. The Kuomintang also studied Chairman Mao's "When the enemy advances, we retreat; when the enemy camps, we harass" strategy, but due to lack of internal determination, it eventually became a dogma.
As Marx said, "internal factors are the decisive factors." The core of trading is never to seek methods outside, but to cultivate the mind within. Whether you can hold down the hand that increases the bet when you are greedy and hold the stop-loss line in fear is the key to distinguishing masters from ordinary people.
The journey from "seeking principles externally" to "seeking principles internally" is a path that requires repeated refinement. When you can embrace the market's unwavering strength like water and adapt to the ebb and flow of trends like the wind, those seemingly esoteric principles will eventually become second nature in trading.
After all, the most brilliant trading method is never to be the enemy of the market, but to make yourself a part of the market.
The key to successful investing
Investing success is about repeating simple, correct things. The market is like the African jungle; survival is paramount. The principle of technical analysis: Keep it simple, so simple that you don't need to think. Don't be superstitious about complex technical analysis methods.
Have confidence in the system you set up, rather than relying on personal emotions, prejudices or wishful thinking to surpass or improve it. The system you prepare to use must be tested by time and actual combat.
You must be patient, waiting for the system's signals to trade on the sidelines. Once you establish a position, you must be equally patient, holding onto it until the system signals a reversal. You must strictly adhere to the rules and trade according to the system's signals, entering the market only when it demonstrates a strong trend. If you misjudge the trend, immediately close your position. If your analysis is correct, pyramid your position. Money is earned by "sitting back," not by trading. Only close your position when you objectively determine a trend reversal.
How to kill the boring time of long-term holding is also the key to whether you can hold positions for the long term. If necessary, you can use the "ostrich policy" to avoid the tension caused by the most intense market fluctuations in the middle of a major market trend.
The risk and return included in the price is a possibility, not something that can be achieved absolutely. We can use technical tools to determine the probability of this possibility, but we cannot guarantee that it will happen. This is why stop-loss is required.
You can only trade based on your view of the market. Once a person makes predictions, vanity sets in, making it difficult for him to accept anything that differs from his predictions during the trading process. However, true wealth is achieved through smart exits, which allow traders to cut losses and roll profits.
In short, people make money by discovering themselves, realizing their potential, and aligning with the market. During a rebound or consolidation, people become hesitant, and most trading becomes chaotic. Short-term attacks become frequent, and long and short positions change hands frequently. They lose not only their direction but also their self. This self is their belief and their trading system!
This kind of confusion will ultimately prevent traders from making further progress. As long as you truly follow signals and adhere to the rules, you will inevitably discover that trading is not that difficult. Stick to one approach, study it thoroughly, and control your mindset, and you will succeed.
Most investors don't realize that there are only a few days each month when you can make big money. The rest of the time, if you're not struggling, you're doing your part. Remember to always keep your account intact and wait for the big move.
Trading is like deploying troops. If you're 50% sure, you won't fight. Even if you're 70% sure, you won't fight either. You insist on waiting until you're 100% sure before launching an all-out attack. But war is ever-changing, so how can you be 100% sure? Technical analysis is a trader's behavioral discipline, not primarily about prediction. It helps you identify and follow trends. Move when you have to, and stop when you have to. In a strong market, technical indicators may indicate buy points but not sell points; in a weak market, technical indicators may indicate sell points but not buy points. Positions that "follow the trend" can yield significant profits, so don't abandon ship easily. During this process, there may be many temptations to rush in against the trend at the slightest fluctuation. Unless you are familiar with the art and have set a stop-loss, avoid entering or exiting the market haphazardly.
People make investment decisions based on price fluctuations, but if people's hearts fluctuate faster and more significantly than prices, they will lose their most precious composure, so their judgment of trends will easily go astray. Of course, it will also be easier to overturn their established investment plans again and again, and fall into the dilemma of chasing rising and falling prices.
The secret to success in the cryptocurrency world
Profitability comes from holding onto trend-following trades that others have given up on, seizing opportunities that others refuse, and doing what others dare not do. There's no such thing as complete failure in investing, only giving up due to a lack of persistence. The same is true for trading. You might initially favor a direction, but as the market fluctuates, you change your mind. You might initially be bearish, but exit the market due to a slight rise, and instead go long. Ultimately, you miss the downtrend and end up losing money against the trend. Such examples are countless in trading; any success requires persistence.