Many people find it difficult to profit in the market because using high leverage requires extremely high stop-loss discipline, which must be adhered to; once it is wrong, immediately stop-loss. Important stop-loss, not liquidation price. All day discussing the liquidation price; when seeing someone else's orders, the first thing you look at is the liquidation price. Are you opening a position just to liquidate?
Beginners should trade spot; use spot profits to trade contracts. Many newcomers jump straight into 50x contracts and lose money within minutes.
Establish a signal for opening and closing positions and then execute it. It does not mean that this signal has to be very accurate, with a high probability; having it is enough. Because no signal can maintain a high win rate and high risk-reward ratio for a long time.
I have been trading for ten years, reaching a peak of 5 million to over 27 million, and also experienced a complete loss of 6 million in a few weeks, feeling hopeless for over a year. Later, with guidance from my mentor, I regained confidence and returned to the crypto world, starting a new account with 50,000 and after three years, now trading at 17 million.
In fact, the so-called coin trading enlightenment means that regardless of whether the market is good or bad, your mental state or profit curve can remain calm!
I have used 90% of the methods and techniques in the market, but the most practical ones are exploring hundredfold coins and analyzing the underlying logic! Today, I will share everything, which will surely help you achieve wealth from recovery to profit.
Methods and underlying logic for filtering hundredfold coins:
1. Circulating market value and total market value should be low. The total market value of public chains should ideally be below 50 million, and DApp protocols should be below 5 million. Circulating market value should be low; it 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 in the following 1-2 years, tokens will be gradually released, and if the total market value is too high, it means the project party (whales) does not need to push the price up; they can become rich just by unloading. Or, even if it drops tenfold, there is still a high price and profit.
2. The ceiling of the track should be high. At least the valuation in a bull market should reach over 1 billion USD. If it's a meme coin, you can refer to Dogecoin; if it's a public chain, you can refer to ETH SOL MATIC; if it's a DApp or protocol, you can refer to UNI AAVE LDO, etc.
3. New narratives; do not participate in too niche tracks. It’s best to solve real problems. New narratives must be about long-term value discovery, not short-term cyclical speculation. For example, the AIGPU computing narrative now, safer, faster, and more decentralized public chains, spanning multiple foundational infrastructures like the metaverse, chain games, AR, etc.
4. Hundredfold dark horse coins must be in places that no one cares about. Because coins known by the whole network are generally highly valued (ICP) or normally valued (ARB), do you think their unit price can rise 100 times? When the market opens, the total market value is hundreds of billions, thousands of billions; don't say it can rise 100 times, even 10 times would match ETH and BTC.
5. The liquidity of early hundredfold coins is generally poor, usually 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, which seem too much like junk coins, and that buying is too troublesome, as there are no apps to participate. All of this is superficial; they fail to see the essence of value.
When I bought magic in 2021, cross-chain was very troublesome; later, it rose tenfold in a month. When I bought PPI in February 2023, it also required double wallets for cross-chain, and I tried many exchanges that did not support it, later Gate supported Espace withdrawals. Later on, BRC20 tokens also had high barriers; they required points and OTC, which was very troublesome. In short, high barriers are a necessary path to stop non-pros. Binance has no barriers, but it is difficult to make money on it; it is all about unloading after listing. Refer to the recent trends of RDNT, GNS, PEPE, FLOKI.
6. The best time for token listing is at the end of a bull market or the beginning of a bear market. When researching or buying, it's best to have a listing and wash cycle of 6-12 months, and the circulating rate should be above 50%. KAS was launched in May 2022, experiencing a deep wash cycle of about 6 months, with the highest increase this year being over 100 times. PPI was launched in May 2022, and after a deep wash cycle of 9 months, it started to surge; currently, the circulating rate is about 60%, with the highest increase this year being around 50 times.
7. Low unit price, many zeros after the decimal point. If the unit price immediately comes up to several hundred U or several thousand U, it will scare away more than 80% of newcomers. Especially in a bull market, the newcomers rushing in only look at the unit price and do not understand market value. Meme coins and public chain coins usually start with very low unit prices, 3-5 zeros is very normal.
8. It is best to have public chains or top protocols on public chains. The best way to make money in the crypto world is through public chains. In the 2021 bull market, more than 10 hundredfold public chain coins emerged, such as SOL, MATIC, AVAX, and FTM, each with its own advantages. Many top protocols also emerged, such as UNI, AAVE, CAKE, etc. Why don't I participate in Hong Kong hot coins like ACH or LINK? Because they are not public chains; many things have short lifecycles, and trading one wave ends. However, public chains are different; they remain hot and continuously build ecosystems and market value.
9. Founders, team backgrounds, investment institutions, and financing amounts must be reliable. The founder is best to be a well-known figure in the crypto world, such as a core team member of Ethereum. For example, the founder of KAS is Y, and the founder of ROSE is Professor Song, etc. Having well-known institutions involved in investment is equivalent to having more endorsements. The financing amount and project valuation are also important; good public chain projects generally have high valuations in the billions.
10. Do not participate in those that violate value investment logic. What is violating value investment logic? For example, AMPL, which is stable, and a previous deflationary token on ARB, where the more you hold, the less you have of the token. Whenever you see this, no matter how innovative it is, do not participate; in the end, it will definitely end in a mess, leading to severe losses. AMPL caused many big V losses. If you think you are a naturally fast runner, then I won't say anything.
11. Try not to participate in old coins unless there are very strong new narratives. For example, RNDR and CFX in this round are old coins, but their narratives are excellent, perfectly fitting the main theme of this new bull market. The former spans several hot topics across AIGPU, NFT, chain games, AR, VR, and the metaverse, and it's foundational settings are hard to eliminate.
The latter is a better, faster, and safer public chain, supported by national government resources. Additionally, Hong Kong aims to become the new center for WEB3.0, making CFX a hot core target in Hong Kong. Aside from this Hong Kong hotspot, it is also a relatively good public chain with its own ecosystem and value.
12. Choose the leading track and avoid choosing those at the back. In Hong Kong hotspots, I select CFX, and for the ecosystem coins on it, I choose the DEX token PPI, as all the ecosystem coins on CFX are incubated on PPI, so they are the leading ecosystem coins.
If you have carefully read the above 12 points, then you should understand that all the coins mentioned above are no longer worth looking at because the market trends have passed, and the likelihood of a second wave of hundredfold trends is very low; what you need to do is to use these 12 iron rules to filter out new coins.
Must-learn for beginners! You must master the contract K-line chart for trading; once learned, you will navigate the crypto world like a fish in water.
Just entering the crypto world and feeling overwhelmed by the contract K-line chart? Don't worry! Today, we will teach you how to understand the crypto contract K-line chart in the simplest way, helping you improve your trading skills, seize market trends, and execute precise operations!
What is the contract K-line chart?
First, we must know that the K-line chart is one of the most common chart types in crypto trading and an important tool for judging market trends. It consists of information such as time periods, opening prices, closing prices, highest prices, and lowest prices, which can help you observe market price fluctuations.
K-line charts are divided into different time period charts, 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 suitable for medium to long-term operations.
Basic components of the K-line chart
Each K-line in the K-line chart represents price changes within a certain time period. Each K-line mainly consists 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 price and closing price.
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: Represents the gap between the highest price during the period and the closing or opening price.
Lower shadow: Represents the gap between the lowest price during the period and the opening or closing price.
How to interpret the trends of contract K-line charts?
The K-line chart is not just composed of individual K-lines; their combinations can help us judge market trends. By observing the shapes of the K-lines, we can predict possible market trends. Here are several common K-line 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: Long lower shadow and small body, usually appears after a downtrend, indicating that the market may reverse upwards.
Inverted Hammer: Long upper shadow and small body, usually appears after an uptrend, indicating that the market may reverse downwards.
3. Doji
The Doji indicates that the opening price is almost equal to the closing price, with no apparent body in the pattern, indicating uncertainty in the market, which may be a signal of reversal.
How to use K-line charts for trading decisions?
1. Identify support and resistance levels
By observing the highs and lows in the K-line chart, we can find support levels (the level at which the price may rebound when it declines) and resistance levels (the level at which the price may drop when it rises).
Support level: When the price drops to a certain level, buying begins to increase, causing the price to rebound upwards.
Resistance level: When the price rises to a certain level, selling begins to increase, causing the price to drop downwards.
2. Identify trends
By observing the K-line chart trends, you can determine whether the market trend is upward, downward, or sideways.
Upward trend: Usually characterized by continuously higher highs and higher lows in the K-line chart.
Downward trend: Usually characterized by continuously lower lows and lower highs in the K-line chart.
Sideways market: Price fluctuates within a certain range, with the K-line chart showing a relatively stable trend.
3. Combine with other technical indicators.
K-line charts are usually used in conjunction with other technical indicators, such as MACD, RSI, moving averages, etc., to help you more accurately judge buy and sell signals and market trends.
Common application techniques of K-line charts
1. Trend lines and channels
By drawing trend lines in the K-line chart (connecting the lows or connecting the highs), you can visually see the market trends.
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: Formed by two trend lines, representing price fluctuations within a range.
2. Candlestick pattern combinations
Learning common candlestick pattern combinations, such as triangles, flags, rectangles, head and shoulders, etc., can help you judge the potential breakout direction of the market.
Triangle pattern: Usually appears in the consolidation phase, where price fluctuations gradually narrow, indicating that the market is about to break out.
Small tip: How to improve your ability to understand K-line charts?
Look more and practice more: Only through continuous practice and review can you more accurately understand the K-line chart.
Trade with a simulated account: Familiarize yourself with K-line chart changes through simulated trading without worrying about losses.
Be patient: The K-line chart cannot be mastered overnight; experience must be accumulated gradually to understand the deeper information in the market.
Summary: Understand the contract K-line chart and easily grasp the market!
By mastering the basic components of K-line charts, common patterns, and trading decision techniques, you will better understand the trends in the crypto market and make wiser trading decisions.
Whether you are a newcomer to the crypto world or an experienced trader, the K-line chart is an essential tool for you! By continuously learning and practicing, you will surely discover more trading opportunities and earn more profits!
After trading coins for ten years, you may need some investment trading experience! I have整理了我的经验供大家参考学习.
The premise for our investment:
1. Ensure your own life is secure;
2. Family life must be secure;
3. Do not invest emergency funds;
4. Do not borrow money to invest;
5. Do not invest money from credit cards;
6. Use spare money to invest and keep a certain amount of cash for emergencies.
Investment methods:
Full-time investment:
1. Lots of time, need to be skilled;
2. More funds are needed;
3. It is appropriate to invest more in high-risk, high-return varieties;
4. Specialize in specific investment varieties; focus to become professional.
Part-time investment:
1. Limited time, average skills;
2. Funds can be more or less;
3. Invest in low-risk varieties for long-term investment;
Ten major misconceptions in investing:
1. Full position trading - full positions are bound to lose;
2. Frequent trading - lack of technical guidance;
3. Operating against the trend - low probability, high risk;
4. Lock-up trading - retail investors find it hard to control;
5. Lowering and raising the average holding price - wrong on top of wrong;
6. Testing tops and bottoms without setting stop-loss - looking for reasons for mistakes;
7. Go long when there are many long positions, and go short when there are many short positions. Excessive pursuit of perfection leads to no goals.
8. Trusting news and blindly following trends - lack of understanding of the market;
9. Lack of self-reflection, doubting the market - generating fear about the market.
10. Establish a long-term trading plan - the future is uncontrollable.
The concept of successful investment:
1. Follow the trend, flowing water does not contend.
2. Focus on the big picture while taking care of the details
3. Forget about costs; enter and exit calmly.
4. Do not rush or be anxious, have no worry about profit and loss
5. Risks first, act according to your capabilities.
6. Stay calm, wealth will accumulate.
Principles for beginners' operations:
1. If you do not understand the market, you can ask instructors or teachers instead of trading randomly.
2. Absolutely do not take positions against the market; do not be greedy for small profits, do not take rebounds against the market, nor make adjustments in upward trends.
3. Do not trade during consolidation or sideways markets.
4. Do not operate in full positions.
5. Be decisive about stop-loss, without hesitation.
Eight pairs of mistakes in the investment market:
1. Operate in line with the trend; going against the market is wrong (once a trend is formed, it is difficult to change in a short time);
2. Light positions are correct; heavy positions are wrong - position affects attitude, attitude affects board decisions;
3. Contentment is correct, greed is wrong - greed is the enemy, contentment brings happiness;
4. Loss protection is correct; letting it flow is wrong - capital preservation is first, profit is second;
5. Objective operations are correct; subjective analysis is wrong; objective operations, abide by the rules;
6. Wait patiently is correct, impatience and impulsiveness are wrong; cultivate patience, act only at the right moment.
7. Increasing position with profit is correct, increasing position with being trapped is wrong; profit is the correct direction, being trapped is the wrong direction;
8. Calmness is correct; anxiety about gains and losses is wrong; the essence of trading is the clash of human nature and mentality.
Wen Ge’s advice to investors:
1. Avoid using all funds for investment.
2. Cowardly, impulsive, willing to lose but afraid to gain, not suitable for investment. Successful investors can control their emotions and have rigorous discipline.
3. Do not overtrade.
4. Face the market realistically, do not fantasize.
5. Make appropriate pauses in trading; a leaf obstructs the view of Mount Tai.
6. Do not blindly follow trends.
7. When uncertain, observe temporarily.
8. Make quick decisions; do not get bogged down or miss opportunities.
9. Forget past prices.
10. Patience is also investment; understand how to wait and how to give up.
Mature trading judgment:
1. Stable positive returns.
2. Signals should be stable and closed.
3. Controllability of risks.
4. Replicable trading models.
Wen Ge believes that establishing your own trading rules is the most important:
1. Do not guess whether the market is bullish or bearish; once the market gives a direction, there is usually a long way to go and will not easily change direction; do not hope for the market to turn; focus on going with the trend.
2. Look at the market direction and turning points, must use the moving average of larger cycles and breakout patterns; absolutely cannot draw conclusions based on one or two days of K-line.
3. Clearly see the direction, control the position; if wrong, exit in time; if right, hold the position.
4. Learn to exit with profits.
5. Overcome fear and greed.
Wen Ge's summary of over ten years of trading experience in crypto:
1. Focus on one variety.
2. The simpler the indicators, the better (moving averages, trend lines). Simplicity is beauty, simplicity is stability.
3. Develop a habit of reviewing after the market closes.
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 master the market trends.
7. Do not trade heavily; even experienced traders should trade lightly.
8. Trade medium to long-term in trending markets and trade in segments during sideways markets.
9. Go long when the price is above the moving average; go short when the price is below the moving average.
10. Understand the relationship between position volume and futures price; increasing long positions with rising prices, increasing short positions with declining prices. Decreasing long positions in an uptrend indicates a reversal, and decreasing short positions in a downtrend also indicates a reversal.
11. Long positions should be taken in periods when the market is rising, and short positions when the market is falling.
The above are the trading experiences shared by Wen Ge today. Many times, you lose many profitable opportunities because of your doubts. If you do not dare to try boldly, to get in touch, to understand, how can you know the pros and cons? You can only know how to proceed after taking the first step. A warm cup of tea, a piece of advice; I am both a teacher and your talkative friend.
Meeting is fate; knowing each other is a division. Wen Ge firmly believes that fate will eventually meet over a thousand miles, while parting is destiny. The journey of investment is long; a momentary gain or loss is just the tip of the iceberg. Remember, even the wisest will have mistakes, and even the unwise will have gains. No matter how emotions fluctuate, time will not stop for you. Put down your worries, stand up again, and move forward.
