Not long ago, I had the privilege of sharing tea with a big shot in the crypto circle, discussing the market's trends. His words left me deeply shocked.
He once blew up his account due to contracts within three days, losing as much as 50 million yuan. This experience was undoubtedly a profound lesson for him.
Reflecting on my journey in the crypto circle, it has been quite tumultuous. From initially entering the market with 50,000 to making millions during the bull market; then from millions down to over 2000, and now targeting 1.1 million; and now, I am waiting for the next bull market to arrive, aiming to reach three small targets.
My method of trading cryptocurrencies is not complicated, but it is extraordinarily practical. In just one year, I managed to grow my assets to 8 digits. My secret is to only trade one form, decisively entering when I see an opportunity, and not trading without a clear form.
Over the past five years, I have maintained a win rate of over 90%, thanks to my patience and precise judgment.
Today, I want to share the best practical advice with everyone:
The method of position management is to operate in batches.
Batching: Divided into equal parts and unequal parts.
First: Equal distribution, also known as the rectangle trading method, refers to dividing funds into several equal parts and buying or selling them sequentially, where each buying or selling action has the same monetary proportion. Typically, 3 or 4 equal parts are used. For example, first buy 30%. If you start making a profit, buy another 30%. If you do not make a profit, do not invest new funds for now. When the price of the coin reaches a certain peak or the market changes, gradually reduce your position and sell.
Second: Unequal distribution, which means allocating funds in different proportions for buying or selling, in ratios like 1:3:5, 1:2:3:4, 3:2:3, etc. The shapes formed based on these ratios include: diamond, rectangle, hourglass, etc., with the pyramid trading method being the most commonly used.
Third: Compare using the same funds and positions with different methods.
Pyramid: Buy 5 layers at 1000, 3 layers at 1100, 1 layer at 1200, average price 1055.
Inverted Pyramid: Buy 1 layer at 1000, 3 layers at 1100, 5 layers at 1200, average price 1144.
Equal Parts Rectangle: Buy 3 layers at 1000, 3 layers at 1100, 3 layers at 1200, average price 1100.
When the price rises to 1200, profits are: Pyramid 145, Inverted Pyramid 56, Rectangle 100.
Price drops to 1000 with losses: Pyramid +55, Inverted Pyramid -144, Rectangle -100.
For example: a certain coin drops to 10 yuan, buy 20% of the position, the price drops to 8 yuan, then enter 30%. At this point, the average cost is 8.6 yuan. If the market continues to drop to 5 yuan, enter 40%, the average is 6.5 yuan. If the price rebounds to 6.5 yuan, it is breakeven. If it rebounds to 10 yuan, it means a profit of 3.5 yuan. But if you buy in fully at 10 yuan, when the price returns to 10 yuan, you have just broken even.
The curse of retail investors in the crypto market.
About the curse of buying and causing a drop, selling and causing a rise.
If you think about this issue from a different angle, you will understand a very simple truth: if I were a big player, having built such a large team and invested so much money, my goal would be to take your money, not to help you make money. This is the main point. All actions revolve around this point. After working hard to secretly collect bottom chips for months or even a year, why would I bring you along? Therefore, before the price rises, I must push you off the bus.
How to rush? Wash the market!
After lying low for a while, I got enough chips to control the market. From then on, the fate of the entire K-line is completely in my hands. Mastering the K-line is like grasping the heart of retail investors. The K-line is the rope, and retail investors are a flock of sheep. Wherever I lead, you will follow, and I will play with you. You say you won't be easily swayed; you overestimate yourself. As long as you have humanity and desires, you cannot achieve a tranquil heart. Emotional fluctuations can happen in an instant, and buying and selling actions can happen in just a second.
You won't even have time to realize your emotions are being manipulated. By the time you notice all this, you have already completed the buying and selling actions, which is exactly what I want you to do. When you think this coin is going to rise, others will think so too; most people will think so. So it's not just you buying in; others are also buying in. Once you all come in, can I still rise? If I start rising and you all make a profit and run away, who will take over?
So once you all come in, I will wash the market until there are no more weak hands left. Unless you buy and then uninstall the platform, I really can't do anything, but how many can actually do that? On the contrary, when no one thinks this coin is going to rise, and there are no retail investors rushing in, and the previous retail investors have already been washed out, then I will start to rise, pulling it up directly with a big bullish candle. Whether you chase or not, if too many chase, I will repeat the wash action again. If you don't chase?
So why shouldn't I continue to rise? You all successfully missed the opportunity. Therefore, buying leads to a drop and selling leads to a rise is somewhat inevitable, resulting from the actions of the vast majority of retail investors. This is a dynamic orientation. As long as it involves the 'majority', you will fall under this curse.
How to do what the few do: the big players hunt retail investors, we hunt the big players. The crypto circle is not short of many experts. When the big players hunt retail investors, they watch the show; when the big players pump, they follow; when the big players distribute chips, they run away.
Their common characteristic is: patience. Like a wolf, staring at its prey, motionless. Knowing yourself and knowing your enemy can ensure victory in every battle. Understanding the enemy's movements allows you to strike precisely.
I believe that many old hands have seen the following image, even to the point of being very familiar with it.
After seeing this image, you might think, how could I be so foolish?
Don't believe it? Open and check your trading records. Why is it so hard to put into practice such straightforward reasoning?
It's just human nature; trading is all about human nature. Just a casual example:
On December 31, 2022, during a new decline that did not create a new low, this was a signal to buy. At this time, just buy in and wait to sell in March 2024. It's very simple and clear. When you see this, you might curse me, saying the K-line has already formed; how can you say that? What if it doesn't form?
Every complete K-line is like a complete civilization; history does not repeat itself, but it continues to repeat.
If you naively think you can get rich in a day by trading contracts, leveraging 10 times, 100 times, and executing dozens of trades in a single day, then the K-line chart, whether it's formed or not, means nothing to you, and your money will eventually go to zero. Don't deny it; patience is a luxury for most retail investors.
The entire process in the above image took about a year. If you need to operate dozens of times in a single day, let alone a year.
Of course, this excludes professional short-term traders. I admire short-term traders; they require not only patience but also keen insight. If you have nothing and only rely on guessing, you are gambling, and you are gambling against a dealer who can cheat. How can you not lose?
In the trading process of the crypto circle, how can retail investors avoid the risk of losing money and make a profit?
Face is not worth money, and pride is not worth money, especially when one is in a difficult situation.
If you care about your pride and face, you won't realize that you have problems. Even if you realize there are problems, you are unwilling to face and accept reality, which greatly hinders our own growth.
The financial market never cares about these so-called superficial things.
If one's self-awareness and professional ability do not improve or grow, we will always face endless confusion and trouble.
Don't say you can't stand the current market correction; even when the market is rising, you still can't stand it. Each stage has its own issues.
Life without experience cannot grow, and without growth, how can one talk about success?
Making money has never been a simple matter, especially in the financial market. Achieving long-term stable and continuous profit is even more challenging.
In this field, who hasn't shed a few layers of skin to achieve results?
Those who think making money in the crypto circle is easy either have a problem with their understanding or have ulterior motives.
Many friends who chatted with me after seeing my posts think I have a good mindset and are asking why my mindset can be so good.
For me, pain, anxiety, greed, fear, and the feeling of loss are all experiences I have gone through, and I have experienced enough of them.
In essence, trading should be a very smooth process. Prepare thoroughly before entering the market, unify knowledge and action during the trading process, and reflect, summarize, and improve after the transaction.
Pre-plan all work, think carefully, consider all unfavorable outcomes that you cannot bear. If a low probability event or a black swan truly occurs, do you have the ability to bear the risks? Are you mentally prepared for and expect the worst outcome?
Truly achieving 'gaining is my fortune, losing is my fate.'
If you cannot, and still experience anxiety, fear, loss, greed, etc., then something must be wrong. Either find the problem and solve it, or it may not be suitable for you to engage in this industry; retreating can save trouble, avoiding torturing yourself, and not earning money while ruining your health.
The main issues faced during trading: correct investment thinking and concepts, mindset, skills, strategies, fundamentals, capital, news, and policies, etc.
If you still don’t realize what problems you have at this moment, I can help you. If you are aware of the problems but cannot solve them, I believe I can help you too.
All of this starts from our genuine desire to change.
Your own cause and effect can never be intervened by others; only you can save yourself.
For ordinary people wanting to make money from the crypto bull market, correct thinking and clear positioning are essential!
Let me tell a story today, starting with the shepherd and the woodcutter. Whether it's good or not, my cultural level is limited, so please bear with me!
It's about identity positioning. The shepherd, during your casual chat, has already completed all the tasks that should be done and obtained the results that should be obtained. By the time you realize, you have accomplished nothing.
Failing to realize this clear self-positioning is a limitation of understanding and thinking that cannot be changed by effort.
Just like choosing incorrectly, effort becomes meaningless.
Realizing this, choosing to turn a blind eye and not change, is the realm of action. The unity of knowledge and action is indeed very difficult for each of us. Setting limits for ourselves before trying, saying I can't, I have no money, I'm too old, I don't have enough education, I can't learn, I'm too busy, etc., in order to find an excuse for ourselves, is quite a heartfelt effort.
Without experiencing, there can be no growth. People are inclined towards benefits and away from harm; this is a weakness of human nature, which is fundamentally understandable. Each of us wants to overcome our own inertia, which is not easy to achieve. This is also why there is such a huge gap between knowing and doing.
However, to become strong, we must break through; otherwise, we will only remain mediocre. The process of persisting, changing, and growing is indeed very painful, as I have been living this way for the past few years.
If we want to change the current situation but have to act, what should we do?
The fastest way to change yourself is to do what you fear, what you dare not do, what you think you cannot do, and what you believe is impossible. Do it immediately; just do it first.
Losing money can be regained, a job can be found again, friends can be made again, love can be found again; you were born with nothing, so what is there to fear about starting over? A river reaches its peak at the waterfall, and a person reaches rebirth at their lowest point. The middle of the mountain is always crowded; you need to work hard to see the top.
The biggest detour in life is trying to take shortcuts.
Only when our thinking changes can it affect our daily behavior, ultimately changing the results we can achieve through those behaviors. Never dream of doing the same thing every day while expecting to achieve different results than others, and even thinking you can achieve better results than others, that's just it.
The road to success is not crowded; it is just that very few people persist along this road.
I hope in the future I can always see you in the crypto circle because I will only continue to delve into this field for the rest of my life.
Little Wei's team precisely targets short-term fluctuations in the market. There is still room in the convoy, so hurry up if you want to get on board!
