I resolutely quit my job and invested all my energy into cryptocurrency trading to support the livelihood of my entire family. Looking back at the past, I have been crawling through the crypto space for exactly ten years. At first, I confidently took over the 1 million account given by my father—that was his lifetime of hard work. I naively thought that with my intelligence, doubling it would be easy. However, reality gave me a loud slap in the face.
That 1 million dollars, under my aggressive operations, quickly shrank to only 200,000. I am still reflecting on how I gradually walked towards the abyss. Blindly following others' advice, not understanding diversification, lacking strategies for taking profits and cutting losses, not forming my own trading style... These issues were like mountains pressing down on me, making it hard to breathe. Three years passed like this amidst pain and struggle.
When my husband found out about my losses, our home suddenly fell into quarrels and chaos. I felt deeply sorry for my father; his hard work had turned to nothing in my hands. At that moment, my mindset completely collapsed, and I even had thoughts of giving up and quitting.
However, when I calmed down, I realized that if I relied solely on working, when would I ever make up for that 800,000 loss? So, I had an in-depth conversation with my husband and decided to use the remaining 200,000 as a starting point to start over. I seriously reflected on past mistakes, summarized experiences, and worked hard to avoid factors that led to failure.
Gradually, I began to achieve stable profits. With that 300,000 principal, I miraculously earned back over 8 million. Now, I maintain stable profits every year, enough to support a family. I combine short-term and medium-to-long-term trading, forming a unique and effective trading thought process.
Today, I want to share with you the 20 rules and practical strategies I have summarized over the years. If you find this content helpful, please give it a thumbs up and follow! If you think it’s useless, that’s okay too; after all, everyone has different views. But please believe that these are valuable experiences I have gained through ups and downs in trading.
The 80/20 rule in the crypto space: How to become one of the few who make money?
In the crypto world, there is a well-known '80/20 rule'. This rule tells us that in any group of things, the most important part only accounts for a small portion, about 20%, while the remaining 80%, despite being the majority, is secondary.
In the investment field, this law is vividly embodied: 20% of investors make money while 80% lose money.
First, you need to deeply understand the market. The crypto space is different from traditional investment areas; its volatility and uncertainty are greater, requiring investors to have a higher risk tolerance and keener market insight. Before entering the market, you need to have a deep understanding of blockchain technology, the issuance mechanism of digital currencies, market trends, and more.
Only when you have a comprehensive understanding of the market can you remain calm amidst market fluctuations and make rational decisions.
Secondly, you need to have a unique investment strategy. The volatility of the crypto market provides investors with huge opportunities, but it also comes with significant risks. To become one of the few who make money, you need a unique investment strategy and should not blindly follow the crowd or believe in rumors.
You can create an investment strategy suitable for yourself by observing market sentiment, analyzing project value, and tracking capital flows.
Remember, investing is a zero-sum game; only by being smarter and more perceptive than most can you stand out.
Moreover, you need to have a firm investment belief. In the crypto market, investors often face various temptations and challenges, such as greed during market surges and fear during market crashes. These emotions can often interfere with your investment decisions, leading to wrong judgments. Therefore, you need to have a firm investment belief, trust your investment strategy, and not be easily swayed by market emotions.
Finally, continue learning and accumulating experience. The crypto market is unpredictable, with new projects and new technologies emerging endlessly. To establish yourself in this market, you need to maintain a continuous learning attitude and constantly accumulate experience.
In short, to become one of the few who make money in the crypto market, you need to deeply understand the market, develop unique investment strategies, maintain a firm investment belief, and continuously learn and accumulate experience.
Only by doing so can you stand undefeated in the crypto market and become one of the 20% who make money.
However, it should also be reminded that investing carries risks; caution is required when entering the market. While pursuing wealth, we must remain rational and not blindly seek high returns while ignoring potential risks.
After all, only steady investments can bring long-term profits.
The dumbest way to trade cryptocurrencies has instead led to a surge in my account.
When I first entered the market, I was the same: watching indicators cross every day, studying various patterns, and listening to countless 'big shots' call trades.
What’s the result? Three liquidations, and the account was almost wiped out.
Later, my mindset collapsed, and I simply gave up on 'smart operations' and decided to follow the simplest methods.
I didn't expect that by giving this up, the account jumped from 2200U directly to 18WU.
The method is actually so simple that it’s ridiculous, just three points:
1. Only act after a breakout, directly abandon during sideways movements.
During fluctuations, it’s easiest to get harvested; false breakouts can trap a lot.
I only focus on trends, entering only when the price breaks key levels.
Either ride the big fluctuations with the trend or cut losses and exit with small losses; there’s no need to predict the market.
2. Position should stay at 20%, never go all-in.
Using only 20% of funds for each trade, even if wrong, it won't be too damaging.
Close profitable trades directly without fantasizing about taking it all at once.
Sometimes I only make two trades a week, but the win rate and profit are much higher than those who trade randomly every day.
3. Only focus on trends, no predictions.
Don't try to catch the bottom or guess the top.
I will follow the market's direction.
Chase the rise in an uptrend, go short in a downtrend, simple and stable.
Others laugh at me for not drawing lines or studying complex models, but they keep getting harvested in fluctuations while my account has already soared.
Ultimately, what truly makes the difference is not complex techniques, but whether you can execute the simplest methods thoroughly.
Don't hold positions, don't go heavy, don't predict; just follow the trend, that is the key to flipping your account.
Survival guide for perpetual contracts: If you play leverage well, you won’t have to worry about profits!
Guys, let’s talk about something practical today—perpetual contracts, in other words, a futures market with 'no graduation day'. You don’t have to worry about delivery time; as long as you don’t get liquidated, you can hold as long as you want, it's simply a favorite for those who stay up all night watching the market!
How to choose the leverage multiple? Insiders have their own opinions.
In the circle, some stabilize with 30x leverage while others operate aggressively with 50x leverage. But honestly, since you're playing contracts, what's the difference between 1x leverage and buying spot? For example 🌰: a certain popular coin, 5U can enter with 100x leverage, while 30x requires 16U. With the same market, 100x can achieve milk tea freedom, while 1x might not even cover the fees...
But! Yes! (The key point here)
Never use a meager principal to engage in high-risk situations! I’ve seen too many people use 500U as a principal to open 100 times leverage, only to be eliminated with slight market fluctuations. Remember: leverage is an amplifier, not a money printer. It’s advisable to keep an additional 20% margin to add a layer of 'protection' to your account, enhancing its risk resistance.
Liquidation warning! These operations must not be imitated.
1. Holding on stubbornly: Thinking you can withstand everything, only to end up liquidated.
2. All-in on the full warehouse: This is not investing, it's giving money to the exchange.
3. Adding to a position against the trend: Buying more as it falls? Exchanges love such 'good-hearted' people.
Life-saving techniques:
✅ Use the incremental position mode, losing on this trade still gives you a chance to place another order.
✅ Set the stop-loss; be more decisive than dealing with exes.
✅ Set a small daily goal (like making 50U on a principal of 5000U), and stop when you reach it.
Real profit calculation (keep it in mind)
Assuming you earn 1%-2% daily, achieving this for 20 days in a month:
- 5000U×1%×20 days=1000U
- Even if there are a few days of losses, the minimum can still yield a few hundred U.
Isn’t this more exciting than bank wealth management? But remember—contracts are not a casino; planning is the key to longevity.
Finally, I want to share a mantra with everyone:
‘Lower the leverage a bit, set the stop-loss earlier,’
Make money quickly and stay away from liquidation.
The survival rule in the crypto world learned after three liquidations: the key awareness from owing a million to earning ten million a year.
1. Core mindset: Trading is about battling your own nature.
Painful lesson: On the night of the crash on May 19, 2021, I went all-in long at 4200 dollars for Ethereum, only to lose 870,000 in just 15 minutes. The experience of trembling at the screen made me realize the most fundamental lesson: wanting to make money in trading is essentially about overcoming the weaknesses of human nature such as greed, fear, and impulse.
2. Survival secret: You must learn to take profit and cut losses in a timely manner; when you make money, run quickly, and when you lose money, run quickly.
Spot: Use the 'trailing stop-loss method'. For example, if the price of the coin rises by 20%, move the stop-loss point, which is the point where you will exit with a loss, up accordingly to lock in some profit.
Contract: Give yourself triple insurance!
Hard stop-loss: Set it as soon as you open a position, if it loses more than 3%, you must exit, no negotiations!
Technical stop-loss: If you see the price drop below an important support line, such as the commonly used EMA30 moving average, don't hesitate, close the position immediately.
Time stop-loss: If a position is held for more than 4 hours without moving in the expected direction, don’t hold on, exit first and discuss later.
Actual effect: In 2023, when trading LSD concept coins, this method helped me avoid 40% of the chaotic ups and downs, saving me a lot of money.
3. Catch the big trend: Look at the weekly chart for the big direction, and find entry points on the 4-hour chart.
How to judge if a major trend is coming? Look for three points:
The gaps in Bitcoin futures at the Chicago Mercantile Exchange are usually filled; this is a rule.
On-chain data shows unusual large movements in the wallets of super whales.
The MACD indicator on the weekly chart has formed a golden cross, a bullish signal.
Successful example: Before the Bitcoin ETF passed in January 2024, I closely monitored the changes in Grayscale's holdings and bought heavily at 38,000 dollars, fully capitalizing on the subsequent surge.
4. Use leverage: Learn futures thinking, but it's safer to apply it to spot trading.
Innovatively created the 'Pyramid Adding Position Method':
Base position: Only use 5% of total funds; this part is never leveraged, serving as the life-saving bottom position.
Trend position: When your base position has earned more than 30% profit, you can use that profit to open up to 3 times leverage to chase the trend.
Extreme position: Only use no more than 5% of total funds when encountering rare, once-in-a-lifetime, weekly-level opportunities, opening a maximum of 10x leverage to make a bet, but the risk is extremely high, use with caution!
Key awareness: The real risk is not how high the leverage is, but how much of your money you are betting. Being fully leveraged at 1x is much riskier than betting only 1% of your money at 10x leverage!
5. Continuous improvement: Keep a trading journal.
Must do every day:
Mark important K-line patterns of the day on the chart, such as big bullish candlesticks, big bearish candlesticks, doji stars, etc.
Keep track of the ratio of your trading win rates and the ratio of profits to losses.
My review template:
Why did I buy/sell at that time?
How long have you held on?
Did you control your emotions well during operations? Were you panicking? Were you greedy?
At that time, were the technical signals accurate?
How to improve next time?
6. How to survive in a bull market: Make money by following the direction everyone is blindly thinking.
How to observe retail investor sentiment? Look at these:
The funding rate of exchange contracts, paying others to borrow money to bet in a direction; if it’s too high, it indicates too many bets on a rise, which may lead to a fall.
The ratio of the number of people bullish and bearish on the platform; be cautious when it’s one-sided.
Are those cryptocurrency influencers on Weibo collectively excited or collectively panicking?
Classic counter-trade: When the market is panicking to the extreme, and everyone is saying the bull market is over, like during the Silicon Valley Bank collapse in March 2023, watching indicators like the fear and greed index often reveals opportunities for bottom fishing.
The most brutal and real truth of this market:
90% of the money you earn likely comes from that 10% of truly right trades.
The money you lost is 100% due to impulsive decisions made during emotional outbursts.
The true way of trading does not lie in how many complex indicators you understand:
It’s about establishing a set of rules to protect yourself, using rules to combat human weaknesses.
It’s about using probabilistic thinking, understanding that there is no 100% correctness, and only making choices that are beneficial to you.
It’s about having enough patience, waiting like a hunter for the most suitable and assured opportunities to appear.
Many people come to the crypto space, and their biggest problem is not that they can’t trade, but that they are constantly jumping back and forth between two thoughts.
Afraid of missing out after making a profit, but afraid of retracement while holding! For example, if you have 20,000U and open a position, just after entering, it rises to 21,000, you happily take profit and earn 5%, but then the market skyrockets to 25,000, and you start to regret seeing that 45% profit behind you, slapping your thigh, and your mindset explodes.
Then you tell yourself: 'Next time I must hold on and definitely eat the big meat!'.
As a result, the next time it really goes from 20K to 21K, you are steady as an old dog, not moving at all, but unexpectedly, the market suddenly turns and falls back to 19,500; you can’t stand it anymore and stop-loss out...
Going back and forth like this, you can't earn big, and it's easier to lose even more. It's not that you can't trade; you are trapped in the death loop of 'afraid to miss out on profits, afraid of retracement while holding', and you can’t escape it for a lifetime.
So is there a way to profit in both big and small markets?
Let me tell you realistically: No.
Those who truly make money have already made a choice: ‘Don't earn small money; go hard for the big trends.’
Simply put, it’s about being able to endure, daring to wait, being willing to miss out, and not acting rashly. Even if you miss a few opportunities, you must wait for that big trend that can yield 200%, 300% profits.
Many people earn 200% from a market surge, keep the profits, and come back for another 200%, that’s already 4 times.
But what about most people? They make 200%, then lose it back, compounding into loneliness.
There is no such thing as 'missing out' in trading; there is only losing and making.
Are you really ready to make big money?
This road is simple, but hard to stick to: Can you wait? Not move around, waiting for a structure you truly understand before entering? Can you be tough? Not be led by the market after opening a position, a stop-loss is a stop-loss, and are you brave enough to take profits?
Mindset, rhythm, courage, and execution ability are all essential!
This is why most people end up saying: 'I really find it too difficult...'
But being able to grasp the right methods is already much better than a lifetime of reckless charging.
Are you here to gamble your life or to make money?
If you choose the right direction, the rest is just practice!
