I was fortunate to meet an elder who started with ten thousand and grew to a billion in wealth. He told me what it feels like to have an epiphany in trading cryptocurrencies; now I understand that feeling too. The greatest benefactor in life is not finding money or winning the lottery, but meeting someone who breaks your original way of thinking, elevating your perspective, and guiding you to a better stage. Life is the same; cognition determines wealth, and underlying logic determines the superstructure!
Before enlightenment, it is as difficult as climbing to the sky; after enlightenment, it is as easy as turning a hand. Many stock market experts realize after understanding that trading cryptocurrencies is simple, while many retail investors believe that the experts making money in cryptocurrencies have done so through countless hours of learning and numerous losses.
Although I can't be considered a top trader, I have been steadily profitable for 10 years. I'm willing to share some trading thoughts:
Fourth-rate experts rely on technology.
Third-rate experts rely on risk management.
Second-rate experts rely on concepts.
First-rate experts rely on psychology, super experts rely on quality.
The ten consistencies between buying cryptocurrencies and marrying a wife.
1. When marrying, choose someone you are satisfied with; don't just pick someone randomly on the street! (When buying cryptocurrencies, have self-evaluation and choose the best.)
2. Be sure to thoroughly check your future wife's background, including her family (the person in charge of the cryptocurrency).
3. A woman you don’t want to spend your life with, you definitely won’t marry! (Don’t buy cryptocurrencies you don’t want to hold for 3-5 years.)
4. After marrying her, you must spend time together; whether you can have a chubby little boy in the future depends on you! (How profits perform reflects your ability to choose cryptocurrencies.)
5. If your wife ignores you, you need to find out why! (During declines, find the root cause, strengthen confidence in holding the coins, don’t forget your original intention; if she really has a change of heart, then there’s nothing you can do but cut losses.)
6. Don’t engage in one-night stands; even if you meet a problematic one 10 times, you are doomed! (Don’t have a blind gambling mentality for short-term trades.)
7. Don't always think about finding a younger partner; in fact, one fierce tiger is enough to keep you busy! (Don't be attracted by outside temptations that distract your attention.)
8. During holidays, make sure to visit your father-in-law's house (learn more about the internal situation of the cryptocurrency, and grasp first-hand information).
9. After having children, raise them well with your wife. Don’t throw all the tasks to the teachers and school! (Dilute costs, follow the trend to do high sell low buy, reduce costs, combining fundamentals with trends.)
10. When you and your spouse raise your child, earn money and be filial to your parents, you can retire! (As time goes on, profits will increase, and you can confidently hold your coins without moving them, slowly taking profits in batches.)
Trading cryptocurrencies simplifies the complex; do simple things seriously, and the path to success becomes closer!
After 10 years of trading cryptocurrencies, from having nothing to being able to support my family through trading, I've summarized "15 iron rules for trading cryptocurrencies," each word is precious and worth its weight in gold; I suggest you save it!
The survival rule in the cryptocurrency world—whoever can survive is the king!
These rules seem simple, but they are not easy to execute. Only those who can truly do it will become the final winners!
The above "15 iron rules for trading cryptocurrencies" have been earned by my years of trading with real money; each one is the essence. I sincerely feel they are useful and share them with everyone. I hope that after reading, you can combine them with your own operations to help you in the cryptocurrency world and avoid many detours!
In the past seven to eight years, my assets have increased by 30 million. Along the way, I have gained valuable experience. Here are some key insights I hope will inspire you:
1. Risk management is key to success.
Divide the funds into five equal parts, using only one-fifth each time, while setting strict stop losses. Each order should not lose more than 10%, and total losses should be controlled within 2%. Even if there are five consecutive mistakes, the total loss will only be 10%, but as long as you seize one opportunity, profits can easily cover the losses.
2. Follow the trend, never go against it.
When the market is falling, don’t blindly try to catch the bottom, as it may be a trap; patiently wait for clear signals.
When the market is rising, don’t rush to sell; it might just be a "golden pit"; buying low is more reliable than trying to catch the bottom.
3. Stay away from cryptocurrencies that are experiencing short-term explosive rises.
Whether it's mainstream coins or altcoins, very few can sustain explosive rises; most coins will enter a stagnation or correction phase after a surge. Don’t have the mentality of taking chances to bet on high-probability events.
4. Reasonably use technical indicators.
The MACD indicator is very useful: when the DIF line and DEA line form a golden cross below the 0 axis and break through the 0 axis, consider buying; conversely, when a dead cross forms above the 0 axis and descends, you should consider reducing your position.
Supplementing positions must be strategic: do not add to positions when losing; only add appropriately when in profit, otherwise, it may lead to increasing losses.
5. Trading volume is the core of the market.
Pay close attention to situations where there are low-level volume breakouts, as this is an important signal for market initiation. Only trade cryptocurrencies that are in an upward trend, closely observe the 3-day, 1-hour, 4-hour, and 8-hour moving averages. When these moving averages turn upward, it usually means that the upward trend has been established.
6. Do a good job of reviewing and adjusting strategies.
After completing each trade, review and reorganize the holding logic, and flexibly adjust subsequent trading strategies based on weekly K-line trends.
Investing is a complex discipline, a comprehensive game of skills, techniques, mindset, and human nature. In this process, those with strong risk awareness, good risk management, and effective risk control measures will be the final winners.
1. Funds without time limits are a prerequisite for making investments.
Funds must be absolutely free and have no time limit. Having a sum of money that is free of interest pressure is a prerequisite for making investments.
2. Use market traps to win.
When you want to go long, a short trap is your best opportunity;
When you want to short, a long trap is your paradise.
3. Safety is fundamental to surviving in this market for a long time.
Avoid overtrading: (Avoid frequent trading and excessive margin in a single trade.)
4. The market is the best place to refine oneself; human greed, fear, and foolishness are constantly being acted out in the capital market. Refining oneself in this big dye vat is the greatest benefit of the market.
To conquer the market is to conquer one's own greed, fear, and foolishness.
5. Not every trade will win.
Every transaction carries the risk of loss. Don't daydream; take making money seriously, never let your guard down, and pay attention to risk management.
6. Trading psychology is key. Stay emotionally stable when making profits and losses.
7. Successful trader mindset:
I don't care about money, I accept the risks in trading and investing, treating both making money and losing money equally. I enjoy the process, never feeling deceived by the market, always wanting to improve my skills, and as my skills improve, my account profits also increase.
Keep an open mind, treat various viewpoints equally, don’t get angry, summarize each transaction, there’s no need to conquer or control the market, have confidence and self-control, only take on risks that you can bear, trade with your own funds, and take responsibility for all transaction outcomes. Maintain calm during trading, have the ability to face reality, don’t care about the market direction, and trade with the trend.
Can you turn 2000 into 30 million by trading cryptocurrencies? Let me share something practical!
The core is one sentence: rely on contract trading to amplify profits! But don’t rush in; first, turn this 2000 into 300U (about 300 USD), let's take it in two steps:
Step one: grow a small capital into a snowball (300U→1100U).
Each time, take out 100U to trade, focusing only on the most popular coins recently. Remember two things: ① Run away as soon as you double your money (for example, turning 100 into 200 and immediately cashing out), ② Cut losses if it drops to 50U. If luck is on your side and you win three times in a row, you can roll up to 800U (100→200→400→800). But once you’re ahead, take your profits! Play a maximum of three rounds, and if you earn around 1100U, stop; at this stage, luck plays a big role, so don’t be greedy!
Step two: once you have more money, use a combination of strategies (starting with 1100U).
At this time, divide the money into three parts to play different tricks:
1. Quick in and out type (100U).
Focus on 15-minute fluctuations, trading stable coins like Bitcoin/Ethereum. For example, if you see Bitcoin suddenly surging in the afternoon, immediately follow the rise, making a 3%-5% profit and then running away, like a street vendor, small profits through high sales.
2. Buddhist-style regular investment (15U weekly).
Make a fixed purchase of Bitcoin contracts with 15U each week (for example, if Bitcoin is at 50,000 USD, you believe it can rise to 100,000 USD long-term). Treat it like a piggy bank, don’t panic when it drops, wait for half a year to a year; suitable for those who don't have time to monitor the market.
3. The main trend order (everything else is all in).
When you see a major market trend, strike hard! For example, if you find the Federal Reserve is going to cut interest rates, Bitcoin may surge, directly opening a long position. But you must think ahead: how much to earn and run (for example, doubling), how much to accept as a loss (at most 20%). This requires being able to read news and understand technical analysis; beginners should not act recklessly!
Important reminder:
① Never bet more than 1/10 of your capital each time; don't go all in!
② Every order must have a stop loss!
③ Play a maximum of 3 orders per day; if you feel restless, go play a game.
④ Withdraw profits when you've reached your target; don't think about "earning another wave"!
Remember: those who turn around using this method are tough people—hard on others, even harder on themselves!
When trapped in a trade, how to unwind?
Unwinding, as a term in the cryptocurrency world, refers to the price of a cryptocurrency rising back to the buying price for selling and recovering funds. Learning to unwind is truly learning to hunt; learning to unwind is truly understanding how to trade cryptocurrencies.
Here are the methods for unwinding, generally divided into two types.
1. Proactive unwinding strategy.
1. Cut losses.
If you find that buying was a serious mistake, especially when buying at the peak of a previous explosive rise, you must have the determination to cut losses decisively, sell to protect capital. There are many opportunities in the cryptocurrency market; as long as your capital doesn’t suffer major losses, you can always earn it back.
2. Change coins.
When your cryptocurrency is trapped and in a weak position, and there’s still room for further decline, if you accurately judge that another cryptocurrency has greater upward potential and a stronger trend, you can decisively switch stocks to offset losses from the old cryptocurrency with profits from the new one.
3. Short selling.
When it is determined that one is deeply trapped and unable to cut losses, and there is further downside potential in the market or a specific cryptocurrency, you can use short selling: first sell the trapped cryptocurrency, then wait to buy it back at a lower position to effectively reduce costs.
2. Passive unwinding strategy.
1. Average down.
When the buying price is not high or you are firm about the future market, you can consider using the averaging down technique. However, ordinary investors can usually only withstand one or two rounds of averaging down, so the timing of averaging down is crucial.
2. Lay flat.
When deeply trapped with a full position, unable to cut losses or add to the position, you can only wait passively. As long as it's your own money, not borrowed or lent, you can wait patiently. Avoid emotional reactions like giving up, blindly adding to positions, or easily cutting losses and acting impulsively.
Summary of practical experience: the "secret weapon" of trading strategies.
After many years of struggling in the cryptocurrency world, I’ve accumulated some practical trading strategies. The following phrases are crystallizations of my personal practical experience.
Entry section.
Test the waters in the cryptocurrency world, prepare to proceed; enter steadily, refuse to rush in.
Sideways section.
When the price is low and fluctuating at a new low, it’s the right time to heavily buy. When it's high and fluctuating up, decisively sell without hesitation.
Volatility section.
Sell at highs, buy at dips quickly; observe sideways and reduce trading.
Sideways movement means using sideways to replace decline; hold tight to your chips; the rise may come in the next second; during a sharp rise, beware of a sudden drop; be ready to take profits; a slow decline is a good time to gradually supplement your position.
Buying and selling timing section.
Don't chase highs, don't sell; don't jump in, don't buy; if it's sideways, don't trade.
Buy on a bearish day, sell on a bullish day; reverse operations can help you stand out.
Buy in during a morning drop, sell during a morning rise; don’t chase highs in the afternoon rises, buy during the afternoon drops the next day; don’t cut losses when the morning drops, if it’s flat, just rest; supplement positions to seek breakeven, excessive greed is not advisable.
Risk Awareness section.
Calm lake surface can lead to high waves; there may be big waves ahead; after a big rise, there must be a correction, and the K-line has been triangular for several days.
In an uptrend, look for support; in a downtrend, look for resistance.
Overtrading is a big taboo; being obstinate is unwise; when facing uncertainty, know when to stop, grasp the timing for entering and exiting.
Trading cryptocurrencies is actually about trading mindset; greed and fear are your greatest enemies; be cautious when chasing highs and cutting losses, maintaining calm brings freedom.
In addition to the phrases, I have also organized several super practical trading methods. Whether you are a beginner or an experienced player, you can benefit from them.
Oscillation trading method.
Most market conditions are in a consolidation pattern, and using high sell and low buy within ranges is the foundation for stable profits. Use the BOLL indicator and box theory, combined with technical indicators and patterns to find resistance and support. Follow short-term trading principles, and avoid greed.
Breakout trading method.
After a long period of consolidation, the market will choose a direction; entering after a shift can lead to quick profits. But you need to have precise judgment on the shift, maintain a steady mindset, and avoid greed and fear.
One-sided trend trading method.
When the market breaks and forms a one-sided trend, trading with the trend is key to profit. Enter during corrections or rebounds, referencing K-lines, moving averages, BOLL, trend lines, etc.; skilled application can lead to effortless mastery.
Resistance and support trading method.
When the market encounters key resistance and support levels, it is often blocked or supported; entering at this time is a common strategy. Use trend lines, moving averages, Bollinger Bands, parabolic indicators, etc., to accurately judge the resistance and support levels.
Correction and rebound trading method.
After a significant rise or fall, a brief correction or rebound will occur; seize the opportunity to profit easily. Judging mainly by K-line patterns, good market intuition can help you accurately grasp high and low points.
Time segment trading method.
Morning and afternoon sessions with small fluctuations are suitable for conservative investors. Although the time to profit from placing orders is long, it excels in being easy to grasp the market; evening and early morning sessions have large fluctuations, suitable for aggressive investors who can profit quickly, but the difficulty is high, requiring strict technical and judgment skills.
I hope these experiences and insights can help you. Remember, in the cryptocurrency world, the most important thing is to maintain a calm mindset and rigorous operational discipline. I wish you success in your future investments.
Trading cryptocurrencies is connected to life; when you understand life, you also understand the cryptocurrency world. The path is simple, knowing and doing as one can lead to effortless mastery and an undefeated position!
Keep watching me, and I believe you will avoid many detours! I am Qing Tian, only sharing the most practical and useful information.
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