Hello everyone, I am Lao Ma. I have been in the crypto world for 10 years, starting from graduating from university without a job, relying on affiliate marketing to save 50,000 as capital, to earning up to 4 million, with two withdrawals to buy houses in between, and in 2024 my funds multiplied by 50 times — It's not that I am amazing, but I have stepped into too many pits and learned: there are many skills to make money in the crypto world, but the 'worst thing to do' is the key to preserving capital and making money.
Today, I won’t beat around the bush; let me first tell you 'the one thing that cannot be done in the crypto world': opening a position blindly without a mature trading system. Later, I will break down my '22 Golden Rules of Bollinger Bands' and 'Five Major Trading Techniques' accumulated over 10 years of practical experience to help you avoid the pitfalls I stepped into back then.
First, let me share my experience: from 50,000 to 4 million, how miserable it was without a system.
In college, I relied on affiliate marketing and odd jobs to save 50,000 as capital. In 2017, when I first entered the crypto world, I thought BTC was too expensive, so I focused on trading ETH — at that time, I didn’t understand what a 'trading system' was; I chased ETH when it rose and held on when it fell, using 10x leverage without setting stop losses.
I remember once ETH dropped from 800 USD to 600 USD, I went all in without a stop loss, and lost 20,000 due to liquidation; I was left with 30,000 but didn’t dare to move, hiding in my rental crying for two days. Later I realized: the crypto world is not 'gambling on high or low'; for those without a system, the money earned is just luck, while the money lost is inevitable.
It wasn't until 2019 that I began to summarize the rules: only select coins with fundamentals (like ETH's upgrade expectations and the ecological progress of altcoins), never exceed 50% in position, and always set stop losses when opening positions — gradually, my 50,000 capital started to roll, reaching 1 million in the 2021 bull market, and then multiplied by 5 to 5 million in 2024 (with a withdrawal of 1 million to buy a house in between).
Looking back now, most of the friends who didn’t make money made the same mistake: either they opened positions based on feelings, or they learned a bit of technique and messed it up, never thinking about 'what their own trading system is'.
Second, the worst thing you can do in the crypto world: open a position without a system! Three bloody lessons.
The dumbest: opening positions based on 'news' or 'emotions' without setting stop losses.
I have seen too many people rush in when they see someone in a group shout 'XX coin is going to rise'; when it drops, they say 'wait a bit for a rebound', and end up stuck until it goes to zero. In 2023, a fan learned from me about Bollinger Bands but didn’t listen to advice; when he saw 'Musk shouting DOGE', he went all in without setting a stop loss, and in the end, it dropped from 0.18 to 0.08, losing 80,000 USDT.
Remember: a position without a stop loss is just giving money to the exchange. Even if you find a buying point using Bollinger Bands, not setting a stop loss can lead to liquidation and bring you back to square one.
The greediest: earning but not exiting, wanting to 'capture every wave of the market'.
In 2024, when I was trading ETH, it rose from 2000 to 3000 USD, and according to the system, I should have taken profits at 50%, but I got greedy and wanted to wait for 3500, resulting in a drop to 2800, earning 200,000 less. Later I set a rule: once profits reach 30%, I must take half, and set a trailing stop for the rest — I never made the 'greed' mistake again.
In the crypto world, no one 'sells at the highest point'; being able to capture 60% of the profits in the middle already surpasses 90% of retail investors.
The laziest: learned techniques but didn’t use them, or used them in the wrong scenarios.
Many people learned the 'Bollinger Band Lower Band Buying Method' from me, but they don’t care whether the middle band is pointing up or down — For instance, when the Bollinger Bands are in a bearish arrangement and the middle band is pointing down, even if the coin price drops to the lower band, it cannot be bought; yet, some people still buy recklessly and then blame the technique for being useless.
Techniques are 'tools', and systems are 'how to use the tools'. For example, the Bollinger Band contraction buying method must meet the conditions of 'middle band pointing up + bullish line breaking through the middle band'; missing even one condition is not acceptable, reflecting the rigor of the system.
Third, my practical tips: 22 Golden Rules of Bollinger Bands (Condensed Version) + Five Major Techniques.
(1) Four Core Arrangements of Bollinger Bands, learn them to find buying and selling points.
Bullish Arrangement (Buy): All three lines are pointing up, and the coin price is rising between the middle and upper bands — For example, in 2024, ETH rose from 2000 to 4000, which is a typical bullish arrangement; just holding the stock can earn money.
Bearish Arrangement (Sell): All three lines are pointing down, and the coin price is dropping between the lower and middle lines — Trying to buy the dip at this time is like giving away money, for example, BTC dropped from 69,000 to 15,000 in 2022; during a bearish arrangement, one can only short, not long.
Range Arrangement (High Selling and Low Buying): All three lines are parallel, and the coin price oscillates between the upper and lower bands — For instance, when SOL was consolidating between 120-130 USD, buy at the lower band and sell at the upper band, making a short-term profit of 10%.
Divergent Arrangement (Capture Main Upward Trend): Upper band rises, lower band falls into a 'V shape', and the coin price rises along the upper band — This is the most profitable pattern; for instance, DOGE increased from 0.01 to 0.73 in 2021, which was a divergent arrangement, and capturing it could yield a 70-fold return.
(2) Three Must-Make Profitable Buying Methods with Bollinger Bands, which I have used for 10 years without failure.
Buying Method at the Lower Band: When the coin price drops below the lower band, consolidates for 3 days away from the lower band, and the middle band is not pointed down — For example, when BTC dropped to 25,000 in 2023 (breaking below the lower band), after consolidating for 3 days, it rose to 30,000; buying here can yield 20%.
Contraction Buying Method: The upper and lower bands converge towards the middle, the middle band is pointing up, and the coin price breaks through the middle band with a bullish line — This is key to capturing the main upward trend; for example, in 2024, ETH contracted from 3000 to 3200, and after breaking through the middle band, it rose to 4000, earning 25%.
Buying Method at the Lower Band of the Range: All three lines are parallel, and when the coin price drops to the lower band, it bounces — For example, when SOL was consolidating between 125-135, buy at 125 and sell at 135, making 24% after three trades back and forth.
(3) Five Major Trading Techniques, which are more fundamental than Bollinger Bands.
Face losses honestly: don’t just show profitable trades; losing trades must also be reviewed — I always note 'why I lost' whenever I incur a loss, such as in 2022 when ETH was liquidated due to not watching the stock market's significant drop; later, I added 'stock market trends' into my system.
Follow your own rules: I set 'three no's': do not trade when market fluctuations are less than 1%, do not trade without checking the Bollinger Bands, do not trade when positions exceed 50% — even if others say 'you'll miss out', I remain unmoved.
Patience to Wait for Opportunities: In 2024, I waited 15 days for the ETH contraction buy signal, and as soon as I bought, it rose by 30% — There are many opportunities in the crypto world, and only those who can afford to wait can earn.
Don’t be greedy about 'highs and lows': I never buy when I feel it's the 'lowest' or sell when I feel it's the 'highest' — For example, when buying ETH, I wait for it to break through the middle band before buying, and when selling, I get out after earning 30% without being entangled in 'whether I can earn a bit more'.
Reviewing is More Important than Opening Positions: I spend 1 hour every day reviewing: Was my reason for opening a position today correct? Are the stop loss and take profit set reasonably? In 2024, through reviewing, I raised my win rate from 50% to 70%.
Fourth, how to build your own trading system? It can be done in three steps.
First set a 'small goal': don’t think about 'getting rich overnight', first set a goal of 'earning 10% each month' — with 50,000 capital, earning 10% each month can triple it in a year, which is more reliable than blindly charging.
Three Essential Elements of Opening a Position:
Buying Point: Must comply with one of the Bollinger Band buying methods (like contraction buying);
Position: No more than 20% of the capital each time (for example, with 50,000, only buy 10,000 each time);
Stop Loss and Take Profit: Stop loss not exceeding 5% (for example, if buying for 10,000, sell if losing 500), take profit 10-30%.
Daily Review and Optimization: For example, if I didn’t make a profit today, was it because I used the technique incorrectly, or did the market change? Gradually adjust, and the system will become more suitable for you.
Fifth, to be honest: The crypto world can change your fate, but don’t rely on 'gambling'.
When I entered the crypto world back then, I wanted to 'change the fate of ordinary people' — I've done it now, but I've seen more people lose all their capital because they lacked a system and gambled recklessly.
Remember: Bollinger Band techniques and trading systems are not a 'magic cure', but without them, you are 'naked' in the crypto world. My 10 years of experience has taught me: the worst thing you can do in the crypto world is to 'open a position without a system' — Set up your system first, then earn slowly; it's better than anything else.
Let's talk in the comments: do you have your own system when opening positions? Have you ever lost money because you didn't have a system? Follow me; later, I will guide everyone through practical trading using Bollinger Bands, from selecting coins to opening positions, step by step to help you avoid pitfalls and earn money.
