Let me talk about myself. I quit my job after only working for more than a month after graduation. Working is really not suitable for me. I came into contact with the crypto circle shortly after quitting my job. I stepped into the crypto circle with 50,000 savings. I didn't understand anything at first, and I lost more than 20,000 at once. With the determination to go back to work unwillingly, I persisted in researching and studying. I have experienced ups and downs for more than ten years, and now my assets are more than 80 million.
Although it's not like some people who made 2 small goals from 10,000, I'm already very content, and I'm also stable and at ease. I dream that my account can break 100 million by the end of this year, and next year I will have more capital to earn more money.
If you want to truly achieve financial freedom and realize compound interest in the currency circle, methods and technologies and forming your own profitable system are crucial! Once you learn and master it, the currency circle will be like your 'ATM', making money is as simple as breathing!
Today, I'm sharing a few nuggets of wisdom, these experiences are worth 60 million, I hope to help you.
1. Choose the Right Platform: Avoid 'Client Loss' Black Platforms
Preferred Platforms: Binance, OKX, Bybit (low fees, good depth, no stuck orders), reject small platforms (in 2023, a certain platform maliciously inserted needles, resulting in mass liquidation of users).
Key Indicators: View 'Fund Amount' (over 1 billion US dollars), 'Number of Holders' (over 500,000), 'Historical Needle Insertion Records' (the fewer the better).
2. Position Control: Use the '1% Rule' to Protect Your Principal
Single Position: Each opening should not exceed 1% of the total funds (e.g., 100,000 yuan principal, single opening should not exceed 1,000 yuan margin).
Total Position Limit: The margin for all contract positions should not exceed 20% of the total funds (avoid simultaneous liquidation of long and short positions). For example: 10,000 yuan principal, with 10x leverage, single opening margin ≤ 100 yuan (corresponding to 1,000 yuan contract value), total holding margin ≤ 2,000 yuan.
3. Technical Analysis: 3 Must-See Indicators to Help You Judge the Direction
MA Moving Average: 50-day moving average crosses above the 100-day moving average (golden cross), bullish; crosses below (death cross), bearish.
MACD: Red columns lengthen (bulls are strong), green columns lengthen (bears are strong), divergence signal (price rises but columns shrink, may be peaking).
Support and Resistance Levels: View previous highs and lows (such as Bitcoin 32,000 is strong support, 40,000 is strong resistance), open positions along the trend after a breakout.
4. Order Placement Skills: Seize the Golden Opportunity of 'Sharp Falls and Rises'
Buy on a Plunge: The currency price falls by more than 5% in a short period and touches a strong support level (e.g., Bitcoin fell to 28,000 in May 2025, rebounding 2% within 30 minutes, opening a long position can earn 20%).
Sell on a Spike: The currency price rises by more than 10% in a short period and reaches a resistance level (e.g., Bitcoin failed to break through 45,000 and quickly fell back, opening a short position can earn 15% within 1 hour).
Taboo: Do not open positions during sideways consolidation (70% of the time is in consolidation, frequent operations will inevitably lead to losses).
5. Closing Position Strategy: The Money Earned is Real Money
Close positions when the target is achieved: Immediately take profit when the preset profit is reached (e.g., 20%), do not be greedy.
Close positions with stop loss after breaking through: Unconditionally stop loss when breaking below the support level / breaking above the resistance level (e.g., after opening a long position, the currency price breaks below the previous low, run immediately, do not gamble on a rebound).
Time Stop Loss: Force close positions if the holding exceeds 4 hours without reaching expectations (avoid staying up late to watch the market, 2023 statistics: users holding positions for more than 12 hours have a 3x higher liquidation rate).
3 Core Concepts Beginners Must Learn: Understand These 3 Points to Lose 80% Less Principal
1. Leverage: Not a Double-Edged Sword, But a 'Dragon-Slaying Sword'
Common Leverage: 10x (low risk), 50x (medium), 100x (for experts only).
Fatal Misunderstanding: 100x Leverage ≠ Earn 100x, but 'Fluctuation of 1% Will Lose 100% of the Principal' (e.g., with 100x leverage, 10,000 yuan principal buys 1 million yuan assets, a 1% drop will lose 10,000 yuan, directly liquidated).
Iron Rule: Beginners Only Use 10-20x Leverage, Old Birds Do Not Exceed 50x (2023 Statistics: Users Using 100x Leverage, 99% Liquidated Within 3 Months).
2. Stop Loss and Take Profit: A 'Life-Saving Charm' More Important Than Making Money
Stop Loss: Set in advance 'How Much Loss Must Run' (e.g., principal 10,000, set stop loss at 5%, 500 yuan automatic closing, avoid holding to liquidation).
Take Profit: Automatically take profit after reaching the target profit (e.g., expected to earn 20%, force a sell after a profit of 2,000 yuan, avoid a reverse market and a loss).
Real Case: Bitcoin Flash Crash in 2024, Users Who Set a 10% Stop Loss Only Lost 10% of Their Principal, Users Who Did Not Set a Stop Loss Were Directly Liquidated to Zero.
3. Funding Rate: A 'Hidden Mechanism' to Make Money While Lying Down from Opposing Positions
Principle: When long and short positions are unbalanced (e.g., 80% of users open long), the platform will allow long users to pay funding fees to short users, and vice versa.
Practical Techniques: In extreme market conditions (such as Bitcoin breaking through a key resistance level), open a small amount of reverse positions to eat funding fees, and you can earn 0.1%-1% profit per day (2025 data from a certain platform: users who eat funding fees for a long time have a stable annualized return of 15%+).
3 Advanced Strategies Used by Experts
1. Hedging Strategy: A 'Sure-Win Formula' to Make Money Whether It Rises or Falls
Operation: Open 10x long and 10x short positions at the same time (each accounting for 5% of the position), when the currency price fluctuates by more than 2%, close the losing order and hold the winning order.
Case: Bitcoin fluctuates in the range of 30,000 - 40,000, and you can steadily earn 5%-10% per month with hedging strategies, and the risk is close to zero.
2. Gradual Scaling In: A 'Bottom-Fishing Weapon' in a Crash
Steps: When the currency price falls by 10%, open a 1% position long order; when it falls by another 10%, open a 2% position; when it falls by another 10%, open a 3% position, and so on.
Advantages: Reduce the average cost, and you can break even with a rebound of 15% (e.g., open a long position at 30,000, and when it falls to 24,000, the total position is 6%, and you will break even when you rebound to 27,600).
3. Risk Management: Use a 'Liquidation Price Calculator' to Save Your Life
Tool: Enter margin, leverage, and position size in the exchange APP to automatically calculate the liquidation price (e.g., 10x leverage, 10,000 yuan margin, liquidation price = opening price - opening price × 10%).
Iron Rule 4: Ensure the liquidation price is at least 20% away from the current market price (e.g., open a long position on Bitcoin at 30,000, set the liquidation price to 24,000, leaving enough buffer space).
Contracts are not ATMs, but a 'Recognition Realization' Battlefield
1. Practice with a Demo Account First: Practice with 10,000 Yuan of Virtual Funds for 3 Months
Recommended Platform: Binance 'Contract Simulation Account', 1:1 Restore Real Transactions, Loss Can Be Reset.
Goal: Achieve 'No Liquidation Within 3 Months, Winning Rate Over 50%' Before Depositing for Actual Combat.
2. Always Remember: Contracts are 'The Icing on the Cake', Not a 'Gambling Game to Turn the Tables'
Correct Mentality: Use no more than 20% of your spare money to play contracts, and your primary income is the foundation (a white-collar worker with a monthly income of 3,000 can play contracts with 600 yuan, don't bet all your wealth).
3. Liquidation is not the end, but the beginning of growth
Every liquidation is the best teacher: record the reasons for liquidation (is the leverage too high? No stop loss set? Or emotional operation?), form your own 'avoidance guide'.
Today I will talk about a free summary of my many years of trading experience, hoping to help everyone!
Because if you want to change your destiny, you must try the crypto circle. If you can't get rich in this circle, ordinary people will have no chance in this life.
I think that the most excellent traders must be able to endure their temper and keep their prosperity!
Frequent small profits leaving the market indicates that your ability to judge the market is limited, and you cannot accurately judge the cycle of price increases and decreases. A good solution is to improve your trading ability and better judge and analyze investment targets.
Next, I will share some trading experiences, hoping to help investors in need:
First, choose familiar currencies, and it is not advisable to pay attention to too many varieties. Understand the relationship between price changes and better grasp the direction of price trends. As for not paying too much attention to varieties, it is also considering the issue from the perspective of investors. People's energy is limited, and it is impossible to make profits on different varieties. There is no need to challenge the limit.
Second, the importance of position management, improper management, all the principal is lost, there is no chance to turn over. Here, it is recommended that the margin account for about 30% of the gold, up to no more than 50%. Of course, it is possible to appropriately increase the position when encountering favorable market conditions.
Two points to note during the trading process:
First, do not add to floating profits; second, do not add to floating losses. Learning to wait is a required course in trading. Develop a trading plan and do not trade frequently.
Frequent transactions consume a lot of energy, and transaction costs will be relatively high, in uncertain
In the market, it is not easy to find profit opportunities, if the result is not added, it will not only consume the principal, but also affect their own.
Fourth, keep a good attitude in trading, strengthen learning, summarize more, and exercise more.
V. Set stop-loss and take-profit, take profits in a timely manner, and do not hold losses. The main reason for losing money is often holding losses.
Let me share another set of my own practical strategies for many years. The average winning rate has reached 80%, which is a rare achievement in the currency trading world.
The tested method, using 500,000 to achieve a record of 10 million, only using this trick (RSI indicator - a wave trading strategy with a high winning rate), learn to see RSI in 5 minutes, accurately judge buying and selling points! The winning rate is as high as 99%, suitable for everyone!
I am full-time doing Bitcoin, and the assets are tens of millions, and I take out 100,000 yuan from the currency circle every month, and I feel that there is no impact, life is leisurely, free, no intrigue, live the original life you want.
For cryptocurrency trading, RSI has always been my first choice for judging tops and bottoms. Using this method, I made 10 million from 500,000 in one year. If you also like doubling coins and want to intervene in the main uptrend, then you must read this article carefully!
The strategy is designed specifically for active traders who hold positions for a few days to a maximum of a few weeks.
1. Identify Extreme Prices (Bullish or Bearish)
The first step is to identify extreme prices. The easiest way to do this is to compare the price to a simple moving average (such as the SMA20
) for comparison. SMA 20 represents the average price of the past 20 trading days. The greater the distance between the current price and the SMA20, the more significant the extreme price.
The following chart shows the extreme price of Tilray Brands Inc (TLRY) stock.
Starting from March 23, the price suddenly rose sharply and peaked on March 27, indicating an upward price extreme (green arrow), at which point the price was far above the 20-day moving average.
A similar price extreme, but on the bearish side, can be seen in the stock of Biontech (BNTX). The price fell sharply, resulting in a downward price extreme, at which point the price was significantly below the SMA20.
2. 2-period RSI below 10 or above 90
Using RSI(2), we try to identify moments of possible rebound (mean reversion). We achieve this by looking for moments on the chart where the RSI(2) is below 10 (bullish) or above 90 (bearish).
On the TLRY chart, we have added the RSI(2) indicator. You can see that starting from February 24, 2022, its value exceeded 90, indicating an extremely overbought situation.
In addition, on February 25, 2022, the RSI was still above the 90 level.
As for BNTX, we observed that the RSI(2) was below 10 from January 18 to January 21, 2022.
Price extremes up or down, with RSI(2) values above 90 or below 10, are two necessary conditions for applying this strategy.
3. RSI(2) Rises Above 10 (Bullish Setup) or Falls Below 90 (Bearish Setup)
This is the last step we take before determining the actual entry setup. An RSI(2) value falling from +90 back below 70 is a signal to short.
On the TLRY chart, the RSI(2) was slightly below 70 after the trading day of March 28, 2022.
When the RSI(2) value rises from below 10 to above 30, it is a buy signal.
This can be observed on the BNTX chart, dated January 25, 2022.
Only after completing the first three steps can you make a buy or sell setup.
4. Opening a position
Opening a position is only possible after completing the first three steps.
Using buy/sell stop-limit orders can precisely determine entry points. With a "sell stop-limit order," we define that the stock price must first continue to fall below the low of the signal candlestick before the short order becomes effective (using TLRY as an example).
For BNTX, using a 'buy stop-limit order,' the price must first rise above the high of the last candlestick before the order becomes effective and is executed.
For BNTX, the order was triggered on the next trading day, and the price hit the SMA20, the first target, in just 6 days.
Depending on how you manage the position further, you can take profits partially or completely at this level. For the remaining part, the stop loss can be adjusted upwards.
As for TLRY, the price initially rose slightly, and the sell order was not triggered immediately. Therefore, the RSI(2) indicator re-entered the oversold area on March 29, 2022.
The next day, a bearish doji candlestick formed, and the RSI(2) fell below 70 for the second time.
Setting a modified short entry point below the low of this doji candlestick and a stop loss above the high is definitely a setup worth considering in this mean reversion strategy.
During this process, the position was never threatened and the SMA20 was touched on April 7, 2022.
Other Similar Examples of 2-Period RSI Trading Strategies
Go long on WB
1. Price extreme downward, price deviates significantly from SMA20
2. RSI(2) Indicator < 10
3. RSI(2) Indicator > 30 (However, since the high of the candlestick indicated by the blue vertical arrow was not broken, there was no entry the next day)
4. RSI(2) Falls Back Below 30 Again
5. RSI(2) > 30
6. This time, the high of the candlestick indicated by the green arrow was broken on the next trading day (long entry, stop loss set below the low of the downward price range).
7. First Target Achieved (SMA20)
Go long on IAS
1. Price extreme downward, price deviates significantly from SMA20
2. RSI(2) Indicator < 10
3. RSI(2) Indicator > 30
4. The high of the candlestick indicated by the green arrow is broken (long entry, stop loss set below the low of the downward price range).
5. First Target Achieved (SMA20)
Go short on EIGR
1. Price extreme upward, price deviates significantly from SMA20
2. RSI(2) Indicator > 90
3. RSI(2) Indicator < 70
4. The low of the candle indicated by the orange arrow is broken (short entry, stop loss set above the high of the upward price range).
5. First Target Achieved (SMA20)
Some important things to keep in mind when using a 2-period RSI strategy
● Ensure that extreme prices are clearly visible. The greater the strength and speed of the price deviation from the mean, the greater the likelihood of a subsequent callback movement, driving the price back towards the mean.
● Always follow your stop loss! Strong trends may sometimes last longer than expected. Especially for trends with fundamental reasons, such as company performance far exceeding expectations, things can develop rapidly in a very short period.
● Don't try to predict reversals in advance, wait patiently for the RSI(2) to recover from overbought or oversold conditions, and always use stop-limit orders slightly above or below the highs or lows of the trigger candlestick. By doing so, you can avoid many false signals.
● Don't rely solely on one indicator to develop a strategy, but try to find other elements that support your views and settings. For example, rebounding from an important support level in a higher time frame, or the shape of the signal candlestick itself (bullish hammer or bullish engulfing pattern, etc.). The more convergent elements, the stronger the setup!
It's not easy to create content, thank you for reading. Friends who want to exchange technology and deploy high-quality currencies can give a like + follow.
Playing in the crypto circle is basically a contest between retail investors and market makers. If you don't have cutting-edge news and first-hand information, you can only be harvested! If you want to deploy together and harvest market makers together, you can come to me! Welcome like-minded crypto people to discuss together~
