On the journey of investing in digital currency, I started as a small individual with only 5000 yuan in initial capital, gradually striving and ultimately transforming into a middle-class individual with 40 million in wealth.
Today, I am willing to share the valuable experiences from this journey selflessly with every like-minded friend.
Sailing in the ocean of digital currency, the art of capital management is crucial. I tend to divide my capital into five parts, using only one part for trading each time, so that even when encountering storms, I can maintain the stability of the hull. I have set a strict rule for myself: once losses reach 10%, I will immediately set sail to retreat, no matter how turbulent the external winds and waves are. Even if I face five consecutive small setbacks, my losses are limited to half of the capital, and once I catch a profitable wave, the gains will far exceed this. Even if I occasionally get briefly trapped by the market, I can remain calm and maintain a composed mindset.
Following the market trend is the most reliable beacon to success. During market downturns, do not blindly catch the falling knife; it is just an illusion like a mirage. When the market warms up and corrects, that is our golden opportunity to buy low, which is much safer than blindly holding the bottom.
When selecting digital currencies, we need to cultivate a discerning eye. Those currencies that soar like meteors, whether mainstream or non-mainstream, should be approached with caution. Because their rapid increase is often followed by a similarly tremendous correction, a slight misstep could lead to deep entrapment.
In the field of technical analysis, I particularly trust the MACD indicator. When the DIF line and DEA line intertwine below the 0 axis and successfully break through it, that is a good buying opportunity. Conversely, if they intersect above the 0 axis and extend downward, that is a signal to reduce positions.
As for averaging down, it is a path full of thorns and should not be taken lightly. Once you incur a loss, do not blindly average down, otherwise, you will only sink deeper and may ultimately lose everything. Remember, decisively cut losses when losing, and only gradually add to your position when making a profit.
Trading volume is also a crucial factor. When the currency price breaks through at a low level, if the trading volume significantly increases, it often indicates that a major opportunity is coming.
The most crucial point is to follow the trend. Combining the trends of daily, 30-day, 84-day, and 120-day moving averages, when one of these lines starts to show an upward turning point, you can clearly perceive the market direction and make correct decisions.
The path of digital currency investment is filled with risks but also contains limitless opportunities. Only by mastering the essence of capital management, trend analysis skills, and having an eye for selecting currencies can you, like me, gradually rise from a small starting point to become a member of the middle class.
An ultra-simple cryptocurrency trading method, repeated operations can turn 200,000 into tens of millions; doesn’t that sound a bit unbelievable?
In fact, those who lose money often just haven't found the right method. To make money, the key is to find a method that suits you and practice it. Maybe one day the numbers in your account will suddenly soar. This is what my predecessor said, and I have always remembered it. The method I used before, compared to other methods on the market, is both simple and practical.
When encountering market consolidation, let’s wait and see, because big movements often follow consolidation. Once the situation becomes clear, we can take action, ensuring profits.
Additionally, do not cling to popular positions; change them frequently; otherwise, you might end up with nothing. Those short-term popular trends are all speculative; once the heat fades, the funds will run away. If you are a bit slow, you will find yourself lost in the wind.
Speaking of rises, if you see the K-line slowly climbing, having a good start, and the trading volume also increasing, that indicates the market is about to accelerate. At this time, we need to stay calm, hold the tickets tightly, as there will definitely be big profits ahead.
However, if you see a particularly large bullish candle, regardless of whether it is at a high or low point, you must quickly withdraw, even if it hits the limit. Why? Because we need to guard against profits falling back.
Another little trick is to buy on bearish candles online and sell on bullish candles offline, and acknowledge mistakes. Here, 'candles' refer to moving averages or important support and resistance levels. For short-term trading, generally look at daily and hourly charts. I do not like to dawdle; my positions usually do not exceed three days, at most a week. After that, I do not linger even if it gets better.
In the cryptocurrency circle, there is a basic principle: do not sell on highs, do not buy on dips, and remain steady during consolidation.
Finally, before buying, be prepared; it is better to buy less than to dump everything in at once. After all, in this circle, the only constant is change.
Over the past seven to eight years, assets have grown by 30 million, going through trials and accumulating valuable experience. Here are some key insights to share, hoping to inspire everyone:
1. Capital management is the key to success
Divide your capital into five equal parts, using only one-fifth each time, while setting strict stop-losses. Each trade loss should not exceed 10%, and total capital loss should be controlled within 2%. Even if five consecutive trades are mistakes, the total loss is only 10%, but if you seize one opportunity, profits can easily make up for the losses.
2. Follow the trend, do not go against it
When the market is down, do not blindly attempt to catch the falling knife, as it may be a trap to lure investors. Be patient and wait for clear signals.
When the market rises, do not rush to sell; this could just be a 'golden pit'. Buying low is more reliable than catching the bottom.
3. Stay away from short-term surging currencies
Whether mainstream coins or altcoins, very few can sustain explosive growth; most currencies will enter a stagnation or correction phase after a surge. Do not harbor a fluke mentality to bet on high-risk events at high positions.
4. Reasonably use technical indicators
The MACD indicator is very practical: 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 death cross forms above the 0 axis and moves downward, consider reducing your position.
Averaging down requires a strategy: do not average down decisively when losing, only add to your position appropriately when profiting, otherwise, you may incur even greater losses.
5. Trading volume is at the core of the market
Focus on low-level volume breakout situations, as this is an important signal for market initiation. Only trade currencies that are in an upward trend, closely monitoring the 3-day, 1-hour, 4-hour, and 8-hour moving averages; when these moving averages turn upward, it usually indicates that the upward trend has been established.
6. Do a good job of review and strategy adjustment
Every trade must be reviewed to reorganize the holding logic, and flexibly adjust subsequent operating strategies based on the weekly K-line trends.
The first four years of trading cryptocurrencies are a history of blood and tears, with losses of 80%. After much reflection, I summarized 10 iron rules, resolutely executed them, and ultimately turned the tide! Sharing with all traders, take it freely.
I silently remind myself:
"Hold your Bitcoin! And Buy The Fucking Dip!"
Hold your coins well, never cut losses, just like I raised my shield and bravely caught the bottom. It feels really good, like swinging a sword of counterattack against the whole world. After all, losing only took four years, while winning becomes legendary! On the road to creating legends, the cryptocurrency circle has never disappointed us, regardless of market fluctuations.
These are all lessons learned from real trading experiences; behind each one is a period of suffering. The purpose of sharing them today is to help everyone avoid detours; it is crucial to take them seriously!
Below, I will share the basic concepts of the cryptocurrency trading system, market analysis, investment strategies, risk management, technical tools, ecological applications, and regulatory policies.
I hope to provide everyone with a comprehensive overview of cryptocurrency trading knowledge, helping fellow traders find suitable methods they wish to learn.
Overview of the trading system in the cryptocurrency circle:
1. Basic concepts of the cryptocurrency circle
Two. Analysis of the cryptocurrency market
Three. Investment strategies in the cryptocurrency circle
4. Risk management in the cryptocurrency circle
5: Technical tools in the cryptocurrency circle
Six: Ecological applications in the cryptocurrency circle
Seven: Regulatory policies in the cryptocurrency circle
How to turn 100,000 into 20 million? My path to success!
Hello everyone, I am Lao Qi. In 2015, I accidentally came across the cryptocurrency trading industry. At first, I lost tens of thousands like gambling. However, later, I began to study seriously, researched materials everywhere, learned related knowledge, and continuously improved my skills. After years of ups and downs, I finally welcomed a turning point in 2024. I started my path to success. In just over two years, I turned 100,000 into an eight-digit figure!
Core principles - Three don'ts of trading cryptocurrencies:
Avoid buying during rises: when market sentiment is high, prices are often inflated. Conversely, buy during market corrections or declines, taking advantage of the market's fear to acquire low-priced assets.
Diversify risks: do not put all your funds into one currency. Diversified investment can spread risk; even if a certain currency performs poorly, it will not deliver a fatal blow to the overall investment.
Control position size: full position trading will limit your flexibility. Keeping a certain amount of cash reserves allows for quick strategy adjustments when market trends do not align with expectations.
Six key rules for short-term trading:
New highs often follow high-level consolidation, and new lows often follow low-level consolidation: high-level consolidation usually indicates a new round of increases, while low-level consolidation may face further drops. Wait for the trend to clarify before taking action.
Do not trade during consolidation: when the market lacks a clear direction, the best approach is to watch and wait until the trend is clear.
Buy on bearish candles and sell on bullish candles: a contrarian strategy, buying when the market is generally bearish, and selling when the market is generally optimistic, reducing the risk of chasing highs and cutting losses.
Assess the rebound strength based on the speed of decline: rapid declines are often accompanied by rapid rebounds, while slow declines may lead to a more moderate recovery.
Pyramid-style building positions: gradually increase your holdings, especially increase buying efforts when prices fall to lower costs and lay the foundation for future profits.
After a continuous rise and fall, there must be a consolidation: after a long-term price movement, there will always be a period of adjustment, with small price fluctuations. At this time, it is not advisable to rush in and out, but to wait for the next trend signal.
The 'six secrets' to winning in the cryptocurrency circle: the secret to turning 100,000 into 5 million!
A big shot in the cryptocurrency circle once said that as long as retail investors do the following six points, turning 100,000 into 5 million is not difficult. These six points seem simple, but very few people can truly achieve them. Here are the 'six secrets' to winning in the cryptocurrency circle, helping you navigate the market effortlessly!
1. Understand stop-loss and take-profit
Trading cryptocurrencies is for profit, not for holding forever. Do not be greedy when making money and do not hesitate when incurring losses. When the position trend goes wrong, sell decisively to avoid greater losses.
2. Do not pursue absolute highs and lows
The market always has lower lows and higher highs, and it is difficult for ordinary people to grasp precisely. We just need to buy in the bottom area and sell in the top area, seizing the major trends.
3. Volume and price must perfectly match
Rising without volume or new highs without volume often signal major selling or exhaustion of the rise. It is better to miss out than to chase highs, avoiding becoming a bag holder.
4. Reaction must be quick
When favorable news emerges in the market, quickly identify the related sectors and projects. If you miss the first tier, quickly position in the second tier; you can still achieve good returns.
5. Learn to rest
The main rising wave of cryptocurrency prices is very short; most other times are characterized by fluctuations or corrections. Seize the main rising wave and learn to rest during other times to avoid losses from frequent trading.
6. A sharp drop is the biggest good news
Market crashes often breed greater opportunities. Be fearful when others are greedy and greedy when others are fearful. When the market crashes, do not panic; choose quality targets to build positions in time and wait for rebounds.