I was born in the 90s and have been involved in cryptocurrency investment for ten years. Between 2013 and 2014, I stepped into this tempting yet risky cryptocurrency world, but unfortunately lost over a million yuan that my parents had worked hard to save. Unwilling to give up, I borrowed 500,000 yuan from friends and family to continue investing, but I also failed to escape the harsh realities of the market, ultimately losing a total of 1.5 million yuan. My family was on the brink of collapse; my wife and I fought daily over my investment decisions, and she even suggested divorce. Faced with such immense pressure, I contemplated suicide multiple times, standing on the edge of a tall building, but fortunately, my inner resilience and unwillingness to give up helped me get through that dark time.

After a year of reflection and adjustment, I resolutely resigned from my job and devoted myself fully to the cryptocurrency market. I made a solemn vow to my wife to recover all losses. I deeply analyzed past mistakes, summarized operational oversights, and carefully observed and learned the strategies and techniques of trading experts. Finally, my account began to stabilize gradually, turning from losses to profits, which was not easy. I learned to plan my account rationally, adopting a combination of medium and short-term operational strategies, discarding past blind and impulsive behaviors.

Without my wife's knowledge, I borrowed 200,000 yuan from relatives. After eight years of relentless effort and careful operation, I miraculously accumulated a wealth of 47 million yuan starting from the initial 500,000 yuan. Since then, my wife's attitude towards me has changed dramatically; she looks at me with new eyes, obedient and compliant, as if she has transformed into a well-behaved child. This transformation stems from the wealth and dignity I have regained.

Why choose trading as my compounding life?

Many people say that after seeing others' trading experiences, they ask me if I can write about my life experiences. In fact, I have written before and hope to share with everyone to learn from the lessons of failure.

Reflecting on my many years of trading career, I have also been asked by others, 'Do you regret trading?' To be honest, I don't need to think about this question; I would answer without hesitation: I do not regret it. I really enjoy trading, even though I was deeply stuck in losses and despair in my early years. Even when I couldn't see hope, I still loved trading, genuinely from the heart.

But why do I love trading? I have often asked myself why I like it so much. I have been doing it for so many years. Is it for money? Of course, I started for the money, dreaming of getting rich overnight, dreaming of financial freedom and spending lavishly. But in the first six or seven years of trading, I did not make money; not only did I not make money, but I also continued to lose money. I had no money, yet I was unwilling to give up and still loved it, treating trading like a first love. No matter how much trading hurt me, I treated it like a first love. Eventually, I did gain wealth from trading, and after satisfying my basic material needs, I no longer had a significant concept of money and did not desire it as much. However, I still love trading; it seems to have become a part of my life, inseparable, and not just for money, but rather, it feels like I trade for the sake of trading.

What is the way of trading? — 'Simplicity, Endurance, Patience, and Trouble'

1. See through: identify trends and wait for big money.

Two: Be patient: guiding the winds and clouds with ease.

Three: Be resolute: without small endurance, there can be no great strategy.

4. Leisurely and carefree: those who can handle ordinary loneliness with ease are immortal.

5. Keep calm: Cultivating tranquility is the essence of knowledge.

Six: Composed and dignified: calm and focused, wise and courageous; this is the ability to accomplish great tasks.

Seven, those with talent yet calm disposition are the truly talented; those with wisdom yet harmonious temperament are the truly wise.

Mindset first, skills second, and funds third. With skills in hand, even if wealth is lost, it can be regained; for experts, funding is not an issue; doing nothing, having no business, tasting the essence of doing nothing, being in the stock market while experiencing leisurely life, and being in the world while enjoying the realm of immortals. #Domestic concept coins collectively surge

Leisure and busyness distinguish the masters from the experts. Experts master techniques, possess rigorous logic, and think critically, jumping up and down with market fluctuations and information, almost like a monkey. No matter how skilled, one cannot escape a low level, and the joy of life disappears.

Masters or grandmasters transcend conventional theories and views, surpassing fundamentals and technicals, no longer entangled in value investing or technical analysis, stepping out of the entanglement of information, technology, and volatility, enjoying abundant profits and a peaceful life, picking chrysanthemums under the eastern fence, leisurely gazing at the southern mountains.

Without further ado, let's get to the point!

Let's first talk about how to scientifically chase a surge when you see a big bullish candle! How to set take profit and stop-loss when chasing a surge?

Why do 'old investors' not dare to enter?

Chasing the price during rapid surges?

Since January 2024, BTC has experienced consecutive days of rapid surges, and I believe many people are feeling 'left out'. Why? Because most 'old investors' do not dare to chase the price during such rapid surges (as shown in Chart 1), because they have paid the price for their impulsive decisions when they first entered the market and have lost a significant amount of money.

(Chart 1),

1. What is wave structure?

In response to this situation, is there a more scientific way to 'chase the surge and cut losses'?

Yes!

The core is summed up in one sentence: seek wave structures in small cycles.

First, you need to identify two key words in this sentence: first: small cycle, second: wave structure.

Let's first talk about what wave structure is.

Wave structures are formed by the overlap of bearish and bullish candles, as shown in the chart below (Chart 2). This structure usually accompanies price fluctuations and trend changes. #Institutional funding layout for SOL

(Chart 2)

Simply put, you have not seen bearish candles, simple pullbacks, complex pullbacks, or continuation patterns in your trading period, so you are hesitant to enter. The essence is that you have not seen the 'wave structure'.

2. What is a small cycle?

The second question, what is a small cycle?

Periods shorter than your trading period are collectively referred to as small cycles.

In technical analysis, time periods are divided into multiple levels. We recommend that you look at least at two periods when trading:

a. Trend cycle

b. Trading period (main period)

There is also an optional cycle:

c. Signal cycle (optional)

The three cycles must progress in a fourfold principle, such as:

If your trading period is the 15-minute chart, then your trend period should be the 1H chart, and your signal period should be the 1-minute chart; #Binance Alpha new arrival

If your trading period is the 1H chart, then your trend period should be the 4H chart, and your signal period should be the 15-minute chart;

The price fluctuations of small cycles are more sensitive and can better reflect short-term market changes. Therefore, we can observe small cycle charts to more clearly identify market trends. If there is no obvious wave structure in larger time periods, we can turn to shorter small cycle charts, such as hourly or minute charts. In these small cycles, we are more likely to discover price fluctuations and shape changes.

For example, in Chart 3 below, suppose our trading period is the daily chart, and the price has consecutively pulled up three bullish candles on the daily chart; we do not dare to chase at market price, nor do we know if the trading range ahead is a true breakout or a false breakout. But if we follow what we learned today and look at a smaller cycle, we will clearly explore the opportunities within our trading system (as shown in Chart 4).

(Chart 3)

When we switch to the 1H cycle chart, as shown in Chart 4, we discover two entry opportunities within our trading system, namely 'in-flight refueling' and 'simple pullback'.

Then you might ask, shouldn't we determine the small cycle downwards according to the fourfold principle? Shouldn't the daily chart's downward fourfold be 6H?

Yes, you are correct; it is indeed 6H, but I looked at the 6H chart, and it was still a series of big bullish candles without any wave structure (I couldn't be bothered to screenshot to prove it);

What about the 4H chart? The 4H chart has none either;

So, I found the 1H chart.

If, I mean if, there is no wave structure on the 1H chart? Then continue to look for the lower time frames:

15 minutes, 5 minutes, 1 minute, 30 seconds...

(Chart 4)

Lastly, it is important to emphasize:

a. The content we discuss today is more about providing you with a way of thinking and should never be taken as a method to use directly, or else it will lead to irreparable consequences!

b. Additionally, we cannot only see its advantages, but also its disadvantages, which is a low win rate! Because when you use small cycles to achieve a higher profit-loss ratio, the win rate will naturally decline.

c. This thought process is similar to what we mentioned in our systematic course about finding signals in small cycles; remember not to place your take profit at the signal cycle; it should at least be at the trading cycle. However, your stop loss can be placed at the smaller cycle where you entered, as our goal is originally to achieve a better profit-loss ratio.

If you are also a tech enthusiast, take a look at the chart below:

Finally! Pay more attention to these six iron rules!

1. Don't panic when the price surges and then slowly falls. Is the coin price skyrocketing and then slowly grinding down? Don't rush to cut losses. This is mostly a washout by the market maker, shaking out those who can't hold on. After the surge in ETH in 2019, I almost sold at the bottom, only to later realize that the real danger lies in the sudden drops that follow the surge — that is the trap to lure buyers.

2. Don't reach out when prices fall quickly and bounce slowly. After a waterfall-like drop, the price slowly bounces up like a snail? Put away the thought of bottom-fishing! This clearly indicates that the market maker is offloading. During the dogecoin surge in 2021, I saw too many people shouting 'it's bottomed out', only to be caught in the last fake rebound.

3. Don't fear volume at high levels; run if the volume is dead. If the price is soaring high and still increasing in volume, there might still be a chance; but if the volume at high levels is like stagnant water, you must run! When LUNA reached $119 in 2022, the trading volume shrank for three consecutive days; I cleared my position that night, and it started to crash, going to zero a week later.

4. Don't get excited over unusual movements at the bottom; sustained volume is what really matters. A sudden explosion of volume after a long drop? It could be a trap. When ETH dropped to $880 last year and saw volume spike, I didn't act. I waited for it to consolidate for two weeks before entering at $1200, doubling my investment in three months. Market makers don't just make a move once.

5. Trading coins is about human sentiment; never get the volume and price reversed. Candlestick patterns are superficial; trading volume is the mirror that reveals the truth. In the 2023 altcoin market, how many people rushed in based on price without checking the volume, which had long since vanished? — Price is like a dog pulled by emotions, while volume is the leash.

6. The word 'nothing' is the highest level. Without attachment, one can remain in cash for the fatal blow; without greed, one won't chase highs; without fear, one can dare to catch the falling knife. This isn't a Zen mindset; it's the mentality forged by the bearish market of 2023 — that year I stayed in cash for three months, avoiding 90% of the downturn, relying on this 'nothing' principle. The market has daily opportunities; what is lacking is the ability to resist temptation.

Finally, keep this in mind:

The cryptocurrency market is a marathon; stability far exceeds speed. Gains made by luck will ultimately be lost due to lack of skill. Only by integrating position management into instinct can one survive in a cruel market.

Remember: as long as you are alive, you have the right to wait for the next chance to turn things around.

No matter how diligent the fisherman, he will not go out to sea during a storm, but will carefully protect his boat, knowing that the storm will pass, and sunny days will come! Follow Lao Chen, and I will teach you both fishing and how to fish; the cryptocurrency world is always open, and only by going with the flow can one have a life that flows with the current, so remember this!

$ETH $BTC#现货黄金创历史新高