The answer is yes! But most of it is not achievable; any industry follows the 80/20 rule. If you also want to achieve true financial freedom by trading in the cryptocurrency market, take a few minutes to seriously read this article, and you will benefit for a lifetime!
I entered the market with a capital of 8000 and spent 4 years to earn more than 80 million, using the following wealth code:
There is a method of 343 batch building for contracts, tried and tested:
Do not guess the rise and fall; buy according to the plan.
Step 1: 30% initial position (test buy)
①Choose mainstream coins (such as BTC, ETH, SOL, BNB).
②Use 30% of the total capital for the first buy.
③ Key: Never go all in at once!
Step 2: 40% averaging down (lowering costs).
① If the cryptocurrency price rises: don’t rush to chase high; wait for a pullback before averaging down 40%.
② If the cryptocurrency price drops: for every 10% drop, add 10% of funds until reaching a total of 40%.
③ Logic: Gradually increase positions during downturns to lower holding costs; profits are higher during rebounds.
Step 3: 30% finishing (add positions after confirming trends).
① When the cryptocurrency price rebounds and stabilizes at a key support level (such as the 7-day moving average), invest the last 30% of your funds.
② Set a mobile stop profit to maximize profit.
Why is this method effective?
1. Do not predict the market, just follow the trend.
2. Build positions in batches to avoid being stuck all at once.
3. Lower cost when prices fall, greater returns when rebounding.
Having been in the cryptocurrency space for over 10 years and experiencing over 20 liquidations, I have come to realize these 8 core trading rules. Only after taking the wrong path do I understand: the market is never short of opportunities; what is lacking is a clear vision.
1. Don't act recklessly in the morning market; if it drops significantly, it's a bargain; if it rises significantly, take some profits first.
The morning market is the purest; if there's a significant drop, don't panic; it's often a chance for the main force to wash the盘 and buy the dip; if it rises sharply in the morning, don't act impulsively to chase high; prices that rise too quickly usually cannot be sustained; taking profits is key.
2. Stay calm during afternoon fluctuations; 16-17 o'clock is the decisive window.
In the afternoon, if there is a sudden spike, it is often a trap; don't rush to chase; conversely, if a plunge occurs, it may be an opportunity, so it's advisable to look for low entry points between 16:00-17:00.
3. Don't panic during downturns, don't rush during fluctuations; emotional stability is the top priority.
Don't panic and cut losses when you see a drop in the morning price; most often, it is a 'sleight of hand'; when the market is unclear, it's better to take a break and avoid reckless operations that could lead to losses.
4. Don't chase highs, don't grab lows, and don't act recklessly in sideways markets.
If the price hasn't risen to expectations, don’t rush to sell; it’s easy to earn less. If it hasn't fallen to the target, don’t rush to buy the dip; otherwise, you might end up buying halfway up the mountain. Sideways markets are most likely to trap people, so patiently wait for a clear direction.
5. Enter on a bearish candle and exit on a bullish candle; this classic strategy never fails.
When prices pull back (large bearish candle), it is a good time to enter; when there is a strong rebound (bullish candle), decisively take profits and don't linger.
6. Counter-trend trading is a core cognitive difference.
While others chase the rise, you need to stay calm; when others are cutting losses, you must dare to buy. Real opportunities are never found where there are many people, but in the opposite of emotions.
7. High and low consolidation is the most exhausting, you have to endure.
Prices fluctuating at high or low levels test human nature; at this time, it's not that your skills are lacking, but that your mindset isn't stable. After passing through the fog, when the direction is clear, speed up your actions.
8. Timely take profits after a spike.
After a prolonged consolidation, if there is another spike, it is highly likely to be a final trap before a peak. Don't be greedy; realizing profits at high positions is the only way to truly fill your pockets.
These 8 rules may seem simple, but they are lessons I learned through numerous liquidations. If you find yourself frequently being taken advantage of in the cryptocurrency space, consider memorizing them and reciting them before each trade. Remember: the cryptocurrency space lacks opportunities; what is lacking is a strategy and awareness that allows you to survive.
I am Lao Chen, having experienced multiple bull and bear cycles, and I have rich market experience in various financial fields. Follow Lao Chen here to penetrate the fog of information and discover the real market. More opportunities to grasp the wealth password await, so don't miss out and regret later!
After trading for over 10 years, I can now lie down and earn steadily, all thanks to these 15 points I have learned.
Currently, my trading profitability is quite stable, and I often have newcomers asking me about trading methods. I am very willing to share my experiences over the years with everyone. In the field of trading, it indeed requires hands-on experience to truly grow. With the right guidance, we can avoid going down the wrong path and not waste time and energy.
Trading skills are relatively easy to learn; related materials can be found online or in trading classes. However, what truly tests you is personal trading mindset and thinking. Next, I will share 15 trading experiences that have been guiding me in the right trading direction.
These experiences are what I have summarized in actual trading, playing a key role in cultivating the correct trading mindset and way of thinking. I hope that by sharing these experiences, more novice traders who have just entered the trading world or those battling in the market can achieve better trading performance and reduce unnecessary troubles.
◎ Be a trader with strong defensive awareness.
Becoming a trader with strong defensive awareness is a key shift in the journey of novice traders. Many newcomers may initially be misled by a desire for quick success, hoping to make profits quickly, even approaching trading with a 'get-rich-quick' mindset. However, a more practical and feasible mindset should be to maximize the protection of one's funds. These two mindsets cannot coexist; if you only focus on quick profits, your capital is likely to be lost faster.
A rule from sports arenas also applies to trading: offense is the best defense. In this context, it means only trading under favorable conditions and protecting funds at other times, staying away from the market. Newcomers may achieve success in their first few trades by luck, but luck cannot last; you should be wary of the 'newbie effect' trap.
Imagine, if you hold a gun, you won't easily waste bullets unless you are sure you can hit the target. The same principle applies to trading: keep your financial strength and only make a 'fatal shot' when a truly favorable opportunity arises. In trading, maximizing the protection of funds is the key to success. As long as you can effectively control risk, even when encountering strong entry signals that ultimately result in failure, the impact on funds can be kept within a reasonable range.
◎ Frequently check charts and constantly monitor trades.
This often has a negative impact on trading. In life, too much interference usually doesn't yield good results. If you continuously try to overly control trading, the results may backfire, causing you more trouble.
Have you ever unconsciously increased your position or exited a trade early due to over-focusing on the charts? Looking back, doesn't it feel like you were too impulsive at that time? Such unplanned behaviors are often one of the reasons many people incur losses.
The simplest way is to set a trading plan and then forget about it. This is a principle I often emphasize to newcomers, and it is also one of the most valuable experiences I've gained: in trading, the less you interfere with your operations, the better. Simply follow your trading plan and let trades proceed as planned; this is true trading wisdom.
◎ The result of the last trade should not affect the next trade.
The result of the last trade should not affect the next trade. This is an extremely important principle, but many people often forget it. They can easily be swayed by the result of the last trade. However, it is necessary to understand that each trade is unique, and trading results are randomly distributed. Assuming you make 100 trades, the profits and losses may not differ much. However, their distribution is unlikely to be so uniform. You might have 5 or 10 consecutive losses, and if these losses affect your mindset, then the profitable opportunities that may follow could also be obstructed by your emotional state.
Similarly, it is also important to note that after a profitable trade, excessive confidence can negatively affect trading just like the fear after a losing trade. Excessive confidence makes one more willing to take excessive risks, and in the long run, its negative impact can be quite frightening. Therefore, maintaining calm in trading and not being swayed by short-term trading results is key to maintaining a stable mindset and achieving long-term success.
◎ Simplify trading, and you will gain more.
In trading, moderation is key. Many common mistakes made by traders are overdoing things. They overanalyze the market, overinterpret trends, overthink, and overorder; overall, they do many unnecessary things. As a trader, learning to be appropriately 'lazy' is equally important.
First, it is necessary to clarify that over a period, the favorable signals that appear in the market are limited, or even very few. Most of what you see or hear may just be 'market noise' and is of no benefit to you. Learning to filter these signals and then selecting the truly beneficial 'high-quality signals' is a routine step in seeking opportunities.
Next, I suggest you learn the mindset of hedge fund traders for your own trading. They handle millions or even billions of dollars, but trade very principled, like picking diamonds from sand, only choosing the highest return opportunities. For signals like 'possibly' or 'seems like', I advise you to stay away. In my 20+ years of trading experience, the best trades are always the most obvious and straightforward.
◎ Have a clear exit plan before entering the market.
In trading, no one tells you what to do. You must set your own rules, which means you must be accountable for your actions. Many people lack this self-control, leading to frequent losses in trading direction.
One of the most important tasks before trading is to determine the exit plan. It took me several years to realize that exiting is more important than entering. Observations show that many people's exits are impulsive, resulting in either minimal profits or significant losses. Establishing a strict profit-taking and stop-loss plan is the best approach. Such a plan can provide clear guidance, allowing you to remain calm and execute according to your plan, whether in profit or loss. This disciplined exit plan helps ensure you keep a clear mind in trading, reducing the influence of impulse and emotion on decision-making.
◎ Avoid worthless trading.
In the world of trading, worthless trading refers to trades where risk and profit are disproportionate, usually occurring when traders are blind and trade frequently. This type of trading often leads to losses greater than profits, affecting the trader's mindset and even trapping them in a vicious cycle of losses.
Specifically, it manifests as traders facing a volatile market, eagerly entering at what they see as 'opportunities' without considering the profits and risks of trading. Such blind entries are often driven by wishful thinking, believing that even small profits count as earnings. They ignore substantial risks for small profits and regard every market movement as an opportunity not to be missed, impulsively trading based on subjective magnification of small chances. This attitude demonstrates contempt and disrespect for the market, making it difficult to achieve good results.
For professional traders, they usually formulate trading plans in advance, set stop losses, etc., to ensure that even if they incur losses, the impact is not too great. However, losses caused by worthless trades are different, as these traders have a shallow understanding of the market, make casual trading decisions, and lack careful consideration. Such avoidable losses are more harmful than beneficial for the trader's growth.
◎ High discipline.
A high degree of discipline plays a crucial role in trading in financial markets. It refers to traders following a set of clear rules and principles during trading to ensure effective risk management, achieve investment goals, and avoid adverse consequences caused by emotions and arbitrary decisions. The level of discipline directly relates to trading success and is considered one of the key factors for successful trading.
I insist on making trading decisions without being influenced by emotions. Every day, I spend only half an hour checking charts, deliberately avoiding the temptation to obsessively monitor market fluctuations. I advise traders to strictly adhere to their trading plans and avoid overanalyzing the market, as disciplined execution is the cornerstone of stable profits. By following my set plan, I can maintain calm and avoid emotional decision-making, thus improving trading efficiency and stability.
◎ Most of the time, you should stay away from the trading desk.
On the path of trading, a wise strategy is to keep a distance from the market. Overtrading is often a shortcut to losing funds, and remembering this is crucial.
I strongly advocate using larger time frames to examine market trends. This method acts as a natural filter that can eliminate much unnecessary information interference. By doing so, you can more focusedly execute your trading plan, ensuring the efficient use of trading opportunities. In my opinion, daily charts are the best choice for technical analysis.
◎ Do you sleep soundly at night?
The most intuitive way to understand your trading pressure is to conduct a sleep test.
If you take too much risk in each trade, then this trade will be like a nightmare that haunts your thoughts. When you lie in bed, are you often troubled by worries about trading? Do you find yourself waking up in the middle of the night, unable to resist pulling out your computer or phone to check market conditions?
If you find yourself trapped in these emotions, then your trading may have serious problems. Maintaining long-term trading and profitability requires effective risk management. If anxiety has affected your sleep, it means your trading risks have exceeded your tolerance. Timely adjustments to positions and the amount invested in each trade are crucial. Everyone should maintain a cautious attitude towards this.
◎ Before live trading, you must achieve these two points.
Before engaging in live trading, there are two key points to remember to ensure your trading does not degenerate into gambling.
First, you must have a clear trading strategy. In live trading, lacking a trading strategy can easily cause you to lose direction and lead to losses. Before fully grasping your strategy, it is best not to rush into trading. Remember, don't try to use multiple different trading methods at the same time; this will only complicate matters.
Secondly, fund management is crucial. Without adequate funds, you cannot trade long-term, let alone profit. Therefore, deeply understanding the importance of funds in trading is essential. Do not recklessly waste your funds, as they are your lifeline in trading. Through effective fund management, you can better protect your investments and ensure that you can operate steadily in the market.
◎ How is your self-control? This is important.
The success of trading depends not only on rational strategies, trading plans, and money management but also critically on psychological self-control. The trader's mindset can be said to be the dominant force in trading rhythm, and successful traders must possess strong self-control.
In trading, the biggest challenge does not come from financial issues but from the fluctuations of personal emotions. A negative mindset weakens the ability to respond to good trading opportunities and becomes the biggest trap in trading.
Letting your emotions fluctuate freely can lead to a loss of rationality, gradually eroding the clarity of your trading decisions. Confidence is key to successful trading, but excessive confidence can become a breeding ground for negative emotions.
In trading, a principled person can better master themselves and stay calm. Trading does not require excessive display of personality but rather needs steady execution of plans and maintaining rational decision-making at all times. By establishing a solid psychological foundation, traders can better cope with market fluctuations and ensure a more stable and successful trading process.
◎ The more favorable factors, the better.
The success of a trade depends on acquiring as many favorable factors as possible, as this increases the likelihood of profit. In trading charts, if the trend lines, important chart levels, and trading signals can remain consistent, then the trade is more likely to be profitable.
Although many traders seek to avoid human errors through automated trading systems, I personally do not like to rely on them. I believe that as long as you can find the intersection where trends, water levels, and signals align, you can effectively execute trades without worrying about trade quality. Unity and consistency are key in trading decisions, which can be achieved by effectively integrating various supporting factors.
◎ Avoid increasing positions in a loss.
In trading, overly focusing on win rates while neglecting risk management is a dangerous mindset. I adhere to the view that one should not continue to add to positions when incurring losses, as this only turns trading into gambling. I believe a successful trader should have risk awareness, avoid taking risks, and not pursue doubling their account in the short term.
Some traders view profit as a secondary goal, placing more emphasis on proving the correctness of their viewpoints. However, overly pursuing a high win rate while neglecting risk management is an extremely dangerous attitude. When a trade goes wrong and contradicts market trends, some traders not only fail to set stop losses and close positions but instead continue to add to their positions, hoping for a market reversal. This behavior turns trading into gambling. Successful traders should focus more on maintaining calm and reasonably controlling risks, rather than being carried away by short-term high win rates.
◎ Reasonable stop loss, strictly execute.
Ensuring reasonable stop losses and strictly executing them is a crucial principle in trading. I have always believed that traders who do not set stop losses may ultimately face the risk of liquidation. In every order, set a reasonable stop loss distance and make wise decisions based on personal circumstances. Furthermore, I want to remind traders not to widen stop loss distances when incurring losses and not to close positions too early when in profit.
For every trade placed, you should set stop losses and profit targets and stay away from emotional trading. Once set, it's best not to repeatedly check orders or charts, as such behavior may interfere with emotions. Seeing an order at a loss may tempt a trader to widen the stop loss distance, leading to greater losses. Conversely, when an order is profitable, closing too early may cause traders to miss out on further profits. In summary, constantly staring at the market can greatly affect emotions and mindset; the best practice is to set it and not intervene excessively.
◎ Wait for the best trading opportunity.
If you find it unbearable to endure this torment, then waiting for a clear trend to emerge before taking action is also a good choice. The market never lacks opportunities, what truly lacks is the attitude of being prepared at all times. In the world of trading, patiently waiting and ensuring your mindset is in the best state is key to achieving success. Don't rush to act; rather, wait for the right timing to mature, as a clear trend will provide you with clearer direction.
In trading, the market often generates false signals or weak signals; however, the importance of waiting for the best trading opportunity cannot be overstated, just like a cheetah waiting for the best prey. For weak signals, we should not take excessive risks but patiently wait for clear opportunities. Maintaining patience is crucial, as the market fluctuates continuously, but not every moment is the best trading opportunity.
Summary
Lastly, I need to emphasize that trading is not everything in life; it is merely a form of investment and should not affect normal life. Unless you are a professional trader, do not invest all your time into trading; you should have your own work and career.
In summary, successful traders need to stick to simple yet effective trading strategies, maintain a high degree of discipline, wait for the best opportunities, set reasonable stop losses, avoid over-trading and taking risks, and also remember there is life and work outside of trading. These recommendations can help more people succeed in financial markets.
Finally, Lao Chen summarizes my insights on achieving financial freedom over the past 10 years: 9 key points for making money in the cryptocurrency world.
1. Don't rely on luck. Earning more times than losing indicates that your method is correct as your account grows slowly. However, if you earn nine times and lose everything once with a large position, then be careful. Don't go all in casually; cut loss timely if wrong and adjust your strategy.
2. Trust your judgment. Sometimes you are right, but when you listen to others, you change your mind and end up losing. Investment requires your own opinions; often, it's the minority that makes money in the market.
3. Learn to see trends. The cryptocurrency market has ups and downs, following the trend makes it easier to make money, while going against the trend carries high risks. Learn more technical analysis to improve market judgment.
4. Control risk. The cryptocurrency market is highly volatile, don't go all in. Start with a small position to test the waters, and increase your position only when the trend is right. Set stop losses for every trade, don't be greedy or hesitate.
5. Be patient for opportunities. Don't rush to buy when prices rise; find a good position before entering. It's better to miss out than to make a wrong move.
6. Leave when necessary. Take profits when you reach your target, don't think about making more, or you might end up losing. Even if you incur losses, decisively cut losses; don't fantasize about breaking even; preserving your capital is essential for continuing to play.
7. Maintain a good mindset. Investing is not a one-day affair; earning and losing is normal. Whether you're making a profit or incurring losses now, stay calm, summarize your experiences, and over the long term, you can stabilize profits.
8. Pay attention to news + technical analysis. Sometimes a major news event can significantly change the market, so you cannot only rely on technicals but also need to pay attention to market dynamics.
9. Only invest with spare money.
Borrowing money to trade cryptocurrencies is stressful and can lead to reckless operations. It's best to use money that won't affect your life, as this stabilizes your mindset and allows for more flexible operations.
Playing in the cryptocurrency space is essentially a contest between retail investors and institutions. If you don't have cutting-edge news or first-hand information, you can only be taken advantage of! If you want to lay out a strategy together and harvest from the institutions, feel free to reach out to me; welcome like-minded people in the cryptocurrency space to discuss!
There is a saying that I strongly agree with: the boundary of knowledge determines the boundary of wealth; one can only earn wealth within their knowledge boundary.
Trading cryptocurrency requires a good mindset; during significant drops, don't let blood pressure spike, and during big rises, don't get carried away; taking profits is crucial.
For those without many resources, being down-to-earth is an unbreakable way of survival.
Giving a rose also leaves a lingering fragrance; thank you for your likes, following Lao Chen, and sharing! Wishing everyone financial freedom in 2025!
$ETH #BTC #加密市场回调
