In the ever-changing cryptocurrency market, mastering core survival rules and trading strategies is crucial for long-term success and profitability. The following experiences are gained by countless investors through hard-earned money, and I hope they illuminate your path forward.
Principles of capital investment
Always invest only what you can afford to lose in trading. It’s like marching into battle; you need ample supplies and should not go all in. Only by using spare money that does not affect your life can you remain calm in the face of market fluctuations and avoid falling into despair due to a single loss.
Capture trading opportunities
When trading, be like a cheetah, patiently waiting for the best moment. Cheetahs will lie in wait for a long time before hunting, observing the prey's movements. Once the timing is right, they strike with lightning speed. The same goes for the cryptocurrency market; do not blindly follow trends, but wait for clear trend signals in the market before decisively entering.
The art of leveraging
5 times leverage is considered the golden ratio. Leverage is a double-edged sword; if used well, it can amplify profits, but if used poorly, it may accelerate losses. 5 times leverage can amplify profits to a certain extent and will not let risks spiral out of control, providing a relatively stable operating space for trading.
Capital protection philosophy
Protecting the principal is like preserving hope. The principal is the foundation of trading; once the principal is significantly damaged, it becomes exceptionally difficult to turn things around. No matter how tempting the market is, always keep in mind the importance of protecting the principal to avoid falling into an irretrievable situation due to greed.
High leverage, precise targeting combined with strict stop-loss.
Adopt a strategy of high leverage + precise targeting + strict stop-loss. High leverage can achieve rapid capital growth in a short period, but it also comes with high risk. Precise targeting requires investors to have keen market insight and accurate judgment, only choosing the most reliable trading opportunities. Strict stop-loss is key to controlling risk, and when market trends do not align with expectations, decisive stop-loss must be taken to prevent further losses.
Choice of trading varieties
Only trade BTC/ETH. These two cryptocurrencies have high liquidity and relatively few price spikes, making them the battleground for large funds. For ordinary investors, choosing highly liquid varieties can ensure smooth trading and reduce problems such as slippage caused by insufficient market depth, thereby improving the success rate of transactions.
Leverage multiple settings
Use 20 times leverage. For example, with 1000U, using 20 times leverage means that with a 5% fluctuation, the funds can turn into 20,000U. But always remember to set stop-losses as soon as you open a position, as the liquidation line is your bottom line. High leverage can bring high returns, but risks also multiply geometrically. Setting stop-losses can ensure timely exits when the market is unfavorable, avoiding total loss from liquidation.
Breakthrough chasing techniques
Utilize the breakthrough chasing method. Wait for a major level of consolidation to break (over 4 hours), and when the price surpasses previous highs or lows, enter instantly to capture the momentum. This strategy leverages market trend inertia; when a breakthrough occurs, the market often continues the original trend for a while, providing profit opportunities for investors. However, be aware that breakthrough markets may also have false breakouts, thus combining with other indicators for comprehensive judgment.
Core essence of trading
At the core of trading in the cryptocurrency world, only those who have been severely 'educated' by the market will truly understand. The core of trading is position management; all trading actions must be carried out within proper position management. Just like building a skyscraper, position management is the foundation; only when the foundation is solid can the skyscraper stand tall.
Profit and loss balance
Reasonable position management can allow you to make big profits at the right time and small losses at the wrong time, ensuring stable capital growth. When market trends align with expectations, larger positions can amplify profits; conversely, when market trends are unfavorable, smaller positions can limit losses. Through this balance of gains and losses, steady capital growth can be achieved.
Emotional and rational game
Humans are always driven by emotion rather than reason. No matter how much you emphasize the rationality of your decisions, they are actually dominated by emotion. Your directional judgments often carry subjective bias, and all technical indicators will be influenced by your judgments, resulting in strength or weakness tendencies. Therefore, during trading, always be alert to emotional interference and rely as much as possible on objective data and rules for decision-making.
Grateful to the market for its gifts
When we make money in the market, we must thank the market, not because we ourselves are so powerful, but because the market has allowed us to taste success. The market is unpredictable; it gives us opportunities for profit but can take them back at any time. We must maintain a sense of awe, cherish every opportunity to profit, and be prepared to cope with losses.
Discipline achieves victory
Everything is a matter of chance and discipline that leads us to victory, with the key being position management. Living longer gives you a chance to win; trading in the crypto world is a game of probabilities, not a personal ATM. The difference between speculation and gambling lies in discipline; only by strictly adhering to trading discipline can one survive in the market long-term and ultimately achieve profitability goals.
The violent rolling technique that turns 1000U into 20,000U: the ultimate strategy for small funds to turn around with three principles of position control
First position 200U to test the waters - don’t go all in at once, leave enough bullets
Earn 300U and immediately withdraw the principal - use the market's money to continue playing
Laddering profits - after earning 30%, first secure 1/3, then strike back once breaking previous highs
(My 'pyramid stacking method' can reduce the risk of liquidation by 80%)
The devil is in the details
Strike during golden hours: Keep an eye on the peak liquidity of the US market (9 PM - 12 AM)
Leverage locked at 3-5 times - no matter how tempted, do not cross the line
Moving stop-loss at 0.5% - this is your lifeline
(Last year, I used this method to gain 7 times profit on PEPE in 18 days)
Mindset determines everything
Account up to 3000U? Withdraw 1000U to secure profits! Remember:
The most terrifying aspect of a bull market is not missing the opportunity but watching profits slip through your fingers
Small funds want to turn around?
Not relying on luck, but on this set of rolling techniques!
When others are still hesitating, you are already snowballing profits...
99% of those who desire to profit in the cryptocurrency world usually go through three stages
The first stage is an experiential journey, often resulting in small gains followed by large losses, or the money earned is completely given back.
The second stage is to solidify your beliefs, making small gains, summarizing experiences and lessons after encountering new things, and forming your own rhythm.
The third stage is the moment that can truly change your fate, relying on strategy, timing, discipline, and perhaps a bit of luck to earn considerable wealth.
To return home fully loaded and retire successfully in the first stage is extremely rare; more people exhaust their capital and cannot reach the shores of success. To persist in remaining at the 'poker table' is already quite an achievement.
In summary, during an upward cycle, everything seems beautiful; during a downward cycle, everything appears bleak.
Therefore, when information floods in like a tide, the most important thing is to remain humble and cautious.
The more eager you are to operate, the more likely you are to incur losses. Strive to cultivate a good mindset, excellent discernment, and a high level of focus!
Almost 100% profit-making stupid method to earn 20 million? These are the 7 iron rules I earned with blood and tears
I finally realized - the simplest methods often yield the most profit. Today, I'll show you my trading diary:
1. Night battle rules
Daytime market conditions are like a drunken man dancing, with news flying around and market makers drawing lines. I only open my trading software after 9 PM; by then, the candlesticks are clear, and the direction is obvious.
2. Withdrawals to avoid impulsiveness
Earn 1000U? Withdraw 300 to your bank card first. I've seen too many people go from tripling their investment to losing everything, just because they thought 'let's wait a bit longer.'
3. The three-piece indicator set
MACD golden cross and dead cross
RSI overbought and oversold
Direction of Bollinger Bands opening
Three indicators and two resonances must be met before taking action; this lesson was learned with a tuition of 200,000.
4. The art of moving stop-loss
When monitoring the market, adjust stop-losses by 3% for every 5% increase, and set a hard stop-loss of 3% before sleeping. Last year's crash on March 12 left my account completely unharmed thanks to this strategy.
5. Friday withdrawal day
Every Friday, without exception, withdraw 30% of profits, and the rest is battle capital. After 8 years, the interest from withdrawals alone is enough to buy a house.
6. Candlestick time-space rules
Short-term view in 1 hour: consider only after two consecutive bullish candles
Stabilizing observation in 4 hours: ambush near support levels
Remember: the market is three-dimensional; do not view candlesticks with two-dimensional vision
7. Four blood oaths
Leverage exceeding 10 times = suicide
Buying altcoins = giving money to the market makers
Over 3 trades in a day = sign of losing control
Borrowing money to trade coins = irreversible disaster
Seven ways to die from trading coins! Bull markets must be vigilant!
The virtual currency bubble has confused countless people, leading them to invest without hesitation. Some even choose to quit their jobs, investing their entire wealth into the wave of trading coins, recording their trading diaries online.
It is certain that those who start trading coins easily profit at first, and this feeling of quick profit makes it hard to resist, further igniting their greed, hoping to earn more wealth. However, even if the virtual currency bubble has not burst, speculators face enormous risks of losses. Now, let's take a look at the seven most common 'ways to die' for coin traders!
The first type: dying from bottom-fishing against the market
The drastic drop in virtual currency prices often becomes a litmus test for the greed of coin traders. Some traders excitedly see the market decline and impatiently choose to bottom-fish against the trend, yet they fail to realize that this so-called bottom is not the end but rather a bottomless pit.
This pit may hide more uncertainties and risks, like an abyss; once fallen into it, bottom-fishers may find themselves in endless predicaments, buying in repeatedly, only to get trapped.
It can be said that bottom-fishing against the market is one of the main reasons many coin traders incur losses. In a significantly declining market trend, some traders mistakenly believe that the price of virtual currencies has fallen low enough to attract new speculators, thus expecting a rebound.
However, the reality is that the more one bottom-fishes, the more one loses, until they are overwhelmed. Not only are the profits previously earned wiped out, but the principal may also be completely exhausted.
Taking Bitcoin's volatility in 2013 as an example, it skyrocketed from dozens of dollars to about 1000 dollars, then plummeted to over 100 dollars. This rollercoaster market caused countless coin traders to go bankrupt.
Bottom-fishing strategies can only succeed in a fluctuating or upward correcting market, while at other times, such behavior is usually a shortcut to disaster. This is exactly the importance of operating in the trend. Correct trend operation can succeed multiple times in fluctuations, while contrary market operations, even if done correctly numerous times, may face irreparable losses once done incorrectly.
The second type: dying from increasing leverage
In the virtual currency bubble, some traders tasted success and were eager to invest more to earn more profit. However, due to a lack of spare funds, they began to consider borrowing money or financing to trade coins, thereby increasing leverage.
Currently, the common leverage ratio is 5~10 times, meaning coin traders can borrow more funds for investment with limited capital. For example, with 5 times leverage, if the principal is 300,000 yuan, the trader can borrow 1,200,000 yuan and then purchase virtual currency with a full position. Whether the price of the virtual currency rises or falls will magnify profits or losses by 5 times. Specifically, if the price of the virtual currency rises by 10%, the trader's profit will be 50%; conversely, losses will also be magnified by 5 times. This means that as long as the trader's loss reaches 20% of the principal, a liquidation will occur, and both the principal and borrowed funds will be wiped out. Typically, traders do not start with high leverage, but repeatedly making money can gradually relax their vigilance against risk, blindly believing that virtual currencies will only rise and not fall, ultimately leading to total loss. For example, from 2017 to 2018, Bitcoin continuously broke through important price points, reaching a peak of 18,000 USD, and many increased their leverage ratio during this process, hoping Bitcoin's price would rise further to 30,000 USD.
However, Bitcoin eventually fell from 18,000 USD to about 10,000 USD, and leveraged traders faced liquidation, suffering severe losses. In short, this behavior is seeing some traders becoming wealthy overnight, then chasing short-term profits, resulting in betting on the wrong direction.
The third type: dying from candlestick charts
Virtual currency trading uses candlestick charts; although this knowledge originates from the stock and futures markets, virtual currency candlestick charts cannot be completely applied based on stock and futures experiences. Due to various uncertainties, solely relying on charts for trading coins may lead to significant losses.
For example, in 2013 and 2017, the Chinese government cracked down on virtual currencies, causing prices to plummet; in 2017, the South Korean government also took action to suppress virtual currencies, similarly leading to a significant drop in prices.
In short, virtual currencies cannot obtain formal recognition from central banks of various countries, and lacking a legal identity makes them vulnerable to various policy shocks. These shocks cannot be predicted in advance through candlestick charts, making it difficult to avoid risks. Additionally, illegal activities such as market manipulation and price rigging exist in virtual currency trading.
In regulated stock and futures markets, such behavior is explicitly prohibited and regulated. However, virtual currency trading is in a relatively wild era, with various monsters rampant. The role of candlestick charts in this environment is relatively small and may even become a tool for monsters to bait coin traders.
The fourth type: dying from chasing highs and cutting losses
Due to the instability of candlestick charts and the lack of other more reliable buying and selling methods, the vast majority of coin traders tend to adopt the strategy of chasing highs and cutting losses. As is well-known, chasing highs and cutting losses may bring substantial profits in the short term, but in the long run, the probability of losses is greater.
In the stock market, the probability of long-term profitability is about 10%, which even includes some value investors. In the futures market, the probability of long-term profitability drops to 1%. In contrast, the difficulty of trading virtual currencies is even higher. Although many coin traders currently claim to have achieved certain profits, whether the proportion of those who can sustain profits will exceed 1‰ is a high probability problem. Most coin traders may ultimately incur losses in the market.
Additionally, while some people realize the instability of chasing highs and cutting losses and want to hold virtual currencies long-term, human nature is inherently greedy and fearful. They feel fear when prices fall and greed when prices rise, leading to a mismatch between actual operations and rational expectations.
Only a very few can overcome this nature, conquering greed and fear. However, most people loop in their mistakes, like a goldfish with a 7-second memory, making it hard to truly change.
The fifth type: dying from not setting stop-losses
For some coin traders, they firmly believe that regardless of how drastically the price of virtual currencies falls, it will eventually rebound. They steadfastly hold onto their assets without selling, even claiming they would die before selling, maintaining composure amidst any downturn, believing that miracles always exist.
However, for certain virtual currencies, refusing to sell even when dead may really lead to heavy losses. Take Zhonghua Coin as an example, which once fell from a peak of 35 yuan to 0.5 yuan, then collapsed and was suspected of being involved in pyramid schemes, resulting in 260 million yuan disappearing. It can be said that this is one of the most tragic ways for coin traders to die.
Coin traders who are easily caught tend to fall into two categories: one is newcomers to trading coins who, due to ignorance, are unaware of the cruelty of this way of dying, causing their funds to be consumed inexplicably; the other is veterans who have been in the trading circle for some time, having gone through multiple trades and overall achieved some profits.
For virtual currencies' volatile ups and downs, many have become accustomed, even viewing crashes as opportunities, growing bolder, yet failing to realize that the variety of virtual currencies is vast, and one misstep may lead to liquidation or collapse. Many tokens have experienced liquidation due to policy crackdowns, causing the previous uptrend to plummet.
The sixth type: dying from high-frequency trading
Many coin traders are keen on high-frequency trading, frequently buying and selling to pursue considerable profits through price differences. However, the end result is often continuous losses. Why does this happen? Theoretically, if each trade earns 1%, as long as one successful trade is secured each day, the daily rate of return would be 1%.
Within a year, this will bring 365% profit, or even more. If compounded interest is considered, this number is even more astonishing. However, in reality, successfully trading once a day seems simple, but actual operation is an extremely difficult task.
This is because the price of virtual currencies fluctuates greatly, making it difficult to accurately predict short-term trades; high-frequency trading leads to a lower success rate. A decrease in the success rate results in more losses, and increased losses affect traders' mindsets, worsening their mentality and leading to more and larger losses, creating a vicious cycle.
For example, imagine the consequences of frequently changing lanes on a highway; nearly everyone knows that such behavior will lead to trouble sooner or later. The principle of high-frequency trading in virtual currencies is similar. Moreover, high-frequency trading results in more transaction fees, and the actual money earned may not cover these fees, which is a common issue.
The seventh type: dying from blind following
Many coin traders lack a deep understanding of virtual currencies; they rush in just because they’ve heard it can be profitable. After getting involved, they often blindly worship some influencers' statements, such as the belief that Bitcoin will eventually become legal tender, that the number of virtual currencies is limited and won't depreciate, and that the future of the 21st century belongs to virtual currencies. Such views are widespread on social media platforms like Weibo, Xueqiu, and Zhihu, forming a group of 'spiritual leaders' who promote trading coins.
Many people take it for granted; some even resign to trade coins, while others sell their houses to borrow money for trading. However, the end result is that no money is made, and work and careers are wasted.
I am A-Xin, having experienced multiple bull and bear markets, with extensive market experience in various financial fields. Here, I penetrate the fog of information to discover the real market. Grasp opportunities for more wealth and find truly valuable chances; don’t miss out and regret!
