In three years, BitKing made 100 million from 10,000 yuan. Behind the 10,000-fold return rate is a high risk that cannot be ignored. In addition to BitKing's strong trading ability, he also has to thank the market for making so much money. As the saying goes, "A wise man makes a thousand plans, but he will make mistakes." There are many things worth learning from BitKing's trading, but the author believes that there are still some places that are not suitable for retail investors to imitate. The following is a summary of the trading experience of BitKing:
1. Trade with money you can afford to lose, and don't be afraid of losing money, so you can make a profit;
2. "Fundamentals + technical analysis" combine to determine the direction. With the support of fundamentals, the trend can be more stable;
3. Only do daily trend market (volatility>30%), don't do intraday short-term, don't do volatile market, and don't hoard coins foolishly;
4. In the volatile market, still stick to the trend strategy, strictly stop loss, and wait patiently for the trend to come;
5. If you make the wrong direction, never hold the order. Making a mistake is not terrible, but returning to zero is the most terrible;
6. Compared with shorting, BitKing prefers to go long;
7. In the trend market, BitKing will wait patiently and choose a position with an advantageous price to enter.
The following is a reflection on the problems in BitKing's trading:
What can be wrong with such a perfect trading record? I think about it, there is only one, that is, the leverage multiple is high, that is, BitKing, which is simply unbearable for ordinary retail investors. In the first and third transactions, BitKing used 20x and 5x leverage respectively. Although the two bullish trends are highly certain, if they are inconsistent with expectations, or if the entry position is not suitable, a large callback can make people return to zero. Fortunately, BitKing made the right bets twice. But for ordinary retail investors, it is recommended to use low leverage to slowly compound interest. The operation of high leverage is accidental and cannot be replicated. The reasons are as follows: first, ordinary retail investors do not have the ability of BitKing to judge trends and wait patiently for the entry position, so they are prone to mistakes. Second, high leverage is addictive. Ordinary retail investors have no self-control and will return to zero once. Even BitKing only has two high leverages, and then it turns to low leverage. The control is extremely strong. If BitKing has high leverage every time, it is estimated that it would have returned to zero long ago.
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