After 10 years of trading, I have made a lot of money during the bull market, and I have also faced 'bankruptcy' twice. Now I can support my family through trading, withdrawing over 8 million for spending, with over 26 million still in exchanges. Truthfully, I've made it through!
Just because I relied on the classic trading rules of sticking to moving averages, I almost consumed all the profits from my holdings. The principle is simple: firmly stick to this kind of trading system, and over time, this system will become your ATM.
I consider myself one of the earliest people in China to play Bitcoin. I started promoting Bitcoin in 2011, but after playing for a short time, I got off early. Later, I played with altcoins for a while and made a bit of small money!
At most, I had a 4-digit Bitcoin! If I had held until now, it would be worth nearly 10-digit RMB, but most of it was sold after making dozens of times profit. However, I still have a fraction that I haven't sold, and the reason for not selling is simple: the fraction is too small, not worth my attention, so it's just been left in the exchange without care.
But even if it's just a fraction, it's still 3-digit Bitcoin. Or to put it more bluntly, this fraction of Bitcoin that was initially overlooked is now approaching 9-digit RMB.
The trading system encompasses a comprehensive system that includes the trader's trading philosophy, trading signals, risk management, emotional control, and other aspects.
Trading philosophy: A trader's understanding of the market and trading goals, such as whether to pursue trend trading, swing trading, or other specific types of trading opportunities.
Trading signals: Specific buy and sell point indications, such as signals generated through technical analysis indicators (like moving averages, MACD, etc.) or based on fundamental analysis information.
Risk management: Set stop-loss points, take-profit points, and capital management strategies to ensure that losses can be controlled even in unfavorable market conditions.
Emotional control: Maintain calm decision-making ability and avoid irrational trading behaviors caused by greed or fear.
Execution difficulties: Including overcoming psychological barriers, strictly following the established trading plan, and continuously optimizing and improving the trading system.
From this, I deeply conclude that anything that is genuinely written down about one's personal experiences must have vitality, regardless of the beauty of the words themselves. I thank the thousands of readers for their sincere messages and blessings. Therefore, I dedicate the trading wisdom I have accumulated over the years to everyone.
1. Do not be greedy; this is mainly reflected in good position management. First, do not invest heavily; always operate with light positions. Secondly, when opening a position, think about how much you intend to make this time; don’t be too greedy, and when you reach your expected profit point, quickly take profit. Finally, be sure to set stop-loss; unless the trend is particularly clear, it is not recommended to hold heavy positions.
2. Pay attention to the trend; trade when there is a trend, and do not trade when there is no trend. First, identify the trend before taking action; not losing is actually considered winning. Usually, pay attention to important data, such as key meetings in the U.S., Federal Reserve interest rate hikes and official speeches, non-farm payroll data from the Federal Reserve, and CPI data.
3. Don’t think that you can make money every day, every moment. The operations that can really make money might only take 5 minutes; the rest of the time can be freely spent on games, work, or just relaxing. Avoid frequent trading as it is not meaningful. You can pay attention to the market or watch the charts, but definitely trade less. If you can't grasp the market trend accurately, you can enter with 1% of your position or even stay out and wait for the market to stabilize.
4. Regarding stop-loss, if the market is not favorable, you should stop loss immediately; otherwise, holding the position can easily lead to heated thinking and wrong judgments. If you really hold the position, thinking the loss is temporary but worried about liquidation, you can take actions to reduce the position. The daily or each stop-loss amount should be reasonable and acceptable to yourself. For example, if you average a profit of 100U per day, then each stop-loss can be 100U; multiple stop-losses are fine, and three consecutive days of stop-losses are also okay.
5. If a coin is stuck, but the total position is not heavy, you can trade other coins to make money from other markets to recover losses gradually and achieve profitability.
6. Trading requires enough patience; wait for the wind to come, wait for the wind to rise, and wait for the wind to blow money into your pockets. Trading is actually very simple, as long as you can wait; but it's also very difficult because no one is willing to wait.
7. Many traders often think they can turn their fortunes around, get rich, or cross classes with a single position, so they often go heavy or even all-in. But this only takes one market fluctuation to cause liquidation. When the mindset stabilizes and no longer fantasizes about getting rich, but only thinks about making some pocket money, making decisions with a light position will generally be rational rather than made in a heated state. Decisions made in a clear-headed state are often wise and can make correct judgments about the upcoming trends.
8. The most important thing in trading is the mindset, but it is also the most easily influenced and prone to getting excited. When heavily positioned, cautious people tend to stop loss when facing larger losses, while greedy people think they won't be liquidated and hold on. When profitable, cautious individuals often worry about small profits and quickly take profit, while greedy people don't exit at the profit point, wanting to catch the tail, but often end up getting stuck when the market reverses. Additionally, when there are no positions, due to greed, there is a desperate hope to enter, ignoring the analysis made in a rational state. Skilled traders often strictly follow their trading strategies and do not rush to enter out of fear of missing out. If one can endure holding positions under floating losses for several months and finally make a profit, tolerating not rushing to enter, and not getting excited after making a profit, then the mindset is trained and can adapt to the repetitions in the trading process.
These days I am preparing for the amazing trades that are about to start!!!
Comment 168, let’s get in!!!
Impermanence brings impermanence!!!
Important things need to be said three times!!!
