I have been trading cryptocurrencies for 7 years. I made a lot of money in the 7-year bull market, and I also faced bankruptcy twice. Now I can support my family by trading cryptocurrencies. I have withdrawn more than 5 million to spend, and there are still more than 20 million in the exchange. To be honest, I have made it through!
Just because I obsessed over the classic buying and selling strategies of moving averages, I almost lost all the profits of my positions. The truth is simple. If you stick to this trading system, over time, this system will become your ATM.
I am one of the earliest people in China to play with Bitcoin. I started to promote Bitcoin in 2017, but I got out of it soon after. Later, I played with altcoins for a while and made a little money!
However, most of them sold after making dozens of times their investment, but there is still a small amount left unsold. The reason for not selling is simple: the amount is too small to care about, so it has been left on the exchange without any attention.
The trading system includes a comprehensive system of the trader's trading philosophy, trading signals, risk management, emotional control, and other aspects. It provides trading opportunities.
. Trading philosophy: The trader's understanding of the market and trading objectives, such as whether to pursue trend trading, swing trading, or other specific types.
. Trading signals: Specific buy and sell point indications, such as signals generated through technical analysis indicators (e.g., moving averages, MACD, etc.), or
Information based on fundamental analysis.
. Risk management: Set stop-loss points, take-profit points, and capital management strategies to ensure that even in adverse market conditions, losses can be controlled.
. Emotional control: Maintain calm decision-making abilities and avoid irrational trading behaviors due to greed or fear.
· Execution difficulties: Including overcoming psychological barriers, strictly following established trading plans, and continuously optimizing and improving the trading system.
From this, I have drawn a profound conclusion: anything that is genuinely documented from one's personal experiences must possess vitality, regardless of whether the words themselves are beautiful. I am grateful to the thousands of readers who have left me sincere messages and blessings; for this, I dedicate my years of accumulated insights on trading cryptocurrencies to everyone.
1. Do not be greedy, which mainly manifests in good position management. First, do not invest heavily; you must operate with a light position. Second, think about how much you intend to earn when you open a position; do not be too greedy, and take profits quickly when you reach your expected profit point. Finally, always have a stop-loss in place; unless the trend is particularly clear, it is not recommended to hold heavy positions.
2. Pay attention to trends; trade when there is a trend, and do not trade when there is none. Look for a good trend before taking action; not losing is actually winning. Regularly pay attention to important data, such as significant meetings in the US, the Federal Reserve's interest rate hikes and officials' speeches, as well as the Fed's non-farm payroll data and CPI data.
3. Don’t think that you can make money every day and every moment. The truly profitable operation might only take 5 minutes; the remaining time can be freely spent playing games, working, or just relaxing. Do not trade frequently, as it has little meaning. You can pay more attention to the market or monitor prices, but make sure to trade less. If you can't gauge the market accurately, you can enter with a position of 1%, or even stay out of the market and wait for stability.
4. Regarding stop-loss, if the market is not right, you should stop loss immediately, otherwise holding onto a position can easily lead to heated emotions and wrong judgments. If you do hold a position, thinking that the loss is only temporary, but worried about liquidation, you can take actions like reducing your position. The daily or per-trade stop-loss amount should be reasonable and acceptable to you. For example, if you average a profit of 100 U daily, then you can set a stop-loss at 100 U each time; it is okay to stop-loss multiple times, and consecutive stop-losses over three days are not a problem.
5. If a cryptocurrency is stuck in a position, but the total position is not heavy, you can trade other cryptocurrencies to earn money and recover losses gradually.
6. Trading requires enough patience; you need to wait for the wind to come, wait for it to rise, and wait for the wind to blow money into your pocket. Trading is actually very simple, as long as you can wait; but it is also very difficult because no one is willing to wait.
7. Many traders often think that they can turn their fortunes around and become wealthy with a single position, which leads them to take heavy positions or even all-in, but this can lead to liquidation with just one market fluctuation. When the mindset is calm, and no longer fantasizing about getting rich, but instead thinking about earning a bit of pocket money with a light position, the decisions made are generally rational, rather than stupid decisions made in a heated state. Decisions made in a clear state are often wise and can accurately judge the subsequent market trends.
8. The mindset is the most important during trading, but it is also the most easily influenced and can easily lead to emotional decisions. When heavily investing, cautious people often stop-loss when they incur significant losses, while greedy people think they won't get liquidated and hold on stubbornly. When in profit, cautious people often panic and take profits early, fearing a reduction in profits, while greedy people will not exit at the profit point, wanting to catch every last bit, but often end up getting stuck when the market reverses. Additionally, when there are no open positions, greed can lead to an urgent desire to enter the market, neglecting the analysis done in a rational state. Skilled traders often strictly follow their trading strategies and will not rush into trades out of fear of missing out (FOMO). If you can hold onto a position for several months in a floating loss state and eventually turn a profit, and can endure not rushing into trades, then your mindset will be strengthened and you will adapt to the fluctuations of the trading process.
The cryptocurrency market tests mentality and human nature. Entering the cryptocurrency space requires caution; currently, the market is volatile, and walking alone can be lonely. Follow my profile for daily spot potential layouts and bull market strategy layouts.
