From my personal experience, trading cryptocurrencies can lead to wealth rather than liquidation.
It's not that I'm keen on trading cryptocurrencies; rather, I'm keen on making money and improving the living standards of myself and my family. There are only a few paths to making money in this world.
1. Starting a company during a time of overcapacity and pandemic is equivalent to seeking death.
2. Starting a small food business is fine, but it's hard to find a good location for rent; a poor location won't attract customers. Street vendors can work, but can you handle the hardships of being outdoors and covered in oil smoke?
3. The self-media entrepreneurial space is intensely competitive, with more self-media accounts than traffic itself. Those prominent influencers seem glamorous, but behind the scenes, the hardships are known only to themselves. For example, I answer questions from the heart, but it doesn't yield many perfunctory likes.
4. Working a job is certainly fine; it’s like having someone (the boss) to shoulder the crisis. However, a job only provides you with a salary; it cannot create wealth. It can't. Of course, if you are a skilled expert or a top performer, then it can work.
However, 99% of the world's people are not like this. At this moment, in the spirit of helping others and oneself, I am sharing the precious insights I've gained from trading cryptocurrencies, each of which is built from hard-earned money. Understanding these can help you avoid four years of setbacks!
Lost money trading cryptocurrencies? Don't panic; read this article and turn things around!
Friends, are you exhausted from trading cryptocurrencies, with your wallet thinning out? Don't worry, I have also experienced that unbearable feeling of having a million in debt, but after much reflection, I finally grasped the essence of cryptocurrency trading!
Do you know? In the cryptocurrency circle, the only people who can truly become rich are those who have experienced liquidation, losses, and can still stand up, summarize their experiences, and possess a strong mindset. That's right, I am such a person, and now I want to share my experiences with you!
First, you need to understand that trading cryptocurrencies is like going to war; survival is the first principle. No matter how much you've made in the past, if you lose 100% once, you have to start over. Therefore, protecting your principal is the hard truth! Before each trade, you should ask yourself: How much do I intend to earn? What is the maximum loss I can accept? Once you hit your bottom line, exit immediately without hesitation!
Secondly, you need to have a clear operational system. Don't follow the crowd blindly; just because you see others buying something doesn't mean you should too. You need to have your own judgment and trading strategy. You should know when to enter the market and when to exit.
Moreover, the trend is your good friend. Do not be misled by short-term fluctuations; you need to be patient and wait for a significant market movement.
When the trend is clear for a day, just follow the trend; do not go against it. Remember, a bull market does not end in a day, nor does a bear market. You need patience to reap the rewards!
Psychological quality is also key in cryptocurrency trading. You must have a strong psychological quality and not be frightened by small fluctuations. You need to have the mindset of being able to withstand liquidation to navigate this market smoothly.
Of course, you also need to continue learning and researching. Don't think that just because you've learned a bit, you're invincible. You need to keep learning new knowledge, understanding market dynamics and project backgrounds. Only then can you stand firm in this rapidly changing market.
Finally, I want to tell you the simplest method for trading cryptocurrencies—diversify your investments to reduce risk. Don't put all your eggs in one basket; spread your funds across multiple promising projects and asset classes. That way, even if one project fails, you won't suffer significant losses. Also, choose safe trading platforms and wallets. Don't choose unreliable platforms just to save on transaction fees. You should opt for well-known and secure platforms to protect your funds.
5 trading tips and insights to help you achieve profitability!
Today, I want to share seven trading techniques and insights with you. These details are also things I persist in doing daily, hoping to provide you with help!
1. Observe the market after it closes.
Many of us retail investors are non-professional traders without a complete trading system, and our psychological states are not very stable, making us easily affected by market fluctuations.
When we are watching the market, our attention is entirely focused on very small price fluctuations, and even a small pullback can make us feel very nervous. This can lead to chaotic operations; trades that were initially promising are closed early, while impulsively entered trades that haven't been studied can lead to losses.
Looking back after the market closes, I feel like I've been possessed, trading poorly.
Therefore, I suggest that those with weak self-control reduce their market-watching frequency, or even avoid it altogether. My habit is to look at the market after it closes, as it does not involve current market fluctuations and won't affect my mood, allowing me to rationally execute my trading plan.
When the stock price drops to a low point, enter after the price tests support and forms a reversal candlestick; after the stock price drops and forms a new reversal candlestick, increase your position, and use the previous high as the target for taking profits.
2. Use limit orders more often, and market orders less.
I use limit orders the most in trading, primarily for two purposes: one is to reduce impulsive trading, and the other is to obtain better transaction prices.
Once you place a limit order, you don’t need to watch the market constantly; you only need to check occasionally if your orders have been filled. When placing limit orders, you can also set your stop loss and take profit at the same time, which saves a lot of effort.
Many people like to watch the market constantly while trading. A slight loss makes them panic, and a slight profit makes them tense and fearful of a pullback; trading every day feels like going to war, leaving them sweating.
In this mental state, it is impossible to trade well. So I often say that one should maintain a certain distance from the market. Physically, this means reducing the time and frequency of watching the market, allowing your mindset to remain stable, which is more conducive to making objective judgments.
Moreover, limit order trading usually enters the market after a market pullback, thus gaining a more advantageous entry price compared to market price trading.
Do not underestimate the price advantage of entering with limit orders; they provide better opening prices. Orders can achieve profits faster, allowing traders to gain psychological advantages more quickly and expand their profit-loss ratios, which is very helpful for subsequent trade execution.
Though this is a very small detail, after years of practice, it has proven to be beneficial. Our success is built upon many small details.
3. When holding positions with floating profits, use technical pullbacks for short-term trades.
Most trends operate through oscillating rises or falls. During the oscillating pullback, the profitability of held positions will decrease, and we will feel significant psychological pressure, worrying about whether the market will reverse or whether to continue holding. At this point, we can use technical pullbacks in the market to place counter-trend short orders.
For example, when holding a long position with floating profits, near the pressure point of the market, combine it with the candlestick patterns to place a short order. After entering the short order, if the market pulls back, the short order will generate profits while the long position's profits decrease, but the overall profit will not shrink significantly. After the market pulls back, close the short order near the turning point of the market's second initiation and continue to hold the long position.
Doing this can first alleviate psychological pressure during volatile pullbacks, and second, it can enhance profitability.
4. Be an independent trader.
Trading is a very serious and personal matter.
The money in our accounts is earned through our hard work, not picked up off the ground; we must take responsibility for every penny we have.
Many people, when feeling uncertain about something, habitually seek help from others or discuss with them to gain a sense of validation, which makes them more confident in their decisions. However, this is very taboo in trading, as everyone's judgment of direction, entry and exit points, position ratios, and indicators and cycles differ; everyone has their own standards. Once you discuss these matters, your innate insecurity will be triggered, leading you to doubt your trading strategy, ultimately causing you to be anxious and suffer losses.
There is a saying in 'The Crowd' that when individuals enter a group, their intelligence significantly declines; to gain acceptance, individuals are willing to abandon their sense of right and wrong, trading intelligence for a sense of belonging.
Therefore, when we trade, we should not fall into this thinking trap. Try to find a relatively quiet environment where you can think independently, develop your strategy, test it, adjust it, and then execute it independently.
Of course, there is a sense of loneliness, but in the face of making money, this slight feeling of loneliness is nothing. Once you achieve genuine profitability, you will understand.
5. Let things take their course.
Today I came across the following text and felt deeply moved! Successful trading is actually about not trading. Let's look at it from a Buddhist perspective: if I were blind, there would be no difference between marrying Xi Shi or Dong Shi. If I were deaf, it wouldn't matter whether you praised or scolded me. If I lost my sense of smell, it wouldn't make a difference whether I was in a restroom or a flower sea.
If I die, whether my body is eaten by dogs or given a grand burial is irrelevant. The reason people suffer, the reason for their volatile emotions, love, and hate, is because they are clinging to distinctions! It is through the mind's differentiation that good and evil, beauty and ugliness, right and wrong arise; the world knows that beauty is beauty, thus evil is also evil.
Your grasping for love gives rise to greed; when greed is unfulfilled, it leads to a mix of love and hate, resulting in infatuation. The cycle of greed and infatuation continues, driven by the constant pull of karma, ultimately leading to countless good and evil fruits, none of which are missed; your fate becomes predetermined, all cycling in cause and effect.
Thus, the ability to perceive everything lies in the heart. The faculties of seeing, hearing, smelling, tasting, touching, and knowing arise from the heart's wonderful function. The heart perceives all things and responds to all things, but never becomes attached or directly takes from them. Therefore, the heart is inherently complete, and the heart can give rise to all phenomena. The fundamental practice is to clarify the heart. How to clarify? When you have no distinctions, unaware of both ends, you should be without attachment, then the Bodhi mind will naturally manifest.
Similarly, how to trade? When you have no thoughts of trading in your heart, you can naturally navigate bull and bear markets!
There are two types of people who make money in cryptocurrency trading:
Holding long-term, maintaining a calm mindset, not suffering because of daily price fluctuations, and having a spirit of adventure and insight to invest in new things and discover new opportunities; on the other hand, those who lose money are the ones who chase after trends, listen to rumors, and have anxious mindsets, essentially being the 'chives'.
Practical tips for short-term trading in the cryptocurrency circle!
Some may say that short-term trading is speculation! First of all, I want to say that short-term trading is not speculation. True short-term trading is based on understanding certain market operating rules and requires strong skills. Short-term trading truly tests a person's skills and patience. Those proficient in short-term trading must have seen many candlestick charts, studied their trends, and summarized general rules. Beyond reflecting short, medium, and long-term fluctuations, candlestick charts can tell you which projects are well-managed in terms of market capitalization and which ones have crashed and remain stagnant, purely harvesting profits from others. For example, we have mentioned several times that there are many Bitcoin forks, but apart from BCH, the candlestick charts of other forks are hard to interpret.
The K-line charts of these tokens have been in a continuous decline since their peak, showing almost no fluctuations, like sliding down a slide, not giving non-professionals a chance to escape. From their K-line charts, it can be seen that the dealers no longer hold large amounts; these tokens are concentrated in the hands of retail investors, so no one is pulling the price up, and they essentially become legacies. Many non-professionals trading these tokens have turned short-term trades into medium-term and then into long-term, and then into legacies. In addition to looking at K-line charts, we must also adhere to several key principles of short-term trading. The first is the profit withdrawal principle: when you buy a token and it rises by more than 10%, you should begin to implement the principal protection principle (if it falls back to the buying price, sell immediately without conditions). If it rises by around 20%, then establish that this trade must earn at least 10% before selling. To maximize profits, when it rises by 20%, set the rule that you won’t sell unless it falls back to only 10% profit, unless you are very certain of a technical peak.
Secondly, the principal protection principle: when you buy a certain token and after buying, it gradually loses 15% (this number depends on the individual; I recommend 15% as the most suitable), you need to cut your losses and exit. This is to stop losses timely; if it later goes up again, it’s okay because that was an incorrect entry point. Mistakes come with a cost, and the cost is the loss; losses will teach you lessons, and remembering these lessons will prevent you from chasing after losses.
In summary, short-term trading should follow some basic principles, especially note that: quick entry and exit do not equal frequent trading, chasing hot stocks does not equal blind selection, taking profits does not equal being timid, and watching from the sidelines does not equal staying away from the circle. Do not insist on buying at the lowest price or selling at the highest price.
Some strategies or points to note for short-term investment:
Position size: Short-term positions do not need to be too large, at most 10% of the total position, while the rest should be allocated to long-term or used for averaging down.
1. Position size is the foundation of our profits.
2. Token selection: Even when trading short-term, try not to trade tokens you don't understand; stick to those you are familiar with.
Prioritize what you can understand; if you are in a bear market, it's advisable to only trade mainstream coins, even Bitcoin, because even if these coins experience delayed stop losses and lead to losses, it’s only temporary, whereas altcoins may not be the same and being stuck can be permanent.
3. Time: My personal definition of short-term trading is within half a month or even a month. Unless you can keep a close watch on the market or have relevant automated software, I do not recommend engaging in short trades that last just a few hours. The specific short-term time frame should depend on market trends, ranging from a few days to a couple of weeks.
4. Take profit and stop loss: I have found that significant losses in short-term trades often arise from not taking profits or stopping losses in a timely manner. Therefore, when participating in short-term trades, you must have a general plan for taking profits and stopping losses. This plan does not need to be overly detailed; a general direction is enough, and then adjust according to market changes.
That's all for today. Currently, we are in a bull market with a lot of opportunities. We share codes every day. If you're unsure how to navigate a bull market, comment '333'. For strategies and layouts on bull market spot contracts, we can share more extensively. Let's embrace the bull market, improve our win rates, and say goodbye to being stuck at high positions.
