Let me start with a brief self-introduction. I entered the cryptocurrency space in 2016 with initial capital of less than ten thousand. With the help of altcoins and contracts, after many ups and downs, I have now accumulated profits of over 10,000 times, becoming a professional trader in the cryptocurrency spot and futures markets, with over two hundred thousand in profits in 2019 alone.
Although I joined the crypto space in 2016, I really started making profits only in 2019 as a professional trader. Over the past five years, I've grown from a novice to a seasoned trader. Therefore, I understand the mindset of new traders best. Today, I'm here to share some valuable insights, not to show off, nor to write a personal biography, but to document my trading journey and share my trading philosophy, hoping to help new traders avoid detours and achieve financial freedom sooner.
From small funds to millions: A detailed explanation of core strategies from entry to doubling. Part 1: Starting point - starting from small funds and preparing mentally. In the cryptocurrency space, starting with small funds and earning millions is not impossible, but before you decide to take this path, you must clarify your mindset. To succeed, you must first understand that the cryptocurrency market is not a game of getting rich overnight; it is a battleground that requires continuous learning, patience, and rational operation. Many people enter the cryptocurrency space with fantasies of getting rich, thinking they can invest a few thousand dollars and then make millions in just a few months. However, this mindset often leads to hasty operations and blind following, ultimately resulting in being eliminated by the market.
1. Building positions and exiting: Layered operation to flexibly control risks and returns. Cryptocurrency investment is a complete process from building positions to exiting, where layered and segmented operations are particularly critical. By gradually widening the price range, one can effectively control the balance point of risk and profit, creating a more flexible operational space. Investors also need to understand the interconnection effects and closely monitor the trends of multiple cryptocurrencies. The performance of each cryptocurrency in the market is interconnected; they seem independent but actually influence each other. Properly allocating positions between popular and value coins is very important to balance investment risks and profit returns. Being overly conservative may lead to missed opportunities, while being overly aggressive puts oneself at high risk. Value coins tend to be more stable, while popular coins are highly volatile with larger fluctuations, making reasonable allocation essential.
2. Balancing mindset: Capital management and risk prevention. In cryptocurrency investment, maintaining account liquidity, i.e., "having coins on the market, money in the account, and cash in hand," is an important safeguard against market uncertainty. Absolutely avoid all-in operations, reasonably allocate funds, and master risk control methods. This not only enhances the stability of the investment mindset but also effectively manages risks. Using surplus funds for investment is a basic principle; avoid using borrowed funds. Investors should master basic operational skills and thinking, develop the habit of recording and summarizing, and treat every operation's highs and lows as valuable experience, gradually cultivating the ability to filter information and make decisions.
3. Grasp the key elements of successful investment.
1. Investment does not rely on luck. If your profitable trades exceed your losing trades and your account total is on an upward trend, it indicates that your investment strategy is becoming more robust. Conversely, if you profit from nine out of ten trades, but one loss wipes out all your profits and even leads to a negative account total, then you need to reflect. Never take large positions lightly in investment; if the direction is wrong, decisively stop losses and replan your next steps.
2. Believe in yourself and eliminate distractions. Many times, an investor's initial judgment may be correct, but after being influenced by others, they recklessly change their decision direction, often missing out on profits. Investors must have firm beliefs because, in the market, the truth is often held by a few.
3. Master trading skills. The cryptocurrency market has its unique rules; going with the trend is a basic principle, while going against it often incurs huge costs. Therefore, when trading, combine technical analysis with market movements to avoid counter-trend operations as much as possible, enhance learning about technical aspects, and improve sensitivity to market dynamics.
4. Strengthen risk control. Cryptocurrency investment falls under high risk and high return; all trades must be well assessed for risk. Enter with a light position, add positions in line with the trend, and avoid blindly over-leveraging. Set stop-loss and take-profit levels in every trade to avoid losing investment flexibility and control over risks due to greed or hesitation.
5. Grasp the timing of entry. Many investors are easily attracted by market fluctuations and rush to enter, but if the entry point is inappropriate, it can easily lead to losses. It is more important to wait appropriately and choose the right time to enter. One should have the patience to wait for favorable market conditions and not act hastily due to momentary impatience.
6. Exit decisively to avoid hesitation. Hesitation when exiting can lead to significant losses for investors. When profits reach the expected target, exiting promptly is wiser than blindly pursuing higher returns. Avoid letting greed turn profits into losses. At the same time, when facing losses, it is important to stop losses in a timely manner and discard the luck mentality to prevent further losses and preserve more capital for future operations.
7. Maintain a stable mindset and discard restlessness. Investment is a long-term process, and fluctuations in gains and losses are normal. Regardless of the current investment results, maintaining a good mindset helps better respond to future market volatility. The market is unpredictable; no one can make accurate judgments forever. In the face of failure, one should summarize experiences and lessons, adjust their state, and continuously optimize investment strategies to ultimately achieve stable profits.
8. Pay attention to news and combine it with technical analysis. News has a significant impact on market trends; often, a major piece of news can break existing technical patterns. Therefore, when trading, it is necessary to make more comprehensive judgments by combining news and technical analysis.
9. Pay attention to news and combine it with technical analysis (repeated part, consider merging or further elaborating).
10. Maintain ample funds and use them wisely. If investment capital comes from borrowing, it will make investors anxious and limit their operations. Cryptocurrency investment should be done with idle funds, which can keep the mindset stable and allow for more flexibility in adding and locking positions.
4. Core elements of successful investment: steady operation and team support. For those investors who cannot independently filter quality cryptocurrencies, it is recommended to pay attention to professionals with mature strategies and solid experience. Whether it is spot investment or futures contracts, moderate participation at the right time is sufficient.
Finally, let me share some advice for the cryptocurrency space:
1. Opportunities are to be waited for, and patience is needed to hear the voice of wealth.
2. For investors, the most important thing is to seize opportunities that belong to them.
3. Do not be tempted by opportunities that do not belong to you; do not be disturbed by opportunities you cannot grasp. This is a discipline that investors must possess.
4. It's important to have the right view on investment, but it's even more important to know how much to bet after getting it right.
5. Very few people can rely on predicting short-term price fluctuations to make big money in the cryptocurrency space; otherwise, they would be the world's richest. If not, it indicates they only report good news and not bad. Even if one has a lucky streak at times, they will ultimately face failure.
6. If you lose a lot of money, who can maintain a good mindset? A good mindset is built on the foundation of not losing too much.
7. The world is unpredictable, and the market is uncertain. Studying the market is mainly to seize continuous opportunities and avoid continuous risks. Sudden and occasional rises or falls that you cannot seize or avoid are not your fault; keep a calm mindset and do not give up on yourself.
8. You can choose not to act, but you cannot completely go against the general direction.
9. Don't let the urgency of making money push you to rush; don't force yourself to make decisions frequently and hastily.
10. Pay attention to high-probability events while guarding against significant risks posed by low-probability events.
