A friend in the crypto circle, a man from Beijing, three years ago after a phone call with me said he had blown up a contract three times with a debt of 60 million, then went silent. It turned out he was in seclusion for three years. Now, after clearing his debts, he has a few small suns and an income of seven figures monthly, with an annual income in the eight figures!
Not long ago when we met, I summarized and organized his insights from these three years, and through the last trading practice, the win rate surprisingly reached 98%. Now I share this with those who are destined to find it.
A common ailment among retail investors worldwide is holding onto losses and selling immediately as soon as they turn a slight profit. They do not look at trends or trading volumes, only at limited profits in their accounts. They need to take the opposite approach: hold onto profits and cut losses quickly. The final result is unlimited losses. My principles for taking profits and cutting losses are: take profit at 15%, cut losses if profits fall to 10%, and let profits run. If the price drops after buying and losses exceed 5% of the principal, then cut losses. If you can ensure a profit of 10% and a loss of 5% each time, then after 100 trades, even if your win rate is only 50%, your returns will reach 300%. Is it difficult? The difficulty lies in human greed and fear. Remember that understanding and action must align with the trend. Once a trend forms, there is no need for excessive analysis; you must follow it and move with the funds, without guessing or predicting. If you cannot judge the trend, look at the moving averages. The so-called moving averages divide the market into bullish and bearish phases; bullish means upward, bearish means downward. For short-term trading, look at the daily moving average; if there is a volume breakout, follow it. For mid to long-term trends, look at the weekly moving average; if there is a volume breakout, enter, and exit if it breaks. Acting in accordance with the trend means not going against it. If the market is bad, firmly stay out of positions; if the trend is downward, do not easily try to catch the bottom. Do not fantasize about being able to buy coins that will rise against the market, nor should you expect a rebound just because you bought them. The probability of such situations is too low. The core of trading coins is to only engage in high-probability events and to abandon low-probability ones. Being able to admit mistakes and control losses promptly is fundamental to surviving in the market, and its importance far exceeds not being able to profit today. No matter what method you use, mastering just one is enough. You need to use this method precisely, absolutely, and thoroughly. For short-term trading, you must look at 15-minute, 30-minute, and 1-hour candlestick charts. You can find the entry and exit points of the day based on the KDJ indicator, and you can clearly judge the intentions of the main force using the OBV indicator. The fundamental difference between washing and delivering is in the volume decrease and increase. For a coin that is strongly attacking, if a risk warning announcement appears, it can be understood short-term as 'just a volume contraction for shakeout, at least there is still a new high to expect.'
These days I am preparing for the upcoming layout's divine single!!!
Comment 168 on board!!!
Impermanence brings impermanence brings impermanence!!!
Important things should be said three times!!!
