Let me first share my tearful reflection after losing 1 million: I realized one principle: only one type of person makes money in trading cryptocurrencies! One day in the cryptocurrency circle equals a year in the stock market; those who trade cryptocurrencies will no longer have any interest in stocks. The all-day trading of cryptocurrencies and the unlimited price fluctuations fulfill many people's dreams of getting rich overnight, which is also one of the reasons why the virtual market is so popular. This is why losses in the cryptocurrency circle have become a very normal phenomenon.
Every investor who comes to the cryptocurrency circle will experience significant losses, exiting positions, and the experience of turning profits into losses. In the army of cryptocurrency traders, only one type of person makes money: those who have experienced bankruptcy and then summarize their experiences with a strong mindset.
Without experiencing liquidation and major losses, one can never understand what stop-loss means; without experiencing profits turning into losses, one can never appreciate the shift in mindset from heaven to hell. Survival is the first principle. Sun Tzu said: 'The good fighters of old first put themselves beyond the possibility of defeat, and then waited for the moment of defeating the enemy.' Avoiding significant losses is simple, prioritize survival. When dangers that obstruct this principle arise, abandon all other principles.
Because, no matter how many 100% excellent performances you have had in the past, once you incur a 100% loss, you will have nothing. Once your capital is wiped out, you are doomed to be eliminated. If you want to play this game well and achieve ultimate victory from it, all systems and rules must prioritize preserving the principal. Proper capital management: each success only allows you to take a small step forward, but a single failure can make you step back a big step. This big step hinders capital accumulation, which requires opportunities and time. Human nature is always like this: the pain of losing 1,000 yuan far outweighs the joy of gaining 1,000 yuan. A substantial loss of funds can easily affect an investor's mindset. Losing 1 million and then 50% becomes 500,000; 500,000 needs to increase to 1 million, which requires a 100% profit. It takes an hour to walk from the first floor of the Empire State Building to the top, but it only takes 30 seconds to jump off the rooftop and return to the ground. You cannot control the direction of the market, so there is no need to waste energy and emotions in situations you cannot control. Do not worry about what changes the market will undergo; instead, worry about what strategies you will adopt to respond to market changes.
Judging right or wrong is not important; what matters is how much profit you gain when you are right and how much loss you can bear when you are wrong. Every time I see many people in the market haggling over the price of a piece of clothing for half a day or shopping for half a day, while investors think about buying for no more than a few minutes, this is a common trait among many people. This is certainly not how someone who wants to make a big impact in the investment market behaves. To make big money in the market, investors must be cautious, guarding their accounts as if walking on thin ice.
When entering the market, have a clear operational system: (1) Prepare how much money I want to earn in this wave of market, (2) What is the maximum loss I can accept? If the market retraces, how much loss must I exit immediately? (3) I must secure a portion of the profit from each operation, (4) Gradually increase positions to avoid full-margin trading, continuously raise the profit stop-loss level as profits rise, and never let the profits already obtained turn into losses. (5) Always give yourself another trading opportunity, strictly follow your trading system.
Trends are the best friends; the biggest enemy in trading is the patience to wait for clear market trends and overtrading. A bull market does not end in one day, nor does a bear market. Trading in the cryptocurrency circle is a place where I have seen three years without opening a shop, and then eating for three years. As long as you have patience, wait for the market trend to become clear, find the leading stocks, and hold on until the entire bull market ends without overtrading, you can achieve unexpected profits. When the trend comes, respond; follow it. When there is no trend, observe and remain calm. Overtrading is also a major enemy of investment; those who chase price differences can only earn a little sweet profit, but they cannot make big money. Let's calculate the fees for overtrading: current virtual currency exchanges charge 0.2% for each buy and sell, so each transaction costs 0.4%. If a trader operates once a day for a year, then due to transaction fees, this trader loses 4/1000 * 365 = 140%. You did not see it as 1.4 times; think about it, Buffett is still striving for 30%. What about you? Your annual trading fees are 140%! Another often overlooked aspect by traders is that the more frequently a person enters and exits the market, the more likely they are to frequently change their mind. The saying goes: 'More actions lead to more mistakes; fewer actions lead to fewer mistakes; no action leads to no mistakes.' However, excessive trading can also lead to missing out on major market movements. Plan before acting, based on clear price breakpoints, market sentiment, trading conditions, and capital inflow, determine the arrival of trends, and maintain a broad perspective on market movements without being misled by short-term fluctuations.
Psychological quality is the core, while trading is against human nature. This is a game that determines that only a few can profit, while the vast majority are just providing capital to play. In trading, a strong psychological quality is needed, and one must have a mindset and pattern that can handle a liquidation universe. If you enter the market with 10,000 yuan and your heart races for a mere 100 yuan fluctuation, I advise you to leave this market as soon as possible, as this also ensures your personal safety.
If you have a big mindset of wanting to earn 100 million, then fluctuations within 1 million will not affect your mindset because what I ultimately want is 100 million; 1 million is not within my consideration. This way, you have the opportunity to achieve substantial profits. Trading is not only a game against large institutions, market makers, and retail investors but also a game against oneself. As the ancients said: 'Competing with heaven is joyful, competing with the earth is joyful.' The highest realm of struggle is to compete with oneself. Trading is a process of psychological struggle at all times, constantly questioning oneself: should I sell or hold at this price? What should I do? This is always a psychological game that requires a strong mental quality. Additionally, having good mental quality must also ensure good physical condition; a healthy body is crucial. Why do people live? People live merely to have a healthy body and to continuously refine their souls in this world.
The trading path suitable for oneself represents the logic of things, while the technique represents methods and approaches. As the saying goes: 'Without a way, methods can still be sought; with methods but no way, they are of no use.' The birth of an individual trading path represents the combination of a person's knowledge, vision, and courage. Through continuous ups and downs in the market, one ultimately understands the basic logic of trading, which is in accordance with the rules. The greatest enemies of investors are three psychological factors: hope, fear, and greed. Having one's trading path also requires overcoming human weaknesses: hope, fear, and greed. When the market is about to decline, investors should be filled with fear, yet they feel indifferent and full of hope; when the market is rising, fearing a correction, they should have the greatest hope but start to feel fear. This is why traders cannot make big money. Having one's trading path, forming a trading system, helps to overcome human weaknesses. When the market arrives, let profits run; when losses occur, let oneself stop-loss and exit. This is fundamental for a person to accumulate great wealth.
In the end: The only people who make money in the cryptocurrency market are this type of person, which doesn't depend on what technology or methods are used, but rather on your self-discipline. Market trading is sometimes not a contest of strategy but a contest of time and patience. There is a very simple method for trading cryptocurrencies that allows you to maintain 'eternal profits,' aiming for 30 million! A new round of the cryptocurrency bull market is about to launch, and this round aims to achieve true financial freedom. Suggestions from big players in the cryptocurrency circle after losing tens of millions: Eight things you must know.
1. Stay rational and avoid emotional trading. Suggest controlling emotions: When the market fluctuates violently, remain calm and avoid making impulsive trading decisions out of fear or greed. Formulate a plan: Develop a clear investment strategy and plan, and strictly execute it, without being disturbed by short-term fluctuations.
2. Continuous learning and research. Suggest in-depth learning: Continuously learn about blockchain and cryptocurrency-related knowledge, understand technical principles, market dynamics, and project backgrounds. Pay attention to authoritative information sources: Follow reputable cryptocurrency news websites, blogs, and social media accounts to get the latest market information.
3. Diversify investments to reduce risk. Suggest diversified investment: Do not put all your funds into one project; spread your investments across multiple promising projects and asset classes. Regular adjustments: Regularly evaluate and adjust your investment portfolio based on market changes and project developments.
4. Do good risk management. Suggest setting stop-loss points: Each transaction should set a reasonable stop-loss point, timely stop loss to avoid expanding losses. Control investment ratio: Avoid investing too much money in high-risk projects, reasonably control the investment ratio, and ensure the safety of funds.
5. Choose a safe trading platform and wallet. Suggest choosing a reliable platform: Choose a well-known, secure, and highly-rated trading platform for transactions. Strengthen security measures: Use hardware wallets to store assets, enable two-step verification and other security measures to protect your funds.
6. Focus on long-term value and avoid short-term speculation. Suggest long-term investment: Pay attention to projects with long-term development potential, formulate a long-term investment plan, and avoid frequent short-term speculation. Hold patiently: For projects with potential, maintain patience and wait for their value to gradually materialize.
7. Maintain a good mindset and a healthy lifestyle. Suggest balancing life: Do not overly focus on market fluctuations; maintain a balance between work, life, and investment. Proper relaxation: Engage in exercise, rest, and entertainment to maintain a good mental state and avoid excessive anxiety and stress.
8. Regularly review and summarize experiences and lessons. Suggest regular summaries: Regularly review and summarize your investment experiences, analyze the reasons for success and failure, and constantly optimize your investment strategies. Learn from others' experiences: Learn from other experienced investors, refer to their successful experiences and lessons, and improve your own level. Reflecting on when I first entered the trading market, I sought every means to find knowledge about this area online, hoping to learn everything as soon as possible so that I could quickly start practical operations and begin making money. When I first learned technical analysis, aside from understanding basic candlestick patterns, I started exploring moving averages. Although the concept of moving averages is simple, there are many techniques that can be applied. It is a very basic yet important technique in stock market technical analysis. In this article, we will explore what moving averages are, how to interpret them, and their common applications, aiming to provide explorers with a basic understanding. What is a moving average (MA)? The moving average (Moving Average, abbreviated as MA) is an indicator commonly used in technical analysis, composed of the average closing prices over a past period. For example, 5MA means a line formed by the average closing prices over the past 5 days. The calculation method is the sum of the closing prices over the past 5 days divided by 5 (the number of days). The smaller the number before MA, the shorter the period of the moving average. The moving average itself is composed of individual price facts, but how to interpret it is greatly influenced by human factors. For example, some people believe that moving averages represent the average holding cost of positions entered during that period. From my experience, shorter-period moving averages can indicate price trends earlier, but due to their short period, they are also very sensitive to price changes, resulting in lower accuracy than longer-period moving averages. Conversely, longer-period moving averages are less sensitive to price changes than shorter-period moving averages; trends may have already occurred for a while before longer-period moving averages reflect them, but they are less sensitive to price fluctuations, making their trend smoother and more accurate. Utilizing the relative relationships of short, medium, and long-period moving averages can also attempt to predict price trends and further analyze price movements. For example, commonly heard concepts such as golden crosses, death crosses, breaking above moving averages, and falling below moving averages are extensions of moving averages. However, simply using moving averages to predict market conditions can easily result in miscalculations, so they are usually combined with volume and other indicators for analysis.
That's all for today. During the bull market phase, many people hope to have a discussion. If you really can't manage on your own in the cryptocurrency circle, don't force yourself; understand the latest news, layout, embrace the bull market, and improve your winning rate to say goodbye to being stuck at high positions.
These days, I am preparing to launch a magical order!
Comment 168, get on board!!!
Uncertainty brings uncertainty, brings uncertainty!!!
Important things should be said three times!!!