Three Years of Cryptocurrency Trading: A Real Experience of Turning 10,000 into 10 Million
In these three years of cryptocurrency trading, I started with 10,000 yuan, struggling all the way to now having a net worth of over 10 million. This journey hasn't been easy, but I've accumulated quite a few insights that I'd like to share with everyone.
1. Protecting your wallet is of utmost importance. I divide my money into five portions, using only one portion for trading at a time, and I have a loss limit: a single trade can lose no more than 10%, and total capital loss cannot exceed 2%. This way, even if I lose five times in a row, I can still hold on. But as long as I seize one opportunity, the profits can cover previous losses.
2. Follow the market, don’t go against it. When the market is down, don’t rush to buy the dip; often, it’s a trap. Wait for clear signals before taking action. When the market is up, don’t rush to sell; there may still be profits to be made. Buying low is much safer than trying to catch the bottom.
3. Don't chase coins that suddenly skyrocket. Whether mainstream or altcoins, after a surge, most will fall back, sometimes even worse. Don’t think you can bet on a miracle; steady and cautious trading is the way to go.
You also need to know how to use technical indicators, and MACD is quite useful. When you see the DIF and DEA lines cross below the zero axis and then push up towards it, you can consider buying. If they cross above the zero axis and then drop down, you need to think about reducing your position. There are also rules for averaging down; don’t average down when you're losing, but you can add to your position when you're making money, otherwise, you risk losing even more.
Trading volume is also very important; it’s the thermometer of the market. When you see trading volume suddenly increase from a low level and break previous levels, that’s an important signal. Also, follow the upward trend and look at the moving averages for 3 days, 30 days, 84 days, and 120 days; if they all start to turn upwards, that indicates a confirmed trend, and you can buy accordingly.
Finally, after each trade, you must review your performance, looking at what you did well and what you did poorly. Adjust your strategy based on the weekly K-line trends.
If you currently feel helpless and confused about trading, and want to learn more about cryptocurrency-related knowledge and the latest insights, leave a message with '323', and don't get lost in this bull market!