After 7 years of trading cryptocurrencies, I have made a lot of money during the 7-year bull market, also faced 'bankruptcy' twice, and now I have realized that trading cryptocurrencies can support my family. I have taken out over 5 million to spend, and there are still over 20 million in the exchange. Honestly, I made it through!
Just because I stubbornly followed the classic buy and sell rules using moving averages, I almost consumed all the profits from my holdings. The principle is simple: firmly establish this type of trading system, and over time, this system will become your ATM.
I consider myself one of the earliest Bitcoin traders in China. I started promoting Bitcoin in 2017 but got out early after a short period. I later traded altcoins for a while and made some small profits!
However, most of them sold after earning dozens of times, but there is still a small amount left unsold. The reason for not selling is simple: the remaining amount is too small to be taken seriously, so it has been left in the exchange without attention.
The trading system includes a comprehensive system of the trader's trading philosophy, trading signals, risk management, emotional control, and other aspects.
. Trading philosophy: the trader's understanding of the market and trading objectives, such as whether to pursue trend trading, swing trading, or other specific types.
. Trading signals: specific buy and sell point indicators, such as signals generated through technical analysis indicators (e.g., moving averages, MACD, etc.), or
Information based on fundamental analysis.
. Risk management: set stop loss points, take profit points, and fund management strategies to ensure that losses can be controlled even in unfavorable market conditions.
. Emotional control: maintain calm decision-making ability, avoiding irrational trading behaviors caused by greed or fear.
· Execution difficulties: including overcoming psychological barriers, strictly executing established trading plans, and continuously optimizing and improving trading systems.
From this, I have deeply concluded that whatever is truly written down from one’s own experiences is definitely full of vitality, regardless of the beauty of the text itself. I thank thousands of readers for their sincere messages and blessings. Therefore, I dedicate my years of accumulated cryptocurrency trading insights to everyone.
1. Do not be greedy; this primarily reflects in good position management. First, do not invest heavily; always operate with light positions. Second, when opening a position, decide how much you plan to earn and don't be too greedy. Once you reach your expected profit point, quickly take profits. Finally, make sure to set stop losses; unless the trend is very clear, it is not recommended to heavily hold a losing position.
2. Pay attention to trends; trade when there is a trend, and do not trade when there is none. First, identify the trend before taking action; not losing is considered winning. Regularly pay attention to some important data, such as major meetings in the United States, Federal Reserve interest rate hikes and officials' speeches, the Federal Reserve's non-farm payroll data, and CPI data.
3. Don’t think that you can make money every day, every moment. The real profitable operations might only take about 5 minutes, and the rest of the time can be freely spent on playing games, working, or relaxing. Do not trade frequently; it’s meaningless. You can pay more attention to the market or watch the trends, but make sure to trade less. If you are unsure about the market, you can enter with 1% of your position or even wait with no position until the market stabilizes.
4. Regarding stop losses, if the market is not right, you should stop loss immediately, otherwise holding a losing position can easily lead to emotional decision-making and mistakes. If you really hold the position, thinking the loss is only temporary but worrying about liquidation, you can take action to reduce your position with a stop loss. The daily or each time stop loss amount should be reasonable, and you should be able to accept it. For example, if the average daily profit is 100 USD, then each stop loss can be 100 USD; multiple stop losses are fine; consecutively stopping losses for three days is not a problem.
5. If one cryptocurrency is trapped but the total position is not heavy, you can trade other cryptocurrencies to earn money and recover, gradually offsetting the losses to achieve profitability.
6. Trading requires sufficient patience; you have to wait for the wind to come, for the wind to rise, and for the wind to blow money into your pocket. Trading is actually very simple, as long as you can wait; but trading is also very difficult because no one is willing to wait.
7. Many traders often think that they can turn their fortunes around and get rich with just one position, which leads them to over-leverage or even go all-in. However, this can lead to liquidation with just one market fluctuation. When the mindset is calm, and one no longer fantasizes about getting rich, but instead just wants to earn some pocket money with light positions, the decisions made are usually rational, rather than stupid decisions made in a heated state. Decisions made in a clear state are often wise and can lead to correct judgments about future market movements.
8. The mindset is the most important in trading, but it is also the most easily affected and can easily lead to emotional decisions. When heavily invested, cautious traders often stop loss when facing significant losses, while greedy traders believe they won't be liquidated and hold on stubbornly. When in profit, cautious traders often worry about losing their small profits and quickly take profit, while greedy traders refuse to exit even at the profit point, hoping to catch every last bit, but the result is often a market reversal that traps them. Additionally, when there are no positions, greed can lead to a desperate desire to enter, neglecting the analysis done in a rational state. Skilled traders often strictly execute their trading strategies and do not rush to enter due to fear of missing out (FOMO). If you can hold on to a losing position for several months and eventually make a profit, resisting the urge to rush in, then your mindset has been trained and can adapt to the ups and downs of the trading process.
The cryptocurrency market tests mentality and human nature. Entering the cryptocurrency market must be cautious; currently, the market is turbulent, and walking alone is lonely. Follow me for daily spot potential layouts and bull market strategy layouts.
