In the cryptocurrency world, spot refers to real cryptocurrencies that can be delivered in real life, as opposed to derivatives such as futures and options.
I don't know if you made money or not, but I did. I have been trading cryptocurrencies for nine years, and I made a profit of 20 million from 30,000 yuan when I entered the market. I only used 5 warehouses, and my monthly income could reach 70% with this method. I shared the essence of it with my apprentice, and he used it to perfection. He used this method to do short-term trading, and his income doubled in 3 months. Today, I specially sorted out my dry goods and shared them with those who are destined to collect them.
Today, I want to share some experiences from these years in the cryptocurrency world. After all, catching this wave in 2024-2025 will be a great start. Everyone's expectations for this year's fourth quarter are also rising. If you can refine yourself into a versatile warrior after two years of polishing, that will be a significant gain, even greater than just making money.
I summarize the following trading experiences and insights, all practical advice; like and save it after reading.
1. For a strong cryptocurrency that has fallen at a high position for nine consecutive days, be sure to follow up in a timely manner.
2. Any cryptocurrency that has risen for two consecutive days must have its position reduced in a timely manner.
3. Any cryptocurrency that has risen more than 7% should still have the opportunity to rise the next day; you can continue to observe.
4. For strong bull cryptocurrencies, wait until the correction ends before entering the market.
5. Any cryptocurrency that has been stagnant for three consecutive days should be observed for another three days. If there is no change, consider switching.
6. With a medium-term mindset, heavily invest in one cryptocurrency, keep some on hand, sell a little at highs, and buy a little at lows; this rolling operation is the best strategy.
7. The most important factors for short-term trading are K-line analysis, emotions, heat, and the speed of the rise.
8. Buying cryptocurrencies that are forming a bottom is the safest option.
9. Buying cryptocurrencies that are gradually accelerating in price is the most correct choice.
10. The most applicable is the divergence of technical indicators, not the value of the indicators.
11. If any cryptocurrency fails to recoup the previous day's cost price the next day, exit promptly.
12. If there are three cryptocurrencies on the rise list, there must be five; if there are five, there must be seven. For cryptocurrencies that have risen for two consecutive days, enter at lows; the fifth day is usually a good selling point.
13. Volume and price indicators are crucial; trading volume is the soul of the cryptocurrency world. When the price breaks out with increased volume at a low level, it needs attention; when it shows increased volume at a high level and stagnates, it’s time to exit decisively.
14. Only choose cryptocurrencies that are in an upward trend for trading, as this maximizes your odds and won't waste time. A 3-day moving average turning upwards indicates a short-term increase; a 30-day moving average turning upwards means a medium-term increase; an 80-day moving average turning upwards indicates a main upward trend; a 120-day moving average turning upwards indicates a long-term increase.
15. In the cryptocurrency world, small funds do not mean no opportunities. As long as you master the right methods, maintain a rational mindset, and strictly execute strategies while patiently waiting for opportunities to arise.
Brother Hui shares some iron rules of the cryptocurrency world:
1. Be absolutely honest, do not deceive yourself.
The cryptocurrency world may be the place where you get slapped in the face the fastest in the world; it does not tolerate lies and self-deception. Only those who are honest can survive here.
If the cryptocurrency world taught me anything, it’s that honesty requires courage, and courage is the noblest character trait in the world. Many lives are filled with deceit, cunning, and lies, losing the courage to face themselves honestly, which leads to creating a perfect explanation system of 'everything is someone else's fault.'
First, think clearly about why you are buying cryptocurrencies and why you are selling virtual currencies.
When you buy, did you truly understand its fundamentals, or did you act because you saw an article from a certain influencer on Xueqiu or heard 'news' from a distant relative of a childhood friend, and felt tempted because it had risen too quickly? When you sell, is it because the fundamentals have changed, or are you scared because it dropped, or anxious because it rose while others were gaining more?
Lost your patience?
This is actually a very basic question. Most people cannot make money in the cryptocurrency world, which actually hasn't even reached the technical problem; they simply can't get past the first hurdle.
2. Know at every moment what you are doing, forming a system and style.
When you can honestly face your buying and selling logic, you should further refine your trading system.
If you are a long-term investor, you should look at the fundamentals. For you, fundamentals are the only measure. If you are a trend investor, you should look at strength and trends. For you, trends are the only measure.
3. Accept the shortcomings and risks of every system with pleasure.
In this world, there is no perfect trading system; every trading system has its flaws and risks.
If you are a long-term investor, you may feel extremely lonely watching other popular sectors rise every day, and you may face huge losses for misjudging the fundamentals.
4. Patience is very important.
If you are a long-term investor, and you are optimistic about a sector and several cryptocurrencies, but they keep falling while those you are not optimistic about keep hitting new highs, what should you do?
If you are a trend investor and the recent hot stocks aren't trending, and every time you see them about to break out you buy in, but they pull back the same day, should you still stick to your trading system?
5. Have a position and stop-loss system.
Because there is no perfect trading system in the world, you must have a position control and stop-loss system.
Buying a cryptocurrency with all your funds and being down 40% is a situation only a rookie would face. First, you shouldn’t buy with all your funds; second, you should stop-loss when it drops.
6. Have the spirit to take risks and accept losses.
If you are optimistic about a cryptocurrency in the long term but its price keeps falling, and you firmly believe the market is wrong and keep buying more as it falls, in the end, the market proves you wrong; the fundamentals of this cryptocurrency have deteriorated, but you just didn't realize it.
At this time, you should not complain. You guessed the wrong direction, leading to losses; you chose the cryptocurrency yourself, and the decision to hold firmly and buy more as it falls was yours. At this time, you should acknowledge your mistakes and stand tall to accept the consequences.
For most people, if they can achieve the above, it may not guarantee huge profits, but you will definitely be close to making money.
If you don't plan to leave the cryptocurrency world for the next three years and are determined to treat cryptocurrency trading as a second career, you must read these nine iron rules. The shared insights are essential for making a living from trading cryptocurrency, and I believe after reading you will avoid many years of detours.
If you are still feeling confused and don't know how to start in this market, comment 333 to get on the bus!
