Many friends experience two states after losing money in cryptocurrency investment:
First, it is an irresponsible attitude towards money. After losing money, you still comfort yourself, thinking that money is external, and if you lose, you lose. Treating such a professional matter as investment completely relies on luck reflects a lack of true understanding and respect for money.
Secondly, after losing money, never thought about why I lost money, and wouldn't summarize the reasons for the losses. Thus, the same mistakes continue to be made while running hard on the wrong path, straying further away from the correct goal.
So actually losing money is not the worst; the worst is losing money without knowing how it happened! Because if you cannot avoid the reasons for losing money, you will continue to lose.
My experience of achieving 13 times in the crypto space in one year and my investment strategies.
First main principle: select products and timing: study good targets and how to buy them clearly.
There are several indicators for buying good targets:
1. Fundamentals, if the fundamentals are good, it can be held for a long time. At least you will be stuck for 3-4 years at worst, but you can still earn several times in the next bull market.
2. Price, the buying price is not high, at a relatively low level.
3. Timing; if there is a trend later on, recovering your investment will be faster. For example, if there are strong favorable factors later, buying before the end of the bear market is better than buying at the early stage of the bear market. After all, if you buy at the early stage of the bear market, your money may be stuck for 1-3 years. But if you buy before the end of the bear market, the trend will pick up quickly, and your money will quickly multiply.
Second main principle: Study the top indicators clearly, and make large positions based on low buy and high sell throughout the entire bull market cycle.
I have always used the core bull market top indicator in internal communities:
1. BTC market cap ratio, at the bull top, it is highly likely to break the previous low of 36. If it breaks 40, pay special attention. For example, 9.7 is a significant drop after the market cap ratio hovers around 40.
2. ETH/BTC ratio, if it breaks 0.1, the target is around 0.12, or even up to 0.14-0.2. Pay special attention to major pullbacks once it breaks 0.1.
Third main principle: the principle of asset-based trading, which is a very important core idea for me. I use asset-based trading to earn coins.
I am Bitcoin-based+, although many people buy various altcoins, ultimately 96% of people cannot outperform those who focus on Bitcoin. Therefore, my goal is to profit in Bitcoin through market fluctuations, especially by selecting the right varieties to earn Bitcoin, using quantitative grids to set up Bitcoin-based grid orders. This way, my risks are relatively lower. When other coins rise compared to Bitcoin, I will gradually sell them to buy Bitcoin. When the market falls, I will sell Bitcoin to buy these coins (because Bitcoin generally falls less compared to other coins).
Fourth main principle: Combine long and short trading systems. For example, my long position is to hold coins and I don't do short-term high sell and low buy. My short position uses quantitative grids to automate high sell and low buy. Like the order below, the profit from grid high sell and low buy is similar to the profit from my held coins rising.
Fifth main principle: Patience, lay low at low levels, patiently hold coins, and do not chase highs.
You must have patience; valuable assets will definitely rise. It’s just that sectors rotate; it’s impossible to catch every explosive rise. When you want to sell to chase other coins, take time to research the coins you bought, their teams, business sectors, official websites, and communities (Twitter, Instagram, etc.).
Don't sell just because you've waited too long and then sold everything when it rises slightly. As a result, after waiting so long, you missed out on the big rise. As the saying goes, holding coins is harder than holding onto a few. The best way to hold coins is to use grids, especially Bitcoin-based grids, as this can outperform simply holding coins, with relatively low risk.
Sixth main principle: You must think carefully about your trading rhythm and trading cycle perspective.
Many people look at the market every day but do not know what time frame they should focus on. If looking at minute charts, the constant switching between bullish and bearish will affect your sleep and appetite.
Generally speaking, first look at the larger time frames, then look at smaller time frames.
If you are a long-term holder, look more at the weekly chart, then daily charts, and four-hour charts. Occasionally check the 1-hour and 30-minute charts, mainly to see buying opportunities. Generally, avoid looking at 1-minute and 5-minute charts; I used to make big mistakes by frequently checking them and being overly anxious. The probability of short-term trading is decreasing, and many people can't even profit, let alone increase their holdings.
Look at the time period of K-lines to determine the maximum holding time: 1 minute, dozens of minutes: 5 minutes, several hours: 15 minutes, one or two days; 1 hour, several days. 4 hours, several weeks.
In the mysterious realm of cryptocurrency filled with opportunities and challenges, some become rich overnight while others lose everything.
When you go from tens of thousands to hundreds of thousands, you will touch upon the threads of thought and logic for making big money, and your mindset will stabilize significantly.
Thereafter, continuously replicate successful experiences.
Don't always fantasize about millions or even billions, start from your actual situation, don't talk empty, after all, boasting will only make the cow comfortable.
Two years ago, I met a senior in Shanghai who easily withdrew more than 12 million using the simplest method. He taught us that the essence is always simple. If you think too complicatedly about trading, the more factors you consider, the less accurate your judgment will become.
Those who lose money trade like this. Wanting to profit is actually simple; just find a method suitable for you that you are good at and repeat it. Before you know it, your account balance will increase.
Here are a few mnemonic phrases he shared. As long as you can learn them, you may not multiply your investments like the seniors, but at least making some pocket money is not a problem.
First, wait for high and low to align. When the market is in a sideways consolidation, it's best to wait and see, because after consolidation, the market will change. It’s better to act after the market shows a clear trend.
Second, do not cling to hot positions, frequently change positions. From start to finish, it ends up being empty. All short-term popular positions are speculation. Once the heat passes, funds will immediately exit, and if you lag behind, you will be left alone in chaos.
Thirdly, if there is hope for a big increase during the upward jump, K-lines will slowly rise, showing a high opening bullish candle with increased volume, indicating that the market has entered an acceleration phase. At this time, we must remain calm, hold onto our positions, and wait for a significant profit wave.
Fourth, do not cling to large bullish candles, be decisive to exit at the end of the session. Regardless of whether at high or low positions, after a large bullish candle appears, there will be a pullback. Even if it hits the limit up, you should exit. We need to prevent profit drawdown.
Fifth, do not buy on online bearish candles, also buy on offline bullish candles, and sell on bearish candles. Here, 'lines' refer to moving averages or important support or resistance levels. Short-term players generally only look at the daily moving average and daily attack line. I don't like to get bogged down; generally, I only hold short positions for a day, at most not exceeding a week. No matter how good it gets later, it has nothing to do with me.
Sixth, do not chase highs, do not sell, do not panic sell, do not buy, stay still when the market is sideways. This principle can be said to be the fundamental rule for survival in the cryptocurrency space. If you want to survive in the crypto world for a long time, you must remember this phrase well.
Seventh, buy in, prepare first, it's better to enter less than to enter more. No matter how confident you are, you cannot buy all your funds at once. Because in the cryptocurrency space, the only constant is change.
Eighth, learn to analyze news, learn to interpret market information. When significant market news comes out, it is usually when cryptocurrency prices fluctuate the most, potentially soaring or plummeting, requiring traders to make judgments. For beginners, it is advisable to wait and observe during significant news releases.
Ninth, learn to analyze the technical aspect, master technical indicator knowledge, and accumulate the learning of technical indicators over time. Create a learning plan to study moving averages, KDJ, Bollinger Bands, K-lines, volume price, capital flow, etc.
Tenth, make a good trading plan, avoid frequent trading. Frequent trading not only incurs high fees but also affects trading mindset, leading to loss of rational judgment.
Eleventh, do good risk control, set stop-loss and take-profit during trading, control risks, and keep both profit and risk within an acceptable range. When the point reaches the stop-loss or take-profit point, the system will automatically assist me.
These days, I am preparing for the divine order that is about to open!!!
Comment 168, get on the bus!!!
Impermanence brings impermanence!!!
Important things must be repeated three times!!!
