I am 38 years old this year. Twelve years ago, I entered the cryptocurrency market with only 90,000 as my capital, and I started my professional trading career. Now, my assets exceed 30 million. There is a very simple method for trading, but this method can almost eat up all the profits, slowly learning.
How I make money: Just need three 10x trades to make 10 million. First, a basic theorem: In one's life, just need to consecutively make three 10x trades to lie flat.
Step one: Prepare 10,000 yuan.
10,000-100,000 100,000-1,000,000 1,000,000-10,000,000
Break down 10 million into three 10x opportunities, find corresponding opportunities at each of the first, second, and third 10x, repeat profitable operations 100 times within each 10x, and 10 million can basically be achieved. Of course, this method is also suitable for making 1 million or even 100 million; the underlying methodology is the same.
With this method, I have multiplied my total holdings by 6 times! Many people become more chaotic as they trade; it's not that their skills are lacking, but that there are too many tricks.
[Step One] Choose coins: Only target 'main upward trend coins.'
The principal cannot be scattered like pepper; focus firepower on cryptocurrencies that are 'trending + controlled': Breakthrough previous highs and launch with volume, such as SOL breaking through 25 dollars, which surged 5 times before retail investors could react.
Segment leading sectors: MEME, AI, Layer2, do not choose 'new wine in old bottles' pseudo-hotspots.
Low circulation, easy to manipulate: Market capitalization between 100 million and 1 billion U, easy for dealers to control, easy to pump.
[Step Two] Rolling strategy: Only use profits to increase positions, the principal only enters and does not exit.
500,000 U does not seek to double overnight, only seeks to progress step by step:
First transaction: 200,000 as a trial position, the signal must be clear—breakthrough + volume (such as PYTH breaking 0.6).
Stop loss: Cut losses at 10%, no emotions, preserve bullets.
Increase positions after a 50% profit: Reinvest 300,000 (principal + profits) to ride the main upward wave.
After doubling, invest the entire fund: 1 million U to hit 3-5 times, do not be greedy, do not hesitate, take profits halfway at a 15% retracement, and hold the rest until the end.
Key discipline: Never average down during losses, only increase positions when winning.
[Step Three] Iron rules for position control: 20x, do not rely on courage, rely on restraint.
No single currency should exceed 40% of the total position: At any time, you cannot put all your eggs in one basket.
Doubling profits means withdrawing the principal: when going from 500,000 to 1 million, first withdraw 500,000 for safety, and each stop loss should not exceed 5-10% of the total position: cutting losses at expected positions is winning.
Those who can reach 10 million are not necessarily the best at reading K-lines but are those who can resist temptation and control their hands. The market provides opportunities, but profits only belong to those with a system, discipline, and a ruthless mindset.
You can roll over your positions, but ask yourself: It's not whether you have 500,000, but whether you have the patience and courage to execute it completely. If you don't want to keep spinning in place, let—lead you to flip positions. Now is a great time in the market to recover and flip positions.
A good method + stable execution + a good team leading the pace is far better than you trying to be busy alone! Those who want to turn around will find me without saying.
The following verified trading model in the cryptocurrency market has a winning rate of up to 98.8%. Once mastered, it can help you avoid most traps, making the journey from 100,000 to 10 million more stable.
1. Divide funds into different accounts, strictly control risks.
Divide the funds into 5 parts, using only 1/5 of the position each time. Set a stop loss of 10 points; even if a single judgment is wrong, the total loss will only be 2% of the total funds. It takes 5 consecutive errors to lose 10%; if the judgment is correct, set a profit target of more than 10 points, fundamentally reducing the risk of being trapped.
2. Follow the trend to improve the winning rate.
To further improve the winning rate, the core is the word 'follow the trend'. In a downtrend, each rebound is mostly a trap to lure buyers; in an uptrend, each drop is often a golden opportunity to buy at a low. Compared to the extremely high risk of bottom fishing, following the trend to buy low has a far higher probability of making a profit.
3. Avoid short-term surging cryptocurrencies.
Whether mainstream coins or altcoins, very few can make multiple waves of main upward trends. After a short-term surge, the difficulty of the coin price continuing to rise is extremely high. When high prices stagnate, the subsequent inability to rise will inevitably lead to a decline. This simple truth is often ignored by those who enter with a 'gamble' mindset, ultimately getting trapped.
4. Use MACD to judge entry and exit signals.
Use MACD to assist decision-making: When the DIF line and DEA form a golden cross below the zero axis and break through the zero axis, it is a stable entry signal; when MACD forms a dead cross above the zero axis and runs downward, it is necessary to decisively reduce positions to avoid giving back profits.
5. Reject loss averaging, only do profitable averaging.
The 'averaging down' strategy has harmed countless retail investors—losing more as they average down, averaging down leads to more losses, ultimately driving themselves into a corner. Remember the iron rule: never average down during losses, only increase positions during profits, letting profits roll, not letting losses expand.
6. Volume and price are the soul; closely follow the movement of funds.
Trading volume is the 'barometer' of funds in the cryptocurrency market, which is more reliable than simply looking at K-lines. When the price breaks out with volume at low levels, it is crucial to pay attention; when there is a volume stagnation at high levels, it indicates a lack of buying strength, and decisive exit is required.
7. Only trade in an upward trend, do not waste time.
Prioritize choosing cryptocurrencies in an upward trend; the odds are higher and efficiency stronger. When the 3-day line turns upward, it is a short-term upward signal; when the 30-day line turns upward, it corresponds to a medium-term rise; when the 84-day line turns upward, a major upward wave is likely to follow; when the 120-day moving average turns upward, it indicates a long-term upward trend.
8. Persist in reviewing, adjust strategies in a timely manner.
After each trading day, a review must be done: Check whether the logic of holding coins has changed, verify whether the trend aligns with expectations through weekly K-lines, and determine whether the trend direction has shifted. Adjust trading strategies based on the review results to continuously optimize operations and avoid repeating mistakes.
I will share a set of my own practical strategies, with an average winning rate of 80%, a fairly rare achievement in the cryptocurrency trading field.
In the cryptocurrency market, a trading strategy with a 95% winning rate (trend line drawing), once learned, can stabilize monthly income in the seven figures and annual income in the eight figures!
This chapter is very important and detailed. First-time learners may find it a bit challenging. I hope you can read it several times.
We will first explain how to draw lines, mainly based on the following three steps:
Confirm the trend, determine high and low points, draw lines correctly.
Let's first look at the first step: confirming the trend. We previously mentioned that not all structures can use the Fibonacci tool; at least in a consolidation market, we do not use it, only using this tool in trending markets.
So how do we confirm the trend?
Of course, you can assist yourself in identifying a trend through the previous trend line course. If you can draw lines through two points and validate it at the third point, then this trend line is an effective trend line.
At this time, you can also use trendlines to help confirm this trend; this is also a method.
Of course, you can use other tools to judge the trend, like moving averages. There is no unified standard for this, so today we will use another method to confirm the trend, which is simpler, namely using EMA200.
EMA (Exponential Moving Average) is a type of moving average that gives more weight to recent prices. MA is the simple Moving Average, which simply averages the closing prices over a period.
EMA is different; it carries weight. The meaning of weight is that yesterday's price has more impact on today's price, while the day before yesterday's price also affects today but not as strongly as yesterday's price. The day before yesterday's price has an even smaller effect compared to yesterday and the day before yesterday.
The EMA moving average is smoother compared to the MA moving average. I personally prefer using EMA. Of course, we will detail the specific uses and differences between MA and EMA in the moving average chapter.
We use EMA200 to judge the trend of the market. Let's first look at the figure 2.4-17 below.
Figure 2.4-17
We can see that the price drops from high point A to low point B, then rises to high point C. C does not break the previous high A. At this time, when the price reaches position D, how should we draw it? Should we draw based on the high and low points of AB or based on the high and low points of BC?
At this time, it is very simple. We add the EMA indicator, changing the parameter to 200, as shown in Figure 2.4-18, which represents the setting of EMA200.
Figure 2.4-18
If the price oscillates around EMA200, as shown in Figure 2.4-19.
Figure 2.4-19
So we consider that the current market is a consolidation or disordered market, and we do not participate in such markets.
If the price is above EMA200, we consider that the current trend is mainly upward, as shown in Figure 2.4-20.
Figure 2.4-20
At this time, we should draw the Fibonacci retracement line based on high and low points to observe the price's reaction when it pulls back to the 0.382-0.618 area, in order to formulate corresponding strategies.
If the price is below EMA200, we consider that the current trend is mainly downward, as shown in Figure 2.4-21.
Figure 2.4-21
At this point, we should draw the Fibonacci retracement line based on the high and low points, to observe the price's reaction when it rebounds to the 0.382-0.618 area, in order to formulate corresponding strategies. After confirming the trend, we move on to the second step of confirming high and low points, which is how to find high and low points.
Drawing Fibonacci areas is quite subjective; if your defined high and low points are different, then your Fibonacci area will definitely differ, which will inevitably cause different support and resistance areas, potentially leading to misjudgment. So how should we find high and low points?
Assuming the market is rising, as shown in Figure 2.4-22, how should we operate?
Figure 2.4-22
First, we cannot directly connect BC as wave high and low points to draw Fibonacci. At this time, the price drops from high point C down to point D. At point D, there may be a drop or a rise. We first consider the assumption of a drop. We will draw Fibonacci based on the previous wave high point A and the previous wave low point B, and observe whether the area of point B is within the Fibonacci retracement of the 0.382-0.618 area.
If the area of B is within the 0.382-0.618 retracement area, as shown in Figure 2.4-23.
Figure 2.4-23
At this time, a second test of the wave low point B may occur, meaning testing the previous low position of B again, forming a double bottom pattern, and then directly rising. Remember, double tops and double bottoms have greater power when aligned with the trend. That is to say, we should look for double bottoms in an upward trend and double tops in a downward trend. Thus, we need to draw a horizontal support line at point B, as shown in Figure 2.4-24, and wait for the price to reach this area to observe the price behavior and see if a double bottom forms.
Figure 2.4-24
If the area of B is not within the 0.382-0.618 retracement area but above 0.382, it is in a light pullback area, as shown in Figure 2.4-25.
Figure 2.4-25
At this time, we should also draw a horizontal support line at point B. The price may conduct a second test at the wave low point B, forming a double bottom pattern, and then directly rise. It may also break through the support area to point D, forming equal distances for AB and CD, and exactly D pulls back to the Fibonacci's 0.382-0.618 area, then continues to rise, as shown in Figure 2.4-26.
Figure 2.4-26
That is to say, the current pullback is not a simple pullback; it is a two-phase equal pullback. Because traders who short at point C will take profits at point D based on the principle of equal distances between AB and CD, bearish energy is exhausted, and bulls continue to exert force, causing prices to continue to rise. Of course, a three-phase pullback may also form, continuing to rise, but as long as the trend is not broken, we should trade in the direction of the trend. If the area of B is not within the 0.382-0.618 area but below 0.618, it is in a deeper pullback, as shown in Figure 2.4-27.
Figure 2.4-27
This indicates a deep pullback, which shows that there is insufficient momentum in the rise, and the buying power is somewhat weak. At this time, sellers will also realize this situation, so sellers may intervene in the market. We should also draw the horizontal support line at point B and pay attention to the reaction when C falls to that support level, as shown in Figure 2.4-28.
Figure 2.4-28
As mentioned before, if the market has not reversed, we should act according to the trend because following the trend is always the easiest way to make money. If the B point above is broken, a range consolidation pattern may need to occur. At this time, we should focus on the price performance in the horizontal support area drawn from the previous low point B, which will be detailed in subsequent courses. Here we mainly talk about how to find high and low points.
In the scenarios discussed in the previous figures, the drop in segment CD did not stop at point D but continued to fall. What strategies should we adopt if the drop does not occur at point D but instead rises, as shown in Figure 2.4-29?
Figure 2.4-29
At this time, we should draw a horizontal resistance line from the previous wave high point A, waiting for the price to break through the performance after the previous wave high point A. If the price breaks through the previous wave high point A and then creates a new wave high point E, followed by a drop, we can then draw the Fibonacci area between wave low point B and wave high point E, observing the price behavior between 0.382-0.618, as shown in Figure 2.4-30.
Figure 2.4-30
If the horizontal resistance line drawn at point A is also in this area, it will create area resonance, and we need to pay close attention to this area. Of course, when the price breaks through the previous peak A, it may be resisted and fall back before breaking through, creating a dense range, as shown in Figure 2.4-31. At this time, it is a position to accumulate strength and wait for an explosion.
Figure 2.4-31
The most important thing is to see if it can eventually break through and form a new peak. After the breakthrough, we can find the high and low points to draw the Fibonacci area. So, the above is the whole process of confirming high and low points in an uptrend. Now, assuming the market is in a downtrend, as shown in Figure 2.4-32, how should we operate?
Figure 2.4-32
First, we cannot directly connect BC as wave high and low points to draw Fibonacci. At this time, the price drops from high point C down to point D. At point D, there may be a rise or a drop. We first consider the assumption of a rise. We will draw Fibonacci based on the previous wave high point A and the previous wave low point B, and observe whether point C is within the Fibonacci retracement of the 0.382-0.618 area. If position C is in the 0.382-0.618 rebound area, as shown in Figure 2.4-33.
Figure 2.4-33
At this time, a second test of the wave peak C may occur, which means testing the previous high position of C again, forming a double top pattern, and then directly declining. As mentioned earlier, we need to look for double bottoms in an uptrend and double tops in a downtrend. Always remember to trade with the trend. Therefore, we need to draw a horizontal resistance line at point C and wait for the price to reach this area to observe the price behavior and determine whether a double top pattern appears before deciding how to enter, as shown in Figure 2.4-34.
Figure 2.4-34
If the area of C is not in the 0.382-0.618 area but above 0.382, in the light rebound area, as shown in Figure 2.4-35, how should we operate?
Figure 2.4-35
At this time, we should also draw a horizontal resistance line at point C. The price may conduct a second test at the wave high point C, forming a double top pattern, and then directly decline, as shown in Figure 2.4-36.
Figure 2.4-36
It may break through the resistance area to position E, creating equal distances for BC and DE, and exactly E's rebound position hits the Fibonacci's 0.382-0.618 area, and then continues to fall, as shown in Figure 2.4-37.
Figure 2.4-37
That is to say, the current rebound is not a simple rebound; it is a two-phase equal rebound.
Traders who go long at point D will directly take profits based on the principle of equal distance between BC and DE at point E; bullish energy is exhausted, and bears continue to exert force, causing prices to continue to fall. Of course, a three-phase rebound may also form, followed by a further decline, but as long as the trend is not broken, we should trade in the direction of the trend.
If position C is not in the 0.382-0.618 area but below 0.618, it means it is in a deeper rebound, as shown in Figure 2.4-38.
Figure 2.4-38
This indicates that the current drop has led to a deep rebound, reflecting the insufficient strength of sellers, which may cause the market to fluctuate or reverse.
At this time, we draw a horizontal resistance line from point C. We can pay attention to the price's reaction when it rebounds to that resistance position, as shown in Figure 2.4-39.
Figure 2.4-39
As mentioned before, if the market has not reversed, we should act according to the trend because following the trend is always the easiest way to make money. We should pay attention to whether it will form a double top, as shown in Figure 2.4-40.
Figure 2.4-40
So it may create a double top at the resistance line drawn at the high point C, and then follow the trend to decline. Of course, it may also directly break through this resistance line. If the position of point C is broken, we need to focus on the peak A, draw a horizontal resistance line from A, and observe the price's response when it approaches this resistance line, as shown in Figure 2.4-41.
Figure 2.4-41
It may enter a range consolidation pattern or reversal; it may continue to drop after consolidation, but these cannot be predicted. We need to closely monitor the situation. The above figures mainly assume several situations of rising at point D. If at point D, the situation is not rising but continues to fall, as shown in Figure 2.4-42, how should we find wave high and low points?
Figure 2.4-42
At this time, we should draw a horizontal support line from wave low point B, waiting for the price to break below wave low point B, then create a new wave low point E. At this time, we can draw the Fibonacci area from wave high point C to wave low point E, observing the price behavior in the 0.382-0.618 area, as shown in Figure 2.4-43.
Figure 2.4-43
If the horizontal support line drawn at point B is also in this area, it will create area resonance, and we need to pay close attention to this area. Of course, when the price breaks below the previous wave low point B, it may support a rebound before breaking again, forming a dense range, as shown in Figure 2.4-44. At this time, it is a position to accumulate strength and wait for an explosion.
Figure 2.4-44
The most important thing is to see if it can finally break down and form a new wave low point. Then we can draw the Fibonacci area accordingly. The above is the entire process of finding wave high and low points in a downtrend. After confirming the trend and the wave high and low points, how should we draw correctly?
Very simple, if it is an upward trend, the rule for drawing lines is to first find the wave low point, then find the wave high point, which is to draw from bottom to top. At this time, we can see that 1 is below and 0 is above. If you first find the wave high point and then find the wave low point, the numerical display of the chart you draw will be different, as shown in Figure 2.4-45.
Figure 2.4-45
It is obvious that the left side is correct, and the values on the right have reversed. Some people don't pay attention when drawing and do it very casually, which can lead to bad drawing habits. Therefore, in the early stages of learning, try to learn correct habits; otherwise, it will be hard to change later.
If it is a downtrend, then the rule for drawing lines is to first find the wave high point, then find the wave low point, which is to draw from top to bottom. At this time, we can see that 0 is below and 1 is above. If you first find the wave low point and then find the wave high point, the numerical display of the chart you draw will differ, as shown in Figure 2.4-46.
Figure 2.4-46
It is evident that the left side is correct, while the values on the right have reversed. The above is the entire detailed process of how to draw Fibonacci. The question here is whether to connect the wicks or the bodies when connecting high and low points. My personal understanding is that it is best to connect the highest and lowest points, which means connecting the wicks rather than the bodies. Finally, let's look at the practical chart explanations to deepen our impression, as shown in Figure 2.4-47.
Figure 2.4-47
The blue line in the figure is EMA200. We see high point A and low point B. At this time, the price is above EMA200; we only go long and do not short. We draw a purple horizontal resistance line from high point A. We see that the subsequent price directly breaks through A to reach high point C. We then draw the Fibonacci area based on low point B and high point C, observing the price's performance when it returns to the 0.382-0.618 area, as shown in the light green area in the figure.
We see that the price forms a double bottom in the area marked by the red arrow, while forming a small dense range at the bottom on the right. We can enter directly when the price breaks through the top of that range. Of course, you can choose other entry methods. Let's look at another chart, as shown in Figure 2.4-48.
Figure 2.4-48
The blue line in the figure is EMA200. We see low point A and high point B. At this time, the price is below EMA200, so we only short and do not long. We draw a green horizontal support line from low point A. We see that the subsequent price breaks directly down from A to reach low point C. We then draw the Fibonacci area from high point B to low point C and observe the price's performance when it returns to the 0.382-0.618 area, as shown in the light green area in the figure.
We see the price forming a double doji star (DD) signal in the Fibonacci 0.5 area, marked by the red arrow, which forms a micro double top with a small high point on the left. This is an entry signal. Of course, you can choose other entry methods. The above is about how to draw Fibonacci; I hope you can practice it more and master it.
I am Dong Ge, nice to meet you all. Dong Ge focuses on Ethereum contract spot ambush; the team has positions ready for you to become a dealer and a winner.