Lessons learned from real money are a rare opportunity to see.
On that deep night in 2018, I stared at the screen filled with red, my fingers trembling as I calculated my losses—yet another position had been liquidated. That was my first year in the industry, and my Nth account had gone to zero. At that time, I lay on the floor of my rented apartment, repeatedly asking myself: should I continue down this path of trading cryptocurrencies?
Seven years have passed, and I have grown from a frequently liquidated 'newbie' to a professional trader with accumulated profits exceeding 50 million. Today, I will share the pitfalls I have encountered, the liquidations I have faced, the blood I have shed, and the insights I have gained in achieving stable profits over the years. Avoiding detours is itself a way to make money.
01 Small capital can grow big, relying on patience rather than frequent trading.
I have seen too many people enter the market with less than 50,000 capital, trading continuously every day, fearful of missing any opportunity. The result? Transaction fees consumed the capital, and frequent trading disrupted their mindset.
The truth is: to grow a small capital, it’s not about trading frequency, but about patience. The crypto market has clear cycles; data shows that Bitcoin experienced a drop in 2014, sideways movement in 2015, a rebound in 2016, and a bull market in 2017. Within a year, the real opportunities that can double your assets might only happen once or twice.
When the market is quiet, what you need to do is not to act blindly, but to wait like a hunter. When the opportunity arises, decisively pull the trigger.
02 Understanding determines profit and loss; the market specializes in correcting various misjudgments.
'People can never earn money outside of their understanding' is a rule in the crypto world. Many newbies don’t even understand that exchanges can crash or disappear, nor how to transfer assets across chains, yet they enter with real money; this is no different from gambling.
My advice is: do your homework before trading in real markets. The market specializes in correcting various misjudgments. When you find your judgment consistently opposite to market trends, it’s not the market that’s wrong; your understanding needs to improve.
Keeping a trading journal and reviewing summaries is an important way to improve understanding; it helps you learn from every trade, whether successful or not.
03 Good news fully released is bad news; news serves technical analysis.
It's common in the crypto world: a certain coin suddenly announces significant positive news, and the price rises in response. Newbies often FOMO (fear of missing out) and chase the high price, only to get trapped at the peak.
The truly smart approach is: when the good news lands, it often becomes bad news. If you haven't sold on the day of significant good news, and the next day it opens high, it's advisable to take profits promptly. Remember, news serves technical analysis; when positive news has already been digested by the price, the momentum for further rises is often insufficient.
Market observations have found that some tokens may briefly spike in price after positive news is released but then fall back, which is precisely the manifestation of 'good news fully released is bad news.'
04 Holiday effect; history always repeats itself.
'Holidays must drop' is not said lightly. Over the years, I have concluded a rule: reducing positions or even going to cash before the holidays is the wise choice.
Why? Because during holidays, large holders and institutions usually reduce their holdings as a risk-averse move, causing market liquidity to decrease, and small fluctuations can easily be amplified. Rather than anxiously celebrating, it’s better to stay out of the market, relax with family, and recharge.
05 Medium to long-term layout; cash is king for rolling operations.
Many retail investors have a fantasy: to ride out a wave of market movement fully. But this is a game for the whales, not a dream for retail investors.
The essence of medium to long-term investing is to always keep enough cash on hand for high selling and low buying, rolling operations. When the coin price rises to resistance, reduce your holdings; when it retraces to support, buy back. This not only reduces costs but also ensures you always have chips in play.
Experienced individuals adopt a diversified allocation strategy: part in Bitcoin and Ethereum, part in mainstream public chains, and a portion for exploring new sectors. This structure helps control losses in a bear market.
06 Preserving capital is always the first principle.
To survive in the crypto world, preserving capital is always the first principle. If you make a wrong buy, you have to admit it and stop loss immediately. As long as the capital is still there, opportunities will always exist.
My iron rule is: no single trade should lose more than 2% of total capital. This way, even if you encounter consecutive stop losses, you can preserve most of your capital while waiting for the next opportunity.
Traders who have successfully achieved stable profits also regard 'cherishing your chips, never losing everything, and not leaving the table' as an important trading principle.
07 Mastering techniques, a thousand tricks are not as good as mastering one.
There are thousands of techniques for trading coins, and you don’t need to master them all. Mastering one or two methods is enough; the key is to practice them to perfection.
Some people profit from moving average systems, some focus on chart patterns, and some excel in on-chain data analysis. Find a method that suits your personality and schedule, then practice, summarize, and optimize continuously until it becomes your 'money tree.'
Cultivating your own trading style is crucial; methods that work for others may not suit you. What’s important is finding a trading approach that fits your personality and schedule.
08 Refuse contract leverage, steadily accumulate wealth.
I must emphasize this point: beginners should stay away from contract leverage! Contracts are like gambling; they seem to promise quick wealth but actually lead to rapid poverty.
Many newbies enter the market with illusions, believing they can accurately predict highs and lows and possess the skills for high selling and low buying. In reality, after a few trades, their capital is gone, leaving a mess behind. Respecting the market is a fundamental quality of an investor.
09 Circle choice, stay away from noise and focus on value.
In the crypto world, there are 101 opinions from 100 people; speculators think investors are foolish, and investors think speculators are parasites. Groups that focus on idle chatter and occasionally share profit screenshots are about on par with the old men in the park.
Choosing a quality circle allows you to see the facts of the crypto world rather than emotional outbursts. Quality circles share analytical frameworks, risk warnings, and valuable information, rather than simple buy and sell advice.
10 Investing is your own business; ultimately, you have to rely on yourself.
How should this sentence be understood? It means that in investing, you ultimately have to rely on yourself. Others' analyses and thoughts are only for reference; more important is independent research to form your investment framework. With a framework, you can have your own opinions.
Don’t worry about what others say; their level may not be as good as yours. In this semi-underground, semi-gray market, sticking to your investment principles is more important than blindly following the crowd.
The Last True Words
In seven years, my biggest insight is: trading coins is like living; it requires patience, discipline, and the ability to learn continuously.
Those who can survive and thrive in the crypto world may not be the smartest, but they must be the ones who understand risk control the best and have the most patience. The crypto world is not a casino, but a market for realizing understanding.
If you are still wandering in confusion, it might be a good idea to stop and re-evaluate your trading strategy. Remember, there are no shortcuts to financial freedom, but the right direction can make your journey much easier. #巨鲸动向 $ETH
