Many friends in the cryptocurrency circle experience two states after losing money in investments:
The first is an irresponsible attitude towards money; after losing money, they comfort themselves, believing that wealth is secondary, and if they lose due to bad luck, so be it. They treat the professional matter of investing entirely with luck, showing a lack of true understanding and respect for money.
The second is that after losing money, they never consider why they lost it, and they won’t summarize the reasons for their losses. Thus, they continue to make the same mistakes, tirelessly running on the wrong path, moving further away from the correct goal.
So actually, losing a lot of money is not the worst; the worst is not knowing how the loss occurred! Because they cannot avoid the reasons for losing money, they will continue to lose. Do you all agree?
My one-year experience and investment strategy in the cryptocurrency circle, achieving 13 times returns:
The first major principle is selecting products and timing: Research good targets and understand how to buy them.
Key indicators for buying good targets include:
1. Fundamentals; good fundamentals allow for long-term holding, so at worst, you might be stuck for 3-4 years, but in the next bull market, you can still earn several times your investment.
2. Price; buy at a low price, at a relatively low level.
3. Timing; if there’s a trend afterward, you can break even faster. For example, buying during the end of a bear market is better than buying at the beginning of a bear market. After all, in the early bear market, your money might be stuck for 1-3 years. Buying at the end of the bear market, the trend would rise quickly, and your money would soon multiply several times.
The second major principle: Research the top indicators carefully and make large investments based on the entire bull market cycle's low buying and high selling.
The core bull market top indicators I personally use in internal communities:
1. BTC market cap ratio; at the bull top, it is highly likely to fall below the previous low of 36. If it falls below 40, you must pay particular attention. For example, on September 7th, the market cap ratio hovered around 40 before a major drop.
2. ETH/BTC ratio; if it breaks above 0.1, the target is around 0.12 and may even reach 0.14-0.2. Breaking 0.1 requires special attention to the risk of a major correction.
The third major principle is coin-based; coin-based is a very important core idea for me. I use coin-based strategies to earn coins.
I am Bitcoin-based; although many people buy various altcoins, in the end, 96% of people cannot outperform those who hoard Bitcoin. Therefore, my goal is to use market fluctuations to earn Bitcoin, especially by selecting good varieties to earn Bitcoin, employing a quantitative grid strategy for Bitcoin-based grid trading, which lowers my risk. When other coins rise relative to Bitcoin, I will sell in batches to buy Bitcoin; when the market falls, I will sell Bitcoin to buy these coins (because Bitcoin generally falls less than other coins).
The fourth major principle: Combine long and short trading systems; for example, my long-term position is for hoarding coins, and I absolutely do not engage in short-term high selling and low buying.
For my short-term positions, I use quantitative grids to help me automatically execute high selling and low buying. The profit from this grid trading is similar to the profit from my coin holdings increasing.
The fifth major principle: Patience, low-level ambush, patient holding of coins, and not chasing highs.
You must have patience; valuable coins will definitely rise; it’s just that sectors rotate, and it’s impossible to catch all the surging coins.
When your coins are stagnant and you consider selling to chase other coins, take some time to research the coins you bought: their teams, businesses, sectors, official websites, communities (Twitter, Instagram), etc.
Don’t sell just because you waited too long and saw a slight rise; after waiting so long, you may miss out on substantial gains.
As the saying goes, holding coins is harder than holding on to a widow; the best way to hold coins is actually through grid trading, especially coin-based grids, which can outperform hoarding coins and have relatively lower risk.
The sixth major principle: You must think carefully about your trading rhythm and cycle.
Many people watch the market every day but do not know which cycle they should actually observe. If you look at minute charts, you’ll see constant shifts between bull and bear markets, which can lead to poor sleep and appetite.
Generally, you should first look at larger cycles and then move to smaller cycles.
If you are a long-term holder, look at weekly charts, then daily charts, and four-hour charts, occasionally checking 1-hour and 30-minute charts, mainly to determine buying opportunities. You should basically avoid 1-minute and 5-minute charts; I made a big mistake in the past by frequently looking at them and feeling anxious. Short-term trading is likely to lead to fewer coins; many people can't even make profits in fiat currency, let alone increase the number of coins they hold.
The time cycle for looking at K-line charts determines the maximum holding time: 1 minute for several minutes; 5 minutes for several hours; 15 minutes for one or two days; 1 hour for several days; 4 hours for several weeks.
In this mysterious field filled with opportunities and challenges, some people get rich overnight, while others lose everything.
When you grow from tens of thousands to hundreds of thousands, you will touch upon some thoughts and logic for making big money, and your mindset will stabilize significantly.
After this, it’s about continuously replicating successful experiences.
Don’t always fantasize about millions or even billions; you need to start from your actual situation. Don’t engage in empty talk; after all, bragging will only make the bull comfortable.
Two years ago, I met a senior in Shanghai who easily withdrew more than 12 million in the cryptocurrency circle using the simplest method. He taught us that the fundamental principle is always simplicity; if you overthink trading cryptocurrencies, considering more factors will actually make your judgment less accurate.
Those who lose money trade like this; to make profits is actually very simple: find a method that suits you and you are good at, and repeat it. Unconsciously, your account balance will rise.
Here are a few tips he shared; as long as you can learn them, even if you cannot turn hundreds of times like the senior, at least making some pocket money should not be a problem.
First, wait for the highs and lows. When the market is in a sideways trend, it’s best to remain observant because after consolidation, the market will change. It’s best to act when a clear trend emerges.
Second, do not become attached to hot positions; positions should be frequently changed. If you stick with a position from start to finish, in the end, you will end up with nothing. All short-term hot positions are speculative; once the heat passes, the funds will exit immediately. If you are slow, you’ll be left alone, confused in the wind.
Third, when there is a rising gap with a strong increase, there is hope for further gains. K-lines slowly rise, and if a high-opening bullish line appears with increasing volume, it indicates that the market has entered an acceleration phase. At this point, we must stay calm, hold our positions steady, and wait for a significant profit.
Fourth, do not become attached to huge bullish lines; exit decisively at the end of the session, whether at high or low levels. After a huge bullish line appears, there will always be a correction, even if it hits the upper limit, you should exit. We need to prevent profit withdrawals.
Fifth, whether buying on a bearish line or selling on a bullish line, or even making a mistake, you should follow the trend. Here, the line refers to moving averages or important support or resistance levels. Short-term traders generally only look at daily moving averages and daily attack lines. I don't like to linger; I usually hold for only three days, at most not more than a week, even if things improve later, it has nothing to do with me.
Sixth, do not chase highs, do not sell, do not panic sell, do not buy; stay inactive in a sideways market. This can be said to be the basic principle for surviving in the cryptocurrency circle. If you want to survive in the cryptocurrency world for a long time, you must remember this saying well.
Seventh, prepare to buy; it’s better to enter less than to enter too much. No matter how confident you are, you cannot invest all your funds at once. Because in the cryptocurrency circle, the only constant is change.
Eighth, learn to observe news and interpret market information. When significant market news comes out, it is usually when cryptocurrency prices are most volatile, possibly rising sharply or falling sharply. Traders need to make judgments; for beginners, it is advisable to primarily observe during major news events.
Ninth, learn to analyze technical aspects and master knowledge of technical indicators. Learning technical indicators requires long-term accumulation; develop a study plan to learn about moving averages, KDJ, Bollinger Bands, K-lines, volume-price relationships, capital flow, etc.
Tenth, develop a trading plan; trading should not be too frequent. Frequent trading not only incurs high fees but also affects trading psychology, leading to loss of rational judgment.
Eleventh, ensure risk control; make sure to set stop-loss and take-profit levels during trading to control risk, keeping profits and risks within acceptable limits. When the price reaches the stop-loss or take-profit point, the system will help me automatically.
In the past few days, I have been preparing for a major layout that is about to start!!!
Comment 777 to get on board!!!
Impermanence brings impermanence!!!
