On the journey of digital currency investment, I started as a small individual with an initial capital of only 5,000 yuan, gradually striving and ultimately transforming into a middle-class individual with a fortune of 25 million.
Today, I am willing to selflessly share the valuable experiences from this journey with every like-minded friend.
Navigating the ocean of digital currency, the art of capital management is crucial. I prefer to divide my capital into five equal parts, only using one part for trading each time, so even when encountering storms, I can maintain the stability of the vessel. I set a strict rule for myself: once losses reach 10%, I immediately retreat regardless of how turbulent the external situation is. Even if I face five consecutive small setbacks, my loss is limited to half of my capital, but once I catch a wave of profit, the earnings will far exceed this. Even if occasionally caught in a temporary trap by the market, I can remain calm and composed.
Following the market trend is the most reliable beacon to success. In a depressed market, do not blindly try to catch the bottom; that’s merely an illusion like a mirage. When the market warms up, during pullbacks, is the golden opportunity for us to buy low, which is much safer than stubbornly holding onto the bottom.
When selecting cryptocurrencies, we need to develop a discerning eye. Those coins that rise like meteors, whether mainstream or not, should be cautiously avoided. Because their surge is too extreme, the pullback will also be astonishing, and if you're not careful, you may fall deep into it.
In the field of technical analysis, I particularly trust the MACD indicator. When the DIF line and DEA line intertwine below the zero axis and successfully break through the zero axis, that is a good buying opportunity. Conversely, if they converge above the zero axis and extend downward, that is a signal to reduce positions.
As for averaging down, that is a thorny road, and should not be easily ventured. Once losses occur, do not blindly average down; otherwise, you will only sink deeper, potentially losing everything. Remember, decisively cut losses when in the red, and only gradually increase positions when in profit.
Trading volume is also an essential factor. When the currency price breaks out at a low level and the trading volume significantly increases, it often indicates that a major opportunity is arriving.
The most critical thing is to follow the trend. By combining the daily line with the 30-day line, 84-day line, 120-day line, and other time periods, when a certain line begins to show an upward turning point, you can clearly perceive the market's movements and make correct decisions.
The path of digital currency investment is filled with risks but also holds infinite opportunities. Only by mastering the essence of capital management, the skills of trend analysis, and the discerning eye for selecting coins can you, like me, rise from a small starting point to become part of the middle class.
A super simple trading method can repeatedly turn 200,000 into tens of millions; doesn’t that sound a bit unbelievable?
In fact, those who lose money are often just not on the right path. If you want to make money, the key is to find a method that suits you and practice more. Who knows, one day the numbers in your account may surge. This is what my predecessor said, and I have always remembered it. The method I used before, compared to other methods on the market, was indeed both simple and practical.
When the market is moving sideways, we should wait and see, because often after a sideways movement, there will be significant actions. Once the situation becomes clear, we will take action and profit without loss.
Also, don’t become attached to popular positions; you need to switch frequently, or you might end up with nothing. Those short-term hot spots are all speculative; once the heat fades, the funds will flee. If you’re half a beat slow, you’ll just be left confused in the wind.
Speaking of rises, if you see the K-line slowly climbing up and starting off well, with the trading volume also expanding, it indicates that the market is about to accelerate. At this moment, we must stay calm, hold on to our tickets, and there will definitely be big profits ahead.
However, if you see a particularly large bullish candle, regardless of whether it's at a high or low position, you have to withdraw quickly, even if it hits the limit. Why? Because we have to guard against profits rolling back.
There’s a little trick: buy on bearish candles online and sell on bullish candles offline, and accept mistakes. Here, 'candles' refer to moving averages or important support and resistance levels. For short-term trading, generally, I look at daily candles and daily attack lines. I don't like to procrastinate in my work, and I usually don't hold positions for more than three days, at most a week; no matter how good it gets later, I don’t linger.
In the crypto world, there is a basic principle: do not sell on high spikes, do not buy on drops, stability is key during sideways movement.
Finally, before buying, be prepared; it’s better to buy a little than to dump everything in one go. After all, in this circle, the only constant is change.
In the past seven to eight years, my assets have grown by 30 million, and along the way, I have gone through trials and accumulated valuable experiences. Here are some key insights I hope will inspire you:
1. Capital management is the key to success.
Divide the capital evenly into five parts, using only one-fifth each time, and set strict stop-loss limits. Each trade's loss cannot exceed 10%, and total capital loss should be kept within 2%. Even if five consecutive operations are errors, the total loss is only 10%, but as long as you seize one opportunity, profits can easily make up for the losses.
2. Follow the trend and do not go against it.
When the market is declining, do not blindly try to catch the bottom, as it could very well be a trap; be patient and wait for clear signals.
When the market is rising, don’t rush to sell; it might just be a 'golden pit'. Buying low is more reliable than trying to catch the bottom.
3. Stay away from coins that experience short-term explosive growth.
Whether it’s mainstream coins or altcoins, very few can sustain explosive growth. Most coins will enter a stagnation or pullback phase after a surge. Don't have a lucky mentality and bet on low-probability events of high spikes.
4. Reasonably utilize technical indicators.
The MACD indicator is very practical: when the DIF line and DEA line form a golden cross below the zero axis and break through the zero axis, consider buying. Conversely, if a dead cross forms above the zero axis and moves downward, consider reducing positions.
Averaging down requires strategy: do not average down when in loss, only increase positions when in profit, otherwise it’s easy to lose even more.
5. Trading volume is the core of the market.
Pay attention to low-level volume breakouts; this is an important signal for market initiation. Only trade coins that are in an uptrend, closely observe the 3-day, 1-hour, 4-hour, and 8-hour moving averages. When these moving averages turn upward, it usually signifies that an upward trend has been established.
6. Conduct reviews and adjust strategies.
Every completed transaction must be reviewed, reorganizing the holding logic while combining it with the weekly K-line trend to flexibly adjust subsequent operational strategies.
The first four years of trading coins were a tale of blood and tears, losing 80%. After the pain, I summarized ten iron rules and executed them firmly, ultimately turning the tables! I’m sharing this with all crypto traders, no need to thank me.
I silently think in my heart:
"Hold your Bitcoin! And Buy The Fucking Dip!"
Hold onto your coins, never cut losses, just like I raised my shield and bravely tried to catch the bottom. It feels really great, like swinging a sword of counterattack against the whole world. After all, losing was just four years, winning will become legendary! On the path of creating legends, regardless of market ups and downs, the crypto world has never let us down.
These are lessons learned from real trades; behind each one is a period of torment. The purpose of sharing them today is to help everyone avoid detours, so please take them seriously!
If you don't have a good circle in the crypto world and lack insider information, then I recommend you follow me to shore up and welcome to the team!!!
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