Brothers, if someone had told me ten years ago that entering the crypto space with 50,000 could earn an eight-figure profit, I would have thought they were crazy. But today, I sit here not to boast, but to share with you my hard-earned lessons from three bull and bear markets: money made by luck will surely be lost back through skill. Those who survive and achieve a leap are the 'anti-human' players who turn trading into a system and themselves into machines.
1. My moment of enlightenment: from 'gambler' to 'systematic trader'
In the early years when I first entered the market, like most people, I chased trends and made impulsive bets based on news, letting my emotions follow the fluctuations of the candlestick chart. After paying hundreds of thousands in tuition, I finally woke up: the crypto space is not a casino; it's a battleground of cognition and human nature.
The real turning point began when I discarded the 'fantasy of getting rich quickly' and started building a cold trading system. The core of this system, I call the 'Three No Principles':
Do not chase highs: When the market is in a frenzy, I often quietly reduce my positions. Remember, FOMO (fear of missing out) is the retail trap.
Do not go all in: No matter how favorable the target looks, only allocate fixed positions. Financial freedom relies on compound interest, not a one-time miracle.
Do not hold positions: Set a stop-loss line, just like fastening a seatbelt for trading. If the market goes against you? Admit your mistake and exit; the next opportunity will come soon.
Two, key points: My 'pyramid' position management philosophy (with plain language tutorial).
Many friends ask me how to operate specifically. Here, let's get straight to the point, this is the core method I have verified with real money.
Core idea: Buy like building a pyramid, sell like an inverted pyramid.
Plain language tutorial:
Assuming you have a total of 100,000 U ready to buy spot.
Step 1: Divide the money. Split the 100,000 U into 10 parts, each part is 10,000 U. This means you can hold a maximum of 10 different cryptocurrencies, and each cryptocurrency has 'exclusive funding' of 10,000 U.
Step 2: Build positions. If you are interested in a certain coin, initially only use half of its 'exclusive funding', for example, buying 5,000 U; this is called the base position. The remaining 5,000 U is the reserve, used for unexpected situations.
Step 3: Average down/increase positions. If the price drops to a more ideal position you predetermined, use the reserve to buy in batches (the lower the price, the larger the buying proportion, this is called 'positive pyramid'). If it rises, let your profits run, only take profits in batches at key resistance levels (the higher the price, the larger the selling proportion, this is called 'inverse pyramid').
Major warning: Never say 'I am very bullish on this coin, I will directly invest 30,000 U; this one is average, only buy 5,000.' The result is often a heavy position dropping 10% losing 3,000, while a light position rising 10% only gains 500, and overall still a loss. Discipline is greater than inspiration!
Important notes for contract players:
The contract is a double-edged sword; used well it can double efficiency, used poorly it can double your losses. Besides strictly having stop-losses, I have set rigid rules for myself regarding position limits (taking ETH as an example):
Initial capital of 1000 U, position not exceeding 5.
Initial capital of 10,000 U, position not exceeding 30.
This forces you to pick opportunities carefully, reject frequent trades, and ensure that any single loss won't be too damaging. Remember, in the contract market, survival is key to output.
Three, K-lines are not mysticism, but the psychology map of the market.
Not understanding K-lines is like driving without looking at road signs. But to read K-lines, you must understand the underlying tug-of-war between bulls and bears.
Look at the big trend (monthly K, weekly K): This is the core of judging bull and bear markets. The 5-month moving average of the monthly K is equivalent to the 100-day moving average of the daily line. If it flattens and rises, the big trend is healthy. A golden cross between the 5-week and 10-week moving averages often means the start of a mid-term market.
Find the position (support/resistance): I often use Fibonacci retracement combined with previous dense trading areas to make judgments. When the price retraces to the 0.618 or 0.5 support level and stabilizes, it is often a good point of focus; if it rises to 1.618 or previous highs, it is a pressure zone to consider reducing positions.
Read the sentiment (K-line shape): A long lower shadow (pin) indicates that there is capital support below; a long upper shadow with high volume at a high position is a signal of heavy selling pressure. K-lines are revealed through actions, not guesses; respect the current shape.
Four, revealing the ten 'counterintuitive' truths in the cryptocurrency world.
You think altcoins can rise 100 times, the truth is that 99.9% of altcoins will eventually go to zero. Don't fall in love with any coin; what you love is profit.
When a project is shouted by everyone as the 'wealth password', it is likely that they are looking for someone to take over.
When retail investors panic collectively and feel like it's the end of the world, it is often the darkest moment before dawn. Others fear, I am greedy; this is easy to say but hard to do.
The more you are convinced that a coin will rise and prepare to bet everything, the more likely it is that the market makers are smiling and trapping you. The market is designed to punish all forms of overconfidence.
You think contracts have a 50% win rate, but the truth is that less than 10% are long-term winners. The competition in contracts is not about analysis, but about position management and emotional control.
Don’t always see market makers as enemies; experts learn to 'dance with the market makers'. Understanding the intentions of big money is more important than watching the market every day.
Is it 'easy' to make money in the cryptocurrency world? The truth is that less than 1% can continuously make money. This follows the more brutal '80/20 rule'.
Don't blindly despise paid knowledge. Good analysis can save you a lot of trial and error costs. The key is to pay for valuable information, not to buy anxiety.
The core driving force behind rising cryptocurrency prices is not just value, but also 'consensus' and 'liquidity'. Understanding market narratives is sometimes more important than understanding technology.
Achieving a leap in wealth requires: luck (finding good targets) + cognition (holding on) + discipline (taking profits) + patience (waiting it out) + cash flow (having continuous ammunition). None can be missing.
Conclusion: Heartfelt words for every warrior.
Brother, there are no gods in the cryptocurrency world, only survivors. My method is the armor I have earned through countless painful experiences. It does not guarantee you will win every battle, but it can greatly increase your survival probability in this brutal market.
Remember: the capital is your soldiers, discipline is your military code. Always prioritize risk management over profits. If you make money, the market is being kind to you; if you lose, it’s just the cost of the system. Accept gains calmly and losses with indifference.
If this article, which carries my ten years of experience, inspires you, feel free to follow.
