Experience gained through real money is more genuine than any theory.
Friends, today I want to share with you some experiences that truly helped me survive in this market. Over five years, from my initial ignorance when entering the market, to the painful realization after spending nearly seven figures on learning, and finally forming my own trading system to achieve stable profits — this journey has been filled with blood and tears.
If you have been trading in this market for more than a year and still have not broken through a hundred thousand in profits, the following text may be the last valuable content you need to see. The boundaries of your cognition determine your wealth limit. This is not just motivational talk, but a truth I have verified with real money.
One, having little capital is not scary; what’s scary is always being fully invested.
I have seen too many people (including myself five years ago) holding a capital of ten thousand but trading frequently every day, as if not trading would lead to losses. The result is that transaction fees eat away most of the capital, and a slight major drop directly traps them.
The correct mindset is: if your capital is small, making one main uptrend per year is enough.
The rule of the cryptocurrency market is that there are one or two trend events every year. What you need to do is not to watch the market every day, but to patiently wait for the best annual opportunity. Gradually build positions before a clear main uptrend starts, then set profit targets and decisively exit once reached, waiting for the next opportunity. Always being fully invested is equivalent to actively becoming a victim; this is one of my deepest lessons.
Two, the realization of good news is the arrival of bad news.
This is a common saying, but 90% of people still make this mistake. Seeing major positive news announced, they fantasize that it will continue to rise, only to get trapped at the peak.
The discipline I currently adhere to is: get out on the day the good news is announced. If the next day opens higher, that is an unexpected joy, but I will never be greedy. Market emotions always tend to overreact; after positive news is digested, what remains is just profit-taking.
Three, there must be a drop before the holiday; this is a rule learned from painful experiences.
Whether it’s major domestic holidays or Western Christmas, start reducing positions a week before the holiday; historical data does not lie. The reasons are multifaceted: large players need to cash out for the holiday, market trading is thin, and slight fluctuations can be easily magnified, etc.
This point seems simple, but it is the hardest to execute because the market often looks peaceful before the holiday. But it is this kind of complacency that leaves many people dumbfounded when the market opens after the holiday. Preserving capital is key to laughing last, especially important in the cryptocurrency market.
Four, the speed of decline determines the strength of the rebound.
A slow decline must correspond to a slow rise, and a rapid drop must correspond to a rapid rebound. This is key to judging market rhythm.
When the market is slowly declining, it indicates that there is not much disagreement between the bulls and bears, and this trend will last for a long time. However, when the market falls sharply, it often signals panic selling. Once emotions stabilize, a rebound will be very rapid. Mastering this rhythm allows you to better judge the timing for bottom-fishing, rather than catching falling knives.
Five, the two core indicators of short-term trading.
I have done short-term trading for three years and found that the truly useful indicators are actually very simple: trading volume and candlestick patterns.
Trading volume represents market activity; cryptocurrencies without trading volume have no participating value at all. Candlestick patterns reflect market emotions and expectations. My personal experience is to only trade those active coins that have large fluctuations, while giving up the dead coins. Short-term trading requires making profits in volatility; without volatility, there are no opportunities.
Six, the quicker you acknowledge your mistakes, the longer you live.
This is a lesson I learned at great cost. Stopping losses is not a failure, but a strategy. When you make a wrong judgment, quickly acknowledging the mistake and exiting is the best protection for your capital.
Many people are unwilling to stop losses, thinking that as long as they don’t sell, it doesn’t count as a loss. But this mindset is fatal in the cryptocurrency market. A significant drop may severely shrink your capital, possibly leading you to leave the table forever. True experts are not right every time but can control losses to a minimum when they are wrong.
Seven, 15-minute candlestick + KDJ = short-term weapon.
For short-term traders, this is the most effective combination I have tested. The 15-minute candlestick can reflect short-term trend changes in a timely manner, while the KDJ indicator helps determine buy and sell points.
This is not a secret weapon, but it is simple and effective. The key is to form your own trading system, rather than using this indicator today and switching to that method tomorrow. There are countless techniques; mastering two or three is enough. Being greedy and trying to learn too much is the graveyard of countless people.
Eight, the survival rule for medium to long-term investments: cash is king.
For medium to long-term investors, my experience is: cash is king, sell decisively when prices rise, and buy back in batches when prices fall.
In the early stages of a bull market, maintain a certain proportion of cash to avoid full investment. Be brave to sell when the market rises, and buy back in batches when it falls. This rolling operation seems simple, but it is the way to survive for a long time. Many people become passive once fully invested and can only leave it to fate, which is definitely not a rational investment attitude.
Nine, first practice courage with a simulation account.
In the real battlefield, a single failure may lead you to leave the table forever. Therefore, when trying new trading strategies, I strongly recommend validating them with a simulation account first.
This is not about looking down on anyone, but about being responsible for your capital. When you can consistently profit on a simulation account for over three months, then consider trading with real money. The boundaries of cognition equal the limits of wealth; continuously learning to expand your skill set is the foundation of sustained profits.
Ten, mastering three tricks is better than knowing a hundred techniques.
Finally, and most importantly: there are countless techniques, mastering two or three is enough.
I have seen too many people learning various new technologies and indicators every day, yet none are mastered, leading to indecision when trading. In fact, whether it's moving averages, MACD, or Bollinger Bands, mastering one and forming your own trading system far exceeds knowing a hundred techniques.
These rules seem simple, but behind each one is a lesson learned from my painful experiences. From liquidation to stable profits, I have verified every word. If you can strictly follow it for three months and still have not made a breakthrough, you may need to reevaluate your trading system.
The cryptocurrency market is a place full of opportunities, but it is also a battlefield fraught with traps. True experts are not those who have never lost, but those who can learn from their losses and ultimately form their own way of survival. I hope my experience can help you avoid some detours and achieve your goal of stable profits as soon as possible.
Remember, surviving in this market is more important than how much you earn in the moment.
The above is just a personal experience sharing and does not constitute any investment advice. The market has risks; investment requires caution.
Feel free to share your trading experiences and insights in the comments section; let’s learn and improve together! Follow Xiang Ge to get to know more first-hand information and insights into the cryptocurrency world, becoming your guide in the cryptocurrency market; learning is your greatest wealth!
