Friends, are you exhausted from trading cryptocurrencies, with your wallet gradually thinning? Don’t worry, I once experienced that kind of painful feeling, being a million in debt, but after the pain, I finally realized the true essence of trading cryptocurrencies!
Did you know? In the world of cryptocurrencies, there is only one type of person who can truly get rich—those who have experienced liquidation and losses, and can still stand up, summarize their experiences, and maintain a great mindset. That's right, I am that kind of person, and now I want to share my experiences with you!
First, you need to understand that trading cryptocurrencies is like going to war; survival is the first principle. No matter how much you have made before, if you lose 100% in one go, you have to start all over again. Therefore, preserving your capital is the hard truth! Before each trade, you must ask yourself: How much do I plan to earn? What is the maximum loss I can accept? Once the bottom line is reached, exit immediately, do not hesitate!
Secondly, you need to have a clear operational system. Don’t blindly follow the crowd; just because you see someone else buying something, doesn’t mean you should buy it too. You need to have your own judgment and trading strategy. You should know when to enter and when to exit.
Furthermore, trends are your good friends. Don't be blinded by the short-term fluctuations; you must be patient and wait for the arrival of major market movements. Once the trend is clear, follow it and don't go against the tide. Remember, a bull market doesn’t end in a day, nor does a bear market. You must have patience to reap the rewards!
Mental quality is also key in cryptocurrency trading. You need to have strong mental fortitude; don’t be scared out of your wits by a small fluctuation. You need to have the mindset and perspective of dealing with the universe in order to navigate this market skillfully.
Of course, you also need to continue learning and researching. Don’t think that just because you know a little bit, you are invincible. You must continuously learn new knowledge and understand market dynamics and project backgrounds. Only in this way can you stand firm in this rapidly changing market.
Finally, I want to tell you the simplest method for trading cryptocurrencies - diversify your investments to reduce risk. Don't put all your eggs in one basket; you need to spread your funds across multiple promising projects and asset classes. This way, even if one project fails, you won’t suffer significant losses.
Also, you need to choose a safe trading platform and wallet. Don't choose unreliable platforms just to save on a small fee. You should select well-known, secure platforms for trading to protect your funds.
5 tips and insights to help you achieve profits!
Today, I will share with you 7 trading techniques and insights. These details are what I consistently practice daily, and I hope they help you!
1. Observe the market after trading halts
Many of us retail traders are non-professional traders without a complete trading system, and our mental state is often unstable, making us susceptible to market fluctuations. When we watch the market, we focus all our attention on minor price movements; even a small pullback can make us tense, leading to chaotic operations. We may close a previously promising position early or impulsively open a position in an unfamiliar market, getting stuck in a bad trade. When we look back after the trading halts, we may feel like we were possessed, trading poorly. Therefore, I suggest that people with poor self-control reduce the frequency of watching the market or even not watch at all. My own habit is to check the market after trading has closed, as it doesn’t involve current price fluctuations and won’t affect my mood, allowing me to rationally follow my trading plan. When the stock price drops to a low point and tests support + forms a reversal candlestick, that's when I enter; after the stock price drops and forms a new reversal candlestick, I add to my position, and after entering, I set previous highs as profit target points for closing.
2. Use orders more often, and less market price
The operation of placing orders is the one I use the most in trading, mainly serving two purposes: one is to reduce impulsive trading, and the other is to achieve better transaction prices. When you use the order placement method, once you have set the order, you do not need to keep staring at the market; you only need to check occasionally whether the order has been executed. When placing orders, we can also simultaneously set stop-loss and take-profit orders, which saves a lot of mental energy. Many people like to stare at the market when trading, panicking if they lose a little, and getting anxious at the prospect of a slight profit. Trading every day feels like going to war, and it can be exhausting. In this mental state, it is impossible to trade well. Therefore, I often say to maintain a certain distance from the market. Physically, this means reducing the time and frequency of watching the market, allowing your mindset to remain stable, which is more conducive to making objective judgments. Additionally, placing orders usually allows entry after a market correction, which gives you a more advantageous entry price compared to trading at the current price. Don’t underestimate the price advantage of entering through orders; a better opening price can lead to quicker profits, allowing traders to gain psychological advantages more swiftly, and can help expand profit and loss ratios for subsequent trades. Though this is a very small detail, years of practice have shown it to be beneficial. Our success is built on many small details.
3. When holding a profitable position, use technical pullbacks for short-term trades
Most trends operate in a way of oscillating upwards or downwards. During the oscillating pullback, profits from positions may decrease, which can cause significant psychological pressure, worrying about whether the market will reverse, whether to continue holding positions. At this time, you can use the technical levels of the market's pullback to create reverse short orders. For example, when holding a profitable long position, near the market's pressure point, combine it with the candlestick patterns to create a short position. After entering the short position, if the market pulls back, the short position generates profit while the long position's profit decreases, but the overall profit will not shrink significantly. After the market pullback, near the turning point of the market's second rally, close the short position and continue to hold the long position. This approach first alleviates the psychological pressure during the oscillating pullback, and second, it can enhance profits.
4. Become an independent trader
Trading is a serious and very personal matter. The money in your account is earned through your hard work, not just picked up off the ground, so we must take responsibility for every cent. Many people, when uncertain about a matter, habitually seek help from others or discuss with them to gain a sense of validation, which makes them more certain of their decisions. However, this is a taboo in trading. Because everyone has different judgments about direction, entry and exit points, position ratios, and the indicators and periods used, they all have their own standards. Once discussion occurs, your insecurities will be triggered, leading you to doubt your trading strategies, ultimately resulting in anxiety and losses. As the saying goes in 'The Crowd', once a person enters a group, their IQ severely decreases. To gain recognition, individuals are willing to abandon right and wrong, exchanging intelligence for that comforting sense of belonging. Therefore, when trading, avoid falling into this thinking trap. Try to find a relatively quiet environment, where you can think independently, develop, test, and adjust your strategy on your own, and finally execute it independently. Of course, the feeling of loneliness is there, but in the face of making money, this slight sense of loneliness is insignificant. Once you achieve real profits, you will understand.
5. Rule by non-action
Today I saw the following text and was deeply touched! What is successful trading? In fact, it is the absence of trading! Let’s look at it from a Buddhist perspective: If I were blind, then marrying Xi Shi or Dong Shi would make no difference.
If I were deaf, then there would be no difference between your praise and your insults. If I lost my sense of smell, then it would make no difference whether I was in a toilet or a sea of flowers. If I were dead, it would not matter whether my body was eaten by dogs or given a grand burial. The reason people are troubled, the reason for their fluctuating emotions, love and hate, is because their deluded mind is making distinctions! Because of the distinctions of the mind, good and evil, beauty and ugliness, right and wrong arise. Everyone knows that beauty is beauty, and thus evil is also. Your attachment to love gives rise to greed; when greed is unfulfilled, it produces anger, and the mixture of love and hate creates confusion. The cycle of greed, anger, and ignorance continues, driven by the relentless pull of karma, ultimately bringing countless fruits of good and evil, each one manifesting in turn. Your fate becomes predetermined, all circulating within cause and effect. Heaven and earth are unkind, treating everything like straw dogs, because the Dao makes no distinctions. Thus, the master of all things, the eyes, ears, nose, tongue, body, and mind can perceive color, sound, fragrance, taste, touch, and law, all due to the marvelous function of the mind. The mind perceives all things, responds to all things, yet is never contaminated, never directly takes anything from the world; thus, the mind is inherently complete, and the mind can give rise to all laws. The fundamental of cultivation is to illuminate the mind; how to illuminate it? When you have no distinctions, are unaware of the two extremes, and have no attachments, the Bodhi mind naturally reveals itself! Similarly, how to trade? When there is no trading in your heart, you can naturally traverse bull and bear markets!
There are two types of people who make money in cryptocurrency trading:
Those who hold long-term, remain calm, and do not suffer due to daily fluctuations are the ones with a spirit of adventure, keen insight, and the courage to invest in new things, discovering new opportunities. On the other hand, there are those who lose money: they chase after rising prices and sell on dips, listen to rumors, and have a restless mindset—these are the ‘chives’. Currently, the market is turbulent, walking alone can be isolating; follow me for daily potential spot layouts and bull market strategy layouts.
