5 million U! You know, last year when he borrowed 10,000 from me for turnover, he was still in a rented place eating instant noodles!
I was so shocked that I dropped my chopsticks on the spot. I spent the whole night pestering him to understand that this guy didn't just get lucky but relied on a strategy of relentless persistence to carve out a path in the crypto world. Today, I'm going to break down this “sure-win mindset” that has been tested in practice. Whether you're a newbie just starting out or an old player with years of experience, if you follow this, you can at least avoid 90% of the detours!
First, understand that 'survival' is the number one rule in the crypto world; capital management is your lifeline.
I find that many people enter the cryptocurrency world like they've been injected with adrenaline, clutching their capital and wanting to throw it all in, always thinking, 'Let's go all in, turning my bicycle into a motorcycle.' But what’s the result? Most of the time, they don’t see the motorcycle at all, and they lose even their bicycle!
My friend also made this mistake at the beginning. Later he figured out a 'five-part rule': divide the money at hand into 5 parts and only use 1 part for each trade, with each trade's loss not exceeding 10% of that 1 part. Calculating it out, even if he is unfortunate and makes 5 wrong trades in a row, the total capital will only lose 10%. Don’t think this is slow; remember, in the cryptocurrency world, as long as you haven't been eliminated, seizing a decent market can allow you to make back previous losses in minutes and even make a profit. The starting point of compound interest is never 'gambling,' but 'stability'!
2. Don't go against the trend; those who follow the trend have already secretly made a fortune.
I’ve seen too many 'reverse operation masters': when the market drops, they always feel like 'it's time to buy the dip,' only to end up getting trapped more and more tightly; when the market just starts, they panic and sell quickly, only to find they sold in a 'golden pit' and regret it immensely.
To be honest, trends are like rivers flowing; walking with them is easy and effortless; if you insist on going against them, you will only get hurt. I usually watch the market and never rush to act but wait until the trend becomes clear before entering. Remember, patience is not weakness; it is the sharpest weapon of trend traders. Those who can make big money in the cryptocurrency world can endure loneliness.
3. Don't touch coins that are skyrocketing! Those who are envious have long become the bag holders.
Every time I see someone in the community flaunting 'a certain coin increased by 200% in one day,' there’s always a group of people shouting to rush in. But I have to pour cold water on that: a surge is never an opportunity, but a trap! Whether it's mainstream varieties or small-cap coins, once the increase is outrageous, the likelihood is that capital is speculating. By the time you rush in, the others have already been waiting to harvest; the probability of becoming a bag holder is at least ten times higher than making a profit!
My friend is particularly 'timid'; every time he sees a coin soaring, the crazier others get, the calmer he becomes. In his words: 'If you’re not envious of others' profits, you’ve already won half the battle.' There are plenty of opportunities to make money in the cryptocurrency world; there’s no need to gamble on unreliable ones. Steadily earning what you can earn is the long-term strategy.
4. Technical indicators are tools, not gods; don’t let them lead you by the nose.
Many people become obsessed with learning technical indicators, treating MACD and moving averages as 'prophetic artifacts,' buying according to the indicators, resulting in terrible losses. In fact, technical indicators are just tools to help you analyze the market, like a doctor's stethoscope that can help you assess the situation but cannot make conclusions for you.
I usually look at MACD as a reference: when DIF and DEA form a golden cross below the zero axis, it might be a good entry point; if a dead cross appears above the zero axis, then it’s time to consider reducing positions. Also, regarding averaging down, you must not rely on feelings; when in loss, never average down, only when in profit and assured of the trend should you consider increasing your position. This way, you can avoid being swayed by emotions and doing foolish things.
Additionally, trading volume is the market's 'heartbeat'; if a certain coin suddenly surges in volume at a low level, it’s likely a signal that the trend is about to start. When I observe trends, I also refer to the 3-day, 30-day, 84-day, and 120-day moving averages. Only when these moving averages all turn upward and confirm the trend is stable will I act; I never follow the crowd or fantasize, only doing trades I am confident in.
5. Reviewing trades is 100 times more important than predicting; experts are those who emerge from reviewing trades.
Many people finish their trades and don’t think about it anymore; they feel pleased when they make money and curse when they lose, never thinking about why they earned or lost. But my friend is different; no matter how busy he is, he spends an hour reviewing his trades every day, going through them from start to finish: Was the buying logic correct? Where did the problem arise? How can he improve next time? He also pays special attention to the trend changes in the weekly K-line, because the weekly K-line reflects the market's overall direction more clearly than the daily K-line.
To be honest, there are no 'prophets' in the cryptocurrency world; the real experts grow through reviewing their trades. Every review accumulates experience for the next transaction, and slowly, you'll get to understand the market's temper, making money naturally easier.
This method sounds quite ordinary, with no profound techniques, but because so few people can consistently execute it, it has become the 'money-making code.' The market never treats disciplined people poorly; as long as you can remain calm, stick to your rhythm, and avoid greed, panic, and impulsiveness, you can steadily progress and earn your share of money even in the wildly fluctuating cryptocurrency world.
Finally, I want to tell everyone that there are still many opportunities to make money in the cryptocurrency world, but the prerequisite is that you must first arm your mind. If you find today’s content useful, please follow me; I will share more practical skills and market analysis later, and occasionally chat about my friend's 'wealthy anecdotes.' What problems have you encountered while trading? Or what content would you like to know about? You can tell me in the comments, and we can communicate and steadily make money together in the cryptocurrency world!