What have I experienced from 1 to 0 and then from 0 to 1?
Trading cryptocurrencies has made me go through several cycles.
Cryptocurrency really torments people. I accidentally got into the crypto space in April 2017. At the beginning of 2017, during the first half of the bull market, I was just dabbling and didn’t make much money because I didn’t understand it at that time. Then I encountered the event on September 4th, where I lost about two-thirds of my funds. After September 4th, by November, the bull market started again. I borrowed 60,000 to invest heavily in some altcoins, and by January 2018, my funds had reached 300,000. At that time, I felt life was beautiful, and I was living quite comfortably.
Not long after, Bitcoin plummeted, dropping all the way until mid-February. My funds were basically halved, and at that time, people were in shock because I was only earning 5000 yuan a month, which took me years of hard work to earn. Later, I just held on until August, but I couldn't stand it anymore and had to cut my losses to survive. In the end, I was left with only 80,000 yuan, and then I encountered the crash in December 2018. I dealt with Ethereum contracts, and as you can imagine, I got liquidated, ending up at zero.
I wasn't willing to accept it, so I borrowed 18 from my credit card and continued shorting Ethereum, and with a bit of luck, I recovered some of my capital. Later, I switched to shorting EOS, but I encountered a major rebound, so I cut my losses and paid back the remaining money on my credit card. I came clean to my family, and they gave me 60,000 to cover the gap. Then I saw Bitcoin had risen from 3120 to 6000 USD, and still, I wasn't satisfied, so I chose to cash out my credit card again, borrowing 100,000 to continue shorting Bitcoin, but I cut losses at 8200 and lost over 70,000. After that, I really felt disheartened.
Due to changing jobs at that time, my salary increased to 7000. I thought about working hard and not investing in these anymore, but I couldn't help myself and occasionally checked the market. As a result, I cashed out 120,000 and chose to buy EOS at 5.8. It rebounded to 6.8, and I sold, then continued to buy EOS again at 5.2, holding it for half a year. At the beginning of 2020, I cleared my position during the rebound. At that time, I felt light and free without any debt.
In recent years, I've gone from hundreds of thousands to zero several times, and it felt like a fate worse than death. But perhaps it was that stubbornness deep down, or maybe a strong desire to change my life, that made me decide to give myself another chance. The turning point came during the pandemic in 2020, during a significant correction of mainstream coins. At that time, the market was in a panic, and most people were selling off their coins. However, based on my previous research and analysis, I judged that this was just a normal market adjustment, and the fundamentals of that coin had not changed significantly. So, I decisively jumped in and bought a large amount with the funds I had saved up. As the price continued to reach new highs, my assets also grew several times, even dozens of times. After all these years, I have also summarized some experiences to share with everyone.
1. Focus only on the top 5 mainstream cryptocurrencies every day, based on current market hotspots, news, daily MACD golden cross, BOLL contraction and expansion, combined with market trends, and comprehensively consider to select the cryptocurrencies with high volatility for trading.
2. Control your position size:
50,000 divided into 20% means 5 parts, and each time you take one part to build a position.
3. Never go all in; at most 50%. Always keep 50% in reserve for opportunities.
4. Do not place more than 3 orders in a day, you need to keep it under control.
5. Never average down; if you incur a 30% loss upon entry, withdraw promptly. This indicates that the timing of your entry was incorrect.
6. Set a stop loss at 30% breach, unconditional liquidation, do not hold positions, holding positions will lead to death.
7. Never fall in love with candlesticks, enter and exit quickly, remember!!!
8. Go with the flow, trends are king, only engage in mainstream, avoid shanzhai minor varieties!
Second, the lifesaving mantra of the crypto world (recommended to memorize)
1. Don't rush to run away when there's a big drop in the morning; usually, there will be a rebound in the afternoon!
2. If there is a big increase in the afternoon, reduce your position; the probability of a pullback in the evening is high!
3. A decrease in volume while rising will continue to rise, and a decrease in volume while falling will continue to fall.
4. There will be an increase before major meetings or positive news, and it will drop once the news is released.
5. During the day in China, there will be a continuous drop to buy the dip, and at 21:30, foreigners will pump the market.
6. The key signal for buying and selling is the pin bar; the deeper the pin, the stronger the buy and sell signals.
7. When you hold a large position, you will definitely get liquidated. Why? You are just focusing on the liquidation list at the exchange.
8. After your short position stop-loss is completed, it will definitely drop, not tricking you to get off or exploding it, how could it drop? For example, TRB.
9. When you are about to break even, just a little more, and the rebound suddenly stops, how can you let yourself close the position and run away?
10. When you take profit, you have to pull up, how can you pull the market if you don't exit? The car is too heavy.
11. When you are excited, the waterfall arrives as scheduled, and your excitement is also a lure from the dealer.
12. When you are broke, every project is rising, making you feel FOMO, urging you to enter the market quickly. So you understand that the market is manipulated with over 80% probability. Besides controlling your position, you must definitely take the initiative and firmly avoid entering the market before the manipulators act. Once you enter the market, you are at the mercy of the exchange, and you become the fish on the chopping board. Trading is all about patience, composure, and timing.
Playing in the cryptocurrency space is essentially a battle between retail investors and whales. If you don't have cutting-edge news or first-hand information, you can only be taken advantage of! Those who want to strategize and reap profits from the whales are welcome to join and discuss with like-minded individuals in the crypto community!
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What have I experienced from 1 to 0 and then from 0 to 1?
Trading cryptocurrencies has made me go through several cycles.
Cryptocurrency really torments people. I accidentally got into the crypto space in April 2017. At the beginning of 2017, during the first half of the bull market, I was just dabbling and didn’t make much money because I didn’t understand it at that time. Then I encountered the event on September 4th, where I lost about two-thirds of my funds. After September 4th, by November, the bull market started again. I borrowed 60,000 to invest heavily in some altcoins, and by January 2018, my funds had reached 300,000. At that time, I felt life was beautiful, and I was living quite comfortably.
Not long after, Bitcoin plummeted, dropping all the way until mid-February. My funds were basically halved, and at that time, people were in shock because I was only earning 5000 yuan a month, which took me years of hard work to earn. Later, I just held on until August, but I couldn't stand it anymore and had to cut my losses to survive. In the end, I was left with only 80,000 yuan, and then I encountered the crash in December 2018. I dealt with Ethereum contracts, and as you can imagine, I got liquidated, ending up at zero.
I wasn't willing to accept it, so I borrowed 18 from my credit card and continued shorting Ethereum, and with a bit of luck, I recovered some of my capital. Later, I switched to shorting EOS, but I encountered a major rebound, so I cut my losses and paid back the remaining money on my credit card. I came clean to my family, and they gave me 60,000 to cover the gap. Then I saw Bitcoin had risen from 3120 to 6000 USD, and still, I wasn't satisfied, so I chose to cash out my credit card again, borrowing 100,000 to continue shorting Bitcoin, but I cut losses at 8200 and lost over 70,000. After that, I really felt disheartened.
Due to changing jobs at that time, my salary increased to 7000. I thought about working hard and not investing in these anymore, but I couldn't help myself and occasionally checked the market. As a result, I cashed out 120,000 and chose to buy EOS at 5.8. It rebounded to 6.8, and I sold, then continued to buy EOS again at 5.2, holding it for half a year. At the beginning of 2020, I cleared my position during the rebound. At that time, I felt light and free without any debt.
In recent years, I've gone from hundreds of thousands to zero several times, and it felt like a fate worse than death. But perhaps it was that stubbornness deep down, or maybe a strong desire to change my life, that made me decide to give myself another chance. The turning point came during the pandemic in 2020, during a significant correction of mainstream coins. At that time, the market was in a panic, and most people were selling off their coins. However, based on my previous research and analysis, I judged that this was just a normal market adjustment, and the fundamentals of that coin had not changed significantly. So, I decisively jumped in and bought a large amount with the funds I had saved up. As the price continued to reach new highs, my assets also grew several times, even dozens of times. After all these years, I have also summarized some experiences to share with everyone.
1. Focus only on the top 5 mainstream cryptocurrencies every day, based on current market hotspots, news, daily MACD golden cross, BOLL contraction and expansion, combined with market trends, and comprehensively consider to select the cryptocurrencies with high volatility for trading.
2. Control your position size:
50,000 divided into 20% means 5 parts, and each time you take one part to build a position.
3. Never go all in; at most 50%. Always keep 50% in reserve for opportunities.
4. Do not place more than 3 orders in a day, you need to keep it under control.
5. Never average down; if you incur a 30% loss upon entry, withdraw promptly. This indicates that the timing of your entry was incorrect.
6. Set a stop loss at 30% breach, unconditional liquidation, do not hold positions, holding positions will lead to death.
7. Never fall in love with candlesticks, enter and exit quickly, remember!!!
8. Go with the flow, trends are king, only engage in mainstream, avoid shanzhai minor varieties!
Second, the lifesaving mantra of the crypto world (recommended to memorize)
1. Don't rush to run away when there's a big drop in the morning; usually, there will be a rebound in the afternoon!
2. If there is a big increase in the afternoon, reduce your position; the probability of a pullback in the evening is high!
3. A decrease in volume while rising will continue to rise, and a decrease in volume while falling will continue to fall.
4. There will be an increase before major meetings or positive news, and it will drop once the news is released.
5. During the day in China, there will be a continuous drop to buy the dip, and at 21:30, foreigners will pump the market.
6. The key signal for buying and selling is the pin bar; the deeper the pin, the stronger the buy and sell signals.
7. When you hold a large position, you will definitely get liquidated. Why? You are just focusing on the liquidation list at the exchange.
8. After your short position stop-loss is completed, it will definitely drop, not tricking you to get off or exploding it, how could it drop? For example, TRB.
9. When you are about to break even, just a little more, and the rebound suddenly stops, how can you let yourself close the position and run away?
10. When you take profit, you have to pull up, how can you pull the market if you don't exit? The car is too heavy.
11. When you are excited, the waterfall arrives as scheduled, and your excitement is also a lure from the dealer.
12. When you are broke, every project is rising, making you feel FOMO, urging you to enter the market quickly. So you understand that the market is manipulated with over 80% probability. Besides controlling your position, you must definitely take the initiative and firmly avoid entering the market before the manipulators act. Once you enter the market, you are at the mercy of the exchange, and you become the fish on the chopping board. Trading is all about patience, composure, and timing.
Playing in the cryptocurrency space is essentially a battle between retail investors and whales. If you don't have cutting-edge news or first-hand information, you can only be taken advantage of! Those who want to strategize and reap profits from the whales are welcome to join and discuss with like-minded individuals in the crypto community!
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