What have I experienced from 1 to 0 and then from 0 to 1?

Speculating in cryptocurrencies has made me go through several cycles.

Cryptocurrency is really tormenting. I accidentally came into contact with the crypto world in April 2017. At the beginning of 2017, during the first half of the bull market, I dabbled a bit and didn't make much money because I didn't understand it at that time. Then I encountered the events of September 4th, which led to a loss of about two-thirds of my funds. After September 4th, in November, the bull market opened up 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 the year was quite comfortable.

Not long after, Bitcoin plummeted, falling until mid-February, and my funds were basically halved. At that time, I was numb because my salary was only 5000 yuan a month, which could last me for several years. Later, I just held on until August, but I really couldn't bear it anymore and had to cut my losses to survive. In the end, I was left with 80,000 yuan, and then I encountered the crash in December 2018. I got into Ethereum contracts, and as you can imagine, I was liquidated and ended up in a zero state.

I was unwilling to accept it, so I took out another 180,000 from my credit card to continue shorting Ethereum, and with a bit of luck, I recovered some of my losses. Later, I switched to shorting EOS, but I encountered a big rebound, so I cut my losses and paid back the remaining money to my credit card. I confessed to my family, and they gave me 60,000 to cover the gap. Then I saw Bitcoin had risen from 3,120 to 6,000 USD, and I still couldn't accept it, so I chose to cash out my credit card again, taking out 100,000 to continue shorting Bitcoin, which I cut losses at 8,200, losing over 70,000. After that, I really felt disheartened.

At that time, I changed jobs and my salary increased to 7000. I thought I would focus on my work and not invest in these anymore, but I couldn't resist 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 it again. Then I continued to buy EOS at 5.2 for half a year. At the beginning of 2020, I cleared my positions during the rebound. I felt so light without any debt.

In recent years, I have experienced several times where my assets went from hundreds of thousands to zero, feeling like life was worse than death. However, perhaps it was that inherent unwillingness to give up, 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, amidst a significant retracement of mainstream cryptocurrencies. At that time, the market was in panic, and most people were selling their coins. But based on my previous research and analysis, I judged that this was just a normal market adjustment, and the fundamentals of that cryptocurrency had not changed significantly. So, I decisively took action and bought in large quantities with the funds I had accumulated. As prices continued to reach new heights, my assets achieved several times, even dozens of times, growth. Over the 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 narrowing and widening, combined with market trends, comprehensively consider and choose volatile varieties for trading.

2. Control your position size:

50,000 divided into 20% means 5 parts, with one part used to build the position each time.

3. Never go all in; at most 50%. Always leave 50% as a reserve for opportunities.

4. Do not execute more than 3 trades in a single day, and keep it under control.

5. Never average down; if you incur a 30% loss upon entry, withdraw in a timely manner. This indicates that the timing of your entry was incorrect.

6. Set a stop loss at 30%. If it breaks, close the position unconditionally. Do not hold onto the position; holding onto it 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 trade mainstream, and do not engage in copycat small varieties!

2. Cryptocurrency Lifesaving Mnemonic (Recommended to be memorized)

1. Don't rush to run away in the morning's sharp drop; usually, there will be a rebound in the afternoon!

2. If there is a significant rise in the afternoon, reduce your positions, as there is a high probability of a pullback in the evening!

3. A decrease in trading volume while prices rise will continue to rise, and a decrease in trading volume while prices fall will continue to fall.

4. There will be a rise before major meetings or positive news, but it will drop once it materializes.

5. The domestic market is expected to drop significantly during the day, so it's time to buy the dip. In the evening at 21:30, foreigners will push the market up.

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 face liquidation. Why? You are just paying close attention to the liquidation list on the exchange.

8. When your short position stop-loss is completed, it will definitely drop, not trick you into getting off the bus or explode, how could it drop? For example, TRB.

9. When you are about to break even, just a little more, the rebound suddenly stops, how could it make you close your position and run away?

10. When you take profit, you've already made a fortune. If you don't exit, how can you pump the market? The vehicle is too heavy.

11. When you are excited, the violent waterfall arrives as scheduled, and your excitement is also a bait from the dealer.

12. When you are broke, every project is rising, making you FOMO and rush to enter the market. So you understand that the market is manipulated with a probability of over 80%. Besides controlling your position, you must also act decisively; you should firmly avoid entering the market before being clear about the operator's actions. Once you enter the market, the exchange is the butcher, and you are the fish. Trading is a test of patience, composure, and timing.

Playing in the crypto space boils down to a contest between retail investors and whales. If you don't have cutting-edge information or firsthand data, you'll only get cut! If you're looking to strategize and reap profits from the whales, feel free to join; like-minded people in the crypto community are welcome to discuss together!

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