Conclusion:
1. Trading first requires accepting stop losses and rejecting holding positions; holding positions = liquidation.
2. Don't blame yourself for trading failures; failure is normal, and there are no perpetual earners.
3. Control the position size for each contract to about 3%. The longer you survive, the more you can earn.
4. Don't go all in, don't fomo; develop your own trading system, then find suitable bloggers to strengthen your analysis and continuously improve your trading system.
5. Trading is not complicated: candlesticks, horizontal lines, trend lines, Fibonacci. Understanding volume and price, divergences, and Fibonacci is enough. This is the trading system I have formed since entering the market, for reference only.
6. Look at the big picture and make small moves. Confirm the trend on a larger timeframe, and set profit and loss on a smaller timeframe.
Experience:
Since entering the market in March 2024, as you can see from the historical candlestick chart, those who entered in early March could earn easily. I entered with 40,000 USD and made a maximum profit of 30,000 USD, watching the 1-minute chart for each trade, with a margin of 2-3K USD, using 100x and 50x leverage. Looking back, I realize I was no different from a gambler. Ridiculously foolish. After mid-March, my mindless bullishness combined with the FOMO of the crowd: Bitcoin was going to a new high, Dogecoin was going to 1, Ethereum was going to a new high, which led me to hold on until the black swan event on August 5, incurring losses. At that time, I felt like a clown watching my positions get liquidated. During this period, I joined membership groups, community groups, followed KOLs for private placements, using all sorts of desperate measures, yet still unable to change the fact of my losses. I believe many novices have experienced similar situations.
Then on September 5, 2024, I borrowed 30,000 USD, and with 55,000 of Bitcoin, I opened two long positions, which helped me recover some losses. I read books, learned about wave theory, Fibonacci, Gann, head and shoulders, RSI, MACD, Bollinger Bands, and various indicators. At that time, Bitcoin was also on the rise, belonging to a one-way market, until November 2024 when Trump successfully campaigned, and I closed all my long positions (not understanding part of profit-taking), mainly to avoid risk. Then I missed the opportunity and started my own path to liquidation; at that time, I opened a short position of 0.5 Bitcoin, thinking it was a small position that wouldn’t be liquidated, with the liquidation price above 100,000, later getting influenced by the market sentiment. I didn’t have respect for the market, and the price surge during that time was a drop during the day and a surge when the US stock market opened at night. This made it difficult for me to accept losses, so I didn’t close my position. Even on November 26, I saw a pullback and increased my short position by 0.5, which ultimately led to liquidation.
I am just an employee from a fourth-tier city, earning a net salary of 15,000 RMB a month, with no car loan, a mortgage, a wife, and a newborn child. Various pressures come. Anxiety, still anxiety. What can I do? I have regretted and felt remorse, but it is useless; my wallet will tell me the answer. I then entered a period of reflection, investing 1,000 USD, perfecting my trading system, relying on my monthly salary and small profits to barely repay my monthly debts. During this time, I only used candlesticks + horizontal lines + Fibonacci + MACD for trading, experiencing both profits and losses, slowly accumulating.
I hope to pay off my debts soon! I hope to respect the market, and that stop-losses are not a reflection of my trading problems; I should not fear stop-losses.
I also hope that my sharing can make me a KOL, helping novice traders, those with little capital who want to make money.
