There is no clear definition of how much the first pot of gold is. According to my own situation, I live in a first-tier city in China, where the average house price is 80,000 yuan. The threshold for the first pot of gold may be higher, so let's calculate it as 5 million yuan for now.

So, how long does it take to make the first $5 million in the cryptocurrency world? Maybe overnight, maybe a year or two, or maybe never.

Let me share my experience of making money in the cryptocurrency world.

In the cryptocurrency circle, everyone says that cryptocurrency trading changes lives, but what I want to say is that I can change cryptocurrency trading.

You are worried about not making money from investment, sad about falling into traps, and heartbroken about cancelled orders. You heard from others that the market is good and even vegetable sellers can make money, but as soon as you enter the market, you are labeled as a "leek".

The difference between me and many people is that I have studied and practiced hard for so many years. Nothing else, but I can change the fate of a "leek" who has failed in the investment market. Without further ado, today I will continue to talk about some practical stuff, which are all the "heart methods" I have learned from practicing in the several markets mentioned above.

In the cryptocurrency market, don't worry about which coin you are speculating. I often hear people say that a certain coin has a big increase. I just want to say that how big the increase is has nothing to do with you. How beautiful someone's wife is has nothing to do with you. If you want to make money by speculating in cryptocurrencies, first of all, position management technology is very important. Don't take position management seriously. You should have a good idea of ​​how much you lose. Position management is a double-edged sword. If we control it well, we can be at ease in cryptocurrency speculation, and we can attack or defend. If we control it poorly, we will suffer huge losses. Either we will be out of stock or we will be deeply trapped. The dream of getting rich will be shattered in minutes.

Here we suggest that the majority of "leeks" should trade cryptocurrencies within their means and choose appropriate operating methods for different funds.

Here I would like to share with you a position management method - "pyramid position building method"

Originally this method came from a method of futures speculation and was mainly used in buying and selling operations. After I improved this method, I was able to survive in desperate situations.

(1) For the first entry, use a position of no more than 20% of the total funds. If the direction is consistent and the trend is established, you can gradually increase your position, but the proportion of the increase will gradually decrease. Generally, 10% of the remaining funds is used for each increase. This is the type of pyramid position management method, and it is also the simplest.

(2) Use 20% of your position for the first entry. If the direction goes in the opposite direction, don’t worry. Determine where the support is. If the support is far away, you can choose to cover your position at the support level. Covering your position requires 30% of the remaining funds. Generally, for orders in the opposite direction, you only need to add to your position once. Why is the position ratio for covering your position heavier than that for opening a position?

Because the market direction is reversed, usually the pullback is relatively small, and a heavy proportion of covering positions can spread the average price so as to seize the pullback to protect the principal or exit the market with a small profit. If necessary, you can also exit the market with a small loss.

(3) When you enter the market with a 20% position for the first time, if the market moves in the opposite direction and fluctuates very quickly, you may not have time to stop loss, or you may not be willing to stop loss and end up trapped in a position. At this time, you should promptly use the same position as the first position to open a position in the opposite direction to form a hedge and avoid position risk. When the one-sided market ends and starts to fluctuate, you can seize the opportunity to operate back and forth within the hedging range to offset losses and gradually exit the position, thereby achieving a small profit or breaking even, or even exiting with a small loss if necessary.

Position Taboos

1: The account is overloaded, and opening a position of more than 30% is tantamount to seeking death.

2: Do not set a stop loss. Every order must be set with a stop loss, and the risk-to-profit ratio should be at least 1:1.5.

3: When facing failure, most people are desperate after losing money and are powerless to recover. After losing money, shift your attention to the next transaction as soon as possible. Even investment experts cannot guarantee that every transaction will be profitable, so when some of your transactions lose money, you should forget it as soon as possible and quickly shift your attention to the next transaction.