Memoirs of a small Ethereum writer

“I used it for one year, from 200,000 yuan after the warehouse was liquidated to 50 million yuan, and then spent.”

This article is from the submission, the author Paprika, Odaily Planet Daily is authorized to publish, and the authenticity of the content has been verified

I am not a master trader, nor a professional institutional trader. But because of this, I think my sharing is of more general significance to more ordinary people who want to participate in Crypto investment.

I love trading Crypto assets, mainly futures contract trading. I used to be a little joke, profit and loss. At the end of 19, when Bitcoin was close to 10,000 U.S. dollars, I spent 2 million yuan to buy 28 (the exchange rate at that time was nearly 7.2). Originally, these 28 Bitcoins were intended to be in my pocket for 10 years, but then the bear market came. , The price has been falling all the way, and when it fell to more than $6,000 in March 2020, I was itching and spent most of it to go long. The result was naturally a tragic blowout in the epic plunge of 3.12.

With only more than 200,000 yuan left in my hand, I spent time researching, formulating and adjusting strategies, and there were many ups and downs in the middle. It took a year to achieve more than 50 million yuan in early 2021. After that, I withdrew most of them to live, and used them to purchase real-life assets and diversify investment. The remaining 3 million yuan will remain in the market and continue trading relatively conservatively, and it has reached about 20 million yuan today.

After 19 years, I have never made a deposit, but I have been insisting on withdrawing cash almost every month. I never hesitate to withdraw coins when I want to buy something. Therefore, I have repeatedly jumped between getting rich and returning to zero on many contract platforms. Reality The big V in the middle is different. I have the confidence to say that I am not a gambler, but a serious trader. The money I earn is used to improve my life, instead of pursuing psychological stimulation.

Of course, compared with the story of betting thousands of times or even ten thousand times of coins and getting rich overnight, my rate of return may not be worth mentioning. However, I have gone through this process several times with great concentration of research, accurate judgment, self-verification, resolute implementation of my ideas, and substantial benefits. So I can say that I don’t make money by luck, at least not entirely by luck.

For a long time, I am not proud of making some money with secondary trading, and it is still the case today. I rarely share my strategy, my thoughts, and my judgments with others, nor do I trade for friends around me. I think that will affect my judgment. I think what I have always done right is very simple, which is to firmly believe in and participate in trends. It is of course happy to make money, but it is not worthy of honor.

Against the background of large water releases and the mainstreaming of encrypted assets, the bull market has been going on for quite some time, and I have become more and more contented in the familiar environment and methods. But it’s easy to make mistakes if you’re too comfortable. Recently, I re-watched “Memoirs of a Stock Master”, which made me reflect that the simplest is the most difficult to do. The truth is actually very helpful. Therefore, I decided to write this review, share it, and conduct self-examination. After all, how an ordinary person can make relatively stable money in Crypto transactions.

(In my opinion, technical analysis is actually simple, and overcoming human nature is the most difficult. Therefore, this article does not involve any trading guidance and strategy guidance, just personal experience sharing. In addition, because many trading platforms, such as OK, you can only watch For the orders of the past 3 months, Huobi withdrawal records can only be viewed for 120 days. The historical data is now invisible. I can only tell many figures from my impressions, and there may be discrepancies. The transaction screenshots in the article are mostly chat records with friends Some bits and pieces found in it.)

Lock in trend

First of all, ordinary people must know that big money can only be made in a megatrend, no matter what the reason is to promote the initial rise of the market, the fact is that the continued rise of the market is neither the hype of insiders nor the tricks of financiers, but Determined by the basic situation of the market, the market will inevitably advance according to the magnitude, speed and time determined by the driving force, and no one can stop it.

The first quarter of 2020 is full of drama. The DeFi pattern is beginning to emerge, and the locked ETH and U.S. dollars have reached new highs. Just as people are discussing DeFi out of the circle, the “Black Thursday” crash of 3.12 came, and Bitcoin plummeted to 3,800 U.S. dollars. Ethereum to $87. At that time, my Bitcoin contract broke out, and there was only two or three million yuan worth of U left in my account, and I was confused. I was not particularly anxious to buy bottoms. Instead, I thought about it and waited for 3 months. In the middle, I basically held the spot and played with it on a small scale.

In June, when the spot on my account rose to around 400,000 yuan, I made up my mind to restock the ether . One was based on technical analysis, and the other was based on fundamental beliefs. I remember very clearly that at that time, Ethereum was US$200. My best friend in the industry and I said that within 3 months, Ethereum would rise to $500. He couldn’t believe that the performance of Ethereum was relatively sluggish at that time. I remember There is an article called “Why is ETH silent in the DeFi carnival? 》At that time, from Kyber to Compound, the market value of DeFi rose rapidly, but ETH itself, as the bottom layer, performed well. There were also many debates in the community about the arrival of 2.0.

But in my opinion, this means that the answer is already clear. DeFi will definitely lead Ethereum to climb to the top again. Sometimes the relationship between technology and fundamentals is very mysterious. When the rise starts, all the benefits will naturally be in every resistance. Bit cashed out. Here I want to say that it is a necessary process to research and believe in your own judgment, otherwise it is impossible to hold it. It takes a lot of time for a person to buy a computer research configuration. Many people bet on half of their wealth only because others say it is good.

Sure enough, the ether leaped all the way to the vicinity of 450 US dollars, and my account, which became long and continued to increase, had close to 8 million yuan.

Correct operation

But my psychological expectation at the time was to close the position at $500 and wait for the callback to pick it up again, so I made another mistake. When Ethereum rose to $488 on September 1, I had to wait for the $500 position to be closed. Instead of taking profit as expected, but continuing to increase the position during the decline process, the liquidation price was pulled from a safe more than $200 to $320, and it happened to be below my liquidation line during the decline, so I once again The position was liquidated until only four to five hundred thousand yuan were left.

To be honest, my frustration and annoyance at this moment are more than that of 312. I know that my judgment is correct. After the Ether pulls back and oscillates, it will rise more strongly, but I have lost my position. The judgment is correct, and I have no money NS.

In this process, there is the simplest truth that is repeatedly mentioned in “Stock Masters”, which I always tell myself later, speculators should hope to rise and fear to fall. This seems like a nonsense, but in reality, people often operate On the contrary, when falling, people always hold on to hope to rebound and not stop loss, but when rising, they always fear that profits will disappear and can’t hold it. I did the latter. I firmly believed in the trend during the rise, but failed to do the former and sold in time.

To extend, I often made similar mistakes in short-term operations in the past: I held two currencies, and the ones that made a loss, I continued to hold, and the ones that made profits, but I threw them out. This is what most people often do. , But it is also an extremely stupid operation. In speculative trading, it is the most stupid thing to try to increase the average price in order to reduce the loss. It is wise to throw out positions that cause losses and keep profitable positions.

Knowing where my problem lies, I sorted out my mentality and decided to formulate a better strategy this time, and resolutely implement it.

Overcome humanity

A week later, thinking that the market is bottoming, I divided my main positions into two, one more aggressively long Bitcoin, and one long Ethereum with low leverage.

The so-called aggressive long Bitcoin is because I believed that $9,800 was a strong support level at the time, which means that the price of opening a position is very high. If you continue to drop, stop the loss immediately. If the judgment is correct, this will be a long-term safe position.

So when Bitcoin was repeatedly rubbing at this support level and market opinions were different, I opened a position. It turns out that in the 1-2 weeks of the first half of September, the $9,800 K-line was inserted like a fence, but it was firmly supported. I took this long order until April 2021. In the middle, when some resistance levels broke through, I cleared my position and increased my position. Bitcoin rallied to 40,000 or 50,000 U.S. dollars. This position changed from 200,000 yuan to 200,000 U.S. dollars in a few months. More than 20 million yuan. After a few days of rapid growth, I can see millions of dollars in income when I get up.  

Memoirs of a small Ethereum writer

(Left: A picture generated by Huobi these days, middle and right: A picture with a high daily income cut for a friend at that time)

I used the other half of the position to do long Ethereum with low leverage, and I rarely increase the position. I made a few spreads in the middle and kept the liquidation price extremely low. In the bull market, the increase of Ether is higher than that of Bitcoin, but it is also more severe when it is pulled back, and it is even more inaccurate when using technology to determine the point. This position also achieved 20 million yuan.

Memoirs of a small Ethereum writer

(The picture I shared with my friends before, sorry I want to find the specific order but I can’t find it)

When I say this, you will feel that holding the contract for three months, it is easy to see a hundredfold return, which is absolutely true. In addition to the human weakness of overcoming the fear of rising as mentioned above, it is more important to stick to your core strategy, not to be dazzled by all kinds of news, and not to listen to the news.

For example, I have always believed in the future of the Ethereum ecosystem, and the construction of Ethereum is indeed changing with each passing day. But for an ordinary investor, you often cannot distinguish which are good opportunities, which are traps or even scams, and it is difficult to get out at the right time. In the past two years, I have also dug many DeFi mines, bought many NFTs, and tried many knockoff assets. There are some gains and losses, but when I look back, the gains are even far inferior to the rise of the Ethereum spot. Fortunately, I only used a small part of the funds.

In addition, when your trusted friend tells you that xx has been beneficial recently, you should just listen to it. I’m not saying that people shouldn’t try new things. Learning is very important, but you have to understand that subjective trading is often a matter of not having both fish and bear’s paws, and has nothing to do with the amount of funds. Because you have to implement your own ideas well, you cannot sometimes listen to others, sometimes believe in the news, and sometimes doubt yourself.

And, I want to make every kind of money, I want to seize every opportunity, and in the end it’s easy to catch nothing.

At the same time, a very important thing I learned is that “waiting” is the most important and difficult part of the transaction itself. In the world of Crypto, waiting is even more tormenting, because it develops too fast and the cycle is too intense. Every day you listen to the stories of others getting on the train to get rich and shake your own thoughts.

Therefore, you need to cultivate your body, guard against arrogance and rashness.

enjoy life

For me personally, self-cultivation is not about being pure-hearted, but about enjoying life. The meta-universe hasn’t arrived yet, so I should take care of the physical body first.

I never watch the market anxiously all the time, because it takes time for a trend to come out. You can use technology to judge its position and possible moves, but no one knows the specific time. Therefore, trend traders do not need to abuse themselves. If you can place an order in the “right” position, all you need to do is hold it without distraction, so I rarely toss and turn at night.

There is one more interesting thing. People who do secondary transactions often have a very strange habit-only make money, not spend money, because that will “lose the bargaining chip”, but I am different, I am a consumerism first people.

I think consumerism is a neutral term. For an ordinary person, I believe that I will live a longer life like this. I often withdraw cash and consume frequently. I want to buy a car or a watch. I know I am an ordinary person. , So if the trade fails one day, it won’t end up in disintegration.

After the callback on May 19, 2021, I also lost some money, but at this time I have already used most of the money I made in the past for my family and life, and my contract position is very low. It sounds like I lose money every time I make a big correction, but I know that I actually went from being unprepared and losing money to reasonably sustaining normal losses.

Many people ask me if I only go long and not short. I want to say that is not the case. However, in the general bull market trend, even if I judge that there will be a phased correction, I will not go short. I will only close long orders and spot goods. Not necessarily out.

Because I know I am not a smart and professional trader, I cannot execute several strategies at the same time without being disturbed by myself. I just want to make money that I know. Before the end of the big trend, I value it more. The thing is, don’t lose your position, it makes me feel more troubled than a momentary loss of the book.

The above is the trading perception I wrote to myself. There is a lot of nonsense, but I understand everything.

Now that 2021 is drawing to a close and 2022 is coming, I know that I will balance my desires, love life, and continue to be determined and determined to make money within my knowledge.

Posted by:CoinYuppie,Reprinted with attribution to:
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