Investment Initial Experience: Transitioning from Pandemic to Quick Profit of 3 Million
In 2021, as the pandemic impacted his primary business, Conan decided to enter the investment market with an initial capital of 300,000 TWD, following a friend’s lead in contract trading. “I had no idea what 10x or 20x leverage meant, but I was making money every day.” By the end of the bull market, his funds surged to over 3 million TWD within just one month, easily surpassing his income from his main job.
Entering the Crypto Circle: Turning 300,000 into 3 Million in a Bull Market
Conan recalled that due to the pandemic’s impact on his primary business in 2021, he ventured into the crypto market. “At that time, I used 300,000 TWD to engage in contract trading, and in just a month, it multiplied tenfold to 3 million.” He admitted that he did not even understand the principles of leverage, purely relying on luck and the market’s bull run. However, he faced a major setback during the 5/19 incident, where he was holding a long position in Ethereum and continuously added margin, ultimately leading to a liquidation loss of 10 million TWD.
The Fatal Attraction of Bull Markets and NFTs: The Lesson of 6 Million Turning to Zero
“At one point, I made 50 million TWD.” Conan noted that he used his remaining 500,000 TWD to purchase Bored Ape NFTs, recovering losses later through massive airdrops, 3x leverage on Ape coins, and the appreciation of BAYC NFTs. However, an overconfident chase for APE, triggered by Musk changing his profile picture to BAYC, caused the $APE to plummet, resulting in an initial profit of 6 million turning into a loss of 3 million, leaving him with only a net profit of 300,000 TWD. In his desperation to recover losses, he fell into a cycle of asset death, losing more as he traded, even borrowing 40 Ethereum using BAYC as collateral, which he also lost. From that moment on, his fate spiraled into despair.
Mindset Collapse and Resurgence: From Liquidation to Restart
Reflecting on his lowest point, Conan candidly shared that he fell into depression and debt. “I even used my credit card to deposit funds and kept trading, repaying credit card debts each month. I truly experienced what it meant to feel hopeless.” Gradually, he sold AI development tools to Web2 clients and, due to his good character, had friends lend him money, allowing him to pay off debts and regain confidence. After adjusting his pace and taking a break, he restarted, saying, “I borrowed 4 million TWD from my company to buy spot cryptocurrencies, reduced my contract trading ratio, and no longer used all my funds for contracts. I also began sharing my failures through videos because I knew that once I spoke about them, I could not repeat the same mistakes.”
Conan’s Risk Management Principles: Position Management is More Important than Making Money
“Now I only trade BTC and ETH, as they are easier to analyze, and I strictly set stop-loss orders.” He pointed out that smaller market cap coins with poor liquidity are prone to manipulation, and using leverage over 5x should be avoided. “High leverage isn’t off-limits, but it should be used on trades with close stop-loss points and reasonable risk-reward ratios.”
Small Capital Resurgence Principles: Discipline with High Leverage
When asked how small investors can start with little capital, Conan admitted, “You must use leverage and only trade major markets, combining technical analysis and risk management, opening trades at relatively high and low points with small stop-losses and high risk-reward ratios. It’s not just mindlessly opening trades.” He stressed, “For small funds to recover, amplifying risk is necessary, but it should not be chaotic.” He encouraged novices to experience market fluctuations with small sums that do not affect their living costs and can withstand losses.
Building a Trading System for Beginners: From Self-awareness to Practical Training
“Your trading style should start with understanding yourself. Are you conservative or aggressive? Only then can you find a suitable strategy.” He recommended that beginners diversify their holdings, strictly control their position sizes, and not exceed 10% of their total assets in contracts, balancing spot trading with contracts to avoid psychological pressure from extreme market fluctuations. If fear of losses arises when opening trades, it indicates an oversized position or unstable mindset, suggesting a break or reduction in trading capital.
Establishing a Personal Trading System: Start with Self-Understanding
He emphasized, “There is no right or wrong trading style; the key is finding what suits you.” He advised beginners to start with small practical trades, keeping contract positions to under 10% of their assets. When you feel afraid to open trades, it signifies an oversized position or unstable mindset, and you should immediately reduce your position or pause trading.
Q&A Highlights
Q: If you could go back in time, what would you say to your past self?
A: I think I would tell my past self, “Please, first understand leverage and risk management better!” If I had recognized these risks earlier, I might not have lost so much money. I also want to remind everyone that if you are not familiar with this market, do not invest too much money initially. Start with small amounts to feel the market’s volatility and understand how brutal high leverage liquidation can be—it’s truly instantaneous, and you can lose before you even react. Also, do not blindly follow others. Each person’s financial situation and trading style are different; what works for others may not suit you. Trust your judgment, do your homework, and avoid hasty decisions or borrowing money to gamble. Remember, this market rewards those who are prepared.
Conan’s 5 Suggestions for Crypto Novices:
- Do not consider yourself “the chosen one.” Mistakes, losses, and misjudgments are not shameful. The market does not target anyone. The key is to learn from mistakes, improve technical analysis, and understand that—technical analysis is merely a tool for judgment and does not guarantee market behavior.
- Do not lose yourself in the crypto world; remember your original intention. Investment should improve your life, not make you lose it. Be clear about why you entered the market to maintain clarity amidst bull and bear markets, avoiding being swayed by market conditions.
- Never hold onto losing positions, and do not engage in revenge trading. Past losses are already a reality; do not think you can recover everything with the next trade. This mindset will only lead to distorted trading and compounded losses.
- Do not be too greedy, nor too reluctant to let go. Once you set a profit target, stick to it. Do not remove your stop-loss just because you want to earn a little more, as this could turn profits into losses. Consistently winning is more important than temporarily large gains.
- The market always has opportunities; remember to take profits and also take breaks. When your state is poor or mindset unstable, pause trading. Get some sleep, take a break; the market won’t disappear. But if you never take profits, then the numbers in your account are merely illusions.
About Conan
Xhttps://x.com/BalloonConan
IGhttps://www.instagram.com/balloon_conan/
About BingX
BingX, established in 2018, is a leading global cryptocurrency exchange providing diverse products and services such as spot trading, derivatives, copy trading, and asset management to over 20 million users worldwide. The platform regularly offers analyses on mainstream cryptocurrencies like Bitcoin and Ethereum to meet the varying needs of novices to professionals. BingX is committed to providing a trustworthy platform, empowering users with innovative tools and features to enhance their trading capabilities. In 2024, BingX proudly became a major partner of Chelsea Football Club, marking its debut in the sports world.
This article is provided by the official source and does not represent the site’s stance or investment advice; readers should conduct their own careful assessments.
