How exhausting is it to be in a sideways market? Recently, I came across dozens of fan messages: some have been watching the market every day for 3 months, losing a few thousand in trading costs, with their holdings stuck in place; some have bet everything waiting for a rebound, but when the market didn't move, their mentality collapsed first, and they cut losses at the lowest point; even more have made a little coffee money from volatility, only to lose half a month's salary due to greed. In fact, the truly profitable seasoned players I've seen never 'gamble for quick money' during sideways markets; they treat this period as a golden opportunity to 'preserve capital and wait for chances.'
Today, I will break down the operational logic of an experienced player I have followed for 5 years, 'Old Yang.' This is not some profound skill, but rather the most suitable survival rules for ordinary players in a sideways market: if you learn these, you can not only reduce losses but also seize the doubling opportunities before others when the trend arrives.
1. Diversifying positions is not "splitting money"; it is to provide insurance for "turnaround opportunities".
Many people lose money during sideways periods, and the first step is wrong: they clutch all their funds in their hands, either trading chaotically or holding on stubbornly. But Old Yang's core logic is: the small money made during sideways periods is not worth the "capital for the next turnaround" that could be lost, so diversifying positions to resist risks is the top priority.
He splits the 2500 stable assets he holds into three parts, each with a fixed purpose, never mixing them:
30% flexible operational position: earn "certain small profits". This portion of money only trades 1-2 times a day, with particularly realistic goals - a profit of 1.5%-2.5% means leaving the market immediately, enough to pay for a phone bill or buy a cup of milk tea. When I chatted with him, he said something that left a deep impression on me: "The fluctuations during sideways periods are all 'mosquito meat'; being greedy will get you bitten. You see those people who watch fluctuations every day; it seems they earned a few times, but in the end, they lose in the cycle of 'running when profiting, holding on when losing'. On the contrary, I, who steadily take small profits, have already outperformed 80% of those who watch the market." I have also tried this method. Last month during a sideways period, I operated 12 times with the flexible position, making a profit 10 times, with 2 stop-losses. In the end, not only did I cover all the trading costs for the month, but I also made several hundred more - compared to fans who trade chaotically, this is already a sure win.
50% trend allocation: waiting for "certain big money" is the key to truly doubling profits, but Old Yang never rushes to enter the market. He has two "dead rules": he must wait for the weekly chart MA20 to be steadily above MA50 (this is the basic signal for trend initiation, indicating that short-term momentum exceeds long-term, and it won't be a false breakout); secondly, he waits for the price to break through the high of the past month (confirming that the trend has strength, not a bait to lure buyers). After entering the market, there are even more details: once profits reach 25%, withdraw half of the principal; set an 8% trailing stop for the remaining position. He explained to me: "This way, even if the market corrects, your principal is already secured, and the rest is 'earned profits'. Even if it falls back, you won't lose; your mindset will be particularly stable. The trend I caught last year was operated this way, and I finally made a 40% profit, double what those who couldn't hold on made."
20% safety reserve: leaving a "last resort". This portion of money is the most "rigid": it only adds to positions when the operational or layout positions incur losses, and never adds new funds. Old Yang said: "The reserve fund is not for you to leverage and gamble; it’s to leave you an exit. During sideways periods, no one can predict when the market will move. Keeping this money means that even if there are small losses beforehand, when the trend comes, you still have principal to enter - if you lose the reserve fund too, when the next opportunity arises, you can only watch helplessly." I deeply agree with this: last year during a sideways period, my operational position lost 5%, and I used the reserve fund to add once. Later, when the market started, not only did I recover my loss, but I also made an additional 15% - if I hadn't left the reserve fund, I might have cut losses at the lowest point.
2. The "false opportunities" during consolidation are the most exhausting; learning to "disconnect" is the key to being a winner.
After so many years as an analyst, I have discovered a painful rule: nearly 60% of this year's time is in a consolidation market, but 80% of the losses occur during this period. Why? Because many people think "not operating means not making money"; clearly, there are no definite signals, yet they still hard chase fluctuations, resulting in being stuck.
Old Yang's method is completely opposite: he set a strict rule for himself - only trade when "the daily MA20 is above MA60 + volume increases by 30%"; during other times, he directly uninstalls the trading software and turns off notifications.
He calculated an account for me: "Last year, during a 3-month consolidation period, I had someone beside me watching the market every day, spending over 400 on trading costs corresponding to stable assets, while also being stuck in two stocks; during that time, I enrolled in a basic Python class and spent time with my child building over 20 sets of blocks. I neither lost money nor got my life in order. Later, when the market initiated, I seized the signal immediately without losing my composure, and instead earned three times more than they did."
Here I must emphasize my core viewpoint: the fluctuations during the consolidation period are all "false opportunities." When MA20 and MA60 have not formed support and volume has not kept up, no matter how attractive the increase is, it is a "trap to lure buyers" - you think you can make a profit and leave, but in fact, the main force has long been waiting for someone to pick up the shares.
Instead of consuming energy during the consolidation period, it’s better to use this time to improve your skills (for example, learning how to read trends using moving averages, how to judge the authenticity of breakouts using volume), or spend time with family. When a clear trend appears, you will find that those who watch the market every day have already lost their composure, while you, having rested well, can seize opportunities more calmly.
3. More important than technique is "being able to control oneself"; I have posted the three iron rules for 5 years.
I have seen too many technically skilled people lose money, and the problem lies in "not being able to control themselves": either they hold onto positions until they lose all their capital, or they stay up all night watching the market and act impulsively, or they forget the risks after making a bit of profit. But Old Yang's three "self-restraint rules" are something I wrote down and posted on my screen, unchanged for 5 years:
If a single loss reaches 2.5%, immediately stop-loss; never wait for a "rebound". Old Yang never believes in "just wait and it will rise"; he said: "Holding onto a position is like holding hot coal; it seems you can wait for it to cool down, but in reality, it will burn you more painfully. Stopping a small loss is 'cutting flesh', but holding until a large loss is 'amputating'; the distinction is clear." I have also fallen into the trap of holding positions: two years ago, there was a stock that I didn't stop-loss when it lost 2.5%, thinking I would wait for a rebound, but in the end, I lost 30%, and my principal directly decreased by a third. Since then, I have strictly implemented a 2.5% stop-loss. Last year, because I stopped-loss in time, I lost nearly ten thousand less.
When floating profits exceed 8%, immediately pull the stop-loss to the cost price. This move is "the key to protecting capital". Old Yang explained: "When you earn 10%, you think you can earn more. But if the market corrects, you may not even be able to protect your principal. Pulling the stop-loss to the cost price means that even if there is a correction, you won't lose any money; the remaining profits are all 'free earnings', and your mindset will be particularly stable." I operated a stock last year; when the floating profit reached 8%, I pulled the stop-loss, and later the market corrected by 5%, but I didn't lose. When the market rose again, I finally took a profit of 18% - if I hadn't pulled the stop-loss at that time, I might have panicked and cut losses during the correction.
Every night at 10:30 p.m., I must "disconnect from the internet" and not touch trading software. Old Yang set himself a punishment: as long as he stays up late watching the market once, he must do charity on the weekend. He said: "Staying up late not only harms your health but also makes you emotional. Clearly, you should stop-loss, but because you stayed up until the early morning, your mind is not clear and you hold onto it, resulting in even greater losses. Out of sight, out of mind is 10 times more reliable than holding on." I now strictly implement this too: after 10:30 p.m., I uninstall the trading app and switch to reviewing notes. Since I stopped staying up late to watch the market, not only has my sleep improved, but I have also reduced many emotional decisions in trading - there was a time last year when I almost stayed up late to trade, but I held back. The next day, I woke up to find that stock had indeed dropped by 8%, avoiding a disaster.
Finally, I want to say: the crypto market is not short of opportunities; what it lacks are "people who can wait for opportunities."
Many people are trapped in losses, not because they don't work hard, but because they haven't found a set of rules to stabilize their mindset. The era of making money by luck has passed; now what counts is a "sense of rules" - the more disciplined you are, the more the market will reward you.
Don't always focus on the myth of "doubling overnight"; behind those stories often lies the cost of countless people losing everything overnight. It’s better to thoroughly understand these three rules; when the next trend comes, you can also make profits steadily without staying up late or taking risks.
Next, I will continue to break down the "three key signals for trend initiation" and "position management techniques for different market conditions." Follow me, and when the next trend starts, we can avoid traps together and seize the real opportunities.
By the way, what problems have you encountered during sideways periods? Was it losing trading costs from watching the market, or not being able to hold positions, or not knowing when to enter? Share your experiences in the comments, and I will reply to each one to help you sort out coping strategies~
