At three in the morning, the numbers flashing on the screen reflect my reddened eyes. I once thought that mastering technical indicators would allow me to conquer the market, until three months of consecutive losses made me realize — the crypto market is unforgiving. Those seemingly perfect strategies crumble in the face of real volatility, and what truly turned my losses into gains were the ten rules learned through hundreds of thousands in tuition fees of blood and tears.
1. The Truth of Contrarian Behavior: When Others Are Fearful, I Am Greedy
When a strong currency has fallen for nine consecutive days, the market is filled with the sounds of panic selling. Most people choose to follow the crowd and exit, while I start to build positions in batches. This is not blindly bottom-fishing, but a decision based on on-chain data insights into the movements of major funds.
I remember that time when SOL continuously declined at the end of last year. When retail investors were cutting losses, on-chain data showed that giant whale addresses were continuously increasing their holdings. I decisively followed, and then came a wave of rebound. The real opportunities are often hidden in places that most people dare not touch.
Two, the art of taking profits: learn to leave some 'blank' for yourself
After any coin has two consecutive days of increase, I must reduce my position by one-third. This habit has caused me to miss some subsequent gains in certain coins, but more often than not, it has saved me from the embarrassment of profit withdrawal.
Last month, a certain MEME coin surged 200% in two days. I reduced my position the next day and recouped my capital, leaving the profits to continue running. On the third day, it continued to rise by 7%, and I liquidated all my positions. That night, the price halved, but I preserved most of my gains. The greatest charm of the financial market lies not in catching every opportunity, but in being able to live well after missing one.
Three, the relationship between volume and price: understanding the silent language of the market
A low-volume breakout is one of the signals I pay the most attention to. When a certain coin suddenly surges in volume after consolidating sideways, and continues to stabilize above a key resistance level, it indicates the entry of new capital.
On the contrary, high volume without an increase is a clear signal to exit. Just like a certain AI concept coin last month, which had massive trading volume for three consecutive days at a historical high but could not reach a new high. I decisively exited, and a week later it fell by 40%. Prices can deceive, but volume is hard to fake.
Four, the trend is your true friend
I always only trade coins in an upward trend. The judgment criteria are simple: the three-day line looks upward for short-term, the thirty-day line looks upward for medium-term, and the eighty-day line looks upward for major upward trends.
Many people like to bottom-fish against the trend, only to end up catching halfway up the mountain. I would rather chase high in an upward trend (of course, not blindly chasing) than catch falling knives in a downward trend. Once a trend is formed, it will not easily change; rather than predicting turning points, it is better to follow the trend until it ends.
Five, the core secret to turning around small capital
As a retail investor starting with a few hundred dollars, I deeply understand the difficulties faced by small capital players. You cannot influence the market like a whale, but you can be more agile than they are.
My method is to divide the capital into ten parts, investing only one part at a time and strictly executing stop-loss and take-profit. I withdraw 30% of the profits to convert into fiat currency every week, and this habit helps me maintain a good mindset. For small capital to turn around, it relies not on becoming rich all at once, but on a continuous and stable profit model.
Six, emotional management: the ultimate cultivation for traders
After consecutive losses, I will force myself to take a three-day break. The market is always there, but your judgment will decline due to fatigue.
I remember once making a judgment error due to staying up late to trade, resulting in a daily loss of 20% of my total capital. Since then, I have established a strict trading schedule, not easily opening new positions after nine o'clock in the evening, to avoid unnecessary losses caused by fatigue-driven decisions. The essence of trading is a battle of mindset; technology is just a tool, and mindset is the enduring competitive edge.
Seven, my trading system is simple to the point of disbelief
I do not use complex combinations of indicators; I mainly look at three: MACD to judge trends, RSI to identify overbought and oversold conditions, and Bollinger Bands to determine support and resistance levels. I only consider entering when at least two of the three indicators give the same signal.
Before each opening position, I will write down three must-exit conditions with pen and paper: a loss reaching 5% of the principal, a trend reversal, and a better investment opportunity. This simple habit has helped me avoid countless impulsive trades.
Eight, the wisdom of survival in the market
In this industry for seven years, I have seen too many genius traders who are fleeting. Those who can sustain profits are not those who predict the most accurately, but those who manage risk the best.
I currently trade no more than three times a day, and leverage is always kept within five times. Perhaps this approach will cause me to miss some opportunities, but the important thing is that I am still alive, and living quite well.
While others chase every hot topic, I wait for my own opportunity. Like a sniper, most of the time I observe, only pulling the trigger at the critical moment.
Conclusion: The lonely path of cultivation
The essence of trading is exchanging risk for reward, and true wisdom lies in knowing which risks are worth taking. I still enter the market when a strong coin is in a nine-day decline, reduce my positions after two consecutive days of increase, and follow up when there is a significant breakout—not because these strategies are always correct, but because they form my trading system.
No one can guarantee perpetual profits in the market, but we can improve our win rate through systematic methods. Remember, what we pursue is not getting rich overnight, but a sustainable and stable ability to survive.
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