In May, the return rate was 95%, which is overall a passing level of performance. My personal trading system is relatively fixed, and my capacity is limited, with a basic monthly return rate of 50%-200%, using low leverage compounding.
In May, I actually made quite a few mistakes during my review. Here, I will share some thoughts, treating this as a public monthly review diary. One was after taking profits on all altcoins in late April and early May, I impulsively went short on $BTC with high leverage, intending to take a medium-term short position. At that moment, I thought the win rate of this trade was only 55%, but I couldn't resist. As a result, I misjudged, and as everyone knows, $BTC strongly broke through, hitting my stop-loss, and my profits were directly halved.
But fortunately, I have trading discipline to help me. First, I strictly set stop-losses for each trade, regardless of short, medium, or long-term, I never hold onto losing positions, thus I can avoid liquidation. Second, for trades that I predict have a low win rate, if I can't resist the temptation to gamble, I only use profits for those trades and control the maximum stop-loss to half of the previous profits.
[This is to ensure that even if a significant stop-loss occurs, the profit status of the month is maintained, which will not affect subsequent trading mindset].
After my short position on $BTC was stopped out, I immediately followed the trend to open a low-leverage long position on what I thought was a strong altcoin. But the problem that arose here, I can't say was a mistake, just a regret. Although I basically opened at the starting point of the rise on May 8, I didn't dare to open high leverage due to the habit of testing the waters first, and thus didn't increase my position afterwards.
My personal trading strategy is that apart from $BTC , I will not roll over altcoin positions but will gradually unload in batches along the way. Whether going long or short, I enter with high leverage at confident right-side bottoms and tops, then gradually unwind leverage as prices rise and fall, ultimately leaving low leverage or even no leverage to capture subsequent long-term trend profits.
That is, using high leverage to take positions, then using low leverage to ride the trend, locking in profits when unwinding leverage. Even if protective measures are taken at the end, I still manage to keep an overall profit. Even if the stop-loss is set a bit wider, this trade must ultimately be controlled to break even.
I am determined to commit to this real trading for at least five years. My trading system is already relatively fixed, and I can go long or short, with similar proficiency. During a bull market cycle, I go long, and during a bear market cycle, I go short. I can trade all 365 days of the year. So even if I miss some market movements, I don't feel anxious; if I miss out, I just patiently wait for the next opportunity to act.
What I am currently best at and enjoy the most is medium-term trading, which is the 4-hour to daily cycle, holding positions for 2-5 days. Next is long-term and intraday short-term trading, both at a similar level. In the past, I enjoyed high-leverage intraday short-term trading, and my monthly returns often reached 10-20 times, but the risk was too high, and a single drawdown could be significant. Daily fluctuations in my mood were reflected in trading, and staring at the screen all day left no space for life.
Subsequently, I will start to focus on low-leverage medium to long-term trades, while intraday short-term trades can be optional. On days when I feel energetic and relatively free, I will take a few trades; on days I don't want to trade, I will just watch the market and then live my life.
I set my expectations very low and maintain strict trading discipline. Half of the monthly profits, no matter how much, must be withdrawn, and the remaining profits are reinvested.
In five years, 60 months, even if it's 1.2 raised to the power of 50, that's already 9000 times.
My dream of achieving a thousand-fold return in real trading will take time. Five years without achieving it is fine; eight years is also a meaningful record in my trading career.
In the four seasons, spring, summer, autumn, and winter, one must trade and also live. Let's encourage each other.
