We don't have insider information, no capital advantage, nor trading experience to withstand several rounds of bull and bear markets. What we can rely on is to recognize the market, understand ourselves, establish rules, and control emotions.
The cryptocurrency world is not a shortcut to wealth, but a battlefield where only a few survive.
1. First, recognize the market: this is a world dominated by uncertainty.
The essence of the market is not a technical game, but a highly complex probability game.
You must accept that no matter how excellent the strategy is, it cannot consistently profit in all environments. Any trading system claiming '100% win rate' is a fabrication.
What we can do is not to defeat the market, but to adapt to the market, using discipline to combat uncertainty.
The underlying logic that ordinary people can also make money.
You don't need to be a genius, just need to establish a trading system that can be replicated and adhered to.
1) Capital management + only use a small portion of total capital for each position, test trends with light positions and then add more, do not go all in at once, total position should not exceed 30%, keep some room for maneuver.
2) Suitable for oneself: short-term trading: for those with strong market feel and quick reactions. Swing trading: suitable for those who can endure fluctuations and benefit from trends. Long-term trading: those who understand macro and fundamentals have better odds.
3) The trading system should be simple, executable, and replicable. Trend strategy: trade with the trend, do not add positions against the trend. Fluctuation strategy: buy low and sell high, stop loss is necessary.
Fast arbitrage strategy: cross-platform price differences, small fluctuations arbitrage, high win rate but slow.
4) Stop loss and take profit + must mechanically execute stop loss lines set before entering the market, take profit can be done in batches, do not be greedy, do not panic, just capturing mid-term trends is enough.
5) Emotion management + reduce frequency of watching the market, avoid impulsive trading, accept losses, do not average down when losing, do not get overconfident when winning, write trading logs continuously.
Reviewing and optimizing the system. Four, the real key to surviving: mindset and compounding.
The hardest thing to defeat in the cryptocurrency market is not the market itself, but one's own greed and fear.
What you need to do is not 'tenfold in a year', but stable annualized returns + strict stop loss + not being eliminated by the market.
Don't underestimate the importance of 'real-time observation'. Compounding is the only way retail investors can match institutional players: annualized 30%, 10 years is 20 times annualized.
50%, 10 years is 57 times, double in one year, but blown up in the second year leads to zero.
And if you accidentally incur a loss...
Final advice: don't become a 'legend', please become a 'survivor'.
Giving someone a rose leaves a fragrance in your hand. Thank you for your likes, follows, and shares! Wishing everyone financial freedom by 2025!
In the cryptocurrency world, it boils down to a contest between retail investors and institutional players. If you don't have front-line information or first-hand data, you can only be cut! If you want to work together on layouts and share the harvest with institutional players, welcome to consult!
