Now, at the age of 32, I embarked on the journey of digital currency investment at 22. Between 2023 and 2024, my assets successfully crossed the 8-digit milestone.

Now, at the age of 32, I embarked on the journey of digital currency investment at 22. Between 2023 and 2024, my assets successfully crossed the 8-digit milestone.

Today, the quality of my life has significantly improved; I can only stay in high-end hotels around 2000 yuan, and my suitcase, hat, and other personal items may cleverly incorporate unique symbols from the crypto world, reflecting my identity and taste.

Compared to the hard work of the older generation in the real industry or the struggles of the 80s e-commerce entrepreneurs, my lifestyle seems particularly pleasant and free.

In my investment career, I have rarely fallen into complicated business disputes; the troubles of life seem to always take a detour.

In my view, the key to investing in digital currency lies in maintaining a good mindset; mastering the technical aspects is secondary.

This calmness and composure may be the secret to my ability to navigate the crypto world with ease and reap substantial rewards.

Tested method: In 18 days, I rolled from 5000U to 120,000U: The core of not being liquidated in contracts in the crypto world is practical strategies for crypto position management.

Starting with 5000U and rolling it to 120,000U is not a fantasy.

But precise strategies + strict position management are required.

The following are market-validated practical methods suitable for short-term/breakout players.

But the final step of 'mysterious addition' is key.

Step one: Capital allocation (how to bet with 5000U?)

Core principle: No All-in, no life-or-death bets, use compound thinking to roll.

3000U (60%) → Low-risk steady trading (BTC/ETH breakout).

1000U (20%) → High-odds altcoins (catching hotspots, such as AI, MEME, RWA).

500U (10%) → Contract hedging (only for extreme market protection)

500U (10%) → Cash reserves (waiting for a crash to buy the dip)

Beginner mistake: Going all-in on a coin or fully leveraging a bet on direction.

Step two: Trading strategy (how to grow capital?)

1. Main battleground: BTC/ETH breakout (3000U)

Strategy: Make breakouts at key support/resistance levels (for instance, buy when BTC drops to the moving average support, sell when it rises to the previous high resistance).

Goal: Earn 10-20% per wave, do it 2-3 times per month, roll with compound interest.

2. Critical points: High-odds altcoins (1000U)

Strategy: Only trade low-market-cap coins with hotspots (such as new coin listings, sector rotations).

3. Hedging protection (500U contracts)

Usage: When the market shows extreme conditions (like before a crash), use 5-10x short positions to hedge and reduce spot losses.

Step three: Position management (how to avoid liquidation?)

Single trade ≤ 10% of principal (for example, in a 5000U account, a single order ≤ 500U)

Stop-loss hard limit ≤ 5% (cut losses at 500U, do not hold the position).

Profit taking in batches (take half when up 20%, keep the other half for higher gains).

Review weekly, cut weak coins, and keep strong coins.

Key mindset: Cut losses short and let profits run, instead of 'taking small gains and holding losses.'

Stick to your own system.

Sticking to your own system is the last difficult task to becoming a qualified trader. It seems simple, but in reality, it is not.

Many people cannot stick to trading by the system; aside from issues of execution, the most important reason is often their insufficient understanding of the system, meaning they haven't deeply thought about it. Without knowing the ins and outs of the system, even if you obtain the rules of a profitable system, it is challenging to persist.

Just like the turtle trading method, which has always been public, why do most people fail to persist? On the surface, it seems to be a problem of execution, but in reality, it is a cognitive issue. Without a deep understanding of the turtle trading method and trend following, directly executing the turtle’s methods is extremely difficult.

Therefore, the first step to sticking to your own system is to understand it well enough; otherwise, execution becomes meaningless. To achieve unity of knowledge and action, you must first know; only with true knowledge can action be easy.

Achieving true understanding is not the end. In real trading, you will encounter something called change, which means discovering that the market or environment has undergone significant changes, and your previous system begins to become ineffective. At this point, do you choose to persist or change?

This is a difficult question. If the system is built based on market conditions, naturally it needs to be adjusted when the market changes, just like many EAs, which require human intervention in different environments.

But if your system is based on the most fundamental logic and you firmly believe this is just a normal retracement of the system, that the current market does not align with your system but will eventually return to a suitable time for the system, then you cannot change the system. You must continue to adhere to it, even in the face of temporary losses and retracements.

There is also a situation involving upgrading your own system. When you learn something new, you may want to integrate it into your existing system, which raises the question: should you add it, how to add it, and will it improve or worsen the system?

This is a very practical issue that almost every trader will encounter. My personal view is that you can add, but you must maintain the singularity of variables. In other words, you cannot add several variables at once; you can only add one at a time. Only then can you objectively compare whether the added variable improves or worsens the system.

If you directly add three variables, regardless of whether the system's profitability improves or declines, you won't know which variable is at play, and it will significantly increase the complexity of the system.

Summary

The three most common difficulties on the trading path can be summarized as follows:

Stay true to your original intention and persevere.

Deep thinking, leverage strength against strength.

Stick to the system and iterate gradually.