As a veteran who has been in the cryptocurrency space for 8 years, I have seen too many people enter with dreams of getting rich, only to exit in disappointment. Today, I want to share my 'foolproof method' — this strategy, validated through countless practical experiences, even gives headaches to market makers because it specifically targets the mentality of chasing highs and lows and blind trading.
Retail Trap Three Laws: The Death Red Line You Can't Touch
First Law: Chasing Highs and Lows — The Root of 90% of Losses
The '519' tragedy of 2024 is still fresh in memory; when Bitcoin broke through the $60,000 mark, countless novices shouted 'Bull Market Forever' and rushed in, only to see a 38% drop within just 72 hours, with latecomers averaging a 47% loss. True traders understand: when the hot searches on exchanges are dominated by coins, it is the golden time for market makers to distribute chips. Smart hunters only quietly lay out when the fear index falls below 20 — at that time, every bearish candle on the K-line chart is a mark of gold.
Second Law: Full Position Single Bet — The Epitaph of Gamblers
Do you remember the collapse myth of LUNA? Those investors who went all in at $40 ultimately watched the coin price go to zero, crying without tears. The iron rule for professional traders is: always retain 30% of liquid funds. When BTC fell to $15,000 in 2023, I used this 30% to make a beautiful bottom-fishing trade, achieving a 200% growth in my account within 3 months. Remember, cash is your only nuclear weapon during a market crash.
Third Law: Full Margin Bet — The Killer of Opportunities
What the cryptocurrency market lacks is not opportunities, but the ability to seize them. When ETH plummeted from $2000 to $1200 in March 2024, those fully invested could only watch helplessly at the golden pit, while I, retaining 40% of my position, was able to gradually build positions at $1300, $1100, and $900, ultimately keeping my cost 15% lower than market makers. Position management is not conservatism; it is leaving a door of hope open for the future.
Six Essential Skills for Short-Term Hunters: The Nightmare Formula for Market Makers
1. Consolidation Trend Change Rule — Identifying Bull and Bear Traps
Sideways trading at high levels for more than 15 days? Beware of the 'false breakout' trap! After BTC consolidated at $30,000 for 22 days in 2023, market makers created an illusion of an upward breakout, followed by a 25% drop. Low-volume sideways trading? Remember 'low volume meets low price'; the consolidation period after the FTX crash in November 2022 was the golden window for laying out altcoins. The best strategy before a trend change: tie your fingers to the keyboard.
2. The Deadly Trap of Sideways Trading — The Breeding Ground for 80% of Liquidations
Data shows that in the first quarter of 2024, 78% of liquidation events occurred during sideways consolidation periods. Why? Because consolidation wears away your stop-loss discipline. My countermeasure: set the stop-loss outside the range by 3% during consolidation, and reduce trading frequency to less than once a day — remember, the profits of experts often come from patiently waiting.
3. Bearish Candle Accumulation Rule — The Anti-Humanity Wealth Code
Whenever I see a 'guillotine' style large bearish candle, my adrenaline starts to surge. On the day BNB dropped 18% in 2023, I decisively increased my position when the intraday chart showed a divergence signal, and three days later I reaped a 25% increase. Remember: a bearish candle is a discount coupon from the market, provided you can overcome your fear — when others are selling, it is your best time to pick up bargains.
4. Acceleration Theory of the Collapse — The Wealth Code Behind the Waterfall
The dramatic collapse of LUNA in June 2022 was shocking, but seasoned traders know: the greater the slope of the drop, the stronger the rebound. After BTC plummeted 38% during the '312' crash in 2020, it rebounded 120% within 45 days; after a certain altcoin dropped 50% in May 2024, it recovered and rose 30% within 72 hours. Next time you encounter a waterfall, remember to open your wallet — opportunity is knocking.
5. Pyramid Positioning Method — The Nightmare of Market Makers' Costs
This is the secret weapon of top Wall Street funds: for every 10% drop in the bottom area, the addition ratio increases by 1:2:3. For example, with a $10,000 position, build 10% at $9,000, build 20% at $8,000, and build 30% at $7,000; the final cost will be over 12% lower than a one-time purchase. In 2023, when BTC fluctuated around $16,000, I used this method to keep my cost at $13,500, and when the coin price returned to $20,000, my profit had already doubled.
6. Exit Rule During Trend Change — The Last Line of Defense to Protect Capital
Has a skyrocketing coin been in sideways trading for over 7 days? Withdraw your principal immediately! After a MEME coin skyrocketed 500% in 2024 and then consolidated, investors who withdrew their principal in time ultimately preserved their profits, while the greedy lost 80% of their gains. Has a plummeting coin broken out sideways? Cut losses faster than market makers dump! Remember: your principal is the spark of your survival in the crypto world; protect that spark to welcome the next bull market.
Heartfelt Advice for Beginners: Trading is an anti-humanity practice.
In these years, I have trained over 500 students and found that those who make money share common characteristics: they strictly adhere to discipline and engrain their trading plans into their bones. If you are still regretting chasing after highs and lows, or feeling lost in position management, follow me now, and I will guide you to ride the next bull market, with the basics of trading alongside Mu Zhou, ensuring a steady profit and happiness every day!
Remember, the cryptocurrency space never lacks opportunities, but lacks people who can grasp them. Follow me, and let us overcome greed with discipline and defeat market makers with strategy. When the next bull market arrives, I hope you are no longer the one standing atop the mountain, but the hunter smiling while counting money. Click to follow now and start your transformation journey!
