In the ever-changing cryptocurrency world, there seems to be a prevailing illusion that 'the clever ones reign supreme.' However, the harsh reality is that those who think they are the smartest often fall the fastest. This is not mere talk, but a painful lesson I learned with real money.
Three years ago, I once prided myself on being a 'technical trader.' Countless early mornings, I stared at the computer screen, eyes darting between various candlestick patterns, closely monitoring MACD indicators, and meticulously studying RSI overbought and oversold conditions... However, after much effort, the numbers in my account just seemed to go round in circles, neither gaining nor losing, and I even experienced several liquidations, causing my hard-earned capital to shrink in an instant.
Until one day, I met a seasoned 'old trader.' He shared with me a simple yet somewhat 'clumsy' method for trading coins - the 343 phased position building method. At first, I was disdainful, thinking this method was too simple, even secretly pondering: only a fool would use such a 'clumsy' method! But as time passed, I realized how naive my initial thoughts were. Now, I am determined to share this method with you without reservation.
The method most despised by traders - 343 phased position building method
The essence of this method lies in abandoning subjective speculation about price fluctuations and strictly following the predetermined plan for buying.
Step 1: 30% initial position, testing the waters
First, select a mainstream coin, such as BTC or ETH, which are widely recognized. Then, allocate 30% of the total capital for the buying operation. Here, it is crucial to not impulsively go all in; the initial position is merely our first step into this game, testing the market's temperature and leaving room for subsequent operations.
Step 2: 40% additional position, flexible response
After buying the initial position, there are basically two scenarios for the price movement:
In an uptrend: even if the price rises, don't rush to chase high prices; patiently wait for a pullback, and when the timing is right, add the remaining 40% of the position.
In a downturn: if the price drops, for every 10% decrease, inject 10% of the funds, gradually utilizing the 40% additional funds in this rhythm. The core logic here is: the more the price drops, the lower our holding cost becomes, and once the market rebounds, the profit we can earn will be greater.
Step 3: 30% final touch, seize the momentum
When the price breaks free from a downward trend, starts to rebound, and steadily stands above a key support level (like the 7-day moving average), it is time to invest the last 30% of the funds. After completing the position building, set a trailing stop to let profits accumulate as the price rises, maximizing returns.
The profit logic of the 343 phased position building method
Abandon predictions, embrace trends
In the cryptocurrency world, market trends are unpredictable. Attempting to precisely predict every rise and fall is like searching for direction in a fog; it is extremely difficult. The 343 phased position building method does not rely on subjective guesses about the market but takes action only when the trend is clear, greatly reducing the risks associated with blind predictions.
Phased layout, diversified risk
Buying all at once is like putting all your eggs in one basket; if the market experiences adverse fluctuations, it could lead to total loss. By building positions in phases, the funds are spread across different stages, meaning that even if the price drops after a certain phase of buying, it won't cause a devastating blow to the overall capital, effectively avoiding being trapped all at once.
Cost advantage, profit multiplication
Gradually adding to the position during a price drop will continuously lower the holding cost. Thus, when the market welcomes a rebound, compared to those who bought at high prices without timely adjustments, we can achieve higher profits based on a lower cost foundation, truly realizing the effect of profits amplifying with the rebound.
In this enticing yet risky cryptocurrency world, sometimes seemingly clumsy methods can help us find our stable course amidst turbulent markets, yielding unexpected wealth.
