What both beginners and experienced traders must know: The 3 underlying logics of margin trading in the crypto world!
(Purely practical advice)
I have been in the crypto world for 8 years and have seen too many people get liquidated in one go, cut their positions in the middle of the night, or go all in and lose everything. I've also seen some people turn 10 times their investment in just 1-2 months, going from debt to financial freedom.
Today I won't brag, nor will I take advantage of anyone, I will only discuss 3 'core logics of margin trading'. If you master just one, your chances of losing money will drop by more than half!
① Trend is king, choosing the right direction is more important than working hard for profits
You might have spent 5 hours analyzing a 1-minute candlestick chart, yet it’s worthless in the face of a trend.
Why do many people lose money? Because they open positions against the trend, don’t set stop-losses, and double down. Remember this: Never go against the trend; if the trend is wrong, no matter how good your skills are, it won’t help.
✅ Methods to judge the trend:
Moving average system (MA30, MA60) turning points
Daily level continuously closing bearish or bullish
Mainstream coins breaking key support levels—don’t resist!
② Start with a light position, use a combination of 'swing trading + risk management'
Many people come in with full positions and get liquidated in one go. If you want to survive in the crypto world, you must understand that controlling your position size is more important than direction!
My trading principle is:
Initial position ≤ 30%,
Leave 60% for averaging down,
10% for emergency risk management (timely stop-loss for sudden spikes or drops).
Don’t be afraid of missing opportunities; as long as you stay alive, opportunities come every day.
③ Short-term relies on rhythm, mid-term relies on logic, long-term relies on faith
The most typical problem with retail investors is:
Selling at the slightest rise
Hanging on at the slightest drop
Chasing after others make profits
This is the rhythm of losing money! You need to have your own trading logic and rhythm system, not just follow others blindly!
For example, I entered near ETH 2800 with a target of 3000, and I don’t budge at a 5% pullback because I have a swing trading logic.
Plan ahead for:
Entry point
Stop-loss point
Averaging-down point
Target point
Instead of thinking while trading and guessing the ups and downs.
In conclusion:
It’s not that you aren’t suited for trading; you just haven’t met the right people to guide you.
Many fans I’ve guided were once in deep losses and doubted their lives after getting liquidated by platforms, but they gradually turned things around and achieved stable profits. The crypto world is harsh, but as long as the direction is right and the rhythm is steady, you can also live freely!
