Today, let's skip the fluff and go straight to the hardcore essentials. As an old analyst with six years on the chain, I've seen too many brothers go all-in on long positions at the peak of a bull market, only to tearfully cut losses at the trough of a bear market, repeating the cycle until their accounts hit zero. The essence of cryptocurrency's exorbitant profits is an emotional tax, and the difference between a 'leek' and a 'sickle' is just a set of scientific emotional immunity systems. The method below, combining practical data and on-chain truths, is specially designed to treat various 'itchy hands and anxious hearts'.
1. The root of emotional loss of control and the antidote
Dissection and countermeasures for FOMO (fear of missing out)
Truth: 84% of cryptocurrency trading decisions are driven by FOMO, and 58% of people experience significant portfolio drawdowns because of it. When you go all-in at a high point, you are essentially being 'swept up in the narrative' – like before the OM coin crash, when the community wildly claimed it would 'hold steady at $2 and surge to $10', with the project team stirring up interest using concepts like Islamic finance and regulatory licenses, resulting in a 94% crash in just 4 hours.
Antidote:
Set 'calm triggers': When signals like 'massive network posts', 'exchange downtime', or 'Liangxi's order' appear, forcibly lock positions for 24 hours.
Reverse Positioning Method: When you want to go all-in on long, open a 1% position hedge short (like buying put options) to remind you of the risk with physical positions.
On-chain prediction and defense against panic selling
Data weapons: Focus on three major on-chain panic indicators:
Stablecoin exchange inflow (Daily inflow > 500 million USDT = sign of impending sell-off)
Unrealized losses of large whales (When NUPL < -0.3, the loss-cutting rate skyrockets to 80%)
Contract funding rate (When the price of the coin crashes but the rate is still > 0.1%, the probability of a rebound is over 70%)
Case Study: In May 2025, BTC tax-related bad news triggered a crash; James Wynn, with a 40x long position unhedged, lost $16.4 million in 15 hours. Meanwhile, a whale bought put options at a strike price 20% lower for the cost of 0.01 BTC, profiting 300% during the crash.
2. Three practical strategies to turn losses into profits (rejecting theoretical discussions)
'Probability-based stop-loss' replaces emotional loss-cutting
Is traditional stop-loss a 'loss-cutting artifact'? Because you set it wrong! Stop-loss must dynamically match win rates and profit-loss ratios:
High win-rate strategy (>60%): Tight stop-loss (0.5-1x ATR), like chasing after a breakout
Low win-rate high profit-loss ratio strategy (<40%, profit-loss ratio > 3): Wide stop-loss (2-3x ATR), like trend reversal
Case Study: In Q2 2025, during the ETH crash from $2450 to $1950, a trader used a 2x ATR stop-loss (about $2100) and, after enduring the washout, benefited from a rebound to $2900, with a single trade profit exceeding three small losses.
Grid trading: Taming inner demons through mechanical operations
In a volatile market, grids are the 'emotional stabilizers':
Core parameters: Price range based on the median volatility over the last 3 months (e.g., BTC takes $55k-$75k), with 20-50 grids to avoid being eaten by transaction fees
Killer move: Activate 'take profit replenishment', automatically increasing the bottom grid with profits, passively buying the dip during a crash
Real-world effects: During the horizontal period of BTC in the first half of 2025, the 100-grid trading from $28,000 to $32,000 achieved an annualized return of 37%, outperforming spot holders by 23%.
Cold-blooded dividends from arbitrage machines
When human nature fails, algorithms become the money printing machines:
Spatial arbitrage: Moving bricks when the price difference between a small exchange (like MEXC) and a large exchange (like Binance) > 0.8%, combined with flash loans for zero principal sniping
Statistical arbitrage: Long when the price ratio of LINK/ETH breaks below the historical average by 2σ, close at the middle track.
Profit truth: In the wave of tokenization of RWA in 2025, a certain team used triangular arbitrage robots to capture 37 price differences on the day of the MANTRA chain crash, achieving a daily return of 12.8%.
3. Blood and tears cases: Those 'geniuses' slaughtered by emotions
Liangxi-style suicidal trading: In February 2025, Liangxi made a million-dollar profit on both long and short positions during a continuous BTC decline, but later, due to emotional breakdown from girlfriend disputes, he leveraged longed TRUMP coin and was liquidated, attempting suicide live on stream. Emotional debt is trading debt – he ultimately admitted that 'positions should be automatically locked during depression.'
Wynn's $87M Illusion: 'God of Leverage' James Wynn on Hyperliquid, with a 40x position in PEPE, made a profit of $23 million, but lost it all overnight due to not hedging against tax risks. On-chain shows: three hours before he was liquidated, market makers were selling his collateral using a delta-neutral strategy.
Finally, Old Zhu wants to ask everyone what your trading personality is?
Brothers, do you dare to take your seat?
FOMO personality: Anxious at every rise, K-line chart refresh frequency > breathing frequency
Panic personality: Shaking and sweating during a crash, cutting losses before dawn
Cold-blooded personality: Calculating borrowing interest rate arbitrage while plummeting
Old Zhu gives you a piece of advice: Top traders are anti-humanity AI – if you find yourself 'enjoying' the ups and downs, shut down immediately.
If you currently feel helpless and confused in trading, and want to learn more about the cryptocurrency space and cutting-edge information, click on my avatar to follow me, and you won't get lost in this bull market!