Being clever = suicide! I've seen the dumbest retail investors: trading cryptocurrencies with a stock trading mindset and using a gambler's mentality for trading.
After 8 years of contract trading, turning a principal of 6 million into 20 times profit, I can say that 90% of people in this industry lose money because of four words: being clever.
1. Why do you lose money the harder you work?
Last year, a fan asked me about following a certain big influencer to buy into altcoins, and ended up losing 2 million in three days. I asked him: "Have you looked at the monthly chart for this coin?" He replied: "What is a monthly chart?" This reflects the reality of most people: trading cryptocurrencies with a stock trading mindset and using a gambler's mentality for trading.
My method is simple to the point of being ridiculous: I only look at the top 50 coins by daily gains. Why? Because only assets that continuously rise have liquidity and can attract major funds to take over. In August last year, I captured a monthly golden cross for SOL using this method when the price was $25, and three months later it rose to $120. Meanwhile, those who constantly focus on new coins, 90% ended up on the path to zero.
2. Making you more professional than 90% of people
Monthly MACD: the "life and death line" of the crypto world.
During last year's bear market, I stayed completely out of the market for 9 months. Not because I was smart, but because the monthly MACD never showed a golden cross signal. It wasn't until January this year, when the BTC monthly golden cross formed, that I heavily entered the market. This indicator is like a weather forecast; when dark clouds gather, no matter how beautiful the candlestick chart looks, it’s just a mirage.
3. My "Three Knife" profit-taking rule
First Knife: Sell 50% of your position when there’s a 30% profit. Second Knife: Sell another 30% when there’s a 50% profit. Third Knife: Unconditionally liquidate when it falls below the 70-day moving average.
Last month, a fan followed this method and made 120,000 from a 20,000 investment in PEPE. He said: "I used to think that taking profits was a cowardly act, but now I understand that those who can sell are the masters."
4. The final truth
The most lucrative aspect of the crypto world is not contracts, nor is it altcoins, but repeating simple actions. Those who study “mystical indicators” every day are no different from fools counting cards in a casino.
If you want to delve deeper into the crypto world but can’t find a clue, and want to quickly get started and understand the information gap, click on my avatar to follow me for first-hand information and in-depth analysis!
