Cryptocurrency trading mindset: A good mindset is essential!
When trading cryptocurrencies, mindset is the foundation. During a market crash, avoid panic and uncontrolled emotions; during a sharp rise, also avoid arrogance and impatience to prevent getting carried away. Always remember that 'locking in profits is fundamental'. Reflecting on my early days in the crypto space, I too often tossed and turned, unable to sleep, frequently waking up at night to check the market. Now, after undergoing market trials, my mindset has calmed down significantly.
Ultimately, making money in this market is not about mastering skills but whether one can align action with knowledge and rigorously implement proven strategies. Just this point is enough to filter out 70% of investors.
My core strategy: 333 position control method
Method summary:
View total position as ten layers. Initially buy 30% of the position; if the trend aligns with expectations or shows signs of stabilizing after a pullback, add another 30%; finally, when the trend is clear or confirmed at key positions, add another 30% for flexible operations. This is how the 333 position control method works.
Core value of the 333 position control method
The formula for successful investing: Successful investment = objective and concise rules + patience to wait for opportunities + rational control of position + decisive quick stop-loss + courage to expand profits. Position management is a crucial rational aspect.
Dealing with market randomness: The cryptocurrency market is highly volatile, with directions being either long or short. But it is in this seemingly random fluctuation that scientific position management is the key guarantee for continuous profits.
Key management aspect: Position management techniques include deciding how to enter in batches, how to set stop-losses, and how to exit in batches for profit-taking. It runs through the entire trading process.
Practical application: After selecting the target cryptocurrency, first invest 30% of the position. After the initial rally, you can appropriately reduce part of the position for profit; once the pullback ends and a clear buy signal appears (such as a technical indicator golden cross), make the first additional purchase (to 60%); when the cryptocurrency enters a second rapid increase phase, you can sell high at relatively high levels to lock in profits. This cyclic operation achieves dynamic and rational control of positions to reach the goal of steady profits.
The clever use of the 333 position control method: de-leveraging strategy
This method is not only a tool for offense but also an effective tool for defense and de-leveraging:
Stuck at high positions: If unfortunately stuck at a high position, do not blindly add to the position. Wait for the cryptocurrency price to stabilize or show significant support signals, then according to the 333 method, initially add 30% (note: adding to the position is to dilute costs, and risks must be carefully assessed).
Reduce position on rebound: When the cryptocurrency price rebounds to a key resistance level or expected target, decisively reduce the position by 30% (or partially reduce), lowering holding costs.
Cyclic operation: Repeat the process of 'adding 30% at lows (key positions) -> reducing 30% at highs (resistance levels)'. Through continuous selling high and buying low, and wave operations, use the 333 method to gradually dilute costs and ultimately achieve successful de-leveraging.
Iron rules and precautions of the 333 position control method
Decisive first purchase: After rigorous analysis and judgment, for the favored cryptocurrency, the first purchase of 30% should be decisive.
Select targets carefully: Buy decisions must be based on comprehensive analysis and independent judgment, and must not be arbitrary trending or emotional operations.
Respect risk: No matter how good the target, there is always downward risk! If the trend after purchase does not meet expectations or even falls below the level, strict stop-loss discipline must be implemented. The core of 'make alternative plans' is to stop losses in a timely manner and control losses.
Never fully invested: Absolutely forbidden to operate fully invested! The holding limit for a single cryptocurrency is recommended to be 70%. Be sure to keep at least 30-40% of liquid funds. The core role of this part of the funds is:
When prices rise: Used for 'selling high and buying low' at key positions, continuously reducing holding costs and increasing profits.
When prices fall: Provides valuable risk buffer and subsequent operational space.
The essence of trading logic: The deep logic of using the 333 position control method lies in clearly understanding and addressing several core issues:
How do you measure and balance potential gains against possible risks?
Is your operation based on short-term, medium-term, or long-term?
Can you overcome human weaknesses and strictly adhere to established position management rules and trading plans?
