In the summer of 2014, I entered the cryptocurrency world with 500,000, at a time when Bitcoin was experiencing a pullback from its high of $800. The trading platform interface was rough, and the fluctuations of the candlestick charts were as complex as my emotions. A decade later, the numbers in my account have long surpassed ten million, and behind all this are the iron rules summarized through countless ups and downs and the daily honing of my skills.
My investment principles are simple: "Capital allocation is like defense preparation," with the core principle being "5-3-2": 50% invested in mainstream coins like Bitcoin and Ethereum to serve as a solid foundation; 30% directed towards projects with application scenarios to strive for excess returns; and the remaining 20% kept as cash for buying the dip during major market crashes.
During the bear market of 2018, although mainstream coins dropped by 75%, a public chain token in the "strike team" went against the trend and rose 9 times, successfully reversing losses. Contrarian thinking is key to navigating bull and bear markets. In the bull market of 2017, when the market was crazy, I decisively converted 60% of my position into stablecoins, successfully avoiding the market crash. When LUNA collapsed in 2022, I used funds from the "reserve team" to buy Ethereum at a low price, and six months later, I tripled my investment.
Technical analysis is my "reflex action." I spend time every day studying candlestick charts and have learned common indicators such as MACD divergence and Bollinger band openings. During the DeFi boom in 2020, I accurately captured a signal and made a 12-fold profit. In 2021, I analyzed chip distribution and timely reminded those around me to liquidate, avoiding a significant drop in a meme coin.
The principles of stop-loss and take-profit are extremely important. I always set a stop-loss line: if a single coin loses more than 10%, I immediately cut losses; if profits exceed 100%, I first reduce my position. In 2019, I escaped a losing token thanks to timely stop-loss measures, and with SOL, I adhered to discipline and reduced my position, obtaining substantial profits.
Over the past decade, I have witnessed the rise and fall of fortunes in the cryptocurrency world. From 500,000 to ten million, there are no shortcuts. Sticking to my iron rules, continuously improving my skills, and staying calm during market craziness are essential to surviving steadily in a volatile market.
Daily focus: SOPH S ENA KERNEL RPL IOTX
