Brothers, in the first few years after entering the space, I lived like a spinning top — checking the group for signals during the day, staring at the K-line until dawn at night, excited when it rose and crying when it fell. Over the course of 3 years, my capital shrank by 70%. At my lowest point, I had only $2,000 left, and I had to borrow money from friends for rent.
Later, when I really couldn’t stand it anymore, I forced myself to use a foolish method: 'If I don’t see the signals I’m familiar with, and my finger dares to touch the order button, I slap myself.' This trick helped me survive; now I earn a stable 50% or more annually without staying up late or watching the market until dawn. Instead, my account balance is becoming more and more stable.
Today, I’m sharing 7 life-saving tips that I learned from my own losses in real trading. Newbies should follow these, and they can at least avoid 3 years of detours.
First, only trade after 9 PM; the market during the day is all 'deceit.'
In 2020, I experienced the dumbest loss: I saw news in the morning about 'a certain coin receiving huge investment' and impulsively jumped in, only to find out in the afternoon that 'the news was fake.' I lost $12,000 in one day. Later, I realized that daytime news is too chaotic — project parties push good news to pump prices, while whales release bad news to wash out positions. The K-line moves erratically, and newbies simply can't handle it.
Now I stick to my rule: I never trade before 9 PM. By that time, all the news that needs to ferment has already done so, and the retail investors have mostly been cut. The K-line chart is clean, and the direction is clear. Last year, there was a time when BTC dropped 3% during the day, and the group was shouting, 'The bear market is here.' I held back and didn't act; after 9 PM, I noticed the volume had shrunk by half, and the MACD on the 4-hour chart hadn't broken down, so I went long again. The next day, it bounced back, and I made $5,000.
Remember: Daytime is 'whales' acting time,' and nighttime is 'real market time.' Newbies should not be cannon fodder during the day.
Second, pocket your profits immediately, don’t wait for the 'double dream' to shatter.
I’ve seen too many people 'earn 3 times, wanting 5 times, only to end up losing 2 times.' In 2021, I traded FIL, which rose from $80 to $160, earning $20,000. At that moment, I was so excited that I wanted to wait for $200, but it pulled back to $120, giving back half my profit and leaving me furious for three days.
Now I have a strict rule: if I make money on the same day, no matter how much, I transfer 30% to my bank card first. For example, if I make $1,000 today, I immediately transfer $300 to my card, and the remaining $700 continues to be traded. Don’t think 'it's too little and unnecessary.' Last year, I relied on this strategy, and the 'pocket money' I withdrew amounted to $150,000. Even if I incur losses later, the money in my pocket is still real.
The money in the crypto space, if it hasn’t entered your bank account, is just a number; only the money in your pocket is truly yours.
Third, don’t rely on feelings when looking at indicators; at least two of the three signals should align before taking action.
When I initially started trading, I relied solely on 'feelings' to place orders: 'This coin looks good, I’ll buy!' 'This coin has dropped too much, I’ll buy the dip!' The result was losses, losses, and more losses. Later, I was forced to learn indicators and installed TradingView on my phone. Before making a trade, I must check three things:
MACD: A golden cross (DIF crosses above DEA) means go long, and a death cross means go short;
RSI: Above 70 is overbought (might drop), below 30 is oversold (might rise);
Bollinger Bands: If the price hits the lower band, it might bounce back; if it hits the upper band, it might pull back. A breakout is the real trend.
I only place orders when at least two signals agree among the three indicators. For example, if ETH's 1-hour chart shows a MACD golden cross and an RSI below 30, I buy more; if the MACD shows a death cross and the Bollinger Bands hit the upper band, I consider going short. Last year, using this trick, my win rate increased from 30% to 60%.
Don’t trust 'market feeling'; that's the skill of veterans. Newbies must rely on indicators as crutches.
Fourth, stop losses must 'run'; if you can watch the market, move the stop loss up; if you can’t watch, then 'hard cut'.
Regarding stop losses, I used to fall into the trap of 'not wanting to give up': 'Let’s wait a bit; maybe it will bounce back,' and as a result, the longer I waited, the more I lost. Now I categorize stop losses into two types:
When I can watch the market: If I make money, I manually move the stop loss up. For example, if I bought BTC at $1,000 and it rises to $1,100, I move the stop loss from $970 (3% stop loss) up to $1,050. This way, if it drops, I still make at least $50 and don’t lose.
When I go out to do errands and can’t watch the market: I directly set a hard stop loss at 3%. If it hits that, I cut it without hesitation. Last year, there was a time I went to pick up my child and set a 3% stop loss on SOL. When I returned, it indeed had dropped, and the automatic stop loss only resulted in a few hundred dollars lost. If I hadn’t set it, I would have lost $20,000.
Stop loss is not surrender; it's to save your life. You need to save bullets to continue playing.
Fifth, you must 'settle accounts' every Friday; anything not withdrawn is just playing a numbers game.
In the bear market of 2022, my account showed a floating profit of over $100,000, but I never withdrew. Later, after a big drop, I gave it all back, as if I never earned anything. Now, I make it a fixed rule every Friday: I transfer 30% of my profits from the account to my bank card.
For example, if my account has $100,000 on Monday and rises to $110,000 by Friday (earning $10,000), I transfer $3,000 to my card, leaving $107,000 to continue trading. This way, by the end of the year, even if the market is bad, the money in my bank account will keep piling up, giving me peace of mind.
Trading crypto is like running a supermarket; you need to check your inventory and settle accounts weekly. If you keep dragging it out without clearing, no matter how much you earn, it will be in vain.
Sixth, a small tip for looking at K-lines: For short-term trades, look at the 1-hour chart; for consolidation, look at the 4-hour chart.
When I first started looking at K-lines, I always watched the 5-minute chart, getting excited when it rose a bit and panicking when it dropped a bit. Later, an experienced trader taught me:
For short-term trades (holding for 1-3 days): Look at the 1-hour chart; if there are two consecutive bullish candles (the second is longer than the first), consider going long; if there are two consecutive bearish candles, consider going short. Simple and straightforward, easy for newbies.
When the market is consolidating: Don’t focus on small time frames; switch to the 4-hour chart to find support levels. For example, if BTC is consolidating at $35,000, and the support level on the 4-hour chart is at $34,000, buying when it drops nearby is 10 times more reliable than guessing.
Last year, when SOL was consolidating, I focused on the support level of $100 on the 4-hour chart. When it dropped to $98, I bought a bit. Later, it rose to $120, and I made a clear profit.
Seventh, avoid these pitfalls at all costs; stepping into them is like giving away money.
Leverage should not exceed 10 times: Newbies should ideally use less than 5 times. A 10x leverage dropping 10% can lead to liquidation, and a 10% drop in the crypto market is very common. I've been liquidated 3 times, all because I used leverage of more than 10 times.
Don't touch 'trendy altcoins': Dogecoin and Shitcoin may seem lively, but they are all manipulated by whales. When they rise, they let you in; when they fall, they shut the door. Newbies entering are just sending money.
I do a maximum of 3 trades a day: Doing too many trades makes it easy to get carried away; when you profit, you want to earn more, and when you lose, you want to make it back, leading to chaotic operations. I now set a '3 trade limit' for myself every day, and I close the software when the time is up, regardless of whether I've made enough profit.
Absolutely do not borrow money to trade crypto: This is the bottom line! I've seen people borrow online loans to trade crypto, and after losing, the interest compounded until they were forced to sell their homes. It’s too tragic. Use your spare money to play; if you lose, it won’t affect your life, and that’s how you can maintain a steady mindset.
Brothers, trading crypto is really not about 'the harder you work, the more money you make.' I used to stay up late every night, only to end up with huge losses. Now, I check the market after 9 PM, close the software when the time is up, eat when it’s time to eat, and sleep when it’s time to sleep, and I actually make a stable profit.
Treat trading crypto like a regular job, with working hours (after 9 PM), off hours (before midnight), stop loss and take profit 'rules,' and a 'payday' for weekly withdrawals. You’ll find that — you don’t have to stay up late or be anxious, and you can still make money in the crypto space.
Though slow, a foolish method can help you survive until the end, which is better than 90% of people.
If you have tens of thousands in capital and want to test the waters in the crypto space but are afraid of pitfalls; if you’ve heard about 'dollar-cost averaging into mainstream coins' and 'taking airdrops' but don’t know how to operate; if you want to understand 'how to select potential coins' and 'whether to increase or decrease holdings in a bull market' — it might be a good idea to follow me. Tomorrow, I'll break down AJ's dollar-cost averaging plan, the three data dimensions to look for when selecting coins, and even the basic logic of his cousin’s airdrop strategy, teaching you step by step how to avoid the pitfalls of 'blind gambling' and find a survival method in the crypto space that suits you.
The money in the crypto space is never 'gambled' away; it is 'calculated' out. Follow me, and we’ll talk tomorrow about how to ensure that every bit of your capital is on the right track.
