Over the years of investing, I have seen too many people being led by their emotions: when the market rises, they fear missing out and chase highs; when it falls, they panic and sell. They float when they make a little money, and panic when they lose some capital.

In fact, making money isn't that complicated; mastering a few simple techniques, managing your actions, and stabilizing your mindset will gradually increase your wealth.

Here are six insights, each accompanied by pitfalls I have encountered; I suggest newcomers copy them and stick them on their screens.

1️⃣ Follow the big trend, don’t be a 'counter-current person'.

When I first invested, I always loved to 'guess the top and the bottom': when I saw the market rise, I would think 'it should drop now' and quickly short; when it dropped too much, I would think 'it should rebound' and go all in at the bottom. As a result, when Bitcoin rose from 30,000 to 60,000 in 2021, I shorted three times and got liquidated, losing faith in life. Later I understood: the trend is the 'helmsman' of investment; only by going with the flow can the boat sail, going against it will cause it to capsize.


Now I only act as a 'trend follower': when the K-line hits new highs and moving averages are rising, I only go long; when it breaks support and moving averages turn down, I obediently stay out or take a light short position. Last year, Ethereum rose from $1800 to $4000; I followed the trend and took light positions, avoiding greed and impatience, and ended up making more than when I was 'guessing the top'. Remember: when there is no clear trend, it’s better to stay out and wait rather than act rashly - the market is not short of opportunities, but lacks the patience to wait for them.

2️⃣ Carefully select quality targets, don’t touch 'junk stocks'.

I used to think 'small coins have big fluctuations, easy to make quick money'; I chased after flashy altcoins and ended up stepping on countless landmines: some teams ran away, some projects went to zero. The worst was when I bought a 'metaverse concept coin', which dropped from $0.5 to $0.01 in three months, halving my capital. Later I realized: if the target is wrong, no matter how good the skills are, they are useless.


Now I only focus on 'quality targets': either mainstream coins (like Bitcoin and Ethereum with strong consensus) or projects with real applications and reliable teams. When selecting targets, I ask myself three questions: 'Is there real demand? Is the team doing anything? Is there long-term interest?' If the answer is 'no' to any, I resolutely avoid it. Last year, I chose a compliant exchange's platform coin; although it rose slowly, I still made a steady 30% profit over the year, which is 100 times better than hitting a landmine.

3️⃣ Be patient and wait for the 'right opportunity', don't be a 'high chasing monster'.

'Chasing highs' is a common problem among newcomers, and I have not escaped it either. In 2022, a certain altcoin suddenly became popular, rising 200% in three days; people in the group were flaunting their profits, and I couldn't resist jumping in, only to see it drop 50% the same day, and I was stuck for half a year before breaking even. Later, I realized: the real good timing is never when things are 'crazy high', but after they have 'stabilized after adjustments'.


Now I have set a rule for myself to 'wait for the right opportunity': for targets I am optimistic about, I first add them to an 'observation list', I won't buy unless they rise, and I definitely won't buy if they rise too fast. I wait for them to retrace to support levels, for volatility to decrease, and for trading volume to shrink; only after confirming they have 'stabilized' do I enter the market. For example, last year Solana dropped from $100 to $50 and stayed flat for two weeks without making new lows; I then bought in with a light position, and it later rose to $80 where I secured my profits.

4️⃣ Hold firmly and remain calm, don't be scared away by 'short-term fluctuations'.

'Not being able to hold on' is the enemy of making money. I used to buy coins like a 'startled bird': if it rose 2%, I would fear a pullback and sell quickly, only to see it double after I sold; if it dropped 3%, I would panic and cut losses, only for it to rebound after I sold. The biggest regret was in 2020 when I bought Ethereum at $180, sold at $150 after a drop, and later it soared to $4000; I could only slap my thigh in regret.


Later I learned to 'look at trends, not fluctuations': as long as the logic for buying hasn't changed (the trend hasn't broken, the target hasn't hit a mine), I won't react to short-term fluctuations. Last year I bought a DeFi token and held it for three months; there were five corrections of more than 10%, and each time I wanted to sell, but seeing the trend intact and the project still advancing, I held on. It eventually rose to my target price, and I made an 80% profit. Remember: short-term fluctuations are the market 'washing out weak hands'; if you panic, you become the 'chopped leeks'.

5️⃣ Learn to take profits, don’t let 'floating profits' turn into 'losses'.

'Greed' is a stumbling block to profits. I have seen too many people: earning 10% aiming for 20%, earning 20% aiming for 50%, but when the market reverses, all profits vanish and they end up losing. In 2021, I bought Bitcoin and made a 50% profit, always thinking 'it can rise to $100,000', I didn't take profits, and later it crashed, wiping out all my gains, leaving me restless for days.


Now I have established 'iron rules for taking profits': for short-term profits of 10%-15%, I must sell half; for long-term profits of 30%-50%, I reduce my position by one-third. Last year, when a certain public chain coin reached my target price, I sold half, and set a 'breakeven stop-loss' for the rest; thus, even if it fell later, I at least secured half of the profits. Remember: the market does not have a 'magical operation to sell at the highest point'; being able to lock in most of the profits makes you the winner.

6️⃣ Balance investment and life, don’t let money 'float only in the account'.

The ultimate goal of investment is 'to make life better', but many people throw all their money into the market, living frugally, afraid to spend when it rises and more anxious when it falls. I used to be like this: I reinvested all my profits, and as a result, the numbers in my account increased, but my quality of life did not improve, and I lived in constant fear.


Now I have learned the principle of 'taking money off the table': for every profit I make, I take out 30% to improve my life - buy a new computer, treat my family to a nice meal, save some 'emergency funds'. The remaining 70% is reinvested in the market, which stabilizes my mindset. Last year, I took out 50,000 to renovate my house, and seeing my family happy made me realize: money only has meaning when spent on life.

Finally, I want to say:

Investment is never about 'who is smarter, who is bolder', but rather about who is more rational and patient. Following trends, selecting the right targets, waiting for the right moment, holding on, taking profits, and balancing life - these six skills may seem simple, but they can help you avoid 80% of pitfalls.


The market always has fluctuations, but as long as you stabilize your mindset and stick to the rules, your wealth will grow like a snowball. Remember: slow is fast, and stability leads to success. Investment carries risks, but there are also opportunities - provided that you first learn 'not to make mistakes'.

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