After three consecutive losses, he only did one thing and started to turn things around!
An old friend contacted me a while back, sounding discouraged, and said: "My last three attempts resulted in losses... The more I look, the more directionless I feel."
I didn't give him advice right away; instead, I asked: "Have you reviewed the reasons for these losses?"
He said something very typical: "When the market rises, I lose, and when the market falls, I lose even more. I just can't grasp the rhythm."
That's the problem. It's not that the market doesn't make money; it's that the method is wrong.
I asked him to stop trading for two days, not to make any moves, and then to organize the trading records from that period. The results were very clear:
Chasing after a little rise, only to turn back and find it's at the peak.
Stop-loss and take-profit decisions are made randomly, relying entirely on 'feel'.
Following whatever others say without any personal judgment.
So I provided him with a set of unconventional trading logic:
Step 1: Learn to identify abnormal cryptocurrencies.
Instead of blindly chasing hot spots, look for those that remain stable when the market drops significantly. If nobody supports it but it can hold its ground, there’s likely some backing behind it.
Step 2: Execute systematic trading rules.
Just two simple indicators:
If the 5-day moving average doesn't hold, exit first;
If the 20-day moving average breaks down, exit immediately.
If you can't understand the market, let technical indicators do the talking; rely less on emotions and more on discipline.
Step 3: Reduce position sizes; don’t rush into a full position on a single coin.
Use smaller positions when uncertain, and add more once you’re sure, instead of making a big gamble from the start.
Step 4: Remember 'time stop-loss'.
If you haven't moved for three days, even if it starts to weaken, just switch. Capital efficiency is more important than stubbornness.
A month later, he said the biggest change wasn't that his account returned to positive, but rather that he no longer felt anxious; he had regained a sense of rhythm.
That's the key point.
The crypto market moves quickly, but there is a rhythm to follow.
The key is not to make a profit every time, but to avoid major losses and build steadily.
What truly matters is not always buying at the lowest point, but being able to control the rhythm, incur fewer losses, survive longer, and earn steadily.
In this market, what you lack is not effort or opportunity, but someone who can help you achieve stable profits in this market.
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