Having been in the crypto world for a long time, I've seen too many people go from doubling their capital to losing it all — It's not a lack of skills; it's a lack of 'bottom-line thinking.' Here are 5 pieces of advice I learned from falling down; if newcomers follow these, they can at least avoid most pitfalls:
One, either solidify your foundation or find a 'true master.'
There are no 'shortcuts' in the crypto world, but there are 'long routes' you can avoid:
Learn on your own: First, thoroughly understand the basics of K lines, moving averages, and trading volume. Don't rush into chasing 'indicator formulas' or 'insider news' (90% are traps);
Find a teacher: See if the other party is willing to teach 'logic' rather than 'code' — Those who only provide buy and sell points are 'signal callers'; those who can clearly explain 'why to buy, why to sell' are the true masters.
Core: Relying on others can only take you so far; being able to analyze the market yourself is what allows you to survive.
Two, stop-loss is not a 'decoration'; if the position is wrong, it’s equivalent to not setting one.
Many people set stop-losses that are effectively useless because the position is wrong:
When going long, the stop-loss must be placed 'below the key support level' (for example, below previous lows or dense moving average areas); don't move it closer just because you're 'afraid of being stopped out' — If the support level breaks, the trend may reverse; not setting a stop-loss will only lead to greater losses.
When going short, the stop-loss must be placed 'above the key resistance level' (for example, above previous highs or pressure lines); if the resistance level breaks, the market may rebound, and holding on will be fatal.
Remember: The purpose of a stop-loss is not to 'minimize losses', but to 'preserve capital' — Keeping your principal allows for the next opportunity.
Three, with proper position sizing, small losses and large gains require little effort.
In the same market conditions, some make 10% while others make 100%; the difference lies in position size:
Trial positions: For new opportunities, initially invest 10%-20% of your capital, and add more once the trend is confirmed (e.g., add 30% after a 20% profit);
Heavy positions: Only take opportunities with the 'highest certainty' (for example, those that align with moving average resonance and increased volume); never go all-in on ordinary opportunities.
Light positions: In a volatile market or when news is unclear, keep your position below 30%; it's better to miss out than to make a mistake.
Logic: Use small positions to experiment (losses are smaller), and increase positions to amplify profits — This is the core of 'small losses and large gains.'
Four, emotions are the biggest 'harvester'; you need to learn to 'lock' your brain.
80% of wrong orders in the crypto world are made when emotions are out of control:
Joyful when prices rise, chasing high to add positions (resulting in buying at the peak);
Panic when prices drop, cutting losses at the low point (only to see a rebound after selling);
Refusing to accept losses, doubling down on positions (the more you hold, the more you lose).
Solution: Write a plan before trading (how much to buy, where to set stop-loss, how much to take profit), set a phone alarm, and force yourself to wait 10 minutes before acting when impulsive — Most of the time, once you calm down, you won't want to act.
Five, entry relies on vision, exit relies on discipline; don't be the fool who 'makes small profits but incurs big losses.'
Entry: Wait for 'clear signals' before taking action (for example, when moving averages cross or break resistance levels); don't guess 'bottoms' or 'tops.'
Exit: There are two scenarios —
Profit: Take profit according to plan (e.g., sell half when up 50%, set a trailing stop for the remaining); don't be greedy about 'selling at the highest point.'
Loss: Cut immediately at the stop-loss level; don't think 'let's wait and see if it comes back' — The market never shows mercy to those who hold onto losing positions.
The Truth: Those who can buy are apprentices, while those who can sell are masters — How many people have made a 100% profit, only to eventually lose 50% because they couldn't sell?
To put it simply: The crypto world doesn't lack 'smart people'; it lacks 'rule-abiding individuals.' These 5 pieces of advice may seem simple, but if you can implement 80% of them, you will have already surpassed 90% of retail investors.
Feel free to ask specific questions at any time — The best way to avoid detours is to step on the experiences of others.
Pay attention to intraday: LTC GAS ILV
