In the first few years of entering the cryptocurrency world, like most beginners, I stayed up late monitoring the market, chasing highs and cutting losses. I didn’t earn money and instead lost so much that my mindset collapsed. Later, I adhered to a 'stupid principle': if no familiar signals appear, I resolutely refrain from acting, even if it means missing an opportunity; I would rather not act blindly. With this simple yet practical method, I not only turned losses into profits, but now my annual return can stabilize above 60%, and investment is no longer reliant on luck.
I’d like to share my experiences gained through real money with friends who are just starting out, hoping to help you avoid detours.
1. Choose the right timing: Avoid chaotic peaks, seize clear market trends.
During the morning session, news can be chaotic (genuine good/bad news is everywhere), and market fluctuations are severe, making it easy to be impulsively swayed by emotions. I prefer to operate before the afternoon close—at this time, market information is clearer, and the K-line trend can better reflect the real trend, greatly reducing the probability of missteps.
2. Lock in profits: If you’ve made a profit, take some out; don’t wait for profits to 'fly away.'
Don’t be greedy and try to 'eat it all at once'! For instance, if I made 1200 yuan today, I would first transfer 400 yuan to my bank card, and reinvest the rest. I’ve seen too many people 'wanting to earn more' after making a profit, only to lose back all their profits in a single correction, or even suffer a loss of principal—taking some profits off the table first is the real way to make money.
3. Enter the market based on indicators: Do not rely on feelings, look at 'data signals.'
Trading cannot rely on 'feeling that it will rise' or 'sensing that it will fall.' Install a professional market analysis software on your phone, focus on three indicators, and wait for at least two of them to give the same direction signal before considering entry.
• MACD: Watch for the appearance of a golden cross (bullish) or a death cross (bearish).
• RSI: Determine whether the coin is overbought (might correct) or oversold (might rebound).
• Bollinger Bands: Pay attention to whether they are narrowing (the market is about to break through) or breaking the bands (trend is established).
4. Flexible stop-loss: Lock in profits while preventing large losses.
Stop-loss is not 'cutting losses'; it is the key to protecting your principal.
• If you have time to monitor the market: Manually move the stop-loss level up after making a profit. For example, if you buy at 2000 yuan and it rises to 2200 yuan, raise your stop-loss to 2050 yuan. Even if the market corrects, you can lock in a profit of 50 yuan.
• No time to monitor the market: Set a fixed stop-loss at 10% in advance to avoid sudden large drops that significantly reduce your principal.
5. Regular withdrawals: Profits not realized are just 'numbers.'
The floating profit in your account is not real money! I consistently transfer 35% of my profits to my bank card every Friday, and the remaining funds continue to be reinvested. By sticking to this method long-term, my account funds do not significantly retract due to large market fluctuations; instead, they steadily grow.
6. Understand K-lines: Different market conditions require different time frames.
You don’t need to memorize K-lines; just grasp the key periods.
• Short-term investment: Look at the 1-hour K-line; if two consecutive bullish candles appear, it indicates short-term upward momentum, and you can consider entering with a small position.
• Sideways market: Switch to the 4-hour K-line, find clear support levels, and wait for the price to drop near the support level before entering the market for a higher win rate.
7. A must-read guide for beginners to avoid pitfalls: these red lines should never be crossed.
1. Control leverage: Newbies should not exceed 5x leverage; leverage is an 'accelerator' that amplifies risk, not a 'get-rich tool.'
2. Stay away from small-cap coins: Niche and low-market-cap coins are highly volatile and can easily be manipulated by whales, leaving your principal unprotected.
3. Limited trades: A maximum of 4 trades per day. Frequent trading only increases the error rate; the more you trade, the more you lose.
4. Never borrow money: Never borrow money or take out loans to trade cryptocurrencies. Once you incur losses, not only will you lose your principal, but you will also be burdened with debt, completely falling into a passive position.
Lastly, I want to say: investment is not speculation; you don’t need to stare at the market every day, 'burning your nerves.' Maintain a regular rhythm—review at set times, shut down at set times, and live a normal work life, which allows for a calmer judgment of the market and steadier profits.
As I always say: it’s hard to row alone, a lone sail does not sail far. It’s too easy to go astray when exploring the cryptocurrency world alone; having a reliable team to study and guide you ensures a steady and long journey. I am always here; feel free to chat anytime if you have questions.
