The 'Stupid Method' Turns 5000 into 100,000: My Two Years with Xiao Ai
When Xiao Ai first messaged me, he had only 5000 U left in his account. He used to be a 'news trader', opening 20x leverage without finishing reading the K-line, resulting in 7 liquidations in 3 months.
I told him: If you want to turn things around, first learn to stay still. So I shared the 'Ten No Principles' with him—
1. Buy only after a complete drop: Strong coins with 9 consecutive bearish candles, panic sellers create a long lower shadow, only then act.
2. Reduce when it rises by two: No matter how much you believe, reduce 30% after two bullish candles to prevent profit retracement.
3. Wait at 7%: If there’s a single day increase of more than 7%, don’t chase the next day; there’s a high probability of a pullback.
4. Don’t chase big bulls: For hot coins that have tripled, wait two weeks before reassessing.
5. Switch when it’s stagnant: If the amplitude is below 3% within 6 days, directly remove from your favorites; funds have time costs.
Plus three hard rules:
• If there’s no bullish candle the next day, immediately stop-loss; don’t lose more than 10% per trade.
• After two consecutive days of rise, the fifth day is an emotional peak; sell in batches.
• Only trade in a bullish moving average arrangement: short trades on the 3-day line, swing trades on the 30-day line, and long-term on the 80-day line.
Xiao Ai asked, 'Should we look at the news?'
I replied, 'The price has already digested the news; just look at the charts.'
He followed my advice. His first trade was ETH; after nine bearish candles, a small cross candle appeared, and he bought at 1850. After two strong bullish candles, he reduced his position by 30% at 2150, and sold the remaining at 2400 after the fifth bullish candle—turning 5000 into 7200.
The second time was ARB; after being stagnant for 7 days and getting kicked out of his favorites, he missed a 20% surge and came to complain. I replied, 'Missing out doesn’t lose money; making mistakes loses money.'
In two years, Xiao Ai made only 26 trades with a win rate of 58%, but due to strict stop-losses, his maximum drawdown was 8.7%. On the day he turned 5000 USDT into 100,000, he took me out for a meal and asked for the secret.
I turned my cup upside down on the table: 'The rich let the water in the cup slowly overflow, while the poor always want to drink it dry in one gulp. The market is specialized in treating itchy hands; discipline is survival.'
Follow @小花生说币 , the lamp I always hold high, whether it shines or not, the road is beneath your feet.