Not long ago, a brother came to me, and his account was in such a sorry state that it was distressing — starting with 50,000U and dropping to only 2,000U, he opened his trading record, and it was densely packed with losing trades; even he laughed and said, 'I’m close to losing face to touch the crypto world again.'
But who would have thought that on this day he excitedly sent a message, full of admiration in his tone: "Bro, I am completely convinced!"
Following your method, I turned 2000U into 18,000U, and now my daily earnings are stable at 200-400U, no longer having to fumble around like before."
In fact, this is the compounded interest secret that retail investors should have — not relying on luck to bet on the market, but instead relying on strict discipline to steadily advance.
The first tip is 'nesting doll-style positions'; you must protect your principal first to have the possibility of compounding. I let him break down the 2000U principal into 'nesting doll' positions: regardless of how confident the market looks, never open a position that exceeds 20%.
In other words, he used a maximum of 400U to enter. This way, even if he misjudges and incurs losses, the remaining 80% of the funds can be used to average down costs; if he is correct about the market, he can gradually increase his position once he has profits, which can both expand returns and prevent risks from spiraling out of control.
He later sighed to me: "I used to think that being liquidated was just bad luck, but later I realized that the scary part is rushing in and running out of bullets, leaving no chance to turn things around. This position method gives me a lot of peace of mind; even if the position temporarily incurs losses, I know there’s still a way out."
The second tip is 'only eat trend food'; I won't trade in a volatile market even if it's offered for free. I taught him to focus only on BTC and ETH, the two mainstream cryptocurrencies, and to act only when a clear trend appears on the daily chart:
First, check if the daily chart is turning upward, then switch to the 4-hour and 1-hour charts to look for 'resonance signals' — it must meet three criteria: moving averages in a bullish arrangement, increased trading volume breaking previous highs, and during pullbacks, not falling below key support levels; only when all three conditions are met should you enter.
As for those sideways volatile markets, he simply avoids them. He calculated that trading back and forth in a volatile range incurs more fees than the profits made, which is purely a waste of effort.
"In the past, I was always afraid of missing opportunities, and I forced myself to trade in a volatile market, which resulted in increasing losses; now I only wait for trends to come, which saves me a lot of effort and makes my earnings more stable."
The third tip is 'catching 2% fluctuations as an ATM'; don’t complain about the pace, just avoid chaos. Just like last time when ETH broke 4500U, it pulled back to 4400U to confirm support.
He placed an order to enter at 4450U as I advised, using a 500U position to open 3x leverage, and finally made a 2% profit, earning 30U in one go.
He now focuses on such 'stable trades' daily, making 3-4 trades a day, easily achieving the profit target of 200-400U.
At first, he felt that 'earning a few tens of U each time is too little', but after persisting in compounding for three months and watching his principal quietly double, he finally understood the principle that 'slow is fast'.
The fourth tip, and the most critical one, is — taking profits is more important than cutting losses. I repeatedly emphasized to him: when the take-profit level is reached, you must decisively exit, even if it rises another 10% afterwards, that doesn't belong to you, so don't be greedy.
One time he went long on BTC, and when he reached the preset take-profit point, he hesitated, thinking, "I'll wait a bit longer to earn more." As a result, within minutes, the market suddenly retraced, and in the end, the profits were cut in half compared to his expectations.
Since then, he no longer dares to be vague about taking profits; when the time comes, he closes his position. "Now I finally understand, the market won't pay for greed; when the take-profit is in place, it's time to pocket it, so I can sleep soundly at night, which is better than anything else."
In summary, turning 2000U in principal into daily earnings of 200-400U really doesn't require any talent; you just need to engrave the word 'discipline' into your bones.
Endure the loneliness of a volatile market without being tempted by short-term fluctuations; follow the rules to catch small movements within trends, without being greedy or rushing; do not hesitate when taking profits, and safeguard the earnings that should be obtained. If you do these, money will flow into your account steadily like tap water.
Now that brother is living a life of traveling and trading, because this method has formed a system that allows him to manage risks and signal judgments without staying up all night watching the market.
If you also want to avoid taking detours in the cryptocurrency world and no longer rely on luck to bet on the market, pay attention to @趋势猎手老金 . I will break down the details of this compound interest strategy for you — from how to specifically calculate positions to how to accurately judge resonance signals, each step is explained clearly, allowing retail investors to steadily participate in the market and gradually double their accounts.
