That year, I entered with 50,000, having no connections, no insider information, and certainly not relying on the so-called 'luck', but solely relying on a set of 'foolish methods' to endure until reaching 1.2 million U: treating trading like leveling up in a game, a margin call was just like using a revival card, 3460 days, I focused on three things every day — recording market conditions, reviewing operations, and controlling the urge to place random orders.
Today, I am sharing these six notes that I exchanged with blood and tears; if you can understand one, you might save 500,000; if you can truly do three, you are likely to outperform 90% of retail investors.
First, 'volume is the heartbeat of the market'. Price increases should be a steady climb, while price decreases that resemble a rapid slide shouldn't rush you to cut losses; it's highly likely that the operators are secretly accumulating shares; when encountering a sharp rise followed by a slow decline, one must remain calm, the true peak is never silent and is inevitably accompanied by a waterfall of volume, that is the signal of the 'scythe' falling.
Secondly, 'flash crashes are for cutting losses, not for bonuses'. Rapid and violent drops with slow rebounds are a typical tactic of big players withdrawing while striking; don’t keep comforting yourself with 'it has dropped so deep it should be at the bottom', in the crypto world, dropping below expectations and then dropping another eighteen layers is never fresh news.
Third is 'high positions fear silence'. A burst of volume may not be the top, but absolutely be cautious of no volume at high positions, just like a lively KTV suddenly falling into silence, the next moment may very well be the 'storm' of a market crash.
Fourth is 'the bottom must look for continuity'. A single volume spike may be a trap to induce buying; only when there is continuous low volume followed by another volume spike is it a signal that the big players are starting to build positions. Whether to follow depends on whether you have the patience to wait for this certainty.
Fifth is 'K-line is the result, volume is the cause'. The K-line only presents the market result, while the trading volume is the 'thermometer' reflecting market heat: when volume shrinks to the extreme, the market is left with the 'ghost' of observation.
The last rule is 'none' - without obsession, one can calmly turn off the screen during market fluctuations; without greed, one can keep their hands in their pockets when chasing highs; without fear, one dares to decisively press the accelerator during sharp declines. This is not a Zen attitude, but a survival instinct developed from countless liquidations.
Many people treat 'rolling positions' as a quick doubling gambling technique, but that's not the case. True rolling positions are a risk control + profit reinvestment system centered around 'surviving', and its key is never about 'earning quickly', but about 'how not to lose everything'.
The foundation of this system is an unshakable capital protection mechanism. I never use greedy 'floating profits to increase positions', but insist on 'locking profits for reinvestment': for example, using 5000U of principal to open a position, when the account rises to 7500U, immediately withdraw 5000U of principal, leaving only 2500U of profit to continue operations. After this step, the principal is safely pocketed, and subsequent trades are purely 'using profits to play games', the mindset will be surprisingly stable. After all, the soul of rolling positions is: never let the money you have already earned be taken back by the market.
Based on this, I can also build a profit fission model. Doubling from 2500U to 5000U, then take out 2500U, and continue to keep 2500U rolling; double again, then take out - each time using profits to generate money, with the principal always lying flat.
When the trend is clear, use 'trend rolling positions': for example, when BTC weekly breaks the previous high, the initial position leverage should not exceed 5 times, and after a 50% profit, add positions lightly. If it drops below the previous low, decisively stop loss, never hold on; during sideways movements, with volatility below 15%, use 'volatile rolling positions': reduce leverage to 1-2 times, buying high and selling low. Once the price breaks through the upper or lower Bollinger band, immediately liquidate without lingering; in case of a single-day drop of more than 15%, use 'crash rolling positions': build positions in batches every 5% drop, keeping the total position below 30%, and reduce half the position when rebounding 10%, take profits quickly without engaging in 'tail-end trading'.
Unfortunately, most people fail in rolling positions due to four fatal flaws: inadequate execution of capital protection, thinking 'it can still go up' when in profit, returning to zero after a single drawdown; difficulty sustaining profit fission, panicking at the first sign of market turbulence, and giving back all profits; leverage abuse, promising 5x but impulsively increasing to 20x, and getting eliminated by a major decline; more critically, losing to human nature, fantasizing about 'false breaks' when it’s time to stop loss, and being greedy 'just hold on a bit longer' when it’s time to take profits.
There is no myth in trading, only cold logic and iron discipline. Recognizing that 'trading is the realization of cognition' is the way to truly understand rolling positions, which are never a gamble but a long-term game of survival based on rules.
Stable layout in the crypto world: 9 practical laws to help you avoid blind operations
These strategies can help you reduce ineffective operations and seize the initiative amid volatility, especially suitable for conservative investors.
If a strong currency experiences a consecutive 9-day pullback at high positions, it often means the adjustment is basically complete, at this time, one can choose to lightly enter, avoiding early entry and getting trapped; conversely, if any currency rises for two consecutive days, remember to timely reduce positions, first lock in some profits, cashing out is the way to go. If a currency rises over 7% in a single day, even if it surges in the early session the next day, don’t rush to enter, maintaining observation is more prudent to avoid chasing at high positions.
For past 'big bull currencies', be sure to wait until the complete market cycle ends before considering entry, and avoid chasing highs while the hype is still present, otherwise, it’s easy to fall into the trap of being trapped. If a certain currency shows three consecutive days of flat fluctuations, lacking a clear trend, it is advisable to observe for 3 more days, and if still no improvement, it should be decisively considered to switch positions to avoid wasting time and capital costs.
Another important principle: if the closing price of the currency does not cover the previous day's cost price, it indicates a weak short-term trend, at this time, decisively exit, timely stop losses can reduce the risk of expanding losses. The rise list also hides the rule of 'where there are three, there must be five; where there are five, there must be seven'. When encountering a currency that has risen for two consecutive days, you can intervene during pullbacks, usually, the fifth day will be a good take-profit point.
Trading volume is the 'soul of the market', the combination of volume and price is the core of operation: if during the consolidation phase, a volume breakout occurs at a low level, it indicates sufficient upward momentum, worth paying attention to; but if the volume increases at a high level without rising for a long time (stagnation), one must decisively exit, this is often a signal of a pullback. When operating, also remember to only choose currencies that are in an upward trend, the win rate will be higher - the 3-day line trending upwards indicates a short-term opportunity, the 30-day line trending upwards is suitable for mid-term layouts, the 80-day line trending upwards likely indicates a major upward wave, and the 120-day moving average trending upwards can be used as a long-term target.
Lastly, a reminder: small funds can also find opportunities in the crypto world, the key is to stick to methods, maintain rationality, strictly execute strategies, and patiently wait for the right moment.
These two are the core of 'survival + profit':
• No hesitation in stopping losses: No matter if you just entered the market or have held for a long time, as long as the held asset drops below the 20-day line, immediately liquidate, never hold on! Don't hold onto the fantasy of 'just wait for a rebound', once the trend breaks, it breaks, keeping the principal is the only chance for the next opportunity (this trick helped me avoid the great waterfall of 2022);
• Do not be greedy when taking profits:
◦ If the rise reaches 20%, first reduce positions by 30%, keeping part of the profits in hand;
◦ If the rise reaches 50%, then reduce positions by 50%, ensuring most profits are cashed out;
◦ Observe the remaining 20% of the position based on the trend, clear out when breaking the line, never consume 'an entire market cycle'.
Remember: 80% of people in the crypto world are 'wanting more when they earn, wanting to break even when they lose', ultimately giving back all their profits. But as long as you strictly execute these two rules, you can become part of the 20% of profitable minority.
Stop relying on 'guessing K-lines' to trade coins! 5 years of 'three-layer mapping method': three cycles in combination, simple three steps to seize opportunities.
Many people repeatedly lose money trading coins, the problem lies in only focusing on one K-line cycle 'guessing'.
I have used the 'three-layer mapping method' for 5 years, relying on the combination of three cycles to find opportunities, with three simple steps to set direction, outline range, and seize timing.
1. 4-hour K-line: Look at the 'strategic map' to determine the overall direction
The 4-hour cycle is sufficient to filter out short-term noise, like a clear strategic map:
True upward trend: three consecutive higher lows + two consecutive higher highs, at this point only look for pullback opportunities to go long;
True downward trend: two consecutive lower highs + three consecutive lower lows, only waiting for rebound signals to short;
During sideways markets: the price jumps back and forth in a narrow range, even if a signal appears, it can easily be swept away, better to stay in cash and wait for a breakout.
Remember: follow the 4-hour trend, the win rate will be at least 30% higher; going against it, even the most accurate points can easily fail.
2. 1-hour K-line: Draw 'tactical areas' to find key positions
After determining the overall direction, the 1-hour chart serves as the tactical zone:
When going long, find support levels in the 4-hour trend - for example, a pullback to the 20-day moving average, the 50% retracement of the previous round of rise;
When going short, watch the resistance levels in the 4-hour trend - for example, hitting previous highs, or being suppressed by the 10-day moving average;
After reaching these positions, don’t rush in, wait for the 1-hour chart to show a small stabilization signal (like a small bullish engulfing), then outline the entry range.
3. 15-minute K-line: Use 'sights' to seize entry timing
15 minutes only responsible for 'the last shot', not looking at trends but focusing on signals:
Wait for the price to fall into the well-defined area of the 1-hour circle, showing engulfing, bottom divergence (go long) or top divergence, shooting star (go short);
At the same time, also look at the volume - when breaking through, the trading volume must be more than twice that of the previous K-line, then it’s not a false move;
After entering, also set the stop loss here: for going long, set it below the previous small low point of the 15 minutes, for going short, set it above the previous small high point, don’t leave room.
How to coordinate the three cycles?
First check the 4-hour to determine 'long or short'; then switch to the 1-hour to circle the 'support and resistance zone'; finally, watch the 15 minutes for 'signals + volume'.
If there is a cycle conflict (for example, the 4-hour rises but the 1-hour has a top divergence), it is better to wait for the 1-hour to finish adjusting before entering, do not force it.
I have relied on this 'three-layer mapping method' for 5 years, without insider information and without betting on a bull market, just relying on not being greedy and following cycles.
In the crypto world, opportunities are always present; it’s not the 'market' that is lacking, but 'mindset' and 'execution'.
Afraid of contract liquidation and floating losses? Memorize these 6 'life-saving tricks', turning losses into profits is just a matter of time.
When contracts are floating losses and you can't sleep at midnight, you might go through trading records to find six life-saving tricks.
Anyone can learn, but you must remember everything. If you miss one, the probability of falling back is high.
Article 1: Profit-taking and stop-loss must go hand in hand. I drew a line for myself: when profits exceed 5%, first take 30% off the table, and leave the rest for dynamic profit-taking.
If you lose 2%, regardless of how reluctant you are, liquidate, and after closing, go water the succulents on the balcony, don’t touch the trading software for half an hour. Protecting the principal is the only chance to await the next wave of market.
Article 2: Fewer orders are more useful than more monitoring. Previously, I would randomly open three or four orders in a day, incurring 0.8% in fees, and my mindset became increasingly unstable. Now I set a rule to open at most one order a day, before opening a position, I must fill out the 'three questions form': Is the trend followed? Where is the support level? How to withdraw if wrong? If not filled out completely, stay in cash. Watching fees as 'invisible loss' helps me resist the urge to trade.
Article 3: Being in cash is the most stable position. If you don’t understand the market, just close the software, keeping money in the account is always better than blowing up. Missing out won't mean you have no money, chaotic orders will. I take 'not forcing it' as my daily KPI, alongside 'how much to earn', checking them off, and after 20 days, I found that the account turns green much more often.
Article 4: Compound interest is more reliable than all-in. I calculated: 80U opening 8x leverage, a 1.5% increase yields 9.6U, as long as the win rate reaches 60%, doing this one trade every day can accumulate 86U in a month. Much steadier than those 'doubling plans' - liquidation can happen in a second, wanting to regain the principal takes at least two to three months; slow is actually fast.
Article 5: A light position can prevent black swans. I never dare to exceed 15% of my total position, and I enter in two batches for even the most optimistic market: first enter 5%, and add 10% once I stabilize at a key position. Even if it drops 15% in reverse, I will only lose 2.25% at most, leaving room for a counteraction. The market is always there, once the principal is gone, there are truly no opportunities left.
Sixth article: Knowing and doing must be unified. Knowing but not doing is useless. I write these six articles on sticky notes next to my keyboard, recite them before opening a position, and review after closing a position. If I violate a rule for two consecutive days, I will lower the leverage to 0.5 times and not allow withdrawals for two weeks. Using rules to manage emotions gradually becomes a habit.
Contracts are not a flood, greed is; the market does not trick people, chaotic operations do. Master these six moves, and turning losses into profits is just a matter of time.
What to do if you are trapped? Don’t panic, let me teach you four ways to break free!
First move: cut the position;
When you realize you bought in at a high point and the market is deteriorating rapidly, you must have the determination to cut losses decisively, abandon the car to save the commander, as long as the market is still there, there will always be opportunities to turn things around.
Second move: hedging;
If deeply trapped and unable to cut losses, and the market is still in a downward (upward) trend, one can first open in the opposite direction, waiting for the drop (rise) to a lower (higher) position, then look for the right timing or news stimulation to sell the profitable side, waiting patiently for the release. (However, this method is only to be used as a last resort)
Third move: in-trade T+0;
Applicable to volatile markets, the specific approach is to do short-term trading around the stocks you hold, selling high and buying low, using short-term profits to lower costs. (This requires you to have ample monitoring time and good fundamentals, otherwise don’t attempt lightly)
Fourth move: averaging down:
Applicable to the end of a unilateral trend, when the index is fluctuating at a low level or in sideways movements. (The scale of averaging down should be based on one's ability)
The core of averaging down is: be sure to wait until the bottom is confirmed before acting, never rush to break even, blindly averaging down will only lead to deeper entrapment!
I am A Xin, only doing real trading, the squad still has spots, hurry up to get on board.
