Do you often face liquidation as well? Then this article is worth your contemplation:
The market is never targeting anyone; it simply ejects those who 'cannot use profits to roll over' with a single click from the arena.
I once had a student who slowly rolled 6800U to 42000U; I've also seen someone who correctly predicted the direction but lost 20,000U, leaving them with just enough for meals.
The difference is just one: the former lets profits charge forward, while the latter bets with their capital on wins and losses.
Looking closely at the actions of retail investors, it seems like they are following a script: panicking to close positions after a 5% rise, only to turn around and see the market still surging, and then slapping their thighs and cursing themselves for selling too early;
Excited to add to positions after a 3% drop, the more they add, the heavier their position becomes, and finally, they face liquidation; what's more frustrating is that the direction was correct, but after just a 0.8% pullback, they were stopped out and could only watch their profits disappear.
Experts do the opposite: they never sell profits casually; if they reduce, they only reduce the profit portion, leaving the principal intact.
Never rush to add positions; wait for the K-line to pull back to the 20-day line, and then act when the volume picks up.
The liquidation line should never touch the original principal—using the profits long ago as 'bullets', while the principal remains safely as 'stored money'.
I've condensed this set of rolling position logic into three rules posted next to my monitor:
The principal is 'stored money', absolutely untouched. No matter how tempting the market is, only use the profits previously earned to operate.
Locking the principal into a cold wallet is equivalent to leaving 'emergency funds' in the account; no matter how much you lose, there is always a way out.
Wait for the 'traffic light' to add positions, don’t rush in. Don’t think 'I can catch the bottom' and add positions recklessly; wait for the market to give a clear signal.
For example, breaking through support and then rebounding, with a sudden increase in volume, then using profits to add positions, and not making trades without certainty.
Rolling positions use 'profit bullets', without harming the root. Even if the money earned that day is lost, never touch the principal to add positions.
At worst, you can earn again next time, at least you won’t return to the starting point overnight; preserving the principal gives you a chance to recover.
Remember: rolling positions is not about gambling on the size; it’s about turning profits into a 'protective charm' and letting the market help you earn money.
When you learn to use profits to generate profits, your name will never appear on the liquidation list.
Many people wonder: why do others always lose while I can consistently take profits? The answer is simple:
The vast majority of people only chase highs and sell lows, placing orders based on feelings; while I have a complete risk control + position + rhythm method, allowing me to capture my own profits regardless of whether the market rises or falls.
Making money in the crypto world relies not on luck, but on methodology. Those without a method are forever someone else's ATM.
Let me talk about myself: I have been in the crypto world for ten years. I quit my job to trade coins ten years ago, and what truly changed me was a night five years ago. What an old senior said to me struck me hard, helping me correct my position and comprehend the eight stages that every crypto investor must go through, constantly comparing myself to these stages, using them as a mirror, and finally regaining everything I lost!
Perhaps in the eyes of some people, retail investors are always the lambs waiting to be slaughtered!
If you are preparing to enter the crypto world, I sincerely hope this article can help you. As someone with good summarizing abilities and decent expression, I believe some of my thoughts may be helpful to you.
Alright, enough of the chit-chat, let’s get straight to the point~
When it's hard to make a sell decision in trading, ask yourself: if your analysis is correct, why is the market moving in the opposite direction? The only reason is that you are wrong because the market cannot be wrong!
Real and effective, let's talk about how to monitor the market. The recent heat in the market has been consistently high.
Many friends are afraid of missing out and worry about not being able to monitor the market, after all, good opportunities do not wait for anyone. Monitoring the market can promptly capture trend reversals and buying/selling windows, and cultivate market sensitivity, so finding the right mindset is crucial.
Today, I would like to share some small tips for effectively monitoring the market.
1️⃣ Lock in market turning points.
Support levels are stock prices, resistance levels are 'resistance zones'; these are the 'weather vanes' for market turning points. Breaking through the resistance level indicates upward momentum, while falling below the support level may trigger a downward trend. Monitoring the market can quickly confirm signals, avoiding lagging operations.
For example, each rebound's high point is a resistance level, and the low point during a pullback is a support level. Now we are in a low volatility phase; if I want to build a position, I would invest in this range or add positions in batches, and once I complete my position, I will no longer add (in the future, it is highly likely to go up, and the more you add, the higher your cost).
2️⃣ Two signals to determine buying and selling timing.
Some classmates may ask, what if it goes up in the future and I want to add? When can I add again? I think the most suitable points to add positions are two: one is when there is a stage pullback, and the market hits the support level. The second is when the market breaks through the resistance level (after the breakthrough, it is highly likely to continue rising).
Monitoring mainly focuses on several key points (such as the upper and lower edges of the fluctuation range, support and resistance levels); don't get entangled during other times (especially in fluctuating ranges, it can be very boring).
The truth about the crypto world: How do retail investors snatch food from the dealer's mouth?
In the crypto world, the relationship between dealers and retail investors in 2025 is like a tense and thrilling cat-and-mouse game. Retail investors do have opportunities to make money, but they must understand the tricks better than dealers and learn to leverage effectively, otherwise, they can only be cut down repeatedly like 'chives'.
The secrets of the dealer's harvesting, why are retail investors always being cut?
1 Liquidity manipulation: Lock your chips like bullets.
The dealer has a shady trick: through staking pools, like ETH2.0's stETH, they lock retail investors' chips tightly, creating a liquidity 'black hole'. Then they take these staking certificates to the exchange to borrow against and then short-sell the market. The tokens you painstakingly locked up might just become the 'ammunition' for the dealer to crash the market.
Take a certain altcoin from 2024 as an example: when the dealer withdraws the pool, this coin slides down like a slide, plummeting 62% within 24 hours. Even worse, retail investors' stop-loss orders were ineffective due to exchange API vulnerabilities, causing liquidation amounts to exceed tens of millions of dollars, leaving many people with nothing.
2 Information dimension reduction strike: what you see are traps.
The dealer has an absolute advantage in information. They can monitor whale addresses on-chain, collaborate with some so-called KOLs to release favorable news, and even manipulate exchange data, such as modifying K-lines and triggering liquidations. The 'surge signals' retail investors see are likely traps set by the dealer in advance.
A typical example is Memecoins, like TRUMP coin. The internal team hoards a large amount beforehand and then wildly promotes it on social media. When retail investors rush in to take over, they take the opportunity to sell, causing retail investors to lose more than 60%, leaving them to accept their misfortune.
3 Leverage massacre: the blood rain and wind under high leverage.
By 2025, the average leverage of perpetual contracts is shockingly high, soaring to 50 times. Dealers exploit the mechanism of 'double killing' to harvest retail investors. Take Bitcoin as an example: a 6% fluctuation can trigger billions of dollars in liquidations, and the liquidity generated from these liquidations ultimately ends up in the dealer's pocket.
Retail investors' counterattack strategy: pulling money from the dealer's fingers.
1 Avoid high leverage, embrace passive income.
High leverage is like walking on a tightrope; if you’re not careful, you could fall to pieces. Retail investors might consider participating in decentralized liquidity mining, such as SKD liquidity pools. Although the annual yield is only 5% - 15%, it can avoid the risks of contract liquidation. The key is to choose pools that have been audited and are deep enough, like ETH/USDC, where impermanent loss will also be much smaller.
Additionally, staking mainstream coins is also a good choice, such as BTC and ETH, staking them on compliant platforms can earn stable yields of 3% - 8%. Dealers find it hard to manipulate these large-cap assets, making them relatively safe.
2 Reverse emotional gaming: when others are greedy, I am fearful; when others are fearful, I am greedy.
When social media is filled with stories of getting rich quickly, such as which intern made millions with Meme coins, it is usually a signal for dealers to sell. You must not follow blindly; the right path is to quickly reduce your positions.
On the contrary, during panic sell-offs, such as when Bitcoin falls more than 8% in a single day, dealers may take the opportunity to wash the market. You can buy in batches; you might just snag a bargain.
The new changes in 2025: institutions entering the market, major rule changes.
1 Dealer upgrade: AI hedging systems become new weapons.
Now some institutions have also started playing high-tech, using AI hedging systems. This system can dynamically adjust the liquidation line based on retail investors' positions and even show different prices to different users, making it difficult for retail investors to guard against.
2 Tools for retail investors' 'information equality': data transparency.
However, retail investors don't need to be too pessimistic; there are now some 'information equality' tools. Zero-knowledge proof technology has been applied in some DEXs, allowing transaction records to be verifiable, reducing the possibility of dealer data manipulation. Platforms like Glassnode and other on-chain data platforms can alert 'abnormal staking' or 'whale movements' so that retail investors can prepare in advance.
Switching lanes is key to retail investors making money.
1 Short-term: Play waves with the dealer, discipline is key.
If you don't have much capital on hand and want to gamble for high odds, you can play waves with the dealer. But you must have strong discipline: set a stop loss at 5%, and when profits reach 20%, hurry up and exit, don’t be greedy; otherwise, you might easily give back the money you earned.
2 Long-term: Regularly invest in mainstream coins, steadily and steadily.
In the long term, regularly investing in Bitcoin and Ethereum is a good strategy, recommended to account for 70% of the portfolio. Using the DCA strategy to average down costs, in the trend of institutionalization, these assets are the most resistant to manipulation and can allow you to sleep soundly.
Summary.
In the end, what the dealer harvests is the 'greed and ignorance' of retail investors. If retail investors can focus on value discovery, such as paying attention to the real projects in the AI and DePIN tracks, and reduce leverage usage, they can avoid the dealer's 'sickle' to a certain extent.
The crypto world is like a casino; the dealer does have an advantage, but retail investors can learn to count cards, use on-chain data as a 'perspective lens', use low leverage as 'armor', and run away once they make a profit. Don't fall in love with the battle; this is how you can survive in this risky crypto world.
Ride the fastest horse, wield the sharpest sword, drink the strongest wine, and climb the highest mountain! I am Qing Tian, having experienced three rounds of bull and bear markets, with rich market experience in various financial fields. Follow the public account (BitCloud Sister), here, penetrate the mist of information, here, discover the real market. Grasping leading opportunities and finding truly valuable opportunities, don't miss out and regret!
Finally, share three cognitive keys to sustained trading profits.
1 The foundation of sustained profitability.
Like professional gamblers who remain calm about wins and losses, excellent traders must adapt to the 'impact of wins and losses' in trading and manage their funds well—individual trades should not wipe out the entire account.
2 Adjust your view of 'money'.
Think about your youthful job: an hour's wage can buy gas, see a movie, or have a date → in trading, don't treat money as 'real money'; think of it as score numbers in a game.
The purpose of doing this is: don't let 'earning can buy a car / losing can’t buy appliances' affect your judgment during trading.
3 Don't let emotions ruin trading.
If you always think 'what can this money buy' during trading, your operations will become emotional, losing technical rationality, which is like feeding yourself 'poison'.
Remember: money is a tool in trading, don't let the sense of gain and loss in life disrupt your trading rhythm.
In the crypto world, when making a profit finally turns into cash, the biggest fear is not missing out, but suddenly having your bank card frozen. Suppose you hold ten million USDT and find a broker ready to cash out, following the usual process: you first transfer the coins to the collateral account, the other party transfers RMB, and you confirm the release of coins—seemingly safe 'over-the-counter trading', but actually fraught with danger.
Many people think that checking the funds' sedimentation time in the other party's account, requiring 'frozen card compensation', or choosing long-established merchants can ensure safety. However, this is not the case. The risk of a frozen card is like a lurking mine and does not depend on whether this transaction is clean, but rather whether this money has ever flowed through 'involved funds'. Once a victim reports, if the trace leads to your card, even if it was a transaction months ago, the freeze will still come unexpectedly.
It is even more important to be alert: the bank cards used by U merchants have long been marked by the bank's risk control system due to high-frequency and large-value transactions. Once you have dealings with them, your account is also likely to enter the bank's monitoring list. Moreover, if your usual trading habits are conservative, but your account suddenly shows abnormal behaviors such as rapid inflows and outflows, no balance left, frequent transactions, etc., it will also trigger the bank's anti-money laundering alert, leading to non-cash transactions or even freezing.
In essence, it is the increasing strictness of financial regulation in the era of big data. Many gray funds flow through USDT, and frequent currency transactions easily associate bank cards with anti-fraud blacklists. Most currency merchants' accounts have already been marked as 'high risk' by risk control. Long-term, large-scale transactions with them are tantamount to placing oneself on the edge of a cliff.
Making money is a skill; securing it is true wisdom.
The path to cashing out should be approached with caution. Don't rush for speed or low fees; protecting your bank account is the real way to safeguard this hard-earned reward.
Follow Lao Chen and you will gain something. Helping others is like helping oneself. I hope that no matter how the market changes, we can always walk together and laugh at the crypto world ten years later.
