Who hasn't experienced insomnia from checking K lines late at night after chasing highs? Who hasn't slapped their thigh watching their assets rebound after cutting losses? After 3 years in the crypto asset space, the pitfalls I've encountered could fill a 'crash compilation.' In 2021, I chased a popular asset at its peak and was stuck standing guard on the mountain for half a year; in 2022, during the sideways market, I made frequent trades, with fees three times my profits, purely charitable work for the exchange. Later, in pain, I summarized 3 practical iron rules, avoiding flashy techniques, which transformed me from 'being harvested by the market' to 'steadily earning compound interest.' Today, I share my heartfelt insights with you; very few can truly achieve this!
First rule: Emotions are 'stumbling blocks' on the road to making money and must be welded shut outside.
The most magical thing about the crypto market is that 'when prices rise, everyone is a genius; when they fall, everyone panics.' Last year, a certain asset surged for 5 consecutive days, and the community was full of 'go all in' calls. I restrained the impulse to follow the trend, and three days later, it directly corrected by 40%. In contrast, during the major drop in 2023, the entire internet was shouting 'the bear market has come.' I calmly assessed the fundamentals of the assets and gradually positioned myself, leading to a 25% rebound a month later.
To be honest, I understand the pain of chasing highs and cutting losses, but those who really make money have turned their emotions to 'silent mode'. The crazier it rises, the more you should step back; the harsher it drops, the more you should calm down—not to let you go against the trend, but not to be led away by market emotions. After all, 'when others are greedy, I am fearful; when others are fearful, I am greedy.' It's easy to say, but only the determined can do it.
Second rule: all in = betting your life savings; keep enough 'backup funds' to confidently sit at the fishing table.
When I first entered the market, I also made the mistake of going all in with all my savings, resulting in a 10% asset drawdown that made me panic and exit without a plan. Later, I realized that the crypto market never lacks opportunities; what it lacks is cash to seize the opportunities when they arise.
My iron rule is: never invest more than 50% of your funds in the market; the remaining half should either be stored in stable assets or kept as flexible funds. At the end of last year, a certain blue-chip asset dropped 20%, and I used my backup funds to gradually add positions. After averaging down my cost, I easily profited when it rebounded this year. Remember, having cash on hand keeps you calm; the market will always be there—don’t let a single all-in ruin all your opportunities.
5 practical 'lay down and win techniques', all tested with my real money.
Direction unclear = lying flat and watching the show. Asset prices sway at high levels, occasionally hitting new highs; or hover at low levels, potentially breaking down at any time—don't guess during such times! Guessing tops and bottoms is just gambling on luck. I usually just close the market software, do what I need to do, and wait for the market to establish a clear direction (like breaking through a sideways range) before taking action.
Sideways chaos = Working for the platform during a sideways period tests human nature the most. Some people are more punctual than an alarm clock, buying at the opening and selling at the closing, calling it 'swing trading', only to end up losing more in fees than gaining profits. During sideways markets, I basically 'half-sleep', adjusting positions within 10% at most, and most of the time I remain 'still as a mountain'. The fees saved can buy several cups of milk tea by the end of the year.
The 'rhythm code' of big bearish and bullish candles is the most practical technique I've learned in practice: when a daily chart closes with a big bearish candle, don't panic too quickly; gradually position 10%-20% on the next day. When a big bullish candle appears, don't be greedy, reduce positions to lock in some profits. It's not about precisely timing the bottom and top but about using probabilities to win the market— the likelihood of a rebound after a big bearish candle or a pullback after a big bullish candle is much more reliable than guessing the direction.
Bearish speed discerning rebound strength—falling slower and slower? Then the rebound likely lacks strength; don't rush to add positions. If there's a sudden accelerated drop, it may trigger a rebound, and at that time, you can try a small position to test. Last year, a certain asset dropped 30% in one day, and based on this logic, I entered with a small position, and three days later it rebounded 22%, easily making a quick profit.
Building positions is like stacking blocks; the lower it falls, the slower you buy. Never go all in at once! I always build positions 'from the bottom up': buy 10% on the first drop of 15%, add 15% on a further drop of 10%, and add 20% on a drop of 5%, gradually smoothing out the cost. Even if it continues to fall afterward, I have backup funds for adding positions, so my mindset won’t collapse.
