Stop believing in the nonsense of 'getting rich overnight'! Back then, I entered the market with 30,000 in starting capital, losing so much that I could only afford to buy old pickled cabbage (not a joke, I was really poor), but now my account has six more zeros at the end, relying not on 'insider information,' but on a trading logic that ingrains 'no major losses' into my bones.
A student I had last year, who previously chased high prices and got stuck crying to me, learned this method for three months and doubled their funds—today I'm pulling out the valuable insights from the bottom of my box, suggesting you save it first to avoid not finding it later.
First principle: Protecting capital is 100 times more important than making money.
I've seen too many people treat trading like a casino, overly brave when chasing high positions and feeling more pain than cutting losses. My simple method is 'divide the eggs into baskets and add locks': split the funds into 6 parts, use only 1 part to enter the market each time, and strictly set a 10% stop-loss line.
Do the math and you'll understand: if you judge once incorrectly, the loss is only 1.7% of the total funds. Even if a black swan slaps me 5 times, the total loss is only 8%, which doesn't hurt the foundation; once the direction is correct, if you see more than 10% profit, decisively take the money, don't wait for 'more profit'—the money in the market can never be fully earned, but it can be fully lost.
A fan told me 'cutting losses hurts too much', I replied: 'Feeling 10% pain now is better than waking up one day to find your account only has 10% left.'
Core logic: go with the trend, don't wrestle with the market.
The dumbest thing in the crypto market is thinking 'I'm picking the bottom' during a downturn and panicking to 'cut losses on the floor' at the first sign of a rise. My iron rule is summed up in eight characters: don't pick the bottom when falling, dare to get in when rising.
Those suddenly skyrocketing targets? Don't touch them! It's like someone on the street suddenly rushing out to give you a red envelope; it's likely a trap. I only look at 'rising tracks' for targets and use moving averages as my navigation.
3-day line pointing up: make quick entries and exits for short-term trades, and take profits when you see them.
30-day line pointing up: plan for medium-term positions, hold on to capture the main rise.
84-day line pointing up: this is a 'golden signal', feel free to grab the big trend.
120-day line pointing up: can hold for the long term, sleep soundly.
Remember, the market is always right; don't always think 'I'm smarter than the market'—years ago, I stubbornly held onto a losing trend, losing even the money for my girlfriend's milk tea, and that lesson was more profound than anything.
Technical aspect: don't get fancy, focus on two key points.
Many people turn trading software into a 'kaleidoscope'; opening too many indicators instead confuses them. In 9 years, I've only focused on two things: MACD and volume-price; that's enough.
First, let's talk about MACD. This thing isn't just about crossing the golden and dead crosses. My standards are strict: the DIF line and DEA line must be 'holding hands' below the 0 axis (golden cross), and they both need to break through the 0 axis together; that's a 'reliable signal'; if a dead cross appears downward, don't hesitate, reduce your position first, even if it rises later, no regrets—missing out is always better than being trapped.
Volume and price are simpler, just remember two sentences: break through with volume at a low position, quickly focus on it; if there's high volume at a high position without a rise, make a quick exit. Last year, there was a target whose trading volume suddenly surged at a high position without price movement; I advised all students to exit, and three days later, it dropped 40%. Later, that student sent me a box of cherries.
Lastly, let me say something from the heart: discipline is more important than method.
Key point! When making a profit, you can slowly increase your position to expand earnings, like rolling a snowball; but when losing, you must never add to your position—don't think about 'averaging down'. Every additional entry could become a 'sunk cost'.
There's another habit I've maintained for 9 years: spending 40 minutes reviewing after the market closes. It's not about how much I've made, but asking myself three questions: Is the trend of the held targets still intact? Have the technical signals changed? Did today's operations violate discipline? Understanding this before adjusting strategies is ten times better than operating blindly.
In fact, the crypto market is not lacking in opportunities; what it lacks is a calm and non-greedy mindset and a stable system. My method seems simple, but it has helped me avoid countless crashes and also prevented students from taking many wrong turns.
