Yesterday I dug out my old trading notes, the paper was so yellow it could be sold as an antique, and it was scribbled with "lost 30,000 chasing small cryptocurrencies" and "leveraged trading exploded overnight while staring wide-eyed". Now looking at the account numbers, I can't even imagine what I dared to think back then. But compared to flaunting profits, I want to expose the pitfalls I encountered over the past 6 years, to give a wake-up call to the sisters who just entered the market!
As an old hand who has been in the industry for 6 years, when I first entered the market, I was purely a "screenshot-following monster": seeing others flaunt "earning 100,000 in a single day", my eyes lit up like searchlights. I rushed into small cryptocurrencies and played with leverage, thinking that wealth was just a trading day away! What was the result? In half a year, the 50,000 I saved from work was lost completely. At my worst, I was staring at my phone at 3 AM, nervously checking the market like I was catching someone cheating, and after looking, I directly squatted down and cried. The next day at work, I went in with dark circles under my eyes, looking like I had been beaten up. Now looking back, my actions back then were like throwing money into a fire and complaining that the fire wasn't strong enough!
After reflecting on my painful experiences, I realized: the secret to making money in the crypto world is never 'quick,' but rather 'surviving'! Here are 3 tips that transformed me from a 'newbie' to a 'consistent profit maker'; if you follow them, you can at least reduce losses by 80%:
1. The moving average is the 'footprint' of capital; don't blindly look at the news.
I set my 5-day and 20-day moving averages as my phone wallpaper, not just for show; I really rely on them for my livelihood! The core logic is simple: I only consider building positions when the 5-day moving average crosses above the 20-day moving average (I call it the 'golden cross signal'). Conversely, if it drops below the 20-day moving average, I decisively exit; I never linger in battle. Moving averages reflect the flow of capital, which is 100 times more reliable than those 'insider news' or 'big shot recommendations' — after all, small coins are like unreliable partners, looking tempting but full of tricks. The mainstream leading coins are the 'reliable partners' that can accompany you for the long haul.
2. Diversify your investments; don’t put all your eggs in one basket.
Now, I only dare to invest 20% of my total funds when building positions. I will add more every time it drops by 5 points, up to 3 times, but I will never fully invest on a gamble! Last year, mainstream leading coins fluctuated around 20,000 dollars, and many people panicked and sold at a loss. I waited for half a month, watching the moving averages, and only made a move when the 20-day moving average stabilized. After 3 rounds of buying, I managed to catch it at a relatively low point, and when it rose to 35,000 dollars, I decisively took profits — although I didn’t get rich, I won in stability! Compared to the thrill of fully investing in small coins back then, this 'sleeping soundly' way of making money is much more appealing.
3. A trading journal is not just a log; it’s a notebook of mistakes.
I still maintain the habit of writing a journal every day, with 3 soul-searching questions: 'Did I get greedy today?', 'Did I set my stop-loss correctly?', 'Did I follow the crowd?' My notebook is stacked thick with bloody lessons. Fans often ask me if there’s a shortcut; I directly show them my notebook of mistakes. Avoiding 100 old pitfalls is far more useful than presenting 100 new methods!
Previously, an institution approached me for collaboration, saying 'We could make a lot of tuition fees by packaging this.' I directly blocked them. When I lost tears back then, no one came to profit off my 'intelligence tax.' Why should I use my experience to deceive others now? The crypto market changes daily; my methods only suit me. I truly dare not guarantee teaching others to make money. Rather than charging for courses, I’d rather share my notebook of mistakes; if everyone avoids pitfalls, that’s profit!
In the past 6 years, my biggest change isn’t how much my account balance has increased, but rather shifting from 'wanting to get rich' to 'being able to stay stable.' I used to be consumed by market movements after the close, unable to eat or sleep. Now, I go eat hot pot or barbecue after the close, and hike with friends on weekends. Market fluctuations don’t affect me much; I take profits when I should and set stop-losses properly, leaving the rest to the market. The numbers in my account are just numbers. Being able to maintain my pace of life and not be led by greed is what I truly gained!
If you are still confused in the crypto world, thinking about 'doubling' and 'getting rich' every day, it’s better to throw these thoughts aside and start by making a proper stop-loss and understanding a moving average. Take it slow; it actually gets you there faster! Let's talk in the comments about the worst pitfall you've encountered; I will randomly pick 3 friends to review their trading records for free, so follow me.
