It's not about hesitating whether to increase my position, but thinking back to my self three years ago, I can't help but want to slap my thigh in the air!
Who hasn't gone through the stage of 'the newborn calf is not afraid of tigers'? Back then, with the dream of 'broadening asset channels', I dove headfirst into the crypto world, thinking that by following the trend, I could make easy money. The reality gave me an expensive lesson: a certain leading crypto asset rose for five days in a row, and on a whim, I jumped in with a full position, only to see it plummet 15% that very day. The project's reserve fund evaporated instantly, and it felt like my freshly bought hot milk tea spilling on the ground, only to be run over by a passing bicycle. Even more frustrating was holding onto an asset that was stagnant for two weeks, while watching another variety triple in value during the same period. I was slapping my thigh so much, I was almost developing muscle memory!
Now when I chat with Xiao Wu, who just entered the circle, I always share these lessons learned from real money spent — as a crypto analyst with three years of experience, I can confidently say: the money made in the crypto circle is not luck; it is money made by 'hitting the right rhythm'!
Remember firmly: these windows must not be operated recklessly
I can say this with a clear conscience: if the leading sector has fallen for eight or nine days? Don't rush to cut your losses! Last year, SOL fell for ten consecutive days, and everyone around me was panicking to flee. I kept my composure and gradually averaged down, and later on, it rebounded directly back to break even and even made a small profit. This is a low-buying window gifted by the heavens! Short-term fluctuations are all 'emotional noise'; the fundamentals of the leaders haven’t collapsed, and after a deep drop, it will naturally rebound, so why panic?
Conversely, regardless of the asset, if it increases for two consecutive days, you must actively reduce your position! Last time, I held on to an asset that rose for three days without movement, and on the fourth day, it directly pulled back 10%, swallowing half of the profits from the previous three days — greed is what the crypto circle calls the 'slaughter knife', specifically targeting those who are overly optimistic!
There is another golden rule: if a single-day increase exceeds 7%, don't rush to exit! Last year, ETH had a single-day increase of 8%, and my friends were busy cashing out while I held on. The next day, it surged to 12% before I gradually exited, and the extra stablecoins were enough for me to treat my friends to three hot pots; but you absolutely cannot chase after strong assets blindly, you have to wait for a pullback to the key moving averages before entering! Previously, when BTC reached the 40,000 mark, I resisted the urge and waited for it to drop to the 35,000 range before taking action, securing a solid profit. This is the reasoning behind 'no rush'.
Don’t waste time and costs: be decisive on these two signals
If a crypto asset has been stagnant for three consecutive days, listen to me and give it another three days of observation! Last year, I held onto a new asset for six days without a breakthrough and decisively switched to another upward trending asset, earning 15% in just a week. The most precious thing in the crypto circle is time; there's no need to waste it on 'lay flat assets'. Switching tracks might just lead to a sunny day.
There’s also a life-saving signal: if the market opens the next day and doesn't return to the previous day's cost price, don’t hesitate for a second! Last time, I hesitated for half an hour and ended up losing 800 stablecoins. I still regret it now, and this lesson is etched in my DNA!
Volume + Price + Trend: the core logic of making money
The underlying logic of crypto trading is actually very simple: you must keep a close eye on volume breakthroughs at low levels! Last year, SOL broke through at the $80 position with a surge in volume, and I decisively followed, and in two weeks, it surged to $120. This is the power of volume-price coordination; but if there is high volume at a high level without an increase, that is a dangerous signal, and you must withdraw immediately, don’t wait to get trapped.
Additionally, only choose assets that are in an upward trend for trading! A three-day moving average trending upward allows for short-term trading, quickly entering and exiting to make a profit; a thirty-day moving average trending upward is suitable for medium-term holds, steadily profiting from a wave of trend bonuses. Last year, I relied on the strong 80-day moving average of ADA, which also allowed idle funds to earn a nice appreciation. This is the confidence in 'going with the trend'.
When I first ventured into the crypto world, I stumbled around in the dark and took countless wrong turns before summarizing these rules. Now I share these heartfelt lessons with you all, hoping that when you want to optimize your asset structure with crypto assets, you don’t dash around recklessly like I did back then. Follow me
