Trader 'Bit Wang Wang' stands out in short-term trading in the cryptocurrency market due to a strict logical system and efficient execution. Below is a detailed description of his entire trading logic, including every step from market judgment to execution:

1. Market analysis logic

Wang Wang divides the market into six stages and formulates different operational strategies for each stage:

(1) Division of six stages

1. Stage one: Initial upward stage

• Characteristics: After breaking through significant resistance levels, market sentiment begins to improve.

• Strategy: Quickly build positions, usually opting for full positions.

2. Stage two: Consolidation

• Characteristics: The rise slows down, and the forces of long and short positions momentarily balance.

• Strategy: Control positions, observe further market movements, light positions or no operations.

3. Stage three: Pullback and decline

• Characteristics: After a significant increase, profits start to be taken, resulting in technical pullbacks.

• Strategy: Stay out of the market and observe to avoid bottom-fishing.

4. Stage four: Second surge

• Characteristics: The main force's washout is over, entering a new round of increases.

• Strategy: Rebuild positions, appropriately increase leverage, and seize the second major upward wave.

5. Stage five: Top exhaustion

• Characteristics: The rise is nearing its end, and trading volume is shrinking.

• Strategy: Reduce positions or take profits to avoid chasing highs.

6. Stage six: Deep bear market

• Characteristics: The trend has completely weakened, and market sentiment is panicked.

• Strategy: Completely stay out of the market and wait for the next opportunity.

(2) Key stage operations

• Stages one and four are his main profit stages, where he decisively participates with full positions.

• In other stages, the focus is on risk control, with light positions or even no positions.

2. Opening position logic

(1) Condition screening

Wang Wang screens trading targets based on the following conditions before opening positions:

1. Technical analysis:

• Breakthrough important moving averages (e.g., 20-day moving average or 200-day moving average).

• Volume signal appears, and trading volume significantly increases.

• Short-term candlestick patterns show an upward trend (e.g., breaking out of a triangular consolidation pattern).

2. Capital analysis:

• Significant inflow of main funds can be judged by monitoring on-chain data or changes in the order book.

3. Market sentiment:

• Open positions when market sentiment is positive, avoiding operations when sentiment is extremely pessimistic.

(2) Position control

• Only use one-third of the funds for the initial position opening.

• If the trend is confirmed, increase positions appropriately.

3. Risk management logic

(1) Stop-loss rules

• Set strict stop-loss for each trade, with stop-loss points usually at 3%-5% of the opening price.

• If the price reaches the stop-loss point, immediately liquidate positions and execute unconditionally.

(2) No position increase principle

• For targets in a downward trend, never increase positions to avoid 'catching a falling knife'.

(3) Maximum loss limit

• The maximum daily loss limit is 5%-10% of the total account funds. Once the loss limit is reached, trading stops for the day.

4. Closing position logic

(1) Take profit strategy

• Gradually reduce positions during significant rises in stage one or stage four:

• First target: Sell 50% of the position when profits reach 10%-20%.

• Second target: Liquidate positions when profits reach 30%-50%.

• While maintaining profits, leave some room for fluctuations to avoid exiting too early.

(2) Time-based take profit

• If the market does not reach the expected target for a long time (e.g., continuous fluctuations after a breakout), decisively reduce positions or close positions to free up capital.

5. Mindset and execution logic

Wang Wang believes that traders' mindset management directly determines execution effectiveness. Therefore, he takes the following measures:

1. Strictly execute the trading plan:

• Each trade is based on a pre-established strategy to avoid on-the-spot decisions.

2. Avoid emotional trading:

• Do not arbitrarily increase or decrease positions due to severe market fluctuations.

• Stay calm and follow the logic.

3. Maintain focus and discipline:

• Set a daily limit on the number of trades to prevent over-trading (e.g., a maximum of 1-3 trades per day).

• Do not blindly chase hot trends; stick to trading patterns you are familiar with.

6. Technical and data support

(1) Tool usage

Wang Wang relies on various technical indicators and data tools to assist in judgment:

• Technical indicators: RSI, MACD, Bollinger Bands, moving average system.

• Data tools: On-chain data (such as main fund flow) and exchange order book information.

• Risk tools: Stop-loss orders, gradual position reduction orders, etc.

(2) Backtesting and summary

• Review trading records weekly, analyzing the reasons for success and failure.

• Continuously optimize trading strategies to discover new opportunities.

Summary

Bit Wang Wang's entire trading logic encompasses the full process from market judgment, position management, opening positions to taking profits and stop losses. His success relies on:

1. Strict discipline: No matter how the market fluctuates, he adheres to executing the plan.

2. Refined position management: Minimize risks through position splitting and leverage control.

3. Keen market sense: Good at capturing the best timing for the market's main upward wave.

This systematic logic is suitable not only for short-term trading in the cryptocurrency market but also for trading strategies of other high-volatility assets.