After ten years of struggling in the crypto world, it wasn't until six years ago, under the guidance of a senior, that I finally realized and found the key.
A trading strategy based on personal characteristics. Although not yet among the wealthy, I have achieved consistent profits, enough to secure my position in the investment world.
Top 20% tier.
Years ago, I realized deeply that an excellent trading strategy is an indispensable weapon for investors. However, lacking systematic guidance...
Investing without a clear strategy is like a blind man touching an elephant, with very little chance of success. However, formulating an effective trading strategy is not an easy task.
The efficiency of this strategy lies in its contrarian approach to human nature. It requires us to abandon greed and fear, to remain calm and decisive.
Personal conjectures, unwaveringly execute established guidelines.
In the crypto world, to make money in the long term, it relies not on luck but on systematic strategies, strict discipline, and strong execution. Below, I share some effective trading strategies that have been tried and tested in real-life situations, along with my established bottom line principles, hoping to help you.
1. Capital management strategy: Controlling risk is the top priority.
1. Never go all in, always leave some room.
The fundamental reason many people lose money trading is not because they bought the wrong assets, but because their positions were too heavy, leaving no opportunity to turn around when the market turned against them.
Control position size in every trade; do not heavily bet on a single coin.
Reasonably allocate funds, for example, 60% for long-term holding, 30% for swing trading, and 10% cash waiting for opportunities.
Always leave some bullets; when the market gives an opportunity, you need to have money to buy the dip.
2. Control losses to a maximum of 10%-20%.
“You can't be right every time, but you must ensure that your losses are controllable when you're wrong.”
I set a stop loss for every trade, usually not exceeding 10%-20%.
If I incur a 10% loss after buying, I will directly stop loss to avoid being deeply trapped.
If the market is favorable, gradually increase your position, but increase by a maximum of 50% to avoid excessive exposure to risk.
Most people lose money in the crypto market not because they lost 10% on a single trade, but because they held through a -90% drawdown.
2. Trading strategy: Go with the trend; avoid random fluctuations.
3. Only trade mainstream coins; avoid scam coins.
Hold BTC and ETH for the long term; sell slowly in a bull market and buy slowly in a bear market.
Participate in some quality altcoins with small positions, but firmly avoid Ponzi schemes, scam coins, and pyramid coins.
80% of the reasons retail investors lose money in the crypto market is because they invested most of their funds in scam coins, ultimately leading to project failure and zero returns.
4. Trade with the trend; do not go against the trend.
“The market trend is always your friend.”
In a bull market, maintain a bullish mindset, increase positions on dips, and set take profit targets.
In a bear market, stay out and wait for major turning points to enter.
When BTC stabilizes above the 200-day moving average, the market is likely in a bull market, and you can actively long.
If BTC breaks below the 200-day moving average, it is highly likely to enter a bear market. Reduce trading to avoid being harvested.
If you don't know how the trend is, look at the long-term K-line; don't be disturbed by short-term fluctuations.
5. Set your entry, stop loss, and take profit points before trading.
“Without a trading plan, it's like running naked.”
Entry point: Wait for the trend to become clear before entering, don't guess the bottom.
Stop loss point: Set a stop loss if it breaks key support levels, don't cling to it.
Take profit point: Take partial profits when a 30%-50% gain is achieved to prevent retracement.
Execution is more important than strategy! After setting rules, strictly follow them; do not make last-minute changes.
3. Bottom line principle: Do not make fatal mistakes.
6. Never use high-leverage contracts.
“Using contracts can make you rich overnight, but it can also lead to bankruptcy overnight.”
Many people trade correctly, but due to excessive leverage, they get liquidated with a slight market fluctuation and ultimately lose money.
Use a maximum of 2-3x leverage; never use more than 10x leverage.
Only use leverage when the trend is extremely clear; otherwise, only trade spot.
The fate of most contract traders: Initial capital of 100,000 -> Leveraged to 1,000,000 -> Ultimately lost.
7. When you make money, be sure to realize it.
“Paper wealth is not wealth; only realized gains are wealth.”
Many people made a lot of money in a bull market but did not cash out, ultimately losing it all in the bear market.
My principles:
In a bull market, take profits gradually at 30% into USDT or fiat currency; realize gains.
Regularly withdraw a portion of your profits for real-life investments.
During a bear market, use realized funds to buy back BTC and ETH at low prices.
Market fluctuations are cyclical; don’t think you can sell at the highest point every time; making money is the key.
Summary: My crypto trading strategy.
1. Capital management:
Don't go all in; allocate positions reasonably, always leave some room.
Losses should not exceed 10%-20%; strict stop loss.
2. Trading strategy:
Only trade mainstream coins, avoid scam coins.
Trade with the trend, do not guess the bottom or the top.
Set entry points, stop loss points, and take profit points, and strictly adhere to them.
3. Bottom line principle:
Never use high leverage; contracts are just icing on the cake, not a tool for turning around.
When you make money, be sure to realize it; withdraw profits regularly.
I am preparing for a great trade that is about to start!!!
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Impermanence brings impermanence!!!
Important things should be said three times!!!
