Now, I have entered my 32nd year. Since I was 22, I have embarked on the journey of investing in digital currencies. Between 2023 and 2024, my assets successfully crossed the milestone of 8 figures.
Now, I have entered my 32nd year. Since I was 22, I have embarked on the journey of investing in digital currencies. Between 2023 and 2024, my assets successfully crossed the milestone of 8 figures.
Now, my quality of life has significantly improved, and I stay in high-end hotels costing around 2000 yuan. My suitcase, hat, and other personal items may cleverly incorporate unique symbols from the crypto world, showcasing my identity and taste.
Compared to the hard work of the older generation in the real industry, or the struggles of post-80s e-commerce entrepreneurs, my lifestyle appears particularly comfortable and easy.
In my investment career, I have rarely encountered complicated business entanglements; life's troubles seem to always bypass me.
In my view, the key to investing in digital currencies is maintaining a good mindset; the mastery of technical aspects is secondary.
This calmness and composure may be the secret to my ability to navigate the crypto world effortlessly and reap substantial rewards.
Proven method: In 18 days, I rolled from 5000U to 120,000U: The core of not blowing up in the futures market is: practical strategies for position management in the crypto world.
Starting with 5000U and rolling it to 120,000U is not a fantasy.
But it requires precise strategy + strict position management.
The following are market-validated practical methods suitable for short-term/swing players.
But the final step, the 'mysterious bonus', is the key
Step 1: Capital Allocation (How to bet 5000U?)
Core Principle: No All-in, no life gamble, roll with compound thinking
3000U (60%) → Low-risk stable trading (BTC/ETH swing)
1000U (20%) → High-odds Altcoins (grabbing hot spots, such as AI, MEME, RWA)
500U (10%) → Futures Hedge (only for extreme market conditions protection)
500U (10%) → Cash reserve (waiting to buy the dip during a crash)
Common Mistake for Beginners**: Going all-in on a single coin or using leverage to bet on direction
Step 2: Trading Strategy (How to grow funds?)
1. Main Battlefield: BTC/ETH swing (3000U)
Trade at key support/resistance levels (e.g., buy when BTC falls to the moving average support, sell when it rises to previous high resistance)
Goal: Earn 10-20% per wave, do it 2-3 times a month, roll over compound interest
2. Critical Point: High-odds Altcoins (1000U)
Strategy: Only play low market cap coins with hot spots (such as new coins launched, sector rotation)
3. Hedge Protection (500U Futures)
Usage: When the market experiences extreme conditions (such as before a crash), use 5-10x short positions for hedging to reduce spot losses
Step 3: Position Management (How to avoid liquidation?)
Single trade ≤ 10% of capital (e.g., for a 5000U account, a single order ≤ 500U)
Stop loss hard limit ≤ 5% (cut losses at 500U, don’t hold positions)
Take profits in batches (take half profit at 20%, hold the other half for higher gains)
Weekly review, cut weak coins, keep strong coins
Key Thinking: Cut losses, let profits run, rather than 'take a little profit and hold onto losses'.
Stick to your own system
Sticking to your own system is the last difficult task to becoming a qualified trader. It seems simple, but it is not easy.
Many people cannot stick to trading according to the system. Besides issues with execution, the most important reason is that they do not understand the system deeply enough, meaning they have not thought deeply about it and do not know the ins and outs of the system. Therefore, even if they obtain a profitable system's rules, it is very difficult to persist.
Just like the turtle trading method, it has always been public. But why can most people not stick to it? On the surface, it seems to be an execution problem, but in reality, it is a cognitive issue. Without a deep understanding of the turtle trading method and trend following, directly executing the turtle's approach is extremely difficult.
Thus, the first step to sticking to your own system is to have a sufficient understanding of it. Otherwise, execution skills are useless. To achieve unity of knowledge and action, you must first attain knowledge. Only true understanding makes action easy.
Achieving true understanding is not the end. In real trading, you will encounter something called change, which means discovering that the market or environment has undergone significant changes, and your previous system starts to become ineffective. At this point, do you choose to stick to it or change?
This is a difficult question. If the system is built based on market conditions, adjustments must be made when the market environment changes, just like many EAs require human intervention in different environments.
But if your system is based on the most fundamental logic, and you firmly believe this is just a normal retracement of the system, just that the current market does not match your system, but it will eventually return to a time suitable for the system, then you cannot change the system and must persist as before, even if there are temporary losses and pullbacks.
There is also a situation where your system needs an upgrade. When you learn something new, you really want to incorporate it into your existing system. This raises the question of whether to add it, how to add it, and whether it will make things better or worse.
This is a very realistic problem that almost every trader encounters. My personal opinion is that it can be added, but you must maintain the singularity of variables, meaning you cannot add multiple variables at once; you can only add one at a time. Because only in this way can you objectively compare whether the added variable improves or worsens the system.
If you directly add three variables at once, whether the system's profitability increases or decreases, you won't know which variable is effective, and it will greatly increase the complexity of the system.
Summary
The above are the three most common difficulties on the trading path, summarized as follows:
Stay true to your original intention and persevere.
Deep thinking, leverage strengths.
Stick to the system and gradually iterate.
If you want to make profits, find Brother Fish. Brother Fish won't lead fans to explode positions, nor blindly open positions.
Keep a close eye on BTC, ETH, BNB
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