Friends who have scrolled down to here, stop scrolling.
Trust me.
I have summarized the tricks used by dealers and project parties in the bear market below.
This article is a summary of my experience as an investor regarding bear market cycles and dealer tricks.
In order to prevent everyone from taking detours in fund investment, I have revised it three times.
It took me a week to detail the knowledge points on two pages and review past bull market data for Bitcoin..
Organize in detail the root causes of why 'most people cannot survive the bear market'; if you can finish reading and take notes to remind yourself, at least you won't be cut in the crypto space.
For those who haven't finished reading it in a short time, you can bookmark it. Before you get impatient, read this article carefully.
My method of trading cryptocurrencies is very simple and practical; I turned 8 digits in just one year, only trading one pattern, entering only when I see an opportunity, and never trading without a pattern, maintaining over 90% win rate for five years.
In the crypto space, if you want to make money in the long term, it’s not about luck, but about a systematic strategy, strict discipline, and good execution. Below, I share some trading strategies that have proven effective in practice, along with my established bottom line principles, hoping to be of help to you.
1. Capital management strategy: Controlling risk is the top priority.
1. Never go All in; always leave room.
The fundamental reason many people lose in trading is not that they bought the wrong asset, but that their positions were too heavy, leading to no chance of recovery once the market turns against them.
Control position size for each trade; do not heavily bet on a single cryptocurrency.
Allocate funds reasonably, for example, 60% in spot for long-term holding, 30% in spot for swing trading, and 10% in cash waiting for opportunities.
Always leave some bullets; when the market gives opportunities, you must have money to buy the dip.
2. Limit maximum losses to 10%-20%.
"You can't be right every time, but you must ensure that when you are wrong, the losses are controllable."
I set stop-loss points for each trade, usually not exceeding 10%-20%.
If I incur a 10% loss after buying, I will directly stop loss to avoid deep entrapment.
If the market is favorable, gradually increase positions, but increase by only up to 50% to avoid excessive exposure to risk.
Most people lose money in the crypto space, not because they lost 10% on a single trade, but because they endured a -90% loss.
2. Trading strategy: Go with the trend and avoid unnecessary struggles.
3. Only trade mainstream coins; do not touch worthless coins.
Hold BTC and ETH for the long term, gradually sell in a bull market, and gradually buy in a bear market.
Participate in some quality altcoins with small positions but absolutely do not touch Ponzi schemes, worthless coins, or MLM coins.
80% of the reasons why retail investors in the crypto space lose money is because they invested most of their funds in worthless coins, ultimately leading to project failures and zero value.
4. Trade with the trend, do not go against it.
"Market trends are always your friend."
During a bull market, adopt a bullish mindset, add positions on dips, and set target profit points.
In a bear market, stay in cash and observe, waiting for significant turning points before entering.
When BTC stabilizes above the 200-day moving average, the market is likely in a bull market; you can actively go long.
When BTC falls below the 200-day moving average, it is likely entering a bear market; reduce trading to avoid being harvested.
If you are unsure about the trend, look at the long-term K-line chart and do not be disturbed by short-term fluctuations.
5. Set 'entry points, stop-loss points, and take-profit points' before trading.
"Without a trading plan, it’s like running naked."
Entry point: Wait until the trend is clear before entering; do not guess the bottom.
Stop-loss point: Stop loss immediately if it falls below key support levels; do not linger in battle.
Take-profit point: Take partial profits when gains reach 30%-50% to prevent pullbacks.
Execution is more important than strategy! After setting rules, execute them strictly and do not change them on a whim.
3. Bottom Line Principle: Do not make fatal mistakes.
6. Absolutely do not touch high-leverage contracts.
"Using contracts can make you rich overnight, but it can also lead to bankruptcy overnight."
Many people were correct in their trades, but due to high leverage, they were liquidated with slight market fluctuations, ultimately losing and exiting.
Use a maximum of 2-3 times leverage; never touch leverage above 10 times.
Only use leverage when the trend is extremely clear; otherwise, only trade spot.
The outcome for most contract players: Initial capital 100,000 -> leveraged to 1,000,000 -> ultimately lost everything.
7. When you make money, be sure to realize it.
"Paper wealth is not wealth; only what is realized is wealth."
Many people made a lot of money in the bull market but did not cash out, and in the end lost it all in the bear market.
My principles:
In a bull market, gradually take profits of 30% and convert it into USDT or fiat, securing your gains.
Regularly withdraw a portion of profits for real-life investments.
In a bear market, use the realized funds to buy back BTC and ETH at low prices.
Market fluctuations are cyclical; do not think you can sell at the highest point every time. Making money is what matters.