The simplest way to make money in the crypto world: The secret to my stable profits using this simple method. A must-read for beginners.
After eight years of ups and downs in the crypto world, I discovered a counterintuitive truth: complex technical analysis is often less effective than simple strategies. I used to be a trader obsessed with various indicators until I woke up after my account shrank by 70%.
Today, I will share the "532 Position Management Method," which is a robust strategy I have verified with real money. Last year, I turned my initial capital of 100,000 into 3 million in profits using this method. Most importantly, this method allows you to sleep well without having to stare at the charts all day.
Essential 532 Position Management Method for Beginners
Core Concept: Control Risk, Let Profits Run
Step One: 50% Base Position (Safety Cushion)
Only choose mainstream coins in the top 20 by market capitalization (prefer BTC/ETH)
Initial investment should not exceed 50% of total funds
Key: Set a stop-loss at 5%-8%
Step Two: 30% Tactical Position (Dynamic Adjustment)
After a 10% price increase, add 20% when it retraces by 5%
If the price drops below the buying price by 8%, add 10% (maximum of two times)
Move the stop-loss up every time you gain 15%
Step Three: 20% Cash Position (Risk Control)
Always maintain 20% cash to respond to extreme market conditions
Use it to buy the dip in case of black swan events
Gradually convert to stablecoins towards the end of a bull market
Why is this method more reliable?
Never fully invested, leading to a more stable mindset
Room to add positions when prices drop, and room to add when prices rise
Suitable for 90% of ordinary investors to implement
Important Reminder:
Only trade 1-2 times a month, avoid frequent trading
Steer clear of all altcoins outside the top 50 by market cap
Set your take profit and stop loss, then take a break
This strategy is particularly suitable for:
Part-time investors with full-time jobs
Ordinary people who do not want to be tied down by market conditions
Those pursuing a steady annual return of 50%-100%
Remember: surviving in the crypto world for a long time is more important than making quick profits. In 2023, 80% of friends using this method outperformed the so-called "experts" who chase prices every day. The first priority of investing is to protect your principal, and only then to pursue profits.
Blindly going solo will never bring opportunities; click on my avatar to follow me, and I will guide you to discover tenfold potential coins! Top-tier resources!