Stop trading aimlessly! A practitioner who turned 8000 into 80 million tells you: the core is just three steps (with 15 tips).
Crypto trading insights: from 8000 to 80 million practical experiences.
In the crypto space, achieving financial freedom through trading is not impossible, but just as the 80/20 rule applies in all industries, only a minority can truly achieve it. I started with a capital of 8000 yuan and, after four years, accumulated over 80 million in assets. The key lies in a set of practical and effective methods and a continuously summarized trading mindset. Today, I share these experiences with the hope of inspiring fellow crypto traders.
1. The tried and tested '343 incremental buying method'.
The core of this method is not to speculate on price movements, but to execute buying completely according to the plan, divided into three steps:
30% first position (test buy).
Choose mainstream cryptocurrencies like BTC, ETH, SOL, BNB, etc.; these types of cryptocurrencies are relatively stable and the risks are controllable.
Use 30% of total funds for the first buy; the key is to never invest all at once to reduce initial risk.
40% average down (reduce cost).
If the cryptocurrency price rises: do not chase high prices; wait for a pullback before adding 40%.
If the cryptocurrency price falls: for every 10% drop, add 10% of funds until completing 40%.
The logic is that gradually increasing position size during a decline can lower the holding cost, and once a rebound occurs, the profit margin will be larger.
30% closing (add to position after confirming the trend).
When the cryptocurrency price rebounds and stabilizes at a key support level (like the 7-day moving average), invest the last 30% of funds.
At the same time, set a trailing stop to maximize profits as much as possible.
The effectiveness of this method is due to three reasons:
Do not predict the market; just follow the trend.
Incremental buying to avoid being trapped all at once.
Costs are lower when the market falls, and profits are naturally greater when it rebounds.
2. 15 trading insights: the core secrets to stable profitability.
Having been engaged in trading for over ten years, I can achieve stable profits thanks to a profound understanding of the following 15 points, which play a key role in cultivating the correct trading mindset and thinking.
Be a trader with strong defensive awareness.
Novices are often misled by the mindset of 'getting rich overnight'; the primary task is to protect capital. Just as a hunter does not waste bullets easily, traders should act only when truly favorable opportunities arise, prioritizing risk control.
The result of the last trade should not affect the next trade.
Each trade is independent, and the results are random. Continuous losses may instill fear, while continuous profits may lead to overconfidence; both emotions can affect judgment. Stay calm and do not be swayed by short-term results to go further.
Simplify trading, and you will gain more.
Over-analysis and over-trading are common problems for many traders. There are actually limited effective signals in the market; most are interference information. Learn to filter out noise and select quality signals; being appropriately 'lazy' can improve efficiency.
Have a clear exit plan before entering.
Trading requires self-imposed rules and responsibility. Exiting is more important than entering; many people see their profits shrink or losses expand due to arbitrary exits. Establishing a strict profit and loss plan can reduce emotional interference in decision-making.
Avoid value-less trading.
Value-less trading refers to trades where risk and profit are not proportional, often stemming from blind and frequent operations. Professional traders choose high-return opportunities like selecting diamonds, staying away from misleading signals.
High discipline is essential.
Discipline is the cornerstone of successful trading. Strictly adhere to the trading plan and do not be swayed by emotions. I only spend half an hour each day looking at charts to avoid over-focusing on market fluctuations and ensure rational decision-making.
Most of the time, you should stay away from the trading desk.
Overtrading is a fast track to capital loss. It is recommended to analyze trends using larger time frames (like daily charts); they can filter out ineffective information and help you execute the plan more focused.
Your sleep quality reflects trading pressure.
If trading keeps you awake at night, constantly worrying about the market and checking trends at midnight, it indicates that the risk has exceeded your tolerance. Timely adjustments to position and investment are necessary for achieving long-term stable trading.
Before real trading, ensure these two points are in place.
Have a clear trading strategy and do not use multiple methods simultaneously to avoid confusion.
Pay attention to capital management; capital is the lifeline of trading, and reasonable planning is essential for long-term stability.
Self-control determines the success or failure of trading.
The biggest challenge in trading is not capital, but emotional fluctuations. Negative emotions can weaken judgment, and overconfidence and fear are equally dangerous. Staying calm and strictly following the plan is the key.
The more favorable factors, the more reliable the trade.
When trend lines, key levels, trading signals, and other factors align, the probability of profit is higher. I do not rely on automated trading systems; I trust more in opportunities from multi-factor resonance.
Never increase position size when losing.
Increasing position size after a loss turns trading into gambling. Successful traders should have risk awareness, rather than pursuing short-term doubling. If wrong, stop loss in time, and do not fantasize about market reversals.
Implement reasonable stop losses and strictly execute them.
Traders who do not set stop losses will eventually face the risk of liquidation. Every order should set a reasonable stop loss, and do not expand the stop loss when losing, nor close positions too early when in profit.
Wait patiently for the best trading opportunity.
Market opportunities often arise, but the best opportunities require waiting. Be patient like a cheetah hunting, focus on clear trends and strong signals, and stay away from weak and false signals.
Trading is not the entirety of life.
Unless you are a professional trader, do not invest all your time in trading. Maintaining your work and life allows you to face market fluctuations with a more relaxed mindset.
Summary.
Crypto trading has the opportunity to achieve wealth growth, but it requires the right methods, strict discipline, and a mature mindset. The '343 incremental buying method' is a strategy I have verified in practice, and the above 15 insights are the foundation for long-term profitability. Remember, trading is a form of investment, not the entirety of life; maintaining rationality and calmness will allow you to go further in the market.
If you currently feel helpless and confused about trading, and want to learn more about the crypto space and cutting-edge information, click on my profile and follow me to avoid getting lost. A guardian can see the market clearly, enabling confident operations. Stable profits are much more realistic than fantasizing about getting rich.