Many people enter the crypto world attracted by stories of sudden wealth. Making money is not a shameful thing; it's a cool thing. So, they charge into the crypto space, feeling like gods of the market, thinking they will earn millions like the protagonists in wealth stories, with a small goal. Eventually, they go from making small profits and losses to large losses, and then they 'pray' to various influencers for trading methods. The biggest taboo in crypto investment is not understanding take-profit. Many people see their funds rising but always wait for a 'higher' point, and when the market reverses, the previous gains evaporate instantly. I've seen too many people like this; don't fall because of your mindset! This advice applies to any industry!
Take-profit strategy:
1. Partial take-profit: Just like building positions, taking profit should also be done in batches. You can sell 50% of your holdings when your expected target is reached, keeping some positions to continue observing.
2. Goal setting: Set take-profit targets based on the long-term potential of the project and market environment. Do not seek short-term high profits. For example, when the project's increase reaches 3 times or 5 times, you can consider partial take-profit.
Avoid FOMO: The market will rise and fall; you cannot catch every upward movement. Therefore, after making a take-profit plan, you must strictly execute it and not change decisions because of temporary market fluctuations.
In the crypto world, everyone has heard the story of 'turning 10,000 into 1 million,' but the reality is that most people not only fail to make money but are instead completely wiped out by the market.
We have no insider information, no funding advantages, and no trading experience to withstand several bull and bear cycles. What we can rely on is to recognize the market, recognize ourselves, establish rules, and control emotions.
The crypto world is not a shortcut to wealth; rather, it is a battleground where only a few survive.
First, recognize the market: This is a world ruled by uncertainty.
The essence of the market is not a technical game but a high-complexity probability game.
You must accept that no matter how brilliant a strategy is, it cannot consistently profit in all environments. Any trading system that claims a '100% win rate' is a scam.
What we can do is not to defeat the market, but to adapt to it, using discipline to combat uncertainty.
Profit and loss derive from the same source: the way you make money determines the depth of your losses. Heavy betting: may double, but may also go to zero. High leverage for a rebound: you may get a small gain, but if you're wrong just once, you go bankrupt. Averaging down against the trend: sometimes it can help you break even, but in a one-sided trend, it's a slow suicide.
Traders who can truly survive are those who repeatedly bet within a 'probability advantage' in a systematic way—earning more when right, losing less when wrong. Second, recognize yourself again: you are not a genius, nor a miracle.
Most people in the market do not die from ignorance, but from complacency: addicted to predictions, trying to catch every top and bottom; technical obsession, piling up indicators while ignoring position and risk control; superstitious about luck, attributing earnings to themselves and blaming the market for losses; overconfidence, thinking they are invincible after a series of wins.
Remember: Discipline > Skill, Execution > Inspiration, Stability > Excitement.
Real profitable trading is often boring.
Three, the underlying logic that ordinary people can also make money.
You do not need to be a genius; you just need to establish a trading system that can be replicated and adhered to.
1) Capital management: Use only a small portion of total funds for each position, take small risks to confirm trends before adding positions. Do not go all-in from the start. Total position should not exceed 30%, leaving room for maneuver.
2) Choose a cycle that suits you: Short-term: Suitable for people with strong market feel and quick reactions. Swing trading: Suitable for those who can endure fluctuations and handle trends. Long-term: People who understand macroeconomics and fundamentals have a better chance.
3) The trading system should be simple, executable, and replicable. Trend strategy: follow the trend, do not increase positions against it. Oscillation strategy: sell high and buy low; stop-loss should be quick. Arbitrage strategy: cross-platform price difference, small fluctuation arbitrage; high win rate but slow.
4) Stop-loss and take-profit must be mechanically executed. Set the stop-loss line before entering the market, and when it reaches the point, take profit in batches. Don't be greedy or fearful; capturing the mid-stage market is enough.
5) Emotion management: Reduce the frequency of watching the market to avoid impulsive trading. Accept losses; do not average down on losses, and do not inflate profits. Write trading logs, continuously review and optimize the system. The key to survival: mindset and compounding.
The hardest thing to defeat in the crypto world is not the market, but your own greed and fear.
What you need to aim for is not 'ten times in a year,' but stable annualized returns + strict stop-loss + not being eliminated by the market.
Do not underestimate the importance of 'survival.' Compounding is the only way for retail investors to compete with institutions: an annualized return of 30% means 20 times in 10 years; 50% means 57 times in 10 years; doubling in one year but going bankrupt the next means zero.
And if you accidentally incur a loss—
Final advice: Don't strive to be a 'legend,' strive to be a 'survivor.'
In the crypto world, legendary stories belong to only a very few people. The vast majority of winners are ordinary people who can survive in a long market.
Make fewer mistakes, execute more, review frequently, and maintain rationality and patience.