I was born in 1988, 37 years old, with a net worth of 20 million. I used this method to navigate through the bull and bear markets of the cryptocurrency world.
Entering the circle for ten years, from an initial principal of several tens of thousands to now a net worth of over 20 million.
Along the way, I've seen countless people become rich, face liquidation, and hit zero...
I have also stepped into pitfalls, endured bear markets, and missed wave after wave of market trends.
Looking back, this method is the foundation that allowed me to survive and continue to rise:
The real turning point was when I stubbornly worked out a contract model of 'controllable risk + rolling profit.'
✅ Core principle: Lock the risk down, let the profit run.
Light position stop loss, move forward steadily.
Control each single maximum loss within 5% of the principal;
No heavy positions, no all-in, not relying on feelings;
Only by preserving the green mountains can you wait for the real trend to unfold.
Cut losses decisively, and try to take profits.
Stop loss at a 2%-3% loss, never hold the position;
Consider taking profit only after a 30% gain; 50% or doubling is even more ideal.
It's not about a high win rate, but about a large profit-to-loss ratio, achieving 'big gains and small losses.'
Only trade trends, refuse to touch fluctuations.
Don't chase rebounds, don't follow hot trends;
Clear trends + volume increase before entering; during other times, it is better to hold cash.
All major waves are eaten through following the trend.
📈 The key to turning the principal 40 times: Pyramid rolling model.
Starting from 8000U, I adopted a rolling warehouse strategy of 'adding positions when winning, doing nothing when losing':
50% of profits are used for adding positions, with risks strictly controlled.
Tighter stop losses while adding positions, ensuring 'maximum loss is profits, not touching the principal';
The principal is as stable as a mountain, and profits keep rolling in.
For example:
The first trial in the warehouse made 240U;
Add 120U profit to earn another 36U;
Rolled over 60U profit to earn 18U;
After a few rounds, profits rise while the principal remains almost unchanged.
Many people ask: Can 2000U still turn around?
Can. But it is only suitable for those with strong execution.
If you want to take a gamble to get rich, then this is not suitable for me.
But if you really want to rely on trading to get out, first learn to earn 100U steadily every day; as the principal increases, profits will naturally accelerate.
Liquidation is never the market's problem; it’s a method issue. Stable returns rely not on talent, but on rules and execution.
Catch the bottom? Don't be silly! 90% of people die at this step; understand the essence of rises and falls before taking action.
'Catching the bottom' sounds like a password for picking up money, yet it has become the fuse for countless traders’ accounts reaching zero. Watching the price drop all the way, do you always feel 'it's already low enough'? Don't rush to place an order; first clarify: is the current drop a disguise for opportunity, or the beginning of disaster?
One, a healthy decline: an opportunity dressed in wolf's skin.
A healthy decline is essentially a 'breath' during the market's upward journey, just like a brief adjustment during a long run, which can continue to sprint later. Identify its 4 signals:
1. The overall trend is not bad.
The overall trend is still bullish — for example, the highs and lows of the 4-hour K-line are still rising synchronously, just experiencing a short-term correction. The current decline feels more like 'backing up to pick someone up.'
2. Falling at the support level.
The price just happens to land on a key support level (such as previous lows, moving averages, or the 61.8% Fibonacci level), like a ball hitting the ground, providing natural rebound momentum.
3. Trading volume has not increased.
During declines, low trading volume indicates no panic selling; more often, it's retail investors taking small profits, while large funds are still in the market.
4. Signs of bullish indicators appear.
The K-line shows reversal signals: for example, a hammer candlestick (where the lower shadow is more than twice the body), engulfing pattern (a bullish candle engulfs the previous bearish candle), or a small rebound after a decline.
A smart approach: wait for 3 confirmation signals before taking action.
The support level really held up (the price no longer hits new lows).
Trading volume begins to increase (signs of capital entering).
There is a clear bullish pattern emerging (for example, two consecutive bullish candles).
Two, the real crash: a 'flying knife' that can cut loss.
A crash looks like a decline, but in essence, it is 'the collapse of a building'; trying to catch the bottom at this time is like catching a falling knife, and you will only end up bleeding. Beware of these 4 dangerous signals:
1. Support levels shatter like glass.
Key support levels are easily broken, especially when broken in volume — for example, previous important lows or platform levels; once lost, it will trigger a chain reaction.
2. Trading volume surges.
When trading volume suddenly surges several times during a decline, it indicates that large investors are fleeing, while retail investors are blindly picking up the pieces; this decline is just the beginning.
3. Large players are running, and novices are buying.
On-chain data shows: whale addresses are continuously selling, while new retail addresses are increasing — this is a typical 'taking the bait' signal.
4. Rising without looking back.
When the price continuously hits new lows without any decent rebounds, it’s like free fall, with no sign of where the bottom is.
Remember: this 'catching the bottom' is not about getting a bargain, it’s about giving money to the big players. During the 2022 LUNA crash, how many people thought 'falling to 1 dollar is the bottom' only to find it eventually dropped to 0.0001 dollars, leaving nothing for those who tried to catch the bottom.
Three, the golden rule for catching bottoms: Don't be the first to eat the crab.
1. Don't catch the bottom, wait for a rebound.
Real opportunities are when the market proves itself after rebounding. For example, when prices stop falling and start to rise continuously, entering at this time is 10 times safer than guessing the bottom.
2. Look clearly at the pattern before taking action.
Only trade positions with clear reversal patterns — for example, head and shoulders bottom, double bottom; these patterns have been validated by the market and have a higher win rate.
3. Trading volume is a 'mirror of truth.'
During an uptrend, trading must increase in volume, indicating that real capital is entering, not just a false rise. A volume-less rebound feels more like 'the last flicker of light' — don’t believe it.
4. The most critical: control your position.
Even if it’s confirmed to be a healthy decline, don’t exceed a 20% position on the first entry. Wait until the trend is completely clear, then slowly add positions — remember, opportunities will not slip away just because you bought less, but an overly heavy position might prevent you from holding on until the opportunity arrives.
The last sentence of truth.
The market never rewards 'quick hands'; it only rewards 'calm minds.' The temptation to catch the bottom is essentially the psychology of being greedy for bargains. Rather than guessing where the bottom is, it’s better to wait until the trend is clear before following — after all, in the crypto world, surviving is more important than making quick money.
If you really can't help but want to catch the bottom, first ask yourself: can I accept losing all this money? If you can accept it, then proceed; if not, just watch the show obediently.
Three iron rules for short-term cryptocurrency trading: Lock in the bottom line at a 10% rise, mandatory stop loss at a 15% loss; even novices can minimize losses and maximize gains.
The core of short-term cryptocurrency trading lies in replacing vague judgments with clear rules. Remember these three iron rules to help newbies significantly reduce trial and error costs and focus on certain returns:
One, laddered take profit: preserving profits is more important than guessing the top.
• If the price rises more than 10%: Use the purchase price as the bottom line; once it falls back to the cost price, immediately take profit and leave (to avoid 'floating profits turning into losses');
• If it rises more than 20%: Lock in 'at least retain 10% profit' as the bottom line, and never sell early at non-confirmed phase highs (earn enough from the trend segment, don’t be greedy for extremes);
• If it rises more than 30%: Forcefully retain 15% profit as a safety cushion; the remaining position can gamble for extended trends (using profits for space, zero risk on the principal).
Core logic: Don't pursue selling at the highest point, but ensure that every trade must be profitable through 'laddered locking', accumulating small victories for compound gains.
Two, rigid stop loss: use a small cost to exchange for the right to survive.
• If a single position loses 15% (can be adjusted according to risk tolerance, but not recommended to exceed 20%), immediately close the position to stop loss, eliminating the wishful thinking of 'waiting for a rebound';
• If the market rebounds after a stop loss, consider it a 'wrong entry timing'; do not regret or look back, accept the inevitability of 'paying for mistakes.'
• Every trade must preset a stop-loss point (such as key support levels, fixed ratios), and it should be executed immediately once triggered; this is the 'lifeline' of short-term trading.
Core logic: Stop loss is not a loss; it is about avoiding 'a complete collapse from one mistake' as a risk control bottom line; preserving the principal allows for the possibility of a turnaround.
Three, reverse replenishment: use volatility to lower the cost of holding.
• After taking profit and selling, if the asset retraces and you still believe in its logic, buy back according to the original holding amount (same amount, extra funds can be reallocated);
• If there is no retracement after selling, but the price rises back to the selling price, immediately chase the order and buy back (losing fees to avoid 'missing out', especially suitable for strong trends);
• Combine stop-loss strategies for cyclic operations: After buying back, if it drops again triggering the stop loss, it indicates that the asset's volatility logic has changed; decisively switch positions (do not stubbornly stick to 'incompatible assets').
Core logic: Don't be obsessed with 'buying at the lowest price, selling at the highest price,' but use price fluctuations to do 'high selling and low buying,' averaging down costs through the number of operations.
The underlying principles of short-term trading.
• Quick entry and exit ≠ frequent operations: Only take action when signals that meet the above iron rules appear; no opportunities means holding cash.
• Chasing hot trends ≠ blindly following the crowd: Use stop loss and take profit rules to filter out emotional trading, only trade assets with 'clear entry and exit points.'
• Accurate positions ≠ absolute highs and lows: Accepting 'fuzzy correctness' and seizing the key timing for trend initiation/termination is more important than getting tangled up over 'a few cents difference'.
The certainty of trading always comes from 'consistent execution of rules.' When you are tangled up in 'buying at the lowest, selling at the highest,' it’s better to first learn to use iron rules to lock in 'understandable profits' — the premise of stable profit is to ensure that every operation has rules to follow.
(A few sentences to help you avoid ten years of detours.)
1. Trading is not about winning the market; it's about first winning against that irresistible urge to act.
2. The best trades usually occur when you feel the most uncomfortable, while exiting when you feel the most comfortable.
3. Fear makes you exit early; greed makes you exit late; discipline is the only weight that can balance them.
4. Don't fall in love with the market; it won't return messages. When the price breaks below the support line, decisively break up.
5. In the market, pain is a buy signal, not a sell signal.
Remember:
In the small money stage, save your life; in the medium money stage, speed up; in the large money stage, guard your profits.
As long as you are alive, you have the right to roll over!