You might not believe it—I entered the market with 50,000 in capital, and after two years of trading, I not only didn’t lose but can now send living expenses to my family every month. But what you don't know is that I lost down to only 8,000 during the bear market in 2022, almost unable to gather enough for my child's tuition.
Today I'm not discussing any candlestick techniques, but I'm sharing 8 survival rules that I earned through hard work. Remember: in the crypto world, the ones who can support their families do not rely on luck to guess price movements but rather survive based on rules.
1. Divide your money into 5 parts, and only move one part at a time.
When I first entered the market, I loved to go all-in. I was ecstatic when it rose and devastated when it fell. Later I understood: capital is like soldiers; if you deploy them all at once, you are sure to fail.
Now I divide my capital into 5 parts, and only invest 1 part each time. Set a 10% stop-loss; even if wrong, the total capital only loses 2%; if I make 5 mistakes in a row, I only lose 10%. But as long as I get it right once and set a profit target of over 10%, I can recoup the previous losses. This strategy allowed me to limit my account's drawdown to only 15% during the market crash last March, while many around me went to zero.
2. Don't go against the trend; riding the wave is 10 times more reliable than trying to catch the bottom.
I used to think, 'If it has fallen a lot, it should rise.' As a result, I tried to catch the bottom halfway down in a downward trend. Later I understood: rebounds in a downtrend are just bait, while pullbacks in an uptrend are opportunities.
Just like BTC rising from $20,000 to $40,000 this year, every 5% pullback is a buying opportunity; whereas last year, any rebound from $60,000 down was a window to escape. Buying during pullbacks in an uptrend is at least 3 times more likely to win than catching bottoms in a downtrend.
3. Don't touch coins after a sharp rise; that's the market maker handing you a knife.
I've seen too many people chase after 'hundred times coins' and rush in, only to catch the last wave. Remember: coins that surge over 50% in the short term are 90% traps.
Last year, SOL surged from $10 to $100, and I saw someone around me go all-in, only to see it drop back to $30 in 3 days. When there's high volume at a high level but no price increase, the market maker has already started to quietly sell; what you see as 'it can still rise' is just a mirage they created.
4. Use MACD as a 'traffic light'; even a fool can understand it.
Don't be fooled by those complex indicators; just MACD is enough.
A golden cross below the zero axis + breaking above the zero axis is like a green light; go in boldly.
A death cross above the zero axis + moving down means the red light is on; run quickly.
I used this strategy to avoid the second collapse of LUNA this year, and I also precisely entered when ETH broke above $2000; it was so simple that even my wife could learn it.
5. Averaging down is a trap; the more you average down, the more you lose.
The dumbest operation is to 'average down more as prices drop.' Last year, I made this mistake with a certain altcoin: I averaged down from $10 to $8, then to $5, and finally when it hit $1, I had already lost 80% of my account.
Remember: averaging down when losing is adding to a mistake; adding to a winning position is reinforcing a correct decision. For example, if the coin you bought rises by 10%, and you confirm the trend is still intact, then add another portion of capital; that's how you snowball.
6. Trading volume is the soul of a coin; never touch a coin with no volume.
If the coin price suddenly surges with high volume at a low level, it indicates funds are entering; keep a close watch. Conversely, if it surges at a high level without rising, it means funds are fleeing; clear your position immediately.
Just like a certain platform coin suddenly surged 20% this year, I followed in and made 30 points; while last year, a certain altcoin was constantly hyped in the group but had decreasing volume, and later went to zero.
7. Only trade coins that are 'heading upwards'; it saves time and makes money.
When the 3-day moving average turns up, trade short; when the 30-day moving average turns up, trade medium; when the 120-day moving average turns up, trade long. Stay only in an uptrend, which is like standing in the wind.
Those coins with messy moving averages, even if they rise occasionally, won't go far. Now when I open my trading software, I first delete all the ones with moving averages turning down; the remaining ones can be picked from, which is much more efficient.
8. Spending 10 minutes every day reviewing is more useful than staring at the market all day.
I used to stare at the market for 12 hours, and the more I looked, the more chaotic it became. Now I spend 10 minutes after the market closes each day:
Check if the logic of the coins you hold has changed (for example, whether the project team has fled);
Check if the weekly K-line trend aligns with your own judgment;
If you make a mistake, adjust your strategy; if you're right, summarize the reasons.
This strategy helped me avoid two major black swan events this year and was more useful than any indicator.
Lastly, let me say something heartfelt: the core of being able to support a family in the crypto world is not about how quickly you earn but how long you can last. None of these 8 rules will make you rich overnight, but they can help you still smile and send living expenses to your family when others have lost everything.
Follow me, and tomorrow I will talk about how to calculate position size using Excel. Even if you are a beginner, you can control risks within your own acceptable range. Remember: the ability to make stable profits is true skill.
