In the highly volatile and uncertain cryptocurrency market, the vast majority of traders have fallen into the trap of 'gambling based on luck and chasing news,' ultimately facing losses. However, I started with a principal of 1000U and achieved a 53-fold increase in less than 5 months, without any liquidation or blind bets. The core is not some so-called 'market prediction talent,' but a refined rolling strategy system validated by the market. If you hold a small amount of capital and aspire to establish a stable profit logic in the cryptocurrency market, this practical review may help you avoid 3 years of detours.
1. Abandon 'gambler's thinking': my core rolling strategy is 'small profits compounded'.
The fatal trap of cryptocurrency trading lies in the fact that most people are obsessed with 'one-time huge profits,' while ignoring the power of 'sustained small wins' through compounding. At the beginning of my transition, I set an iron rule: aim for a daily profit target of 3%-5%, not pursuing 'doubling overnight,' but only taking 'certain opportunities.'
From an industry perspective, when the success rate of trading stabilizes above 70%, the effect of 'small wins compounded' will explode exponentially. To achieve this success rate, the key lies in adhering to three core principles:
1. Trend is king: only trade in 'high-certainty trend midpoints'.
Most newcomers die from 'bottom-fishing against the trend' or 'chasing uptrends.' I always adhere to the trading logic of 'following the trend and catching pullbacks' — only entering when there is a clear upward trend and waiting for the price to pull back to key support levels (such as MA30, trend lines, or the upper edge of previous consolidation platforms), firmly abandoning the speculation of 'guessing tops and bottoms.'
The essence of this strategy is to capture the 'safest mid-point profit' in the market: pullbacks in an uptrend are brief corrections of capital consensus, not trend reversals, and entering at this time has a much higher success rate than chasing uptrends or bottom-fishing. Taking ETH and ARB as examples, the pullback after ETH broke out of the consolidation in January 2024 and the volume-shrinking pullback buying point for ARB in February are typical 'mid-point trend opportunities,' with controllable risks and clear profit space.
2. Position control: Capital safety is the cornerstone of compounding.
In cryptocurrency trading, 'surviving' is always more important than 'earning more.' My position management logic is divided into two points:
Capital protection: Each time a position is opened, it must not exceed 50% of the total capital, ensuring that even if a single judgment is wrong, there is still enough remaining capital for subsequent operations, avoiding 'wiping out' the entire capital in one loss.
Profit scaling: Only use the profit portion to scale up in batches, resolutely avoiding using principal to increase risk exposure. This way, even if the market reverses after scaling up, the losses are limited to previous profits, preventing damage to the principal foundation, resulting in a steadier mindset and more rational decision-making.
3. Discipline is paramount: daily settlement thinking + review optimization.
In a highly volatile market, 'greed' is the biggest enemy of profit. I strictly enforce a trading discipline of '1-2 trades per day.' As long as I reach the preset profit target, I immediately take profit and never cling to positions waiting for 'extra profits' — remember, the cryptocurrency market changes rapidly, and the trend reversal at the end of the trading day often devours the day’s earnings.
More importantly, the 'daily review' mechanism: spending 1 hour each night to review the day's trades, recording the logic validation of 'correct trades' (such as trend judgments and support level validity), summarizing the issues of 'wrong trades' (such as signal misjudgment and position control), and making targeted adjustments to the next day’s strategy. This kind of 'daily incremental improvement' optimization allows my trading system to continuously adapt to market changes, with a success rate consistently above 70%.
2. Practical case breakdown: How to identify 'trend takeoff signals'?
Many traders ask me: 'How to judge when a cryptocurrency is about to take off? How to grasp the buying and selling points?' In fact, the core lies in 'volume-price resonance + key pattern breakout.' Here are several in-depth analyses of typical practical cases:
On January 16, 2024, ETH long position (profit 85U): At that time, ETH had undergone 1 week of consolidation, breaking out of the previous 1800-1900U consolidation range with increased volume, and when pulling back, the volume shrank to below 50% of the breakout volume — this is a clear signal of 'volume-price resonance,' indicating that the breakout is not a capital trap but a real trend initiation. At this time, entering long with a stop loss set at the lower edge of the consolidation range gives a risk-reward ratio of 1:3.
On March 21, 2024, BNB long position (profit 215U): BNB had previously formed a 'triangle convergence pattern' (high points gradually descending, low points gradually ascending), which is a typical 'accumulation pattern.' When the price breaks above the triangle’s upper edge with increased volume, it signifies the end of the bull-bear battle and a clear trend direction, allowing for precise entry to seize the 'accelerated market after the breakout.'
On April 12, 2024, the market experienced a main rally (single doubling): At that time, the market had gone through 10 trading days of sideways movement, during which trading volume continued to shrink (indicating reduced capital divergence), and ultimately ended with a 'large bullish engulfing candle covering the previous consolidation range,' with volume increasing more than 3 times — this is a strong trend signal of 'breakout from consolidation + volume explosion,' allowing for easy capture of 'the main rally after the consolidation' by positioning mainstream cryptocurrencies.
From 1000U to 1800U, then to 3200U, 7100U, and now to 53000U, the core of this strategy has never changed: only take 'understandable opportunities' and strictly execute 'planned trades.' The cryptocurrency market is never short of 'rich myths,' but those who can survive in the long run are always those who understand 'respecting the market, controlling risks, and persisting with compounding.'
3. Ultimate advice for newcomers: 3 key points to avoid detours.
Reject 'news dependency': Most 'insider news' in the cryptocurrency market are tools for capital to lure retail investors. Instead of following news trends, it is better to delve into hard-core trading knowledge such as 'volume-price patterns and trend logic' to establish your own judgment system.
Start practicing with small funds: Don’t rush to use large capital to 'recoup losses' or 'get rich quickly.' First, use 1000-2000U to refine strategies. Only after achieving stable profits for 3 consecutive months, gradually scale up the capital.
Accept 'imperfect trades': No strategy has a 100% win rate. Accepting 'small losses' is part of profitability. The key is to ensure that profits from 'correct trades' cover losses from 'wrong trades,' creating a positive cycle.
The essence of trading in the cryptocurrency market is 'probability game + disciplined execution.' When you let go of the 'gambler's mentality' and replace 'blind speculation' with refined strategies, you will find that going from 1000U to 53000U relies not on luck, but on a replicable profit logic.
