The deadliest trap in the cryptocurrency world is often not the market crash, but someone painting a beautiful dream of 'hundred times leverage wealth' for small investors, only to quietly take away all your principal, making you pay a painful price for this 'tuition lesson.' I once fell deep into such a trap, and later, after reflecting on my pain, I transformed my 'knife-edge licking blood' adventurous style into a 'steady and stable' strategy, and I also summarized 10 'no' principles specifically tailored for small investors who want to survive in the cryptocurrency world for a long time.
1. Do not bottom fish before the seventh consecutive day of decline
I used to be impatient when I saw coin prices drop, always thinking about picking up bargains. Once, a certain mainstream coin had six consecutive negative days, and I couldn't wait to rush in and bottom fish, only to be trapped for a full half month. Now I have learned to be smarter, waiting until the consecutive negative days reach the eighth day. At this point, the group chat is filled with screenshots of 'project parties running away,' and panic reaches its peak; only then do I calmly place my orders. The discounts at this time are truly generous gifts from the market.
2. Do not be greedy for full positions after two consecutive days of increase
In the cryptocurrency world, calls for 'ecological explosion' and 'institutional entry' are heard one after another, but no matter how loud the voices are, as long as the coin price closes with two consecutive positive lines, I will definitely reduce my position by 40% at the close. The remaining position will let the profits run free; even if the price retreats afterwards, it won't affect the principal I have already secured.
3. Do not chase situations where there is a single-day surge of 8%+ the next day
In the cryptocurrency world, I have seen too many coins surge more than 8% in a single day, and when they open high the next day, countless people scramble to buy. As for me, I will just brew a cup of tea and quietly watch the show. After reviewing data from the past two years, I found that nearly 60% of the time in such situations, the next day will see an adjustment. Entering the market after the adjustment ends is much safer than blindly chasing high prices.
4. Do not touch the coins at the top of the trending list
When a certain coin rises to the top of the trending list, I will not hesitate to blacklist it for two weeks. Don't let FOMO (fear of missing out) lead you by the nose; wait for those who follow the trend to finish their 'battles' before calmly analyzing the fundamentals. You will find that by then, the coin price has often dropped by nearly half.
5. Do not touch 'stagnant coins' with very little fluctuation over five days
Some coins have K-line trends that resemble a straight line, with fluctuations of less than 3% over five days. For such 'stagnant coins,' I absolutely refuse to touch them. The time cost for small capital players is precious and cannot afford any waste. The last time I held such a coin, there was no movement for three months, and after I cut my losses, other coins welcomed the market.
6. Do not go against the trend below the 5-day line
When the 5-day line is running downwards, I will only keep 10% of my position on the sidelines; if the 20-day line is also downward, I will clear out most of my position; and if the 60-day line is also downward, I will directly delete the trading app and go do other things. In the cryptocurrency world, going against the trend is like sailing against the wind in a storm; no matter how strong the coin is, it can lead you to doubt life due to losses.
7. Do not hold onto positions with no profit the next day
After buying, if I still haven't made a profit by the next day's close, I will decisively cut my losses. After cutting losses, I will post a screenshot of the K-line from that time on my desk; the next time I think about stubbornly holding on, seeing that screenshot will remind me of the painful lesson I once learned.
8. Do not be greedy for the market that has risen for the fifth consecutive day
By reviewing historical data, I found that after a coin rises for two consecutive days, the probability of reaching a peak on the fifth day is close to 60%. So now, whenever I encounter a coin that has risen continuously, on the fourth day I will set up a sell order, only selling and not buying, never being greedy for the last bit of profit.
9. Do not ignore signals of divergence between volume and price
When the coin price is at a low, suddenly increasing by more than 30% and breaking through the consolidation platform, I will unhesitatingly follow the market price; if the coin price is at a high and shows a decrease in volume and sideways movement, no matter how loud the bullish voices are in the market, I will gradually retreat, not being deceived by false prosperity.
10. Do not take large positions or gamble everything; leverage must never exceed 1.5 times
I have set strict rules for myself: the maximum loss per trade does not exceed 8%, and the total leverage of the account is always controlled within 1.5 times. Small capital players should rely on compound interest to slowly accumulate wealth, rather than gambling everything on luck. Last year, I operated this way with a friend; his principal was only 8000 yuan, but by the end of the year it had grown to 90,000 yuan.
These 10 'no' rules are not some profound trading techniques, but they are the lifesaving treasure for small capital players in the cryptocurrency world. The market changes rapidly, but the core logic of 'avoiding traps' will never change. Only by surviving in the cryptocurrency world can one wait for the real opportunities to make money in a bull market.
Many people in the cryptocurrency circle are stuck in place, not because they are not working hard enough, but because they haven't avoided those obvious traps. The market in the cryptocurrency world is always there, so there's no need to rush. Finding your own rhythm is much more reliable than blindly rushing around.
