In my fifth year in the cryptocurrency world, I encountered the darkest moment of my life, losing over 1.2 million in savings, and had to borrow everywhere just to pay rent.
However, later on, I managed to make over 33 million in 3 years using this seemingly clumsy method of 'rolling warehouses + moving averages'.
Today, I will share this practical experience with you without reservation—there's no mysticism at all, just solid insights I've gained from repeatedly stumbling, which can help you get closer to real profit opportunities and away from those deadly pitfalls.
【First, let's clarify: How should I play with the 'rolling warehouse' that I've stumbled through countless times】
Many people operate rolling positions but end up falling into the abyss of 'the more you add, the more you lose'; I was also like this in my early years. Blindly adding positions during BTC's volatile period, my 100,000 capital dwindled to just 30,000 in half a month. Later, I realized that the core of rolling positions lies in 'dynamically controlling risk,' rather than blindly increasing positions. It is crucial to follow these five steps, each containing my painful lessons:
Choose the right timing: only act when the trend is strong.
Now, I would never roll over when the daily trend is unclear. Previously, I frequently fumbled during ETH's volatile period, losing 40,000 just in transaction fees. Now, I wait for clear direction on the weekly chart, like the price firmly standing above the 60-day moving average with obvious increased volume; only then do I roll over, so as not to be confused by the market's repeated fluctuations.
Wait for signals: don’t rely on feelings, only wait for technical confirmation.
Before opening a position, two clear signals must be seen: either the 5-day line crosses above the 30-day line forming a golden cross, or the price breaks through the previous resistance level (like BTC breaking through $25,000). Last year, I added positions at a price of $100 for SOL based on my 'feeling,' without waiting for signals to appear; the result was the price fell all the way to $60, losing me 180,000. Since then, I’ve set a rule for myself: without clear signals, I will never act lightly.
Add positions in the direction of the trend: only dare to add when the market moves as expected.
For example, after buying long, if the price successfully breaks through the previous high without signs of the 5-day line turning down, I will add in two batches: the first batch adds 10% of the position, the second batch waits until the price pulls back to the support level to add another 10%. Just like this year when ETH rose from $1,800 to $2,200, I used this method to lower my cost to $1,950, amplifying profits without losing control of risk.
Timely reduce positions: take profits, don’t let pullbacks consume gains.
Either when profits reach my target (like the 20% I set), or I see signs of a reversal in the 5-day line, I will first reduce 30% of my position. Last year, when BTC rose to $48,000, I didn’t reduce my position in time due to greed, resulting in the price dropping back to $42,000, and my profits halved. Now, whenever greed arises, I remember that lesson.
Decisively close positions: when the trend reverses, don’t hold onto fantasies.
Once I see the 60-day line showing signs of turning, or a dead cross (the 5-day line crossing below the 30-day line), I will immediately clear my positions. When SOL fell from $120 to $90, I kept hoping for a rebound to exit, but the price fell all the way to $60, resulting in another loss of 120,000. Now, as soon as the trend reverses, I will act decisively; my hands react faster than my brain.
[My practical experience with moving averages: 3 lines help me avoid 80% of pitfalls]
In the market, 90% of people chase news and guess the big players; I did this in my early years, losing over 600,000 before understanding: the simplest moving averages are the most effective. I only focus on 3 lines, like holding on to 3 'safety ropes':
Understand the 3 moving averages: don’t be misled by short-term fluctuations.
I call these three lines the 'three brothers,' with clear divisions of labor:
5-day line: 'short-term alarm,' reacts the fastest; for example, if BTC suddenly falls below the 5-day line, it indicates a short-term adjustment is needed, so stay alert;
30-day line: 'medium-term anchor'; for example, if ETH is oscillating above the 30-day line, it indicates the medium-term trend is not deteriorating, so no need to panic;
60-day line: 'guiding star of the big direction'; last year when BTC fell below the 60-day line, I decisively cleared my positions, avoiding a drop from 40,000 to 28,000—once this line breaks, no matter how optimistic you are, you have to withdraw.
Golden cross (the 5-day line crossing above the 30/60-day lines) is a 'buy signal,' while a dead cross (the 5-day line crossing below) is a 'sell signal.' I only recognize this now; I don’t look at anything else.
Build a system: only act when 'moving averages point in the same direction.'
When the moving averages get tangled together (for example, the 5-day, 30-day, and 60-day lines twist into a ball), I absolutely do not act—previously, I operated under such conditions and got it wrong 8 out of 10 times. Only when all three lines are moving upwards (bullish) or all downwards (bearish) do I open positions. For example, in April this year, when all three lines were upwards, I bought ETH and made 40%; in May, when they were all downwards, I shorted and made 25%.
Stick to discipline: write the rules on paper, don’t be soft-hearted.
I put the plan next to my screen: 'If the 5-day line breaks, reduce positions; if the 60-day line breaks, clear the positions.' Last year, when BTC broke the 5-day line, I thought 'I’ll wait a bit longer,' resulting in a loss of 80,000—now, no matter how hesitant I am, following the rules is better than anything.
To be honest: a golden cross doesn't mean you should rush in; it tells you 'you can wait for an opportunity'; moving averages are not omnipotent, but they are more reliable than blind guesses.
I was able to climb out of losses not because of luck, but because I turned 'lessons into rules'—discipline is more important than signals, and patience is more effective than skills.
Five truths of short-term trading; only by understanding them can you truly master it.
The first statement: Don’t be afraid of high prices if you want to play short-term.
Many people, upon entering the crypto space, are brainwashed by the phrase 'chasing highs and cutting lows is a big taboo,' and when they see a strong coin, they stay far away, missing wave after wave of big profits. In fact, short-term trading is about the right side, emotions, trends, and the hottest part of the market. The leaders rise up, and opportunities are hidden at high levels. Afraid of heights? Then don’t enter short-term trading; low-priced junk isn’t for you to catch the bottom; dodging around only leads to greater losses.
The second statement: the profit-loss ratio is the king, the win rate is just an illusion.
Do you think experts hit the mark every time? Wrong! They just lose less and hit harder when they earn. Four small losses can’t equal one big gain; a single wave of 30% profit can offset five previous stop losses. The core is simple: cut losses quickly when wrong, hold on when right, wait for opportunities with no positions, and when opportunities arise, go all in without greed or delay, repeating this cycle. This is the way of short-term trading.
The third statement: being fast is not as good as being steady; only by staying steady can you win.
Beginners fight for frequency, while seasoned traders fight for rhythm. Constantly rushing and changing will only lead to confusion. Experts would rather stay out for half a month than make random moves. When they act, it's with certainty. Trading requires building up energy; slow down to see clearly; only by being patient can one grasp the big gains.
The fourth statement: One trick can cover all.
It’s not about having many patterns; it’s about being familiar with one. Learning many tricks is not as good as mastering one. Don’t be all over the place; chasing highs today and low buying tomorrow will leave you with nothing solid. A true expert relies on 'familiarity and execution,' can understand the rhythm and hold positions steadily. Once the tricks are familiar, the market will naturally fear you.
The fifth statement: divergence is opportunity; consensus is risk.
When a strong coin experiences turbulence and market divergence intensifies, many hesitate to exit, but this is precisely the best entry point. As long as the key support line holds, that is the main force washing the plate; the greater the divergence, the more premium. Conversely, when a stock hits consecutive limits and everyone shouts 'bull,' with various funds rushing in, that's when you should take profits. Remember this mantra: buy on divergence, sell on consensus; going against human nature can make you money!
I once viewed the crypto space as a casino, until that deep night when my account balance hit zero, I finally woke up.
At that time, I bet my entire position on a '10,000 times coin,' with a shiny white paper and a passionate community.
I didn’t expect that three days later, the project party disappeared, and my $15,000 evaporated. At that moment, I understood: without discipline, the crypto space is a slaughterhouse.
After experiencing failures, I spent two years starting over, gradually building my $10,000 to six figures. Behind this is not luck, but nine iron rules learned from losses:
Small funds need to focus. When capital is insufficient, I no longer chase every hot spot but only seize 2-3 certain opportunities each year, and rest immediately after making profits.
Good news is bad news. I have learned to operate in the opposite direction when good news is released; significant good news is often a good opportunity to sell, and greed will only lead to being trapped.
Proactively avoid risks. Before holidays or major events, I will significantly reduce positions, waiting for trends to clarify before taking action.
Position management is key. For medium to long-term layouts, I never go all in, always keeping 50% of my funds as a buffer, which stabilizes my mindset.
Be decisive in short-term trading. I focus on the 15-minute candlestick and KDJ indicators; when signals appear, I act immediately, without hesitation or delay.
Stop-loss protects life. I view stop-loss as a survival bottom line; if the direction is wrong, exit immediately, no longer fantasizing about breaking even.
Respect the market. I no longer predict rises and falls, but follow the trend; the market is always right.
Mindset determines success or failure. The volatility in the crypto market is huge; only by controlling emotions can you achieve stable profits.
Now, I record and review my trading decisions and emotions every time. The crypto space is not an ATM, but it rewards those who follow the rules.
If you also want to start with small funds, remember: stability beats aggression; staying alive allows you to see tomorrow's market.
Previously, I was stumbling around in the dark; now I hold the light in my hand.
Trading insights: earn money from 'rhythms,' don’t gamble for 'quick riches.'
Many people lose money not because they haven’t encountered opportunities, but because they’ve stepped out of rhythm. Those who can truly make money mostly do the right things at the right times:
1 Different stages of the market have different play styles:
• Start-up phase: regularly buy mainstream varieties + small positions to chase hot spots.
• Medium-term: follow the trend to make waves, striving to earn more.
• Later on: gradually realize profits, don’t chase blindly, protect the money you've earned.
2 Start steadily, don’t rush:
If your capital is not much, say 50,000 to 100,000, don’t always think about multiplying your investment several times with a certain variety.
✓ Build a foundation first: learn to read market trends, find support and resistance levels, and see where the funds are going.
✓ Small funds for trial and error: understand market laws before investing more money.
✓ Don’t blindly follow trends: don’t believe others when they shout to buy; stick to your methods, strictly control positions and stop-losses.
3 Making money relies on methods, not luck:
Many people lose money because they don’t have a fixed operating model—seeing others profit makes them envious and follow their lead, panicking when they make profits or stubbornly holding losses, which is essentially no different from gambling.
If you really want to keep making money, you need to rely on these:
• Clearly understand what you are good at
• Only seize opportunities that align with your own rules.
• Repeatedly execute and continuously adjust to form a stable operating system.
4 Your operational thought process must be clear, with clear entry and exit points:
• When the market is strongly rising: focus on buying mainstream varieties, aiming for 30%-50% profit.
• Rotate participation: use part of the funds to engage in hot spots, receive airdrops, and participate in new projects.
• Operate cautiously: only small positions in clear trends, strictly control losses.
In summary: act when you should, hold back when you should. Don’t be greedy, don’t be afraid, execute properly; this is the way to sustain in the long run.
Insights from the crypto circle: 8 tips to avoid pitfalls for friends just entering the market.
Having navigated the crypto space for years, I’ve stumbled into many pitfalls and summarized some practical experiences. Friends just entering the market should not rush to chase highs and cut lows; first, remember these insights, which can help you avoid many detours and dodge most loss traps.
1. Don’t 'fall in love' with hot altcoins; taking profits is the way to win.
Altcoins are characterized by 'rapid rises and sharper falls'; don’t think about 'eating it all from start to finish.' Even if a hot altcoin makes you money, as long as profits meet expectations (like 30%-50%), you should take profits in time, converting them into mainstream coins like Bitcoin or Ethereum, or directly cashing out some.
You must understand that no altcoin can keep rising forever—look at FIL and LUNA from back then; how hot they were at their peak, yet they eventually fell back to square one or even to zero? Many people lose everything because of greed, thinking 'just a little more profit,' only to give back all their previous gains, wasting their efforts. For altcoins, remember 'earn it and exchange it, don’t be greedy or clingy.'
2. Be cautious of high-level surges; new lows at low levels may present opportunities.
Remember two key signals when watching the market:
If the coin price has been consolidating at a high level for a long time and suddenly reaches a new high, don’t rush to chase! This is likely a 'trap' set by the main force, deliberately pushing the price up to sell; at this point, you should prepare to reduce your position or exit to avoid being trapped at the peak.
If the coin price has been consolidating at a low level and then hits a new low but quickly rebounds (like falling below the previous low and recovering within 1-2 hours), it is highly likely that the main force is 'doing a final wash'—scaring away uncertain retail investors, and a rebound often follows. At this point, stabilize your mindset, don’t blindly cut losses, and you can even set a small position as an ambush.
3. Assess the market environment to judge 'against the trend' situations.
How the coin price moves 'against the trend' depends largely on the broader environment:
If the overall market environment is poor (for example, the market falls continuously, and there are many negative news), but a certain coin can still consolidate against the trend, it indicates that it has strong anti-fall characteristics, and it is likely to rebound later; if it can still rise slightly against the trend, the probability of a big rise later is even higher; this is a signal of 'the strong remain strong.'
If the market environment is good (for example, the market is rising, and sentiment is high), but a certain coin is counter-trending and consolidating, it indicates weak momentum, and it may slightly decline later; if it continues to decline against the trend, it is highly likely to follow a major drop, which reflects 'the weak become weaker.' Timely avoidance is necessary.
4. Only increase your position when making a profit; don't stubbornly add to losses.
Many beginners have the misconception of 'adding to losses'—when the coin price drops by 10%, they think 'the opportunity to catch the bottom has come,' and add positions; when it drops another 10%, they add again, eventually filling their positions and getting trapped inside. In fact, the correct approach is to 'add to positions when making money, cut losses when losing.'
For example, if a certain coin breaks through its previous high, confirming that the upward trend is established, then it is appropriate to add positions to let the profits 'run'; but if after buying, it falls below the stop-loss line (for example, drops by 5%-8%), don’t hesitate, directly cut losses and exit, stopping the losses. Remember: adding positions is to amplify profits, not to 'average down.' Stubbornly adding positions will only increase your losses.
5. After identifying the bottom, 'two rises followed by one fall' is the norm.
If through analysis you determine that a certain coin has reached a relative bottom, then during the subsequent rise, there is a high probability of 'two rises followed by one fall'—rising for 2 days, falling for 1 day, or rising 20%, then pulling back 10%. This is not a sign that the market is deteriorating but that the main force is 'lifting while washing out' the hesitant retail investors.
When encountering such a situation, don’t panic, and don’t easily exit. As long as the major trend hasn’t broken (for example, it hasn’t fallen below key support levels, and volume hasn’t shrunk significantly), hold patiently, as there will often be unexpected gains later. Many people sell early because they 'can’t stand the pullback,' missing out on the subsequent major upward wave.
6. When selecting coins, first look at the sector; don’t just focus on a single coin.
The priority for selecting coins must be correct: first-class traders look at the 'sector,' then the 'coin type'; second-class only look at individual coins; third-class rely purely on indicators; the lowest class purely relies on gambling.
For instance, when the market is buzzing about 'Layer2' hot spots, first pay attention to the overall activity of the Layer2 sector—are there funds flowing in, and are the leading coins rising? If the sector heats up, then choose coins from that sector with good fundamentals and high trading volume; the win rate will naturally be higher. If you ignore the heat of the sector and just focus on a specific coin 'thinking it will rise,' or only buy when seeing MACD or RSI golden crosses, that’s no different from gambling and can easily lead to pitfalls.
7. Volume and price are fundamental; don’t blindly trust indicators.
Many beginners are superstitious about indicators, thinking that 'buy when MACD golden cross, sell when dead cross,' but they are often deceived by indicators. You must understand that all technical indicators (MACD, RSI, KDJ, etc.) are calculated based on 'price' and 'volume'—volume and price are the 'cause,' indicators are the 'effect.'
Real technical analysis starts with looking at volume and price: for example, when the coin price rises, is the trading volume also expanding? If both volume and price rise, it indicates that funds are pushing the price up, making the rise reliable; if the price rises but volume shrinks, that is 'volume-less rising,' likely a false increase, and it may easily pull back later. Not looking at volume and price and only trusting indicators is like 'ignoring the root and chasing the branches,' trading coins will only become more and more confusing.
8. Look for support during rises and resistance during falls.
Under different trends, the focus of watching the market is different:
When the coin price is in an uptrend, focus on 'support levels' (for example, previous lows and moving average positions). As long as the pullback does not break the support level, it is an opportunity to buy low; relying on support levels to go long has a very high success rate.
When the coin price is in a downtrend, focus on 'resistance levels' (for example, previous highs and moving average positions). As long as the rebound does not break through the resistance level, it is an opportunity to short or exit; shorting based on resistance levels will have a higher win rate.
Don’t blindly worry about 'it will drop' in an uptrend, and don’t blindly 'catch the bottom' in a downtrend; operating according to trends and key levels is the more prudent approach.
Understanding the way of trading coins follows the same process: from seven losses to two break-even points and then to one profit, it’s all about being single-minded, not coveting various profit models; firmly establishing this trading system will, over time, become your ATM.
I am A Xin, not sure how to operate in a bull market? Click on my avatar, follow me for bull market spot strategies, contract passwords, and free sharing.
