Simplicity to the extreme is the highest realm of trading.
I have seen too many players in the crypto world, especially beginners, who always think that trading requires complex technical analysis and staying up late to monitor the market to make money. I used to think this way too, until I witnessed the transformation of a fan.
This friend was initially a 'technical expert,' proficient in MACD, KDJ, and Bollinger Bands, studying candlestick charts until the early morning, taking notes more seriously than a student preparing for college entrance exams. What was the result? In half a year, his account shrank by nearly half, and he became so haggard that he almost compromised his health without making any money.
Later, he switched to a different mindset, using his self-deprecating 'laying flat strategy,' and surprisingly, in less than a year, his account grew from 7700U to 14WU, an 18-fold increase! Today, I will share his transformation journey, which might inspire you.
One, from complexity to simplicity: why is 'less is more'?
I once looked through his previous trading records, filled with buy and sell points, almost trading every day, and the transaction fees alone ate up a lot of profits. Even scarier, frequent trading brings not only losses from fees but also endless energy and emotional exhaustion.
I asked him why he changed strategies, and he bitterly smiled: 'I used to think that working harder would lead to more profits, but later realized that I was heading in the wrong direction, and the harder I worked, the further I got from my goals.'
His new strategy is so simple that it's hard to believe:
1. Only trade breakouts, don’t guess the direction.
In the past, he constantly guessed tops and bottoms in a fluctuating market, only to be caught off guard by false breakouts. Now he waits for the price to truly break through previous highs or lows before entering, and if he misses it, he waits for the next opportunity.
2. Strictly control positions, never go all in.
No matter how good the opportunity looks, he only uses 20% of his position each time. He gradually takes profits when he earns and decisively stops losses when he loses, never averaging down due to unwillingness.
3. Reduce trading frequency, improve the quality of each trade.
In the past, he might have traded dozens of times in a day, but now it's only two or three times a week. In his words: 'Most of the time the market is fluctuating, and there are very few trends worth participating in.'
Two, practical case: how to implement a simple strategy?
So, how exactly does this 'slacking strategy' work? Taking the SOL market movement he successfully captured this year as an example.
At that time, SOL was consolidating between $80 and $85 for nearly two weeks. He didn’t rush in but patiently waited for a direction to choose. When the price broke through $85 with volume, he decisively entered at $85.5, setting the stop-loss at $82.
Subsequently, SOL rose to around $96, and he started taking profits in batches at $94, ultimately making over 10% profit from this wave. Throughout the process, he didn’t constantly watch the market but set price alerts and went about his other business.
I asked him why he can hold onto his trades; he shared a little tip: 'Move the stop-loss.' Each time the price breaks through a resistance level, move the stop-loss to just below the previous support level. This way, you can protect profits while allowing gains to run.
Three, why can’t most people achieve it?
Such a simple strategy, why can’t most people stick to it? I believe the core issue is the difficulty in overcoming human weaknesses.
Greed: always wanting to buy at the lowest point and sell at the highest point, often missing the entire market movement.
Fear: fearing profit withdrawal after making a little money, rushing to close positions; unwilling to stop-loss after incurring losses, hoping for a rebound.
Arrogance: always thinking one’s judgment is more accurate than the market, unwilling to admit faults.
The reason my friend can succeed is not because he has any superhuman abilities, but because he truly embraces the concept of 'not trading in markets he doesn’t understand and not forcing strategies that can’t be achieved.'
Four, some heartfelt words for you who are still confused.
The crypto world is never short of opportunities; what’s lacking are those who can stay in the game longer. From this friend's experience, I’ve summarized three core suggestions:
1. Position management is more important than technical analysis.
Operate with 20% of the total capital, and single losses should not exceed 2% of the principal. Even if you hit stop-loss five times in a row, you still have 90% of the principal left to recover.
2. Stop-loss should be as natural as breathing.
Before entering a trade, think about where to exit. If the price reaches the stop-loss point, exit decisively without hesitation or fantasy.
3. Patience is the best trading strategy.
In the crypto world, 90% of the time is spent in consolidation, with only 10% having trending movements. Most of the profits come from that 10%, so learn to wait.
I’ve seen too many people frequently trade out of eagerness to recover losses, resulting in even greater losses. I’ve also seen some individuals, like this friend, return to simplicity after complexity and achieve stable profits.
Trading cryptocurrencies is not about who operates in a fancier way, but about who lasts longer. Sometimes, a proper 'slacking off' can actually be a form of wisdom—acknowledging that some market movements are incomprehensible and some profits are unattainable. Focusing only on the opportunities you can grasp might just be the real secret to trading.
Do you also have similar experiences? Feel free to share your trading stories. Follow Xiang Ge to learn more about first-hand information and cryptocurrency knowledge, becoming your navigation in the crypto world. Learning is your greatest wealth!
