I started my cryptocurrency journey by saving 2000U from the delivery box. Like many people, I once believed in 'buying the dip', only to lose 30,000U in repeated cuts; I also stubbornly held onto losses until the liquidation message woke me from my dream. But now I want to say: the true freedom in the crypto world is not in getting rich quickly, but in mastering human weaknesses. The following is my painful review.
1. Subverting Cognition: Masters are all 'taking hits with the trend'
I used to fantasize about buying at the lowest point, only to be thrown off the bus halfway up the mountain. It wasn't until I observed those traders who made nine figures that I realized they never guessed tops or bottoms; instead, they decisively pursued when trends were confirmed.
Case study: When ORDI started at $30 in 2021, I once bottomed out at $20 but was washed out. However, a trader added positions in increments after breaking $33, rolling profits to reach the full increase to $100. His logic was simple: 'The trend is the path of least resistance, bottom fishing against the trend is not as good as riding the trend.'
My change: Now I only open positions when breaking through key levels, such as MA20 golden cross and price above the middle track of the Bollinger Bands, testing with 2x leverage. If wrong, I stop loss at 5%, if right, I scale up gradually.
Two, position management: use 'trial money' to combat human greed.
The biggest lesson from liquidation is 'position determines life and death'. I now strictly enforce a 15% first position rule.
The first order should not exceed 15% of the principal, set a stop loss at 5%, and aim for a profit-loss ratio > 3:1.
Withdraw principal after a profit of over 20%, and play freely with the profit portion.
Use profits for adding positions, never touch the principal.
This strategy helped me survive the crash on May 19—at that time, altcoins were halved, but because I withdrew my principal in advance, I only experienced a 30% pullback in profits, and my mindset was not affected at all.
Three, against human nature harvesting: buy in panic, sell in FOMO.
The most ironic thing about the market is that most people are greedy during a surge and fearful during a crash, while winners go against the tide.
Panic signal: When the community is silent and the hot search shows 'Bitcoin crash', I will gradually buy at key support levels (such as the weekly MA60). For example, after the LUNA crash in 2022, the market was extremely fearful, but I entered Bitcoin at $15,000 and later enjoyed a doubling increase.
Exit signal: When a token tops the hot search list and the community shouts 'hold for a lifetime', I will initiate a pyramid profit-taking strategy (selling 20% for every 10% increase). For instance, in June this year, when a certain MEME coin exploded in popularity, I cleared my position at the peak of the Google search index and avoided a subsequent 70% drop.
Four, the core of survival: Discipline > Technology
Technical analysis can be learned, but discipline can only be cultivated by oneself. I do three things every day:
Pre-trading emotional self-check: If I feel anxious due to losses the previous day or overly excited about profits, I shut down the computer immediately.
Set mechanical stop loss: Never increase positions on losing trades, stop immediately after two consecutive losses.
Weekly review of 'error log': Record trades that deviated from rules due to emotions, such as FOMO chasing or fear selling.
The most unforgettable moment was when I stubbornly held onto a losing position, leading to a 50% drawdown in my account. Later, I enforced a rule: any single loss should not exceed 2% of total capital, which helped me bid farewell to 'zero overnight'.
Five, the truth of the crypto circle: Stable profits are more precious than getting rich quickly.
Now I live in Hangzhou, using trading profits to acquire assets, keeping an eight-figure fund in my account for gradual layout. But what truly allows me to sleep peacefully is not the wealth numbers, but these three iron rules:
Invest with spare money: Never risk your survival capital.
Deepen skills in a bear market: During the downturn, I self-studied on-chain analysis and economic models, preparing ammunition for the next cycle.
Maintain life balance: Trading is not everything in life, do not stare at the market for more than 4 hours a day.
The last sincere words:
The crypto world is never short of miracles; what is missing is the ability to survive until the miracle happens. On those nights of liquidation, I always remember the crumpled 2000 USDT in the takeout box—it made me realize: I've paid enough tuition, mastered the rules, and then the market will treat you kindly.
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