Complex methods harvest profits, simple rules create wealth.
I remember when I first entered the cryptocurrency circle in 2017, like most newcomers, I was obsessed with various complex indicators and data analysis. My trading charts were filled with MACD, RSI, and Bollinger Bands, looking like a nuclear power plant control diagram. The result? After three years, I was almost stuck in place and almost faced liquidation.
Until I realized a core principle: longevity in the cryptocurrency world is key, slow but terrifyingly steady. So, I began to simplify and established a trading system that only required five minutes a day. It was this seemingly 'dumb' method that allowed my account to grow from thirty thousand to tens of millions over five years.
My 'five-minute' daily routine: less is more
Now, my daily trading is so simple that it raises doubts:
Take a look at the 4-hour chart in the morning: only focus on whether the price is above the 20-day moving average (the color is intentionally set to light gray to prevent subjective assumptions).
Check for the N shape: strong rise → volume decrease and pullback → volume breakout; if it fits, place an order, if not, shut down.
Set automatic stop-loss and take-profit: stop-loss 2%, take-profit 10%, and then stop watching the market.
Live your life: work, exercise, meet friends, never let the market dictate your actions
The core of this system is not to predict the market but to passively respond to market signals. It's like fishing, where you don't jump into the water to chase the fish, but rather drop the bait and wait for the fish to bite.
Three-level positions: my 'moat' of funds
In this high-volatility crypto market, position management is key to survival. I divide my funds into three parts, which allows me to sleep soundly even amidst severe fluctuations:
Core position (50%): only allocate to mainstream coins like BTC, ETH, hold for the long term, and remain unmovable like a mountain. If there's a leader, don't chase after clones; often, the strong leads are steady while the clones are fleeting.
Trading position (30%): used to execute daily trading strategies, with strict stop-losses. No single trade exceeds 10% of the principal, and single losses ≤3%.
Reserve position (20%): buy the dip during market panic. Bull markets have rapid downturns; this is a rule. When Bitcoin pulls back 20%, and altcoins pull back over 40%, it's an opportunity to buy in batches.
It's like a battle, with main forces, mobile troops, and reserve forces. Most people throw all their troops into every small conflict, while my main forces always remain safe.
The ultimate secret to survival in the crypto world: discipline trumps intelligence.
I've seen too many genius traders ultimately go bankrupt, not because they weren't smart enough, but because they lacked discipline.
My several iron rules:
Profits must be withdrawn: every time I earn 10% of my principal, I immediately withdraw half of the profits to a cold wallet. For every 500,000 I earn, I withdraw 200,000 to ensure that 'ammunition on the battlefield' is never excessive.
Don't be a 'review fanatic': spend a maximum of 10 minutes reviewing each day, checking whether you executed as planned without over-analyzing.
Stay away from the noise of trading groups: there is a common phenomenon in the crypto world where the stocks you are interested in rise well without your participation. And when you want to buy at a high point, it just crashes as soon as you buy. Too many people are eager to discuss 'insider news', and I choose to block it out.
Exit after two consecutive losses: avoid 'revenge trading', go exercise or do something else, and come back when your mindset has calmed down.
The profound philosophy behind simplicity
Why do simple methods work? Because they align with the essence of the market and human nature.
The fluctuations in the crypto world seem random, but they are driven by two basic emotions: greed and fear. My simple system essentially utilizes this emotional cycle: buy when fear subsides, sell when greed prevails.
The problem with complex trading systems is that they create a false sense of control. When we add more indicators and more complex analysis, we are actually catering to the brain's desire for certainty, rather than improving actual win rates.
A true trading master is not someone who can predict the future, but someone who can consistently execute simple rules.
Conclusion: starting from the first million
If you are still struggling in the crypto world, why not try 'subtracting'?
Delete all unnecessary indicators from the trading charts and keep only the core one or two.
Compress daily market watching time from several hours to dozens of minutes.
Replace subjective judgment with rules, replace emotional impulses with discipline
The biggest paradox in the crypto world is: the more one pursues quick wealth, the harder it is to make money; while those who focus on executing simple rules find wealth comes to them unexpectedly.
Simplicity does not mean easy. What truly tests you is not your analytical ability, but your courage to buy during market panic and your resolve to sell during market euphoria.
The crypto world has never lacked stories of sudden wealth, but those who survive are the ones who understand the rhythm. I hope my experience inspires you.#巨鲸动向 $ETH
