Many people dive into the crypto world with less than 1500U, blindly following others who are making money and chasing prices, and within a few days, they lose almost all of their principal. But I have a friend who entered the market with 1200U last year and turned it into 38,000U in 4 months, without ever getting liquidated. He relied not on luck, but on a set of "steady and practical strategies" suitable for small investments. Newcomers can follow this approach to avoid many detours.
Give the principal three layers of "security locks"
Divide 1200U into three parts, each part 400U.
The first part, 400U, is used as "practice funds" for day trading. If you make a profit of 3%, sell it quickly to secure your gains; if you lose 2%, immediately cut your losses and exit. At the end of the trading session, close the trading software, focusing on developing your self-control and avoiding greed.
The second amount of 400U is 'shotgun funds,' specifically waiting to act when a breakthrough signal appears on the weekly chart. Only open positions when the profit-loss ratio reaches 1:3, and operate a maximum of 10 times a year, never wasting 'bullets' or acting lightly.
Directly lock the remaining 400U in a cold wallet and find a trusted person to help manage it. Even if the first two amounts lose money, this sum can still be reserved for a comeback.
Don't waste time on ineffective markets.
In fact, most of the time in the cryptocurrency market, the fluctuations are 'ineffective volatility.' Just like fishing, you can't always pull up the rod; constantly staring at the market is useless. For 80% of the time, you don't need to watch the K-line chart closely; it's better to use that time to work out, binge-watch shows, and relax.
Wait for key signals like volume breakthroughs or daily line breaks before letting 'shotgun funds' enter for operations.
Profits should be taken promptly.
If profits exceed 20% of your principal, for example, if your principal of 1200U rises to 1440U, quickly withdraw 30% of the profits to your bank card. Only when the money is truly in hand can it be considered real profit.
Restrict your operations with rules.
It's best to use a computer when operating; set an automatic stop loss of 2% for each trade in advance, and even if you lose, never average down and hold on.
If profits reach 4%, first close half of your position and set a trailing stop for the remaining position. For example, if the price falls below the MA10 moving average on the hourly chart, sell everything. If you incur losses for two consecutive days, stop trading for 48 hours, and don't let emotions affect your judgment and operations.
With small funds in the cryptocurrency market, 'slow is fast.' A friend of mine used this method and achieved an annual return rate of 30 times, with the largest drawdown only at 7.4%. The key is that he can protect his principal.
Don't always think about 'gambling for a turnaround'; steady and methodical, while not as thrilling, is not shameful. Charging blindly forward is the real danger. Many people continuously lose money, not because they don't work hard enough, but because they lack a proper operational method. Stop blindly exploring; follow reliable methods to establish a foothold in the cryptocurrency market.
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