Surviving in the crypto world is not about who makes money the fastest, but who lasts the longest.
I still remember when I first entered the crypto world, with only 1500U in hand. Seeing various screenshots in the group of "going all in and doubling my investment," I couldn't resist and also tried chasing the highs. As a result, I lost 30% in less than a week.
After reflecting on my pain, I decided to change my approach. Instead of predicting the market, I focused on rules and discipline. Within six months, my account grew steadily from 1800U to 42,000U, with zero liquidations throughout.
Today, I will share my practical insights that amazed my followers, "I never knew trading could be this easy."
1. Position Management: Don't fire all your bullets
The most fatal mistake in the crypto world is thinking "take a chance, a bicycle becomes a motorcycle." I've seen too many people put all their two or three thousand U at once, only to lose everything when encountering a black swan.
My first iron rule is to firmly manage positions and safeguard my bottom cards.
Intraday Strike Force (500U): Specifically for short-term trading, with a maximum of two trades per day. If profits reach 3%, consider reducing positions, never overstay. The goal is to maintain market feel and earn some "grocery money".
Trend Guard Troops (500U): Only participate in high-certainty trend markets. Patiently wait for clear breakout signals; sometimes you’ll only act 1-2 times a week, but the pursuit is a profit-loss ratio of over 15%.
Strategic Reserve (500U): This is your "lifesaving money"; never use it lightly. It not only serves as a safeguard against extreme market conditions but is also the cornerstone of your mental stability.
It’s not about money, it’s about risk. When you no longer need to be terrified by every fluctuation, your decisions will become clear and decisive.
2. Trend Following: The market is your boss, not your debating opponent
I used to be obsessed with studying various technical indicators, fantasizing about buying at the lowest points and selling at the highest. What was the result? Often getting slapped in the face, caught between blows.
Later, I completely understood: I am not a god and cannot predict the market, but I can be a smart follower.
I only enter when trends are clear; in fluctuating markets, I act as an observer. Specifically speaking:
Identifying Trends: Utilizing tools like moving averages. When the short-term average crosses above the long-term average with increased volume, I will consider this a signal of an upward trend.
Wait for a pullback: Even in an upward trend, I do not chase high prices. Instead, I patiently wait for the price to pull back to support levels and show signs of stabilization before entering in batches.
Reject fluctuations: 80% of the time in the crypto world is spent in chaotic volatility. When there’s no clear direction, doing nothing is the best operation. This may seem simple, but it’s the hardest to execute because it requires immense patience to combat the impulse of "itchy hands."
Remember, we come to the market to make money, not to prove we are smarter than the market. Following the trend is following the probability of profit.
3. Cold Execution: Discipline is the firewall between rationality and greed
In the market, the hardest enemy to defeat is often our own emotions. My third iron rule is to use mechanical discipline to lock in risk and protect profits.
Stop Loss: 2% Golden Line: Before entering each trade, I must clearly define the stop-loss point. If losses reach 2% of total capital, exit unconditionally. This isn't about cutting losses; it's about preserving ammunition for the next battle. Imagine, losing 50% means needing to earn 100% to break even; you must never put yourself in such a dire situation.
Take Profit: Let profits run, but don't forget to get off midway: When profits reach 10%, I will move the stop-loss up to the cost price, ensuring this trade at least doesn't lose money. Then, I will use a batch profit-taking strategy, for example, first closing half of the position, allowing the remaining profits to seek larger spaces. This locks in some profits while not missing out on subsequent trends.
Never add positions after a loss: This is a "taboo" in trading. Trying to average down by adding positions is like trying to put out a fire with gasoline; it will only make the loss bigger.
In conclusion: Slow is fast, less is more
This method sounds not exciting at all, even somewhat dull. It won't make you rich overnight, but its magic lies in its ability to allow you to consistently and steadily earn returns from the market.
The crypto world never lacks shooting stars; what it lacks is stars that shine steadily. True smart people are doing the hard work, using rules and discipline to combat market uncertainty and achieve compound growth of assets.
I hope my sharing can inspire you. Investing has risks; this article is merely a sharing of personal experience and does not constitute any investment advice.
What experiences or confusions do you have with small capital snowballing? Feel free to share your stories or questions in the comments; perhaps your question will inspire the next article.
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