Strict discipline is more enduring than the myth of getting rich quickly.
I remember when I first entered the crypto market, I also treated trading as gambling. In 2018, with a sense of luck, I fully invested in a popular token, only to encounter a black swan event, losing nearly half of my principal in one day. The feeling of despair is still fresh in my memory.
It was this failure that made me realize: in this market, surviving for a long time is more important than earning quickly.
Over the past seven years, I have gradually formed a stable profit system. It does not seek to get rich overnight, but it allows you to navigate the turbulent crypto ocean steadily and far. This system is based on three core principles: position management, trend judgment, and emotional control. Today, I will share all these experiences, hoping to help you avoid detours.
I. Position Management: The First Line of Defense for Survival
Many people fail in the crypto market, not because their judgments are inaccurate, but because their positions are out of control. I have seen too many traders bet their entire fortune on a single trade, only to be washed out by normal market fluctuations.
My position management principle is very simple: the risk of a single trade should not exceed 2% of the total capital, regardless of how attractive the opportunity may seem.
In practice, I adopt a step-by-step position-building strategy. The initial entry should not exceed 30% of the planned total position, and I will gradually increase my position after the price moves in a favorable direction. This method allows me to seize opportunities while controlling risks.
Taking Bitcoin as an example, once a key resistance level is broken, I will first establish a 30% position; after confirming the breakout is valid, I will add 40% when it retraces; the remaining 30% serves as flexible capital. If the market fluctuates against me by more than 5%, I will immediately stop-loss. This way, even if my judgment is wrong, the losses are completely controllable.
Position management is not only a technique but also an art. It requires us to find a balance between greed and fear, and to seek certainty amidst uncertainty.
II. Trend Judgment: Finding the right direction is more important than effort.
In the crypto market, going with the trend is the key to success. But how to identify the direction of the trend?
I mainly rely on three key indicators: the arrangement of moving averages, changes in trading volume, and the MACD indicator. When all three resonate, it is a high-probability trading opportunity.
I pay special attention to the relationship between the 3-day and 30-day moving averages. The 3-day line represents short-term momentum, while the 30-day line represents the medium-term trend. When the 3-day line crosses above the 30-day line from below, and the 30-day line itself is moving upward, it is a clear buy signal. Conversely, when the 3-day line crosses below the 30-day line from above, and the 30-day line is flat or downward, it is a sell signal.
Trading volume is a key indicator for verifying the reliability of trends. A real breakout must be accompanied by an increase in trading volume. If the price reaches a new high while trading volume shrinks, one should be wary of the possibility of a false breakout.
I mainly use the divergence phenomenon of the MACD indicator to judge trend reversals. When the price reaches a new high but the MACD does not, forming a top divergence, it is a potential sell signal; a bottom divergence is a buy signal.
III. Emotion Control: The Ultimate Test for Traders
The crypto market is an amplifier of emotions. Fear and greed are magnified here, becoming the root cause of losses for most people.
I have set two iron rules for myself: First, never chase high prices due to FOMO (Fear of Missing Out); second, never sell off in panic. When market sentiment is extremely optimistic, I tend to reduce my position; when market sentiment is extremely pessimistic, I start to build positions in batches.
Before each trade, I write down the reasons for entering and the expected exit conditions. This helps avoid impulsive emotional trades. When the market fluctuates, looking back at the plan I wrote down beforehand helps me stay rational.
Successful trading is not about accurate predictions, but about controlling losses when making mistakes and letting profits run when correct. This requires strong emotional control.
IV. Continuous Learning: The Evolutionary Laws of the Crypto Market
The crypto market changes every day, with new projects and narratives constantly emerging. Sticking to one method without keeping up with the times will ultimately lead to elimination by the market.
I spend at least an hour each day learning new knowledge, focusing on on-chain data, project progress, and changes in the macro environment. In the crypto world, stagnation is regression.
At the same time, one should avoid falling into the trap of information overload. Not every piece of news is worth paying attention to; I will only focus on a few reliable information sources to avoid being disturbed by noise.
Conclusion: Stable profits are a marathon.
In seven years, I have witnessed multiple cycles of the crypto market. Those who seek to get rich overnight have largely been eliminated by the market, while those who adhere to strict risk management and continuous learning remain active in the market.
The crypto market is never short of stars; what it lacks are veterans. Stable profits are not achieved through one or two spectacular operations, but through long-term adherence to correct principles.
When you master the art of position management, learn the skills of trend judgment, and can control your emotions, stable profits will naturally follow.
