At the party, a friend quietly revealed his earnings, and the table fell silent. It turns out that making money can be so 'boring'.
Last week at a gathering, a friend who had been in the industry for less than half a year privately told me that he achieved considerable profits with a small amount of capital in just a few months. The seasoned traders at the table suddenly became interested—how did he do it without trading contracts or chasing after low-quality coins?
The answer was surprising: he simply adhered to a highly regulated trading method.
In this market labeled as a 'casino', I have witnessed six years of ups and downs. The increasingly clear conclusion is: the market never tricks you; it is your own mindset and habits that do. Today, I want to talk to you about how to become one of the few who consistently make profits.
01 Position Management, Surviving is More Important than Winning
My first piece of advice to him, which may sound a bit conservative: don't go all in. Years of experience tell me that capital management is not an art of winning, but a science of survival.
My capital allocation strategy is like a battle plan:
A small portion (no more than 10%) is used for intraday trading, executing trades when one or two high-probability signals are identified, and leaving immediately upon reaching preset targets, without getting attached.
A slightly larger portion (20%-30%) is used for swing trading, analyzing major trends every week or two, and only acting when the direction is clear, avoiding those grinding fluctuations.
The largest share (about 60%) is allocated to core assets like Bitcoin and Ethereum, serving as ballast.
Another portion (10%) is held in stablecoins as "emergency funds," never to be used unless absolutely necessary.
This method sounds simple, but most people just can't do it. They get excited and go all in at the first sign of a rise, and when trapped, they desperately average down, resulting in deeper losses. The market will always have opportunities, but when your capital is gone, you're truly out.
02 Most of the time, not trading is the mark of a master.
Many people think trading requires constant activity every day, but that's a big mistake. The market spends 80% of the time in disorderly fluctuations, with only 20% showing a clear trend. If you keep messing around, not only will you not make money, but you'll also contribute a lot in fees to the platform.
I increasingly agree with the view that "laziness" can be a strategy. When there's no clear trend, I even actively stay away from the market and find other things to do. Just like last month, when the market was in a sideways movement for over twenty days, I hardly made any trades.
When the trend finally comes, following it less than a week later yields much greater returns than frequent trading before.
Those who truly make money are the ones who wait patiently. Even when I make money, I don't get carried away; after achieving a certain percentage of profit, I convert part of the profit into stable assets, while continuing to roll the rest.
03 Trading Discipline, Control Your Hands
Where do retail investors tend to lose the most? When emotions run high, operations become distorted. When prices rise, they think it can go higher; when prices fall, they panic and sell at a loss; when trapped, they start blindly averaging down... these are typical "money-giving behaviors."
I have set three ironclad rules for myself:
Any single trade loss reaching 1.5% of total capital must be cut decisively, without hesitation.
Take some profits when gains reach 3%, securing part of the profits.
Never average down during a downtrend, even if you feel it's at the bottom.
I remember once, when a certain cryptocurrency had just experienced a slight decline, my friend was eager to average down, but I advised him to hold off. Later, that cryptocurrency continued to drop by more than ten percent, and he later told me, "Fortunately, I didn't reach out at that time."
Discipline is not a restraint; it's the armor that protects you.
04 The Path to Refinement, Self-Cultivation for Traders
In the crypto market, techniques can be learned, news can be accessed, but the cultivation of mindset cannot be replaced by anyone. All my early losses can almost be attributed to an imbalanced mindset.
FOMO (Fear of Missing Out) is one of the most costly emotions. Seeing others make money is harder to bear than losing money oneself; that's human nature. But my principle is: I'd rather miss out than make a mistake. The market will always have opportunities; what's lacking is capital.
Greed is equally deadly. After making profits, unwilling to take them, fantasizing about prices rising indefinitely, the result is a market reversal and profit erosion. I now use a trailing stop method: as prices rise, the stop-loss level also increases, protecting profits while not limiting profit potential.
Overconfidence is an even more invisible killer. After consecutive profits, traders tend to believe they have mastered market patterns, start increasing positions or leverage, and ignore risks.
I now review my trades regularly, recording the reasons and results of each trade, forcing myself to remain humble.
Over the years, I've seen too many people get rich only to lose everything again. It's not that the market didn't provide opportunities, but many people always feel they can take a big risk, forgetting the simplest principle: slow is fast, and steady can last.
The market is always changing, but human nature never changes. Those traders who can sustain profits are not masters of prediction, but executors of discipline and risk managers.
Do you have any unforgettable experiences in this market? Feel free to share your story in the comments. If you find this article helpful, please follow my account, and when the market fluctuates next time, we can respond calmly together.
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