With a capital of 20,000 entering the market, after three months it dwindled down to only 1,200 yuan. At 3 AM, staring at the numbers on the trading software, my (Old Stone's) fingers were trembling — not out of excitement, but out of anger wanting to smash the software and flee completely.
Looking back now, I'm glad I didn't press that uninstall button at the time. More importantly, after giving myself a harsh wake-up call, I did a thorough review of all my operation records, engraving these 7 bloody lessons into my bones. When my account balance surged to 280,000 six months later, I wasn't surprised at all: the crypto circle has never been a gambling table, but rather a battlefield for cognitive monetization. Every penny you lose is tuition paid for inadequate understanding.
As an old player who has been in the circle for five years, today I will share these iron rules soaked in real money with you; each one can help you avoid three years of detours:
In chaotic markets, staying cash is 100 times better than reckless trading. The most common mistake for beginners is the fear of missing out; even if the candlesticks are a mess, they feel compelled to buy to join the excitement. Half of my initial capital of 20,000 was lost this way — following others saying, "this cryptocurrency has potential" or "it's about to surge," and I ended up trapped with no hope of escape. Later, I realized: when the market is unclear, staying in cash is not giving up but the highest form of defense. It’s like driving in heavy fog; pressing the gas pedal is a death wish. Stopping at the roadside and waiting for the fog to clear is the real lifesaver.
Don’t be greedy for "long-tail gains" with popular cryptocurrencies; be decisive in fast entry and exit. Whenever a market trend emerges, there are always a few cryptocurrencies that suddenly become hot, and the community is full of calls for "hundred-fold expectations." I chased after one such instance early on, made 20%, and still wanted to wait for it to double, but it fell back to its original shape in three days, and my profit turned into a loss. Now, I only follow one principle when pursuing popular coins: set profit-taking and stop-loss lines in advance; when profits hit the target, sell, and when it breaks support, run. Popular coins are like ice cream in summer; the more you hold on to them, the faster they melt. Don’t expect them to solidify like a winter ice sculpture.
During a significant rise, "withstanding volatility" is much more important than "making quick money." Many people panic when they see a high opening and a surge in trading volume, quickly selling to secure their profits, only to end up selling at the foot of the mountain. Last year, there was a cryptocurrency that rose 30% the day after I entered, and when it retraced 15%, the community was filled with voices saying, "run quickly." I focused on the daily support level and didn’t move, ultimately enjoying a 120% return. Remember: the volatility at the beginning of a significant rise is just the main forces washing out the market; as long as the support level holds, holding onto your assets is far better than reckless trading.
When a massive bullish candlestick appears, remember to take profits in batches. This is one of the most painful pitfalls I’ve encountered: years ago, I saw a large bullish candlestick shooting up, thinking it would soar to the heavens, only to be buried on the same day. Later, I summarized a rule: a massive bullish candlestick is often a "signal for the main forces to offload," especially at high levels. Now, when I encounter such a situation, I will first sell 30%, then watch the subsequent trends, gradually selling the rest based on the support level, and I never hold out for the "highest point to sell."
Moving averages are the retail investors' "navigational instruments"; don’t misuse them. Many beginners get dazzled by moving averages, switching back and forth between daily and hourly charts, ending up more confused. I only focus on two daily moving averages: MA60 and MA120, which are the most reliable "support and resistance levels." Enter when there is a golden cross, exit when there is a death cross, and occasionally use trading volume to confirm signals, never trading based on "feelings." You don’t need many moving averages; having just the right one can save your life.
Layout against human nature to earn "money that others can't." When the market is rising, everyone is buying; what you need to do is not follow the crowd but check "whether it has broken the previous high." When the market is falling, everyone is selling; what you need to do is not panic, but check "whether it has dropped to a key support level." Last year, a cryptocurrency fell 50%, and the community was filled with cries of panic selling. I saw it drop to the MA120 support level, entered in batches, and later it rose 80%. Remember: in the crypto circle, the truth is always in the hands of a few.
Never go all in; building positions in batches is a "lifesaver." I’ve seen too many people go all in and make several times their investment, only to end up losing everything in the end. Now, I follow the "334 principle" for each trade: first build a position of 30%, then add another 30% when it rises, leaving the remaining 40% for averaging down or dealing with emergencies. Moreover, before each trade, I always set my stop-loss level, and I will exit if I lose more than 10%, never holding onto the hope that "it might bounce back."
To be honest, the crypto circle has never been a place for "gambling on luck." Those "get rich overnight" stories you see are backed by countless reviews and trial-and-error experiences. I went from 1200 to 280,000, not relying on luck, but engraving these iron rules into my bones and executing them strictly.
I will often share market analysis and trading skills in the future. Friends who don’t want to pay tuition again, don’t wait until you’re left with nothing but your underwear to remember me. Follow me, and let’s continue our discussions in the next review — after all, in the crypto circle, being with the right people is more important than anything else!
Finally, I’d like to ask everyone: what is the most painful pitfall you've encountered in trading? Is it chasing highs or not setting stop-losses? Let’s share your experiences in the comments!
#ETH🔥🔥🔥🔥🔥🔥 $ETH $BTC
