Last week deep into the night, my phone suddenly exploded. Lao Hei's voice message came through with a sobbing tone, making my ears tingle: 'Bro, another 800 is gone! This is the third time this week... the dowry money is almost lost!'
Opening the screenshot he sent, I gasped: the principal of 5000U is down to 3400, and the note says 'wedding reserve fund' in five characters, more heartbreaking than a waterfall market. This guy just successfully proposed last year, and this money was saved up for the bridal dowry. After being misled by friends into the crypto circle, he was filled with thoughts of 'contracts doubling,' chasing hot coins precisely at the peak, and bottoming out on altcoins that went to zero, becoming a 'counter-indicator in the crypto world.'
I didn't beat around the bush; I directly said: 'Do you want to ruin the wedding and continue gambling, or spend half a year learning a trading method that can be lived on for a lifetime?' 30 seconds later, he replied instantly: 'Brother, I choose the latter! Please guide me!'
Who would have thought that this once naive young man shouting 'all in, from bicycle to motorcycle' would send me a wedding video 6 months later, surrounded by fresh flowers; he held the phone with his bride, account balance 120387U dazzling! Throughout, there was zero liquidation; not only did he recover his losses, but he also held a magnificent wedding.
As a cryptocurrency analyst with 8 years of experience, I can responsibly say: the crypto market is not a casino, but a place for human nature training. Those who can make money in the long run are never the lucky gamblers, but the traders who have 'stability' ingrained in their DNA. The turnaround of Old Black relied entirely on these 3 'life-saving rules'; ordinary people can follow them to avoid 99% of the detours:
1. Three-part fund allocation: lock the 'emergency fund' in a safe.
I asked Old Black to first supplement the 3400U to 5000U principal, divided into three parts, each with a 'specific mission', and any movement required a report:
3000U Intraday Position: Only focus on two major mainstream coins, set a 2% profit-taking line, and do not be greedy for even one extra point. He previously chased a popular coin and lost 18% in half a day; now, even if he sees small coins skyrocketing, he can hold back his eager hands: 'Mainstream coins have stable volatility, earning 2% twice a day is enough to buy renovation materials';
1000U Band Position: Strictly equal signal with a 4-hour moving average golden cross + continuous increase in trading volume, both are indispensable, and the position should never exceed 3 days. There was a mainstream coin that was sideways for 5 days, and he went to the wedding dress shop with his fiancée every day, holding back from entering the market until the 6th day when a breakout signal appeared, making a 12% profit in 3 days;
1000U Life-saving Position: Transfer to an independent cold wallet, set a double password, and note 'wedding bottom line, if touched, I will remain single'; not even the fiancée knows the password. Once the market plunged, he itched to use this money to average down. Looking at the note, he forcibly held back. Later, the market fell another 20%, giving him a cold sweat.
Remember my iron law: only the capital that can be preserved is your confidence to turn the tables. The crypto market lacks opportunities; what it lacks is capital that can survive until the opportunities come. Keep emergency funds and trading funds completely separate; even if the trading position incurs losses, it will not affect life; a stable mindset is necessary to win.
2. Follow the trend for signals: 70% of the time for leisure, 30% of the time for making money.
Many people lose money because of 'itchy hands'—the market is in a sideways trend 70% of the time and trending 30% of the time. Yet some insist on making reckless trades during the sideways period, chasing highs and cutting lows, only to end up with a pile of transaction fees without making any money.
I told Old Black: 'We only make money from trends; during sideways periods, we completely relax.' He followed suit: during the day, he ran around the renovation market bargaining, and at night accompanied his fiancée to choose wedding photos, spending only 10 minutes a day to glance at the 4-hour and daily charts, and resolutely not monitoring the market during other times. Once a clear signal of 'continuous volume + moving average arrangement' appears, he takes out the band position to enter the market, never ambushing in advance.
More importantly, 'profit should be taken off the table'—we set strict rules: for every profit reaching 10%, immediately withdraw 50% to the bank card. After four months, he withdrew 42300U, not only recovering the previous losses but also booking the wedding venue and honeymoon tickets in advance. In his words: 'The money in the bank card is real money; the numbers in the account are all virtual; they can disappear just like that.'
3. Emotional cage: lock away greed and fear.
The biggest enemy in trading is never the market, but your own emotions. Old Black and I set three 'strict rules', written on his phone wallpaper, trading software notes, and even the back of his wallet, to see three times a day:
If a single loss reaches 1%, immediately stop loss and exit the market, even if the market rebounds later, do not regret. The crypto market lacks opportunities; what it lacks is the patience to avoid pitfalls.
If profits exceed 3%, first close half of the position, and set a trailing stop for the remaining part to let profits fly, but do not ride a roller coaster; the money earned is the only real profit.
Never average down losses; eliminate the illusion of 'averaging down costs'. The deeper you go, the more you lose; only those who have stepped into the pit know this. Old Black lost half of his capital this way.
Once, a mainstream coin suddenly surged 6% in volume; Old Black excitedly screenshot it to me, saying he wanted to chase in for quick profits. I asked him to check the 4-hour chart for divergence signals; he stared at the screen for two minutes and silently closed the trading page. Two hours later, the market retraced 4%, and he sent me a message saying 'scared', followed by a cold sweat emoji. Follow me!
