Who understands! When there are only three digits left in the wallet in U, staring at the K line every day fantasizing about doubling it, the result is that the more anxious, the more losses I incurred. Back in the day, when 8000U shrank by half overnight, it was because I made the big mistake of 'seeking quick gains leads to death'!
Later, I figured out the market's temperament, relying on a set of 'reverse speed victory' logic, I helped newcomers start from 1200U and roll it to 38,000 U in 4 months without experiencing significant drawdowns throughout. Today I will share the valuable knowledge I have, for those with a small capital who want to make a comeback, I suggest copying the entire text!
1. Divide funds into 3 parts, lying flat is the entry course
The market specializes in 'putting all eggs in one basket', if you want to survive, first learn 'not to go all in'! I always divide the funds into three parts, each serving its purpose without crossing boundaries:
400U day trading position: open only 1 order each day, take profit ≥3% and stop immediately, don’t be greedy for even a bit more! Frequent trading isn’t making money, it’s working for the trading platform for free, and you’ll even have to pay transaction fees;
400U swing position: don’t chase highs or bottom fish, just wait for two signals: quality mainstream assets breaking out on daily volume + moving averages in bullish alignment, only then enter for more than 10% space, and decisively exit without hesitation if it falls below the 5-day line;
400U long-term position: transfer to safe storage channels, hide the proof well (those who know, know), note 'if touched, you are the retail investor'! This part of the money is your 'trump card', regardless of market ups and downs, just close your eyes and lie flat.
Remember: surviving gives you the qualification to wait for the market, keep your principal, and there will always be opportunities for the next round.
Second, only nibble on the main upward trend, the rest of the time 'turn off and lie flat'.
80% of K-lines are noise; those who stare at the market every day are mostly 'busy for nothing'. My operational principle is:
Quality assets sideways for ≥3 days, just close the software! Don’t think about 'buying low', the fluctuations during sideways phases are traps, and entering is just being harvested back and forth;
Trigger the signal before taking action: volume breaks previous highs + OBV synchronously hits new highs, only then is it the 'wind coming', decisively follow with a small position;
Set a 20% take profit line when entering, first secure 30% of the principal, let the remaining profit run.
Remember the mantra: turtle waits for the wind to come, add positions when the wind rises, retreat immediately when the wind stops! We want to be the 'bargain king', not the 'bag holder'.
Third, let the rules be the 'villain', emotions should 'retire'.
The biggest enemy in investment is not the market but your 'regretful heart' wanting to average down when losing, wanting to hold on a bit longer when making profits, which ultimately leads to disaster! I have long set three ironclad rules for myself, pre-set orders, never hesitate at the moment:
Draw down to -2%, directly close at market price, without looking for any excuses to 'wait a bit longer';
Profit to +4%, reduce by half + set a trailing stop to lock in 'floating profit' as 'actual profit';
Never average down on losses! The more you average down, the more anxious you get, and in the end, you’ll only go from a 'small loss' to 'being stuck'.
You don’t need to be a prediction guru, just let the rules make decisions for you, and you can sleep soundly while avoiding 80% of retail investor behavior.
In fact, a small principal is not scary; what’s scary is the 'impatient disease of getting rich quickly'. From 1200U to 38,000U, it’s not about betting on one big bullish candle, but gradually accumulating with small bullish candles.
The market has its ups and downs every year, but there is only one principal. First, learn to 'lie flat' to survive the main upward trend; first, quit 'seeking speed' to truly make big money.
Follow Mr. Ke, exchange and learn from each other, leading you to the light of the cryptocurrency world!
