After six years as a crypto analyst, I’ve seen the most magical scenes: some people stay up all night staring at K-line indicators until they go bald, switching between five assets a day like a spinning top, yet at the end of the month, their account is left with just their underwear; while I, using a method that my peers mock as "lacking technical content," rolled my 3000 crypto asset units up to 24,000.
Don’t think I’m just lucky—when I first entered the circle, I worked harder than anyone: I stayed up late studying (the complete guide to technical analysis), and when I heard which project was going to "pump," I went all in, resulting in my capital being halved in just a month. Until I uninstalled all those complicated indicator software, I found the way to make money: the crypto market is not short of smart people; what it lacks is those who are willing to "slow down."
Today, I pulled out my three "dumb rules" that I keep hidden, they look simple but are highly practical; beginners can avoid 80% of the pitfalls by following them.
1. Is the trend just emerging? First, throw in 3% of your capital to "test the waters".
I never try to catch the bottom, nor do I guess the "lowest point"—in the crypto market, "catching the bottom" often means catching it halfway up a mountain, and the speed at which "junk coins" go to zero is ten times faster than you imagine. My method is: only focus on the top 20 by market cap and well-structured mainstream assets, and wait for them to show clear upward signals (such as standing firm on the 5-day moving average for three consecutive days) before using 3% of my capital to build a base position.
Last year, a fan argued with me: "Small coins have big fluctuations and can triple in a day!" As a result, the "concept coin" he invested in had its team run away a week later, and his capital was lost completely. Remember: stability is more important than "high profits"; being able to stay in the market gives you the qualifications to make money.
2. Is the market confirmed? It’s not too late to add to your position.
Many people are eager to "catch the head of the fish"; when the main players grab the funds, they follow suit and add to their positions, often falling into the trap of enticing profits. I’ve always been "half a beat slow": I wait until the trend is completely clear—such as when a mainstream asset breaks through its previous high and doesn’t retract for three consecutive trading days—then I add to my position in 2-3 batches, controlling my position between 20%-50%.
Just like that market in the second half of last year, when a certain mainstream asset broke through its historical high, the "short-term experts" in the group went all in that day, only to be trapped by a retracement the next day; I waited for it to stabilize for three days before adding to my position. Although I earned slightly less on the "head of the fish," I steadily ate the "body of the fish" and ended up with more profit than those who went all in. There’s no need to rush to make money; missing out on the head of the fish is fine; eating well from the body of the fish is key.
3. Run once you've made enough! Set your profit-taking and stop-loss limits in advance.
The crypto market tests human nature the most with "greed"—many people clearly made 20%, but fantasized about "another surge," resulting in profit erosion or even losses. My iron rule is: set your profit-taking and stop-loss limits before opening a position; the profit-taking point is generally set at 15%-20%, and the stop-loss point should not exceed 5%.
Last month, a certain asset rose to the profit-taking line, and someone in the group shouted, "It can still go up!" I decisively sold and transferred the profits. Later, that asset indeed retraced by 12%, and those who didn't sell started cursing again. Real profit is when you take it; don’t let "fantasies" make you lose the profits you already have.
A fan who had previously lost 400,000 followed my method for three months, not only recovering the losses but also making an extra 100,000. He said: "If I had known it was this simple, I shouldn't have wasted time researching those complicated indicators back then."
In fact, the crypto market is really not that complicated—those who lose money are mostly "too smart": smart enough to chase highs and sell lows, smart enough not to set stop losses, and smart enough to think they can pinpoint every market wave. Instead, those "dumb people" who stick to simple rules, are not greedy or impatient, can steadily make money.
Going solo in the crypto market is too easy to get lost; if you're tired of staying up late to watch the market and chasing news, consider following me. I will continuously update trend analysis on my homepage, and next week I will open my exclusive communication circle to share the assets I track daily and the operational ideas so that no profit is lost and no pitfall is stepped into; this is the long-term way in the crypto market.
