Discipline beats talent, rules conquer human nature
Eight years ago, when I first entered the cryptocurrency world, I, like many others, harbored dreams of overnight wealth. The result was a head-on collision with three margin call experiences, the worst of which saw hundreds of thousands vanish overnight from my account.
On that sleepless night, I finally realized: what truly matters in the crypto world is not who is smarter, but who can maintain their mindset and stick to the discipline.
From then on, I established six 'dead rules' for myself. It was these seemingly simple rules that helped me crawl out of the repeated margin call quagmire and gradually stabilize my profits. I'm sharing all of them with you today.
01. Only focus on the flow of funds, do not be disturbed by noise.
Once, I spent a lot of time every day in various groups, Twitter, and forums, chasing so-called 'insider news.' I found that ninety percent of the 'good news' was just traps for retail investors.
After a painful lesson, I completely changed my strategy: I no longer listen to any 'news,' I only focus on analyzing the gain rankings.
Coins that can rise to the top of the gain list must have funds driving them. I will add coins that have shown significant fluctuations over the past half month to my watchlist, and then analyze their fund inflow. Real capital entering the market is more reliable than any extravagant news.
The market is always right; do not try to prove that your guess is smarter than the market. My mindset now is simple: wherever the funds flow, I will look; whatever the rhythm is, I will follow.
02. Trust only the monthly golden cross, do not bet on counter-trend markets.
In the early days, I always wanted to catch the bottom, trying to seize every V-shaped reversal. The results were always disappointing; nine out of ten times, I got stuck.
Later, I realized that the trend is your friend; counter-trend operations are like fighting against the entire market.
Now, I only look at the monthly MACD golden cross as a basis for judging the major trend. As long as the monthly chart does not form a golden cross, I consider all short-term rebounds as noise. Once a trend is established, it will not easily end. Blindly catching bottoms is like trying to catch a flying knife with bare hands; one careless move can lead to severe consequences.
There are plenty of opportunities in the crypto world; there's no need to cling to counter-trend markets. Give up on those high-difficulty 'counter-trend operations' and only trade when the trend is clear. While this may reduce potential profits, it greatly increases the win rate.
03. The 60-day moving average is a lifeline; do not act unless it reaches the point.
The biggest cost in the crypto world is not money, but opportunity cost. Frequent trading not only consumes transaction fees but can also lead to a loss of direction.
I used to be a 'trading addict,' with a record of over twenty trades in a single day. I found that the more frequently I traded, the faster I lost.
Now, I regard the 60-day moving average as the lifeline for operations. When the price touches the 60-day line and the trading volume significantly increases, that's when it’s worth considering an entry point. Major funds often form support at this position, making it a relatively safe buying point.
Wait patiently if the price hasn't reached the point; if the volume doesn't cooperate, continue to observe. In the crypto world, patience is more precious than gold. Most of the time, the market is oscillating, and true trend opportunities are rare. Saving time waiting can actually keep your mind clearer.
04. If the line is there, take it; if it breaks, run; don’t fall into the trap.
Those who know how to buy are apprentices; those who know how to sell are masters. I have sat on the 'roller coaster' countless times, watching my considerable profits turn into losses.
The most painful thing is not that I never made money, but that I made money but couldn't hold onto it.
Now I adhere to one rule: if the moving average is not broken, hold steadily; if the moving average is broken, sell immediately. No matter how much further it might rise, don't be greedy for that 'last bit of profit.' The true essence of making money is not buying at the lowest point and selling at the highest point, but eating the profits that should be eaten within the trend.
This rule seems simple, but it requires strong self-discipline. Human greed always suggests 'wait a little longer; it might go up,' while discipline is the weapon against this greed.
05. Take profits in batches, don’t be greedy for the last bit.
'Greed' is the biggest enemy of investors. I once had a coin that tripled, but I didn't sell, and in the end, I lost money and exited.
The painful lesson taught me that the market never caters to greedy individuals; taking profits when they are available is the long-term strategy.
I am now implementing a strict incremental profit-taking strategy: when the price rises by 30%, reduce the position by half; when it rises to 50%, reduce the remaining position by half; when it exceeds 80%, consider clearing the position. This way, I can ensure I lock in profits without missing out on subsequent surges.
Never try to earn every penny in the market. Leave some profits for others; that also transfers some risk to them.
06. If it breaks below the lifeline, clear the position immediately without taking chances.
This is the most important rule and the hardest to strictly enforce.
Everyone has a lucky mindset, always thinking 'wait a little longer; it might rebound.' The cost I paid for this was enormous.
Now, as long as the price effectively breaks below the 60-day moving average, I will not hesitate to clear my position immediately. Do not fantasize about a rebound, and do not think about averaging down to reduce costs—this is usually the beginning of a downward spiral.
The market always has opportunities, and preserving capital is always the top priority. As long as the principal is there, opportunities will always be there; once the principal is gone, no matter how good the opportunity is, it has nothing to do with you.
These six rules have saved my crypto career. I am no longer that beginner chasing every hot topic, swayed by the K-line fluctuations. In the crypto world, surviving longer is more important than making quick profits.
After eight years of ups and downs, my trading system has become simpler and my mindset more peaceful. True profit comes from long-term stable accumulation, not from a single gamble.
If you are struggling in the crypto world, try to let go of your lucky mindset and establish your own trading discipline. Perhaps this is the turning point towards stable profits.
The market never lacks opportunities; it only lacks players who can survive longer. Follow Ake to learn more first-hand news and crypto knowledge at precise points, becoming your navigation in the crypto world; learning is your greatest wealth!#ETH走势分析 #加密市场观察 $ETH
