At the beginning of the year, I rushed into the crypto market with the 'startup capital' I had saved for half a year, thinking I could achieve 'coffee freedom' with a wave of market trends. However, three months later, when I opened my wallet—there were only 600 stablecoins left, not even enough for a meal at Haidilao. During that time, I could stare at the K-line chart for two hours, even doubting whether I was naturally 'destined to be a retail investor', and almost uninstalled all trading apps to completely give up.
Until one day I printed out the loss records and plastered them all over my desk, staring at those operations of 'chasing highs and standing guard' and 'all in to zero', cursing myself for being foolish, I finally calmed down and summarized 7 'bloody iron rules'. I didn't expect that after stubbornly executing for six months, that initial 600 stablecoins surprisingly rolled into 150,000. Today, I'm sharing these heartfelt insights with you—there are always opportunities in the crypto market; what’s lacking is the execution ability to 'control your hands'.
1. Don't be a 'reckless man' during chaotic periods: staying in cash is 100 times better than randomly buying.
In the crypto market, there are 'hundred-fold coins' hype every day. When someone shouts 'don't miss out, slap your thigh,' do you feel the urge to rush in? I lost money like that before! Later, I understood that the market is like driving in fog; when the MACD and volume are all tangled up, even the most tempting gains are 'trap candies.' At this time, the best thing to do is not to anxiously watch the market but to turn off the app and binge-watch a series—in cash, you're not slacking off; you're waiting for the traffic light. It's always better than running a red light and hitting a wall. Missing out on ten vague opportunities is still better than stepping on a landmine and blowing up your principal.
2. Popular coins are like trendy milk tea: they heat up quickly but cool down even faster.
The 'new hot coins' that are trending in the community can make you laugh awake in the middle of the night when they rise, but can also make you cry with no place to cry when they fall. Now when I encounter popular coins, I only do 'lightning strikes': set a profit-taking line of 15%-20% in advance, and a stop-loss line that never exceeds 5%. Once I see community discussion heating up decreasing and volume starting to shrink, my speed is faster than grabbing concert tickets—clear out decisively! Remember, the floating profits of popular coins are like a castle on the beach; when the tide goes out, it's all gone. Don't wait for 'floating profits to turn into losses' before you slap your thigh.
3. Don't mess around during a big rise: holding tight and 'lying flat' is the way to win.
I've seen too many people making 'small profits and big losses' during a bull market: selling after a 2% rise and missing out on the subsequent 20% wave, then chasing high prices and getting trapped. In fact, a high opening K-line with a 'surge in volume' is a signal that the trend is established. At this time, it's most dangerous to be 'itchy and trade frequently.' I once caught a wave of the market and didn't sell even after three pullbacks, firmly holding through short-term volatility to enjoy a 40% return. Remember, being 'inactive' during a big rise is harder than 'acting randomly,' but the money earned is much more—hold tight and endure the fluctuations to reap the 'big rewards.'
4. When a giant bullish candle appears: quickly take profits in batches.
Whether at a high or low, if a suddenly thick bullish candle appears that is three times thicker than usual, don't think it's 'about to take off'; it's likely that the main force is 'secretly unloading.' Now when I see this kind of K-line, I will sell off 30% of my position that day and then gradually reduce my holdings the next day based on the trend—never be greedy for the last point of profit. There was a time I greedily held on for one more day, and my profit dropped from 12% to a loss of 5%, turning 'making money' into 'losing money.' Remember, a giant bullish candle is a 'profit alarm'; being greedy for even a second could turn a 'smile into tears.'
5. Moving averages are the 'navigation system': replace 'intuition' with data for trading.
The most common mistake retail investors make is to buy based on feelings. When prices go up, they think it will keep rising, and when prices drop, they panic and sell. In fact, the daily moving averages are our 'lifeline': focus on the 5-day and 10-day moving averages, buy slowly when there's a golden cross, and decisively sell when there's a death cross. For short-term trades, turn over every 3-7 days, and never get attached. I now completely follow the moving averages; the money I lost before relying on 'intuition' has all been earned back through 'data operations.' Don't trust the so-called 'market feel'; in the crypto market, data is 100 times more reliable than the 'sixth sense.'
6. The trend is the 'big brother': operating against human nature is the only way to avoid being cut.
When the market is rising, everyone shouts 'the bull market is here,' and when it falls, everyone says 'it will go to zero.' But the truth is: if the upward trend is not broken, hold firmly; if the downward trend is not stabilized, don't catch the falling knife. I lost a lot chasing highs and cutting losses before, but later I learned to 'do the opposite': when others panic and sell, I look at the moving averages stabilizing and buy in batches; when others are crazily adding positions, I watch for unusual volume and gradually reduce my holdings. Remember, in the crypto market, 'most people are wrong,' don't let emotions lead you astray; the outcome of operating against the trend is mostly being 'cannon fodder.'
7. Going all in is 'gambling with your life': building positions in batches is the 'foolproof method.'
'Going all in will win you a young model at the club, but lose it will mean moving bricks on a construction site'? Don't believe this nonsense! I once went all in on a coin, and it dropped 40% in half a day, almost wiping out my principal. Now I build positions in 3-5 batches each time, like buying 20% first, then adding another 20% if it drops 5%, which dilutes the cost while keeping some 'ammo' for emergencies. More importantly, set a stop-loss line before each trade; once it hits, immediately cut losses—using the smallest risk to seek the largest return is the 'survival rule' in the crypto market; going all in seems thrilling but is likely a 'fast track to zero.'
Brothers and sisters, my experience of climbing up from 600 stablecoins tells you: the crypto market is not a casino; it's a 'cognitive ATM,' but the premise is that you have to drive away the two 'thieves' of 'greed' and 'panic.' Those who shout 'get rich overnight' are either scythes or leeks; those who can truly make money are those who engrave the 'iron rules' into their bones and have full execution power.
Now when I see someone going all in, I feel anxious for them, just like seeing my cat going for a cactus—I know it will get hurt but can't stop it. But you're different; now that you've read this practical article, it's like you have received the 'pitfall avoidance guide' in advance. Follow me for daily insights on 'survival skills in the crypto market'. Next time let's talk about 'how to pick up small profits in a volatile market', ensuring you take fewer detours and earn steadily! After all, making money is about taking your time.
