You might not believe it, but 7 years ago, I entered the cryptocurrency market with 800 yuan, not even fully understanding candlestick charts; 7 years later, my account value stabilizes at over 30 million. It’s not that I got lucky hitting some 'legendary assets', but rather relied on a 'survival trading system' forged through market trials. Recently, I shared this logic with my apprentice, and this kid doubled his principal in just three months—today, I decided to bring out my well-kept secrets, all genuine insights born from blood and tears.
Position control: Put the 'eggs' into 5 baskets, with each basket holding only 20%
I have seen too many people fall for 'all-in' strategies. When the market rises, they become oblivious, and when it drops, they go straight to the rooftop. My iron rule is: always split the funds into 5 equal parts, and only use 1 part each time I enter the market. The stop-loss line is set firmly at 10 points; even if the market looks like a 'fake drop,' I will not hesitate. Calculating it this way, even if I make a mistake once, the loss will only account for 2% of the total funds. Even if I'm unlucky enough to be wrong 5 times in a row, the total loss will only be 10%, and as long as I still have my capital, there is a chance to turn things around.
Instead of setting a "ceiling" on profits, at least wait for more than 10 points before considering taking profits. Don't think it's too little; in the crypto market, "locking in profits" is the way to go. Those who think "let's wait a bit, maybe it will double" usually end up turning profits into losses.
Winning rate secret: Don’t go against the trend; "going with the trend" is 100 times more reliable than "catching the bottom".
Many people always think they can "precisely catch the bottom", but end up buying halfway down the hill, which can take half a year. I never touch rebounds in a downtrend—those seemingly fierce rebounds are 80% traps to lure in buyers, entering means taking the bait. Instead, pullbacks in an uptrend are "money-making opportunities"; at this time, buying low is much safer than blindly chasing highs.
Another taboo: short-term skyrocketing assets must not be touched. Whether it's mainstream varieties or niche assets, after high position stagnation, there must be a pullback. Don't hold onto the mentality of "betting a little and then running"; the market specializes in dealing with all kinds of "wishful thinking". I've seen people chase skyrocketing assets and lose half a year's profits in a day, with no place to cry.
Technically, I only look at the "three cores"; complex indicators are all "smoke bombs".
I never study those flashy indicators; I only focus on three most practical ones:
MACD: Only recognize the key signals above and below the zero axis. A golden cross breaking the zero axis is a stable entry point, indicating the trend has just begun to rise; once a death cross appears above the zero axis, regardless of whether you made a profit or not, first reduce your position, then talk, as this is a warning that the trend is about to turn.
Trading volume: the "footsteps" of capital. A breakout with increased volume at a low position indicates large funds entering the market; following along is fine. However, a high position with increased volume and stagnation means capital is "quietly running away". If you don't exit at this time, are you waiting to be harvested?
Moving averages: the "steering wheel" of trends. The 3-day line looks at short-term fluctuations, the 30-day line determines the medium-term direction, the 84-day line captures major upward waves, and the 120-day line judges long-term trends. Only trade assets where all moving averages are rising; if the trend is wrong, no matter how tempting, do not touch.
The last two "life-saving rules", if you can't remember them, it's like learning for nothing.
First: Never average down when in loss. How many people are trapped in the vicious cycle of "the more you lose, the more you average down; the more you average down, the more you lose"? Averaging down is not "diluting costs"; it’s throwing more money into the pit. If you want to increase your position, you should wait for a profit to let the profitable position earn more.
Second: After each trade, I must review. Spend half an hour after the market closes to verify the logic of holding coins, check if the weekly K-line is still on trend, where the judgments were right, where they were wrong, and adjust the strategy in time. The market is always changing, and old experiences that are not diligently maintained will eventually become ineffective.
In fact, in the crypto market, the ones who really make money are not "gamblers", but "old foxes"—those who understand how to control risks, follow trends, and know not to be greedy or impatient. In my 7 years, I've stepped into more pitfalls than I've made money. Now I'm sharing these insights, hoping you can take fewer detours.
I will discuss more "pit avoidance techniques" later, such as how to identify "air assets" and how to judge the movements of major funds. Follow me, and let's "steadily make slow money" in the crypto market together—after all, slow money is the kind that can be put in your pocket!
