My mom said back then that trading coins was not as good as putting money in the bank for that 2.75% interest, until I took her to stand under the sunset in Santorini with my profits. She finally understood: my daughter's "stable strategy" is much more reliable than fixed deposits.
That summer in 2019, I had the most intense argument with my parents. After they discovered that I had taken out the 5200U I put in the exchange and secretly deposited it in a bank fixed term account, they threw me a deposit certificate with an interest rate of 2.75%: "This is the real deal! What's the difference between trading coins and gambling?"
I gritted my teeth and gathered the 5200U again, feeling a surge of determination—I must prove with the right method that trading coins is not throwing away money, but a skill that requires discipline and wisdom.
Six years have passed, my account has grown from four digits to seven digits. After traveling around Europe with them, my dad remarked while getting a massage: 'Your 'guaranteed bottom line method' is much better than our lifetime of frugality.'
01 The wisdom of realizing profits: ladder profit-taking method.
I have seen too many people ride a roller coaster, making 200% but unwilling to leave, and ultimately losing money to exit. My first rule is: profits must be realized in a timely manner, but it cannot be a one-size-fits-all approach.
My 'ladder profit-taking method' is very simple:
First stage: When profits reach 10% of the principal, decisively withdraw 40% to the cold wallet. This is a safety cushion; even if the market reverses later, you have locked in some profit.
Second stage: When profits reach 20%, withdraw 30%. At this point, the principal has been fully recovered, and the remaining position is pure profit, the mindset will be completely different.
Remaining 30%: Let profits run, but set a trailing stop profit. For example, follow the 20-day moving average, if it breaks below, exit.
In 2021, Bitcoin surged to $50,000, and I withdrew $130,000 in a single month. When I took my parents to travel in Sanya, my mom for the first time stopped asking me, 'Will you lose it back?' The market is unpredictable, but the profits that land in the cold wallet are the true sense of security that belongs to you.
02 Eyes for trend identification: Dual moving average timing method.
I don't predict the market, I only follow the trend. Blindly bottom-fishing and chasing highs are the main reasons retail investors lose money.
In my trading system, there are only two lines: the 10-day moving average represents short-term sentiment, and the 60-day moving average represents long-term trends. The combination of the two can filter out most noise:
Buy signal: The price stabilizes above the 10-day line, and the 10-day line crosses above the 60-day line from below (golden cross). This confirms the change in trend.
Holding phase: The price is running above the 10-day line, hold patiently.
Sell signal: The price falls below the 10-day line, and the 10-day line crosses below the 60-day line (death cross). Exit decisively, don't hold onto illusions.
Last year, BNB fell from $280 to $200, and many people panicked and cut losses. But I waited until the 10-day line crossed above the 60-day line again to enter, earning $290,000 in 6 days. The real opportunity is not about buying at the lowest point, but about the certainty of waves after confirming the trend.
03 The bottom line of risk control: Small position trial and error method.
Can you imagine my overall win rate is only 37%? But this does not affect my stable profits, the core lies in: losing less when losing, and earning more when earning.
Each time I open a position, I only invest 6% of the total funds: this ensures that a single loss won't be devastating.
After confirming correctness, incrementally add positions by 4%: Expand the gains after confirming the trend.
Strict stop-loss: Set the stop-loss point before entering, usually placed 2%-3% below key support levels.
In the week when LUNA crashed in 2022, the market was in despair. But thanks to small position trial and error and strict stop-loss, I not only avoided disaster but also seized the opportunity for a rebound. In the cryptocurrency market, surviving is more important than how much you earn at once.
Now, the thing my dad enjoys the most every day is lying on the massage chair I bought with trading profits. He occasionally asks me, 'Recently the market has been very volatile, is that... method still stable?'
I smiled and opened my account to show him the net value curve - that slowly yet firmly upward curve is more convincing than any explanation.
Perhaps, this is the financial management method of our generation: not putting all eggs in one basket, but ensuring each basket is guarded in the most solid way.
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