Have you ever experienced such bloody moments? With your eyes closed, the market reverses immediately, and your account shines green; or you hesitate for a long time, not daring to enter the market, only to watch it take off, slapping your thigh and cursing yourself for missing out? To be honest, in the crypto market, it’s not enough to just be bold; you need a hard logic of 'survival + profit,' and the strategy of gradual operation is the 'safety net' I want to recommend to newbies after 8 years of ups and downs!
First, let’s clarify for the new friends: what is gradual operation? Simply put, it means not putting all your eggs in one basket. You split your funds into several portions and build positions, increase, or decrease them over multiple instances. This operation can be quick or slow; you can complete it in a day or extend it over several weeks. The core idea is not to 'bet life and death' with the market.
Surely someone will ask, 'Why so many intricacies? Just go for it!' If this were said in a bull market with a one-sided rise, it might still hit a few times, but who doesn’t know the temperament of the cryptocurrency market? One moment it’s rising to the point of excitement, and the next moment it can drop to the point of making you question your life. Not to mention ordinary people; even seasoned players can’t precisely pinpoint the turning points of short-term price fluctuations.
I have seen too many beginners fall into the trap of 'full positions', going all in without full confidence. If the market moves slightly against them, they can get trapped and unable to move, and when they want to average down, they have no bullets left, ultimately having to cut losses and exit. The core meaning of batch trading is to use the 'diversification of risk' approach to help you average down your holding costs, which not only avoids the fatal injury of full positions but also lays the foundation for future profit amplification. This is not mysticism; it is practical logic that has been verified by countless market tests!
Next, here comes the practical insights. This part is recommended to be saved; otherwise, you won’t be able to find it when you turn back! Batch trading is mainly divided into two major schools: equal batch trading and non-equal batch trading, each having applicable scenarios, and we will discuss them one by one.
The first method is equal batch trading, which I prefer to call 'prudent play style'. Some people also refer to it as rectangle trading method. The core idea is to divide your funds into several equal parts, using the same proportion of funds for each trade. Personally, I most often use 3 to 4 parts. For example, I first take 30% of my funds to establish a base position. If the subsequent market moves as I expected and starts to profit, I will add another 30% of the position. If there is no profit or even a small loss, I will stop and absolutely avoid blindly increasing positions to trap myself. Once the price rises to the target level or there are signs of market reversal, I will reduce the position in batches according to the same proportion and secure the profits. This method is suitable for beginners who don’t need to think too hard about the ratios, have a high margin of error, and can help you quickly establish operational discipline.
The second method is non-equal batch trading, which is an 'advanced play for veterans'. Simply put, the funding ratio for each trade is different, such as 1:3:5 or 1:2:3:4. Depending on the ratio, it can also be divided into diamond and hourglass shapes, among which the most practical and the one I use the most is the pyramid trading method. Here I must give everyone an intuitive comparison, using specific data to make it clear.
Assuming we have a sum of money, we calculate positions by 'layers' (1 layer represents 1 unit of basic position). Taking a mainstream cryptocurrency as an example, we set three buying price levels: 1000 points, 1100 points, and 1200 points, and directly compare the three operational methods.
Regular pyramid method: buy 5 layers at 1000 points, 3 layers at 1100 points, and 1 layer at 1200 points, resulting in a final average cost of 1055 points.
Inverted pyramid method: buy 1 layer at 1000 points, 3 layers at 1100 points, and 5 layers at 1200 points, with a final average cost of 1144 points.
Equal rectangle method: buy 3 layers each at 1000 points, 1100 points, and 1200 points, resulting in a final average cost of 1100 points.
Let's do the math clearly: if the price rises to 1200 points, the regular pyramid can earn 145 points, the rectangle can earn 100 points, and the inverted pyramid only earns 56 points. If the price falls back to 1000 points, the regular pyramid can still have a floating profit of 55 points, the rectangle loses 100 points, and the inverted pyramid directly loses 144 points!
Isn't this clear? The core advantage of the regular pyramid method is 'buy more at low prices and buy less at high prices', which can minimize the cost of holding positions. When the market rises, profits are maximized; even if the market adjusts, the ability to resist risks is still the strongest. The inverted pyramid method is exactly the opposite: buying more at high prices, and once the market reverses, the losses can be particularly severe.
Based on my years of practical experience, here’s a clear operational suggestion for everyone: prioritize using the regular pyramid method when buying, and use the inverted pyramid method when selling. This is the combination that best fits market rules. For example, if the cryptocurrency price has undergone a significant decline and you think it might be nearing the bottom but aren’t sure if it's really the bottom, fearing that buying might lead to further declines and being trapped, while not buying makes you worry about missing the sudden market reversal, this is where the regular pyramid method comes in handy—buying more at lower prices for the base, and gradually adding small amounts as the price rises. Even if there are further adjustments later, you have enough funds and chips to respond.
In the cryptocurrency market, making money has never relied on one or two 'miraculous operations', but rather on a stable operating system and risk control ability. Operating in batches may seem cumbersome, but it actually provides 'insurance' for your funds, helping you survive longer in a volatile market. The longer you survive, the more opportunities you have to wait for larger market trends.
Today's practical insights end here. I believe that friends who are serious about watching have already grasped the core logic. Next, I will continue to break down more practical operational techniques, such as batch reduction strategies under different market conditions and how to optimize batch rhythms in conjunction with technical indicators. If you have any questions, feel free to leave a message in the comments, such as which batch method you prefer, or any operational difficulties you have encountered, I will respond one by one! Don't forget to like and follow, or else you won't be able to find me next time you want to see practical insights. See you next time!
