Simple to the extreme is cruelly effective.
Last year, I had a student who entered the market with 2800U for a trial run. Fourteen months later, his account balance turned into 120,000U. When asked about his secret, he said he simply took those few old sayings in the trading group seriously.
Today, I will break down these seemingly simple yet truly useful principles for you in my way. This is not some magic that turns stone into gold, but rather a survival manual I exchanged for real money after seven years of struggle in this market.
1. Stop when you can't see the road clearly.
When candlesticks are fighting each other, indicators are clashing, and the community is in chaos, the market is telling you a clear signal: the direction is unclear now. At this point, the wisest choice is to exit and observe.
I have a habit: once I find the market trend chaotic, I directly close the trading software and go for a run. Missing an opportunity won't bankrupt you, but stepping into a trap will. In the cryptocurrency market, surviving is more important than making more money. Save your bullets for the days when the direction is clear; your odds will greatly increase.
2. Trading hotspots is like seizing limited-time discounts.
Market hotspots change faster than the weather. It's not wrong to chase trends, but you must be clear about what game you're playing. My rule is simple: take out half of the principal after a 20% profit, and decisively clear the position when the heat starts to fade.
Don't believe that any hotspot will have a 'second spring.' I have repeatedly fallen on the road of fantasy rebounds and later realized that when the hotspot cools down, it's like fireworks that have been left to sit for several days—only the paper shell and ashes remain.
3. The weekly chart is your navigation map.
I used to be addicted to the excitement of the 15-minute chart, only to later realize that the real big行情 is on the weekly chart. A weekly breakout is like a train starting; the short-term fluctuations in between are just passengers adjusting their seats.
Set a trailing stop-loss line and then hold patiently. The biggest profits in a trend come from sitting still, not from frequent adjustments. Before the market confirms a reversal, let your position stay put; profits are made by sitting, not by fidgeting.
4. A massive bullish candlestick is a signal for you to reduce positions.
Regardless of the position, the appearance of a massive bullish candlestick is a signal: the main force may be unloading. Don't be greedy for the potential last 20% increase; it's always wise to lock in half of the profits first.
Set a 10% drawdown stop-loss for the remaining half, so that even if the行情 continues, you still have a position; if it pulls back, you've already locked in some profits. A well-fed rabbit knows when to stop, rather than overindulging in the carrot patch.
5. Two moving averages determine the universe.
Remove all those flashy indicators. Your chart only needs two lines: the 5-day line and the 20-day line. Buy on golden crosses, sell on dead crosses; it's simple to the point of making one doubt its effectiveness.
But backtesting data tells me that this simple strategy has a long-term win rate of over 60%, while 90% of people in the market can't even do this. Many times, the methods for making money are simple to the point of boredom, but it is precisely this boring strategy that can generate sustainable profits.
6. Go against your instincts.
Wanting to sell with a slight increase and cut losses with a slight drop—this is human instinct but a fatal flaw in trading. My method is to establish a trading system that goes against instinct: add positions when retracing to moving averages and buy the dip when volume decreases.
Let your system make decisions instead of your emotions. It will be uncomfortable at first, like writing with your left hand, but once you get used to it, you'll find it's much more reliable than following your feelings.
7. Never use up your last bullet.
Going all in sounds cool, but it's romanticized suicide. I divide my capital into five parts, using only a portion each time; I add positions when it dips below support and reduce positions when it breaks above resistance.
Position management itself is a powerful profit tool. It may not make you rich overnight, but it can help you survive longer in this market. In this industry, surviving longer is the greatest capital.
The market never lacks opportunities; what it lacks are those who can survive to the next big行情. These principles may seem simple, but doing simple things repeatedly is not simple.
In my seven years of trading career, I've seen too many genius traders streak by like meteors, as well as many seemingly dull 'turtles' laughing last. Many times, success comes not from complex strategies but from the steadfast execution of simple principles.
In this highly speculative market, your goal is not to be the smartest person but to be the most disciplined one. Follow Xiang Ge to learn more firsthand information and cryptocurrency knowledge. Accurate points will make you your own navigation in the crypto world; learning is your greatest wealth!#加密市场反弹 #美联储降息 $ETH
