Have you noticed a phenomenon? - People who watch the market for more than 5 hours a day are likely to lose money; those who study dozens of indicators and chase hot stocks every day, the 'diligent group', end up getting harvested the worst by the market.
I have a real case around me: a fan who previously learned from me turned 50,000 in capital into 30 million, relying entirely on a 'lazy method'. His account growth trajectory is quite interesting:
50,000 → 1.5 million (2 years)
1.5 million → 8 million (1 year)
8 million → 30 million (5 months)
The speed is getting faster, but his trading frequency is getting lower. Later he told me: 'Teacher, I finally realized - making money and the number of trades are truly inversely related.'
First, his 'foolish method' is actually ruthless to the core.
Many people think 'simple' equals 'low-level', but strategies that can truly make money are often simple enough to make people doubt.
1. Only recognize one pattern, stick to it without change.
His entire trading system is centered around the N-shape pattern:
A vertical rise (price increases on volume breakout).
A diagonal pullback (a shrinking pullback that does not break the previous low).
Break through again (enter when the second volume breakout starts).
Spend 5 minutes each morning scanning through the 4-hour K-line; place orders for coins that match the pattern, and close the software directly if there are none. The market looks ridiculously clean—only one 20-day moving average, all MACD and RSI indicators deleted.
2. Discipline as harsh as a machine.
Stop loss: As long as the price breaks below the neckline of the pattern or the low of the pullback, even if there is a sudden crash, you must cut your position within 2 minutes.
Take profit: Withdraw all profits when they reach 10%, never get attached to the battle.
No increasing positions or averaging down: Give up when the pattern breaks, and never 'average down' (that's the beginning of a pitfall).
He said: “Those who laughed at me for being dull are now in the group shouting ‘Teacher, please guide me.’”
Second, why can 'fools' win?
There is a counterintuitive truth in the crypto world: 90% of losses come from 'over-trading'.
Frequent trading is 'chronic suicide'.
Transaction fees are 0.2% per transaction, if you make ten trades a day, the principal initially loses 2%; if you leverage again, the funding rate alone can swallow 5% in a week. Even scarier, frequent trading can lead people into the emotional addiction of 'chasing rises and killing falls'—afraid of missing out on a 3% rise, afraid of falling into a deep loss for a 3% drop, resulting in precisely buying at the peak and selling at the bottom.
Less movement allows for capturing the trend.
The market is in a fluctuation 80% of the time; the trends that can truly bring profits only account for 20%. The reason experts make more is that they wait like hunters, staying still most of the time, and when they strike, they hold onto the trend. For example, the second wave of the N-shape pattern is often the result of consensus among major funds, with very strong explosive power.
The 'simple' behind it is against human nature.
Do not chase rising prices: Don't feel regret for missing hot spots, only trade with the money that you understand.
Do not hold positions: Cut losses immediately when the position breaks, keeping losses in the bud.
Do not be greedy: Withdraw profits in batches; the principal must be secured.
Third, how can ordinary people land?
If you want to try this line of thinking, remember three key points:
Simplify your tools.
Delete indicators on the K-line chart until only 1-2 remain (like moving averages + trading volume). The less noise, the clearer the signals.
Use rules to lock in emotions.
Each position's stop loss should not exceed 2% of total capital;
Trade no more than 3 times a day, strictly avoid impulsive trades.
When profits exceed 10%, you must withdraw half.
Patience is more important than skills.
The N-shape pattern won't appear every day; there may only be 1-2 opportunities that meet the criteria in a week. But the opportunities that come can have a much higher win rate than frequent trial and error.
Finally, a few words.
I have seen too many people pursue the 'Holy Grail', yet they cannot even maintain the most basic discipline. There are no myths in the crypto world, only those who use hard work to filter out the restless.
If you can accept 'slow'.
From 50,000 to 1.5 million, it takes 2 years;
From 1.5 million to 8 million, it takes 1 year;
But from 8 million to 30 million, it may only take 5 months.
Because the explosion point of compound interest often comes after you persist until numbness. Don't forget, even if you only earn 10% each time, after 20 times, 50,000 can become 10 million.
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