When I saw the candlestick chart on the screen soar and then plummet, I realized that the real secret of the crypto world is not a code for getting rich quickly, but the discipline to survive.
I remember when I first entered the industry, I used to watch the market day and night like a gambler, chasing trends and making impulsive trades. It wasn't until my account shrank from 1 million to 300,000, and I cried in front of the screen in the middle of the night, that I suddenly understood—trading coins is not about luck, but about having a system.
Six years have passed, and I am still surviving in the crypto world, but I have transformed from a target for others to harvest into a steady trader. Today, I want to share a few core rules that have helped me survive in this market.
01 Protecting the principal is more important than anything else
I view my principal as the blood of life. Before I hit 'buy', I always ask myself: what is the maximum I could lose on this trade? Will I be able to sleep if I lose?
Once a friend used leverage to trade contracts and made three months' salary in one night, excitedly saying he would increase his investment. As a result, the next day the market suddenly changed, not only did his profits vanish, but he also lost more than half of his principal.
I now strictly follow the principle that a single loss should not exceed 3% of the principal. With a principal of 100,000, the stop loss for each trade should not exceed 3,000. This way, even if I make three mistakes, I can still preserve most of my strength.
02 Stay away from leveraged contracts; survivor bias is the biggest trap
Many people think trading contracts is cool and can lead to 'quick riches'. But the data shows that over 90% of contract traders leave the market with losses.
I attribute my accumulation of 34 million entirely to spot trading. Leveraged contracts are like Russian roulette; when someone plays, there is only one bullet in the gun, and if they win, they tell you it's very safe. But when you play, the gun may be loaded with five bullets.
The crypto market itself is very volatile, so why amplify risks with leverage?
03 Understand the true language of the market
The relationship between volume and price is an important basis for me to judge trends.
A low-volume stagnation at a low price is a signal for major players to enter, while a bounce that does not break support is a confirmation signal. When prices hover at low levels but trading volume continues to increase, this is a clear bullish signal.
On the contrary, a high-volume stagnation without price increase is a signal to be wary of major players unloading. I have a principle: for coins that have risen for two days, no matter how optimistic I am, I must cut the position in half. Realized profits are mine; greed will only return the profits.
04 Grasping market sentiment, being a minority
The market is always extreme: in a bull market, everyone is a genius, and in a bear market, everyone shouts scams. But I find that emotions are the best contrarian indicator.
When all the groups are shouting 'Charge!', and the exchange crashes due to too many users, it is often a signal of the end of a bull market. Conversely, when negative news continues and the group is lifeless, opportunities are brewing.
I have developed a habit: when the market FOMO, I feel fear; when the market FUD, I feel greedy. This requires contrarian courage, but it is this courage that has helped me avoid multiple major crashes.
05 Position management is an art
My 'Golden Triangle Position Management Method' allows me to maintain stability amid volatility:
The base position (40%) is allocated to BTC and ETH; this is the ballast, only buying and not selling; the value position (40%) is allocated to quality altcoins that have been thoroughly researched; this is the profit engine; the flexible position (20%) always keeps cash; this is the lifeline and also the opportunity fund.
Never exhaust all your bullets. The flexible position allows me to pick up cheap chips during a crash and have bullets to strike when opportunities arise.
06 Be decisive in stop losses and take profits
I set a hard stop loss line at -15%. If it breaks, I sell unconditionally, without fantasizing about a recovery. Stop losses are the insurance of trading, not a failure.
For taking profits, I use the '321' step method: if the price rises by 100%, sell 30% to recover the principal; if it rises another 50%, sell 20%; set a trailing stop for the remainder.
Eat fish from the middle section, leaving the head and tail for others. Do not fantasize about selling at the highest point; that is something only gods can do.
07 Focus on value, not speculation
The number of coins I currently hold does not exceed 8. Just like researching listed companies, I will thoroughly study the project white papers, analyze the team background, the actual problems solved, and the token economics model.
Many altcoins have similar patterns: first, they hit hard to create panic, then slowly raise prices to attract retail investors, and finally harvest. Those coins that are crazily speculated are often tools of the whales.
Truly potential coins often remain unnoticed at the bottom. Low-profile coins may quietly explode at some point.
08 Grasp the big trend and do not focus on short-term fluctuations
The simplest and most effective way I judge bull and bear markets is by looking at Bitcoin's 200-day moving average. If the price is above the line and the line is upward, it's a bull market; if it's below the line and the line is downward, it's a bear market.
In a bull market, my strategy is to add positions on dips and hold heavily; in a bear market, cash is king, and I dollar-cost average to buy the dip. Do not try to guess the bottom and the top; plant in spring, harvest in autumn, and conserve energy in winter.
09 Keep learning, stay vigilant
In the crypto world, one day is like a year in the human world. From ICO to DeFi, NFT, GameFi, and then to AI+Crypto, the new narrative represents an opportunity for wealth redistribution.
But the core remains unchanged: risk is always present, and discipline is the amulet. I watch the market for no more than 2 hours a day and leave the screen after setting price alerts. A healthy body and family relationships are the foundation for a stable mindset.
10 Trading is for living, not living for trading
Once I dreamt only of candlesticks, exhausted in body and mind. Now, I strictly adhere to trading hours, spending time with family, reading, and exercising.
The original intention of trading cryptocurrencies is to achieve a better life, so do not lose sight of the goal. In the crypto world, living longer is more important than making quick profits. Buffett's success is not due to high returns, but because he has lived long enough.
In the evening, I watch the account numbers fluctuate, and my heart is already calm. I know that tomorrow's market will be a new story, and my rules remain my most reliable partner.
The crypto world lacks opportunities; what is lacking is traders who can befriend time. Slow is fast; this is my deepest insight.
I hope my experience can help you avoid detours. Remember: in this market, the biggest risk is not knowing what you're doing, the best skill is survival, and the ultimate secret is the discipline that goes against human nature.
Follow A Ke to learn more first-hand information and precise points about the crypto world, becoming your guide in the crypto space; learning is your greatest wealth!#加密市场反弹 #美联储降息 $ETH
