1. Early Pitfalls: Lessons from Chasing Prices and Selling at Losses
When I first entered the cryptocurrency world, like most people, I only had the words 'get rich quickly' in my mind. In 2016, a certain altcoin had four consecutive bullish candles, and I impulsively went all in, only to see it plummet 60% in three days, halving my account. The pain from that experience still makes my scalp tingle when I think about it— the market punishes all forms of ignorance.
Later I realized: true profits are often hidden in the undervalued areas during others' panic. For example, when BTC dropped to 20,000 USDT, I first took a 20% position to test the waters, and after confirming the downtrend momentum had weakened, I added another 30%, keeping half in cash for a rebound signal. This way, I avoided missing out while also preventing myself from catching a falling knife.
2. Position control technique: my core strategy.
1. Left-side sniping: inverted funnel averaging down method.
For example, if a certain coin's RSI stays below 30 for three consecutive days (oversold signal), I use the 'inverted funnel' method to increase my position: the initial position only accounts for 5%, and I double up every time the price drops by 10%. This way, the average price will quickly lower, allowing for profits once it rebounds by 15%. In 2017, I recovered all my losses using this method during a 300% rebound.
Key point: The premise for averaging down is that the project's fundamentals have not collapsed (for example, the team has not run away, and the technical logic is still sound); otherwise, the more you average down, the worse it gets.
2. Right-side pursuit: only heavily invest after confirming the trend.
When the trend comes, you must dare to bet, but you must increase your position layer by layer:
When the 5-day line crosses above the 10-day line (golden cross), invest 30% to test the waters;
Break above the 30-day line and stabilize before chasing an additional 30%;
Break through the previous high with volume, add 20%;
MACD second golden cross + volume doubles, finally bet 20%.
This strategy allowed my account to triple during the main wave of the bull market in 2021, with the core principle being 'do not guess tops and bottoms, just follow the trend.'
3. The iron rule of survival: risk control is more important than profit.
Daily losses never exceed 5% of total funds: there was a time when ETH suddenly crashed, and I saw it about to break the stop-loss line. I gritted my teeth and cut my losses; later, it dropped another 30%. Stop-loss is not losing; it is leaving bullets for the next opportunity.
Take out the principal after a 50% profit: Once profits start rolling in, I transfer the principal back to my wallet and only use profits for trading. This keeps my mindset as stable as a mountain, without fearing a profit pullback.
Invest with spare money + no leverage: I only ever use 20% of my savings to operate and never borrow money to trade cryptocurrencies. The volatility in the cryptocurrency world is too high; leverage can double your money overnight but can also bring you to zero in an instant.
4. Mindset training: slow is fast.
The most ironic thing in the cryptocurrency world is that the more you pursue speed, the faster you die. Now, I only spend 1 hour a day watching the market; the rest of the time is spent researching project white papers and on-chain data. When the market is crazy, you must remain calm: when others FOMO, I reduce my position; when others panic, I buy in batches.
For example, during the bear market in 2022, I dollar-cost averaged BTC and ETH each month, accumulating coins in the bear market and exchanging profits in the bull market. The bull market is the time to realize profits, while the bear market is the battlefield for accumulating coins.
Lastly, let's talk about something practical.
There is no holy grail in the cryptocurrency world; my method may not suit everyone. But one thing is common: the market is never short of opportunities; what is lacking is the people who survive until the opportunities arise. Turn position control into muscle memory, endure uncertainty with discipline, and profits will naturally roll in like a snowball.
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