Who hasn't dreamed of getting rich overnight in the crypto market? But I dare say, 90% of people have perished because they 'didn't sell when they should have'! Today, let's not talk nonsense; I'll expose the big pitfalls I fell into in 2017, sharing trading rules learned with real money, so that ordinary people can directly copy the homework after reading.
As an analyst who has immersed in the crypto market for 8 years, I have seen too much madness driven by FOMO, and witnessed countless people losing everything during the market roller coaster. What left the deepest impression on me was the frenzy of niche crypto assets in 2017, with the protagonist being ADA, which was not yet mainstream at that time.
That year, based on my judgment of the project's underlying logic, I gradually invested in ADA at the price of $0.03. Looking back now, my vision at that time was indeed not bad, but my mindset almost led me to exit completely. Who would have expected that in just three months, this asset would enter a skyrocketing mode, soaring to a peak of $1.2. The numbers in my account multiplied nearly 40 times, and the feeling of waking up every day to find another string of zeros added to my assets is nothing short of euphoric.
At that time, I had even planned out my 'wealth freedom roadmap' in my mind: pay for a house in the city center in full, leave part of it for stable allocation, and continue to mine gold in the market with the rest. Looking back now, I realize how naive I was; greed was like an invisible hand that firmly pressed my sell button.
The cruelty of the crypto market lies in the fact that the more frantically it rises, the more brutally it falls. Before I could implement my home-buying plan, ADA plummeted in a cliff-like drop, crashing back to $0.2 in one go. The dream of buying a home that felt so close just a second ago shattered into pieces the next moment, and the 80% floating profit slipped away silently like flowing water. Only those who have experienced it can understand the feeling of falling from the clouds to the bottom.
This experience has led me to a core realization: in the crypto market, choosing the right assets at most only gets you an entry ticket; true experts who can leave with profits deeply understand the art of 'selling.' Many people focus their energy on finding so-called 'hundredfold assets' while neglecting the most basic risk control, which is why most people can only become 'chives' in the market.
Today, I will share with you the profit-taking and stop-loss system I have honed over eight years of practical experience, especially suitable for working professionals and beginners who don't have time to monitor the market day and night. The entire process avoids sensitive expressions, so feel free to save it!
First, let's talk about taking profits. I've always adhered to the 'staggered profit-taking method,' and the core logic is 'secure your profits and lock in gains in batches,' avoiding greed and not wasting upward trends. The specific operation is quite simple. For example, suppose a digital asset you've invested in rises from $1 to $2; at this point, decisively sell 30% of your position. Don't underestimate this step; this operation can basically recover all your principal. Regardless of whether the remaining position rises or falls, your mindset will be as stable as a mountain, and you will no longer panic due to market fluctuations.
When this asset continues to rise to the key resistance level of $3, then reduce 30% of your position. By this time, you have already locked in a considerable profit, and the remaining 40% of your position is used to seek greater profit potential. It is important to emphasize here that the remaining position must set a 'trailing stop-loss'; as long as the price falls back 15% from the highest point, it will automatically trigger all sell orders. This method allows you not to miss the main upward trends while effectively preventing profit retraction, making it a 'lazy person's blessing.'
Now let's talk about stop-losses. This is an ironclad rule I've never broken in many years: the loss of a single trade should never exceed 5% of your total principal. Many beginners end up losing everything because they lack a stop-loss awareness, always thinking 'the market will rebound,' resulting in deeper losses.
My practical method is that after completing a position, I immediately set up preset trading orders on compliant trading channels with a -10% stop-loss line. This step is like giving your trade an 'insurance'; even when faced with sudden market movements, you can quickly stop-loss and exit. Don't worry about missing out on subsequent upward opportunities because of stop-loss; the crypto market is never short of trends, but once you lose all your principal, you completely lose the chance to turn things around.
Over the past eight years, I have witnessed too many myths of overnight wealth: some achieved financial freedom through niche assets, while others bought cars and homes by seizing market trends. But I've seen even more people lose everything in chasing highs and lows, transforming from ambitious investors into resentful 'chives.' Ultimately, the crypto market is not about luck but about discipline. Those who can survive long-term and make money in the market are often those who can strictly adhere to profit-taking and stop-loss discipline without being swayed by emotions.
Finally, here's a sincere suggestion: investing is not speculating. Don't pin all your hopes on a single asset, nor enter the market with a 'let's take a gamble' mentality. Proper asset allocation and strict adherence to trading discipline are essential to stand firm in the volatile crypto market.
Follow me, in the next issue, I will break down three currently undervalued quality digital assets and prepare a (newbie crypto asset allocation pitfall guide) to give away for free. Have you ever had a painful history of floating profits turning into losses? Share your experiences in the comments, and I'll select three friends for a one-on-one analysis of your trading strategies. See you next time!
