I have been in the cryptocurrency space for 8 years,

the craziest and also the most awakening moment for me occurred during the altcoin season of 2017.

That year I heavily invested in a mainstream altcoin,

with a cost of less than 0.05 dollars, gradually accumulating.

In just a few months, the price skyrocketed to over 1 dollar,

the account once multiplied by more than 30 times.

During that time, the first thing I did every day upon waking was checking the market,

the numbers of my assets constantly refreshing,

I even calculated in my mind:

This wave would directly solve the down payment for a house.

But the problem arose here——

I didn’t sell.

When the correction started, I told myself, "It’s just a washout";

When it dropped a bit more, I comforted myself, "The trend is still there";

Until the price plummeted back to around 0.2 dollars,

my unrealized gains evaporated by more than half,

only then did I realize:

The dream was over.

At that moment, I truly understood one thing:

In the cryptocurrency space, knowing how to buy is not a skill,

knowing how to sell is the dividing line.

Later, I summarized a very simple, yet extremely effective method for taking profits and cutting losses,

which is especially suitable for those who don’t have time to watch the market all day.

Taking profits: Gradually exit, rather than all at once

I used a tiered profit-taking strategy.

Assuming the cost is 1 dollar, and the market goes to 2 dollars:

First sell 30%, basically recovering the principal, stabilizing the mindset immediately;

If it continues to rise to 3 dollars,

then sell another 30%;

For the remaining position,

do not make subjective judgments,

directly set a trailing stop:

Sell all automatically if it retraces 15%–20% from the high.

The only benefit of doing this is:

You can benefit from the main upward wave without giving back all the profits.

Cutting losses: First think about how to lose, then consider how to win

I set a strict rule for myself:

Single transaction loss must not exceed 5% of total funds.

After each purchase,

immediately place a stop-loss order,

usually in the range of -8% to -10%.

Don’t feel sorry for being stopped out.

The market has daily opportunities,

but once the principal is gone,

you don’t even have the qualification to get back to the table.

In these 8 years,

I have seen countless myths of overnight wealth,

and I have also seen more people being wiped out during repeated corrections.

In the end, those who can leave with profits

are never the most aggressive ones,

but rather the most disciplined ones.

The market does not lack opportunities,

what it lacks is——

those who dare to press the confirm button when it’s time to sell.