If you can't manage your positions, it doesn't matter which coin you choose — 8 strategies for recovering losses from seasoned investors

Last autumn, my cousin invested 5000 USD, and three days later, he only had 3200 left. He came to ask me, "Is it bad luck?"

I glanced at his records: he opened all five trades with full leverage, averaged three wrong calls and then added to his positions, and made two more mistakes leading to liquidation — a typical case of "choosing the right coin but losing all your capital."

I shared these 8 practical strategies with him, and three months later, he returned to 4800; although he didn't get rich, at least he could sleep well. Today, I’m sharing this publicly, hoping to help at least one person.

1️⃣ Divide your money into five parts, with a stop-loss of 2% for each part

Split your total funds into 5 parts, only risking 20% at a time, with a strict 2% stop-loss. Even if you lose five times in total, you will only lose 10%, and you can recover.

On-chain data: beginners trade an average of 21 times in the first month, and after using this strategy, their drawdown decreased from 38% to 9%.

2️⃣ Trend > Belief

In December 2023, the BTC daily EMA30 was trending downwards. I advised him not to catch the falling knife; he listened and stayed out of the market, avoiding a drop to 40k and evading a -25% loss.

Going with the trend is more reliable than shouting slogans.

3️⃣ Don't catch coins that are soaring

Coins that rise 300% in three days typically give back an average of 80% within two weeks, as they are usually pump and dump schemes.

In December, a certain MEME surged +450% in one day; he resisted chasing it, and five days later, it returned to its original point, ensuring his safety.

4️⃣ Use MACD zero line as a traffic light

Only consider going long when a golden cross occurs below the zero line; reduce positions when a death cross occurs above it. Basic signals can filter out half of the false signals.

Backtesting raised the win rate to 64%, which is more accurate than just relying on "feelings."

5️⃣ Only add to winning trades, don’t average down on losing ones

After gaining, increase your position every +10%; averaging down on losing trades will only dig you deeper.

He used this method to roll SOL into a +38% profit, while those who averaged down were still stuck at -15%.

6️⃣ No volume means "pie in the sky"

A low-volume rise means funds are entering; a high-volume stagnation means the main players are selling off.

On December 9, APT saw a massive breakout; he followed with 10% of his capital and reduced the next day when volume shrank, avoiding a -12% drop later.

7️⃣ Moving Average Navigator

Use the 3-day line for day trading, the 30-day line for mid-term, the 84-day line for major uptrends, and the 120-day line for long-term trends.

Follow the price standing on which line; don’t guess tops and bottoms, just follow the trend to avoid getting lost.

8️⃣ Daily three questions for review

① Is the logic sound? ② Is the signal confirmed? ③ Did emotions influence the trade? Write this in a memo, and review it weekly. He found that his "emotion-driven trades" accounted for 83% of his losses, leading him to blacklist them.

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