Last autumn, my cousin 5000U rushed in. Three days later, only 3200 was left, and he came to ask me, "Is it bad luck?"
I glanced at the records: he fully leveraged all five trades, made three mistakes, then added to his position, made two more mistakes, and directly got liquidated—typical of "choosing the right coin, but blowing up the account."
I gave him these 8 practical tips, and three months later he returned to 4800. Although he didn't get rich, at least he could sleep. Today, I’m sharing this publicly; if it can save one person, it's worth it.
1️⃣ Divide the money into five parts, each with a stop loss of 2%
Total funds split into 5 parts, only 20% deployed at once, stop loss strictly at 2%. Even if you lose five times in a row, the total loss is only 10%, and you can still recover.
On-chain data: Newbies average 21 trades in their first month. After using this rule, the drawdown dropped from 38% to 9%.
2️⃣ Trend > Belief
In December 2023, the BTC daily EMA30 was trending down. I advised him not to catch a falling knife, and he obediently stayed out of the market, resulting in a drop to 40k, avoiding a -25% loss.
Going with the trend is more reliable than shouting slogans.
3️⃣ Don’t catch the pump on meme coins
A coin that surged 300% in three days typically retraces 80% within two weeks; it’s just a pump and dump.
In December, a certain MEME was up +450% in a day, he resisted the urge to chase, and five days later it returned to the starting point, securing his capital.
4️⃣ MACD zero line as a traffic light
Only consider going long when a golden cross occurs below the zero line; reduce holdings when a death cross appears above the zero line. This basic signal can filter out half of the false bullish signals.
Backtesting raised the win rate to 64%, more accurate than relying on "feelings."
5️⃣ Only add to winning trades; do not average down on losing trades
After making a profit, add to the position every +10%. Adding to losing trades only digs you deeper.
He used this tactic to roll his profitable SOL position to +38%, while those who averaged down during the same period suffered -15% losses.
6️⃣ No volume means "pie in the sky"
Volume increase at low prices = funds entering; volume increase at high prices = major players selling.
On December 9, when APT broke out with massive volume, he entered with 10% of his capital, and reduced the position the next day when the volume shrank, avoiding a subsequent -12% drop.
7️⃣ Moving average as a navigation tool
Use the 3-day line to capture daily movements, the 30-day line for mid-term trends, the 84-day line for major uptrends, and the 120-day line for long-term trends.
Observe which moving average the price is above; don’t guess tops and bottoms, just follow the trend to avoid getting lost.
8️⃣ Daily three questions for review
① Is the logic valid? ② Is the signal confirmed? ③ Has the emotion influenced the trade? Write this in a memo and review it weekly. He found that his "emotion-driven trades" accounted for 83% of his losses, and he directly blacklisted them.
The market is always there, opportunities do not wait for anyone. If you want to seize the moment without confusion, plan with Lin sister together!
