A few days ago, someone in the backend scolded me for 'cutting leeks', saying that the account screenshots I shared were faked, starting from 3000 yuan to 2 million in over a year. This does sound like a scam on the street. But I have to be honest: if I had insider information, I would have already laid back with my money, no need to stare at the charts until dawn, even my girlfriend complains about me 'living with K-lines'.
To be honest, no one in the crypto circle makes money purely by luck. A few years ago, I was crazier than anyone, using 50x leverage to chase the rise, losing over 5 million in three nights. In the end, my phone had only 10% battery left, not even enough to buy a cup of milk tea. It was when I was sitting in front of a convenience store, eating bread, that I realized: this game isn't about who has the biggest guts; it's about who lasts longer.
Later, I printed out my liquidation records and covered the walls with them. By analyzing them one by one, I discovered that 90% of 'money-picking opportunities' in the market hide in two extreme emotions: either everyone is terrified and crying for help, or everyone is rushing in madly. My 'panic picking technique' is simply to enter with a calculator when others are panicking; when others are greedy, I take the profit and run. Today, I’m sharing 5 life-saving tricks that have helped me avoid several 'rooftop situations'.
1. Position: Divide your money into three parts; don't put all your eggs in one basket.
Many beginners jump in and throw all their capital into the market, calling it 'seeking fortune in danger', but they panic at a slight increase and sell at a small drop, purely sending themselves to the market. My rule is: no matter how much capital you have, first divide it into three portions. For example, if you have 3000 yuan, split it into three 1000 yuan portions; each portion is an 'independent life'.
Remember, when entering the market, think about 'how not to die' first, then think about 'how to make money'. If you keep two portions of reserve funds, even if the first portion incurs a loss, you still have capital to recover; if you go all in, once you get liquidated, you won't even have a ticket to recoup your losses. This isn't conservatism; it's basic survival in the crypto circle.
2. Leverage: 10-20 times is the 'sweet spot'; anything higher is just working for the platform.
I've seen the most outrageous retail investors, putting 5000 yuan with 100x leverage, doubling on a 1% rise and getting liquidated on a 1% drop. This is not investing; it's gambling. Leverage is like a kitchen knife; it can be used to cut vegetables or can cut your own hand.
After countless trials and errors, I found that 10-20x leverage is the most cost-effective; it can amplify returns without being forcibly liquidated by slight fluctuations. Exceeding 20x, the money you earn is likely 'just a pie drawn by the platform', and as soon as the market slightly reverses, you won’t even have the chance to close your position, purely working for the exchange as a free volunteer.
3. Take Profit: Once you earn 100%, withdraw the principal first; the rest are 'free bullets'.
This is my most crucial 'life-saving rule', without exception. Many people make money and get carried away, thinking 'just a little more and I’ll sell', only to turn profits into losses, and lamenting is useless. My approach is: as soon as a trade's profit reaches 100%, immediately withdraw the principal; the remaining profit, no matter how you play with it, is 'free bullets'.
For example, if you made 1000 yuan from an initial 1000 yuan, first take your initial 1000 yuan back. If the remaining 1000 yuan gets wiped out, you haven't lost any capital; if it continues to rise, it's pure profit. The benefit of doing this is that you will remain particularly calm and won't be shaken by volatility, which is more important than anything else in the crypto circle.
4. Stop Loss: Cut losses at 30% immediately; don’t fall in love with the market.
'Just wait a little longer; maybe it will rebound' is a retail investor's 'death sentence'. I had a position once where I was reluctant to cut losses at 20%, thinking the market would come back, but it kept losing until I lost 80% before I sold, almost wiping out my capital.
Later, I set a strict rule: as soon as a trade loses 30% of the principal, regardless of how the market behaves afterward, immediately close the position. It's like having a festering sore on you; the sooner you cut it off, the better for survival; the longer you wait, the worse it gets. Remember, the market is never short of opportunities, but if you run out of capital, you can only stand at the door watching others make money.
5. Reinforcement: Don't throw all your earnings back in; learn to 'leave half awake'.
Many people make money and get carried away, throwing all their profits in, thinking 'I'll make enough in one go', and often end up losing it all. My reinvestment strategy is: after making money the first time, only reinvest half of the profits, and save the rest.
For example, if I made 12,000 yuan the first time, I would only reinvest 6,000 yuan and save the remaining 6,000 yuan in a safe place. This way, even if subsequent trades incur losses, I still have guaranteed profits and won't end up empty-handed. The crypto circle makes money quickly, but loses money even faster; learning to 'leave half awake' is essential for longevity.
Key question: When to enter the market? All three signals are indispensable.
After all this, some may ask: when can I use this method to enter the market? I have summarized three 'signals' that must be met simultaneously to pull the trigger; this is the 'safety line' I have tested with real money.
Core assets have fallen by ≥15% during the day, and the on-chain liquidation data has reached a 7-day high. This indicates that market panic has reached its peak, with many forced to sell at a loss, making it a good time to pick up bargains.
If the funding rate is negative for 12 consecutive hours and shorts are piling in, it means that the shorts have been 'squeezed out'; extremes will lead to reversals, and the market may turn at any time.
The 4-hour RSI is below 30, but don't rush to buy the dip; you must wait for a bullish confirmation candle. An RSI below 30 indicates that the asset is oversold, but you need to wait for market stability to avoid buying midway.
On October 11, 2023, I entered the market based on these three signals. At that time, the core asset ETH had dropped to 1520, and all three signals were triggered, so I acted decisively.
The first time I entered the market, I used 2000 units, with 20x leverage to go long, setting the stop loss at 1480. When it rebounded to 1600, I immediately withdrew my principal and continued to roll the remaining 2000 units profit. Later, when the market stabilized, I added another 2000 units, and when it rose to 1780, the profit had turned into 8000 units. Finally, confirming that the trend had started, I invested all 8000 units, and when it rose to 2100, my account had already surpassed 100,000 units.
The last step: how to judge if the trend has really started? Don’t be fooled by 'false rebounds'.
Many people buy the dip halfway up the hill because they mistake 'false rebounds' for 'true trends'. My method for judging trends is simple; I look at two indicators: divergence between volume and price + funding rate reversal.
When the price hits a new low, but the OBV (On-Balance Volume) indicator does not follow with a new low, it indicates that the strength of the shorts is weakening. At the same time, if the funding rate suddenly turns positive from negative, that is a signal of short 'surrender'. I have tested this combination countless times, achieving a win rate of 65% and a profit-loss ratio as high as 5:1, which is enough to handle most market conditions.
To be honest, making money in the crypto circle has never been about 'gambling', but about 'rhythm'. Don't panic when the market is fearful, and don't be greedy when the market is crazy. Sticking to your rules is more important than anything else. I've seen too many people chase prices and kill dips, getting a little profit and getting smug, and then losing big money and blaming the heavens, without ever considering whether they have a 'practical strategy'.
The market is never short of opportunities; what’s lacking are 'people who can survive'. If you can bookmark this article today and take it out during the next market panic to review, don’t mess around, then I won't have written this in vain.
Welcome to follow the Blockchain Study Society, where you can watch real-time market learning and exchange insights, understand market direction and strategy clearly, regardless of market style. Knowing in advance enables better mastery, and our team still has spots to get in quickly!#加密市场反弹 $BTC
