The cryptocurrency market lacks stars, only lacking longevity. In this volatile market, what I rely on is not foresight, but a set of survival rules.
As a female analyst who has navigated the cryptocurrency market for many years, I have witnessed too many myths of overnight wealth and seen even more tragedies of total loss. Today, I want to share not some wealth secrets, but the core principles that have allowed me to survive and remain profitable through three cycles of bull and bear markets.
These insights come from lessons learned through real money, which may help you avoid years of detours.
1. Luck and hesitation are the beginning of losses.
When I first entered the industry, I also fantasized about being able to buy at the lowest point and sell at the highest point every time. But now I understand that the mentality of luck is an amplifier of risk. When you think 'this time is different, the rebound is about to come' while ignoring stop-loss signals, it often marks the beginning of being deeply trapped.
Equally deadly is indecision. The market will not wait for you to finish your dilemma before taking action; opportunity windows often pass in the blink of an eye. My experience is: you can conduct thorough research before making a plan, but you must be decisive and resolute when executing the plan.
2. The truth about long-term, short-term, and swing trading
Many people ask me which trading method is best, and my answer is: long-term is gold, short-term is silver, swing trading is diamonds, but you must be clear about which mine you are suitable for digging.
My personal capital allocation is: 60% long-term hold on the underlying assets I am optimistic about, 20% for swing trading, 10% for short-term trading, and the remaining 10% kept in cash. Do not try to catch every fluctuation; acknowledging that some money is not yours to earn is the mindset of a mature investor.
3. Never easily go all in
When I see those 'masters' who go all in at every opportunity, I know they will eventually be eliminated by the market. Going all in means losing elasticity; once a black swan appears, there won't even be a chance to turn things around.
I always adhere to the principle of position management: single cryptocurrency position should not exceed 20%, and total position is usually maintained at 60-70%. This is not conservative, but to ensure that there are still bullets to shoot when opportunities arise.
4. Eat the middle section of the fish, leave the head and tail for others
In the crypto world, greed is the rag that wipes profits—looking like it is polishing returns, but actually eroding them continuously. I have seen too many people trying to eat from the fish head to the tail, only to end up spitting out the profits they had.
My principle is: only eat the middle section of the fish, do not pursue buying at the lowest point, nor fantasize about selling at the highest point. When you earn the expected profit, you should understand to leave a little for others and also transfer the risk out.
5. Frequent buying and selling is slow suicide
Data shows that the returns of low-frequency traders are actually higher than those of high-frequency traders. This is not a coincidence because frequent operations not only increase trading costs but also easily cause people to get lost in short-term fluctuations.
I now spend most of my time 'not trading'; this may sound counterintuitive, but it is precisely this 'laziness' that has allowed me to profit steadily over the past few years. The market lacks opportunities; what it lacks is people who are patient to wait for opportunities.
6. Mindset first, strategy second, technique third
Many beginners are obsessed with studying various technical indicators, but ignore the most important aspect: mindset management. I always believe: mindset accounts for 50% of trading, strategy accounts for 30%, and technique only accounts for 20%.
When I feel my emotions start to fluctuate with the candlesticks, I immediately distance myself from the market, go for a walk, drink tea, read books, and wait until I calm down to reanalyze. Emotional decision-making is a close relative of losses.
7. The market is born in despair and ends in madness
This rule has been validated countless times. When everyone is desperate to exit and the media is overwhelmingly pessimistic, the bottom is often right in front of us. When everyone is discussing cryptocurrencies, even the market's aunties start recommending coins, the top is already not far away.
I have a simple judgment standard: when long-uncontacted relatives come to ask how to buy coins, it is time to consider retreating.
8. Greed and fear are two sides of the same coin
Greed and fear are two sides of the same coin, both stem from a lack of understanding of the market. Greed makes people continue to chase prices when they should take profits, and fear makes people flee in panic when they should buy the dip.
My coping method is: constrain emotions with rules. Set standards for buying, holding, and selling in advance, and execute when conditions are met, leaving no room for temporary decision-making.
9. Opportunities emerge from downturns, cash is king
The biggest pain in the crypto world is not missing opportunities, but being deeply trapped in other coins when opportunities arise. Market downturns are the best time to pick up bargains, but the premise is that you still have cash on hand.
I always keep a portion of cash, not for conservatism, but to be able to take action when extreme market conditions arise. Remember, cash is not a bearish stance but is to be bullish at some point in the future.
10. Buy with confidence, hold with patience, sell with determination
These are my requirements for the three stages of trading: conduct in-depth research before buying to ensure I fully understand the investment logic; maintain patience during the holding period, allowing the price to fluctuate over time; be decisive when selling and not hesitate due to fantasies.
Many people buy hastily, hold anxiously, and sell hesitantly, perfectly reversing the order.
11. Indicators are tools, not a book of prophecies
I was once obsessed with researching various technical indicators, but later found that no indicator can predict the market 100%. Indicators are just tools; the key is who uses them and how they are used.
I am now more focused on the relationship between price and trading volume, as well as the market psychology behind it. Behind the candlestick chart is the game of human nature, understanding human nature is more important than understanding indicators.
12. Stop-loss is the insurance of trading
Investors who do not stop-loss are like driving without wearing a seatbelt; it may seem fine for a moment, but once something happens, it becomes a big deal. I see stop-loss as the insurance of trading, willing to pay a small 'premium' to avoid huge losses.
I usually set my stop-loss line 2-3% below key support levels, allowing space for fluctuations while effectively controlling risk.
13. When others are fearful, I am greedy; when others are greedy, I am fearful
This saying is easy to understand but hard to practice. When the market crashes and assets shrink, buying against the trend requires great courage. But when you can overcome the herd mentality and make independent judgments, you often gain excess returns.
My experience is: build positions in batches and do not try to catch the lowest point, as this can reduce psychological pressure.
14. From looking at price to looking at volume, and then to looking at trends
This is the growth path of investors that I have observed: beginners only look at price fluctuations, seasoned players pay attention to changes in trading volume, and experts study market trends.
My current analytical framework is: first judge the big trend (bull market, bear market, or sideways market), then observe the flow of funds (in conjunction with trading volume), and only then look at specific prices. This helps me avoid the interference of many short-term fluctuations.
Finally, a few words from the heart
Investing in cryptocurrency is a form of cultivation; techniques can be learned, but character needs to be honed. These rules are not to ensure that I profit from every trade, but to help me survive in this market for the long term.
The real winners in the crypto world are not the smartest people, but those who are most disciplined and understand the market's respect. I hope my sharing can help you avoid some detours; see you on the road.
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