Discipline is more important than prediction, and systems are better than intuition.
You always ask me how I can survive in this market and still make money. Today, I won't talk nonsense, I'll get straight to the point. I personally witnessed a senior turning a $10,000 capital into $5 million in the cryptocurrency world, and later I managed to extract his 'counter-intuitive' logic. Now these methods have become the soul of my own trading.
You might not believe it, but when I first entered this market, I was constantly being cut like leeks. But when I began to understand that trading cryptocurrencies is not about who is smarter, but about who can follow discipline better, everything changed.
01 Capital Management: Your Lifeline
I divide all my capital into 5 parts, using only one part for each trade. I didn’t invent this; Wall Street traders have been doing this for a long time.
Strictly control single losses to within 10%, and total capital drawdown must not exceed 2%. What does this mean? Even if I'm unlucky enough to be wrong five times in a row, my total loss is only 10%. And capturing a single trending market can bring back profits.
Many people can lose half their accounts overnight. Why? Because they always bet on 'this time it will surely work'. I’ve seen too many people go in with 50% of their position, and their heart races with a 3% price fluctuation. This is not trading; it’s gambling.
My own iron rule is: never invest all capital in contracts, with a single position not exceeding 5% of the principal. It may seem slow, but this is how to survive until tomorrow.
02 Go with the trend, don't fight the market
Rebounds in a downward trend are mostly traps for buyers, while corrections in an upward trend are golden opportunities.
Many people like to buy the dip, thinking they are the ones who can accurately catch the bottom. What’s the result? Buying the dip requires precise judgment of the 'bottom'; even a 10% error can lead to being trapped with over 30% losses.
I only choose coins with the '30-day moving average trending up'; I won't participate in coins below the 30-day moving average, even if there are favorable policies. If the trend is wrong, efforts are in vain. Instead of waiting for a rebound in a downward trend, it’s better to profit easily in an upward trend.
How to judge the trend? My method is very simple: Moving Averages. When the short-term moving average crosses above the long-term moving average, forming a golden cross, it might signal the beginning of an upward trend.
03 Stay Away from Coins with Sudden Price Increases, Resist Your FOMO
Regardless of mainstream coins or altcoins, less than 5% can produce more than two main bullish waves.
I see a coin that rises more than 30% in a single day or over 50% in three days, I immediately blacklist it. This is not capriciousness; it is self-protection. A short-term surge means that capital has already made a lot of profits and exited, and the momentum for continued growth is very weak.
Many people see a coin doubling in a day and get anxious, fearing they will miss the next hundredfold coin. What’s the result? They rush in at a high position and find themselves trapped at the peak. There are always opportunities in the crypto world; missing one won't result in losses, but hitting the wrong one could lead to zero.
04 Technical Indicators Are Tools, Not Gods
I mainly look at MACD: buy when DIF and DEA cross above the 0 axis; sell when MACD crosses below the 0 axis.
But I never blindly trust indicators. Every technical indicator has a lag, and when the MACD indicator gives a golden cross buy signal, the coin has already risen a wave. Therefore, I focus on price and volume, especially the volume breakout after low-level consolidation, which is a real signal for trend initiation.
There is also a key point that many people overlook: never average down on losses. Averaging down is a loss amplifier. I only consider increasing my position when I am in profit. Continuously averaging down when seeing prices drop often results in a bigger hole.
05 Review: Your Trading Diary
Every Sunday night, I must conduct a comprehensive review.
What to review? Check if the buying logic of the held coins still holds, whether the weekly K-line is still above the 30-week line, and if the MACD is still above the 0 axis. If the conditions are not met, regardless of profit or loss, adjust immediately.
Many people have traded for years but repeat the same mistakes. Why? Because they do not review. Experts do not make money through predictions but grow through reviews.
Through review, I found my biggest problem was frequently trading in a volatile market, getting cut back and forth. Later, I set a rule: do not trade in a volatile market, wait for the trend to become clear before taking action. This change increased my win rate by at least 30%.
06 Mindset Training: Going Against Human Nature is the Norm
In this market, your desire for 'stability' is very normal, but the stability here has always only relative meaning.
The market is like a mirror, reflecting our most hidden weaknesses without reservation. When I profit, I restrain my greed and do not blindly chase highs; when I incur losses, I conquer my fear and do not panic sell.
I have a simple mantra for mindset management: do not buy when going long if it dips, do not sell when going short if it peaks; if it ranges high and then breaks upwards, grasp the upper shadow and sell quickly; if it ranges low and hits a new low, it’s a good opportunity to buy on the lower shadow.
Before each trade, I tell myself: the core of this game is to survive longer, not to earn quickly.
07 Final Thoughts
This method is not difficult; the challenge lies in execution. The market always rewards those who are disciplined.
Many people are trapped in a cycle of losses, not due to lack of effort, but because they lack a truly testable system and the perseverance to execute it. I can now consistently extract profits from the cryptocurrency market every month, relying on this system.
Remember, trading is not gambling, but a 'battle of strategy and discipline'. Replace random decisions with replicable strategies, and replace gambling tendencies with discipline. This is the true path from retail investors to eight-figure capital.
That’s it for today’s sharing. If you found it helpful, don’t forget to give a thumbs up. The market always has opportunities; surviving is the key to seizing them. Follow Ake to learn more first-hand information and in-depth knowledge about the crypto world, becoming your navigation in the crypto space. Learning is your greatest wealth!#巨鲸动向 #加密市场观察 $ETH
