The candlestick chart on the screen was densely packed with various indicators, resembling a spider web, just like his chaotic inner state at that time.
When A Feng found me, the initial capital of 10,000 USDT had shrunk to 1,800 USDT. The account balance hurt the eyes and hurt confidence even more. 'Bro, I watch the market for more than ten hours every day, I don’t miss any opportunities, why do I lose more the more I operate?'
I looked at the dozens of indicators and the scattered trading records open on his screen, as if I saw the epitome of countless newcomers in the cryptocurrency world. Technical analysis is not wrong, but mistaking the means for the end is a deadlock that most people find difficult to escape.
01 There is too much noise, making it difficult to hear the true voice of the market.
A-Feng's trading records show that he traded more than ten times in a single day. In the morning, he chased a small coin, in the afternoon he turned to short contracts, and in the evening he might have fully invested based on a suggestion from a 'big shot'.
The result of this frequent trading is that fees eat up most of the principal, while small price fluctuations are enough to trigger stop-loss orders.
Many newcomers in the market are easily influenced by emotions, blindly chasing popular coins or projects in the short term. This behavior is often based on fear of missing out rather than a substantive evaluation of the projects. A-Feng's situation was just like this; he fell into a vicious cycle of 'buying high and selling low', swayed by the noise of the market.
My first piece of advice to him was: turn off all irrelevant indicators and only keep a simple moving average line. More importantly, cut out all operations below the daily level. Ordinary traders lack core news channels, and opening positions frequently in response to intraday noise may seem like 'seizing opportunities', but in reality, they are consuming their capital through repeated stop-losses.
02 Refusing small profit temptations allows one to seize the real big market trends.
In the cryptocurrency world, 90% of new coins are likely to fail. Many newcomers are easily attracted by various small coins, hoping to find the 'next hundredfold coin', but often fall into traps.
I advised A-Feng to focus on turning points at the weekly level—this is the certainty forged by large capital with real money. Only market movements at the weekly level have enough price space for profits to truly run.
The core of trading is not a high win rate, but the profit-loss ratio. This means that even if you only get three out of ten trades right, as long as the profit from a single trade is more than three times the loss, you can be profitable in the long run. A-Feng previously pursued the satisfaction of 'winning every trade', resulting in a vicious cycle of 'small wins many times, but a big loss once'.
I told him that learning to let go of those market trends that do not belong to you is more important than blindly capturing every fluctuation.
03 Iron Law: Lose small money, earn big money
One of A-Feng's biggest problems before was being reluctant to stop-loss for small amounts, always thinking 'just wait a little longer and it will rebound', resulting in deeper losses. A single misjudgment could wipe out all previous small profits.
We jointly established an iron law: any single loss must not exceed 1% of the total account. Once a key support level is broken, no matter how unwilling, one must exit immediately. The cryptocurrency market is volatile; 'not losing big money' is always more important than 'making small profits'. Preserving capital is essential for making a comeback.
Risk management is particularly important in the cryptocurrency market. Because market prices fluctuate violently, without reasonable risk control measures, investors may face massive losses.
Therefore, I strongly recommend that A-Feng use stop-loss orders and manage his positions reasonably to avoid catastrophic consequences from sudden market reversals.
04 From 1800U to 52,000U, it is essentially a transformation in thinking.
In the following three months, A-Feng's trading frequency decreased from dozens of times a day to only 2-3 times a week. But the size of each trade increased, and the holding time also became longer.
More importantly, he learned to wait. No longer swayed by the market's FOMO emotions, he patiently waited for his own opportunities. A trading system is the crystallization of a trader's character, philosophy, experience, and lessons; there are no identical investors, nor are there identical trading systems.
A-Feng's change is not only the growth of his account balance (from 1800U to 52,000U) but also the maturity of his trading philosophy. He no longer blindly believes in so-called 'big shots' advice, but has learned to think independently.
He understands that investing in cryptocurrencies requires a certain amount of knowledge and cannot be done blindly.
Now A-Feng's chart shows only a few lines, but his mind is clearer than before. He said: 'I used to think trading was about guessing the market's thoughts, but now I realize that trading is actually about controlling my own hands.'
The brightest light in the cryptocurrency world is not the K-line on the screen, but the discipline in the trader's heart. Before touching cryptocurrencies, ensure your emergency funds are safe. Remember: don't make small profits, and don't lose big money—these eight words contain all the secrets to stable profits.
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