I am someone who crawled out from three liquidations. At my worst, I was 200,000 in debt, and I would panic whenever my phone rang, fearing it was a debt collection call. But in the last instance, I took the remaining 50,000 and, using the simplest method, rolled it into eight figures. Today, I'm not talking about 'get rich quick secrets', but rather how to survive—after all, in the crypto world, a day is like a year in the human world, and those who can breathe for the long term are the winners.
1. What liquidation taught me: The profit-loss ratio is more important than the win rate.
In the past, I always pursued a 'high win rate', studying various indicators every day, fantasizing about buying at the lowest point and selling at the highest point. What was the result? Three liquidations taught me: 9 profitable trades do not make up for 1 liquidation (for instance, if the leverage is in the wrong direction, it can go to zero in half an hour).
Later, I completely gave up the obsession with 'win rate'. For example, I only use MA60 to divide long and short: if the price is above MA60, only go long; if below, just observe and don't touch. Even if I miss a rebound, I won't bet against the trend. If I'm right, I hold steady; if I'm wrong, I cut losses, controlling the risk-reward ratio above 3:1—one profit can cover three stop losses.
2. Opening positions like a sniper: light positions, key levels, clear stop loss.
The base position must always be light: for example, with a principal of $50,000, I will not open more than 10% on the first position. Losses won't hurt my vitality, and I will add positions if I'm right.
Only fire at critical positions: for example, major support levels (previous lows) or breakout points of trend initiation. These places have narrow stop losses, and the cost of being wrong is small.
Stop loss is the bottom line: I set two stop losses: technical stop loss (e.g., breaking previous lows) and funding stop loss (single loss not exceeding 2% of the principal). Once triggered, even if I need to cut losses, I accept it—those who hold onto their positions end up as 'miners'.
(Insert a real experience: Last year when BTC dropped to $30,000, I bought the dip and it rebounded to $35,000. I could have made a small profit, but due to greed I didn't sell, and it ended up dropping to $28,000 for a stop loss. Looking back, if I had closed the position according to the rules, I could have preserved my profits. This is the cost of 'wishful thinking')
3. After profits: Pyramid adding positions, moving the stop loss up.
Floating profits are the 'safety cushion' provided by the market. For example, after the base position earns 20%, I will add to my position when it stops falling during a pullback, but each time the proportion of addition decreases (e.g., first add 5%, second add 3%). At the same time, I will raise the stop loss above the cost line—ensuring the base position doesn't lose.
Many people lose by 'not holding profits': running away after a 10% rise, missing the main upward wave. My principle is: as long as the trend is not broken (e.g., MA60 not broken), I won't sell within a 30% profit drawdown. For example, when ETH rises from $2000 to $3000, I might still hold when it retracts to $2800 because the trend hasn't changed.
4. Taking profits: not pursuing selling at the highest point.
I have suffered losses from 'V-shaped reversals': rising too crazily, greedily waiting for a higher point, resulting in a waterfall drop below the cost. Now I only take profits in two situations:
Technical signals: Daily level top divergence or breaking the trend line.
Emotional signals: When the square is full of 'bull market never stops', gradually reduce positions.
Remember: The market's biggest profits can never be fully consumed; it's good enough to eat in the middle. For example, in this round of market, I started taking profits in batches from $40,000; no one can eat from beginning to end.
5. The core of survival: Discipline > Prediction.
The crypto circle is not short of 'myths', but cases of liquidation due to leverage and contracts going to zero are everywhere (for example, someone using 75x leverage shorting lost 90% in one day). My survival rules are just three:
Risk first: Position size must withstand the largest historical consecutive losses (e.g., even if wrong 5 times in a row, it won't hurt the principal).
Boring persistence: Repeatedly use the same strategy, not changing the system due to one or two stop losses.
Emotional isolation: Don't panic during losses, don't get carried away during profits; the market is the boss, I am the worker.
There is no 'holy grail' in trading; the indicators I use (MA, support and resistance) can be learned by a novice in an hour. The hard part is: during a crash, do you dare to stop loss? During a surge, can you hold on? If you are currently in debt or deep losses, stop and calm down for six months—the market will always be there, but if your principal is gone, it’s really gone.
Live on, waiting for the wind to come. Follow Xiang Ge to learn more firsthand information and precise points about the coin circle, becoming your navigator in the crypto world; learning is your greatest wealth!#巨鲸动向 #加密市场观察 $ETH
