Don't believe in 'fortune comes from risk' anymore! As an old hand in the crypto circle with 8 years of experience, I tell you at the cost of three liquidations and losing half of my hair: those who can survive in this market and continue to profit are never the boldest risk-takers, but rather the smart ones who know how to 'back down'!
In my early years, I was also a red-eyed gambler. Watching the market drop by 20%, I not only didn't panic but even self-PUA'd, 'This is a great time for faith recharge,' and I even leveraged to try to buy the dip. What happened? I woke up after a sleep to find my account directly liquidated, and my balance shrank to the point where I couldn't even afford instant noodles. During that time, I didn't dare to look up when going out.
Only later did I fully awaken: in the cryptocurrency market, greed is the sharpest scythe. First, press your greed down to the ground and rub it, only then can you talk about making money. Today, I will share with you my four 'cowardly life-saving tactics', each one has been verified in practice, and beginners can follow them to avoid five years of detours.
1. Avoid daytime noise, only catch the 'deep night golden window'
Many retail investors love to stare at the market during the day, not realizing that the news during the day is messier than a square dance. The main forces like to use these indistinguishable messages to harvest watching retail investors. Analyzing the market timing, trading in different time zones has overlapping periods of intense fluctuations, while after 9 PM, the activity in the European and American markets decreases, the Asian market maintains a steady pace, news releases are basically wrapping up, and the K-line trend becomes particularly 'clean', with fewer disturbances and accurate signals, making it the most suitable time for ordinary investors to act.
I now basically take a nap in the morning, do analysis in the afternoon, and start my computer at exactly 9 PM. I don't touch the mouse until it's time; this tactic has helped me avoid 80% of the daytime temptation traps.
2. Are the indicators out of sync? Be decisive and be a 'wallpaper player'
The most common mistake beginners make is entering the market based on a single indicator, for example, buying in when they see the MACD golden cross, only to get stuck halfway up the mountain. I have long set a strict rule: the three 'old friends', MACD, RSI, and Bollinger Bands, must reach a consensus; none can be missing.
Specifically, the MACD must stand firmly above the zero axis (confirming a bullish trend), the RSI must be above 50 (ensuring market heat), and the Bollinger Bands must see the price retracing to the midline without breaking (finding a safe support level). Only when all three conditions are met will I consider entering the market. As long as one indicator 'sings the opposite tune', even if the market seems enticing, I will treat the market as wallpaper and firmly not touch the mouse.
3. Stop-loss must be 'harsh', do not let emotions work overtime
The root cause of liquidation has never been the market being too extreme, but rather your constant hope of 'waiting a little longer for a rebound'. I have summarized two sets of stop-loss principles that have been tested and proven effective: those who can watch the market all day should use a trailing stop-loss to follow the trend, gradually moving the stop-loss position up after making a profit to firmly lock in profits; for office workers who can't watch the market, set a hard stop-loss at 3% and after setting it, turn off the computer to work out or spend time with family, don't let the market dictate your emotions.
Remember one thing: a single loss limit is saving bullets; staying up all night to hold positions will only bring you back to square one overnight. Not to mention losing hair, your capital will be gone too.
4. Switch time frames, do not be a 'purchaser'
Different market conditions require different time frames; this is a rule I have summarized from countless losses. For short-term trading, focus on the 1-hour cycle and must wait for two bullish candles to confirm the trend before entering the market to avoid false breakouts; when encountering sideways markets, switch to the 4-hour cycle, focusing on support and resistance levels, and do not blindly catch the bottom; as for those niche coins that are very popular, no matter how appealing they are, I won't touch them. Whoever wants to catch them can. We only make money within the scope of our understanding.
In the cryptocurrency market, 'cowardice' is never about being timid, but rather a form of clever survival wisdom. If you admit defeat once, you can still preserve your vitality and come back; if you hold a position once, you may completely say goodbye to this market. Remove 'greed' from your trading dictionary, and your account can slowly grow hair, and your mindset can stabilize more and more.
