Stop staring at the candlestick charts until you go bald! I’ve seen too many people clutching indicator books until the early hours, only to be pressed down and rubbed in the dirt by the market. Honestly, the tough ones who survive in the crypto circle never use flashy tactics; they rely solely on a few 'foolishly straightforward' dead rules.
After eight years in this industry, the most common thing I tell my brothers around me is: the secret to getting rich is never in complex formulas, but rather hidden in the 'foolish methods that even the dealer finds headache-inducing.' These methods are simple enough for elementary school students to understand, yet 90% of people cannot withstand the test of human nature. Today, I’ll bring out the rules that I’ve kept hidden; those who understand will at least be able to cut their losses in half in the second half of the year.
First draw three red lines; if you step on one, there's a high probability you'll be stuck until next year:
1. Don't be a 'FOMO group'; collapse is the time to pick up treasures
Every time the market surges, the community is full of cheers for 'going all in', and I just know it’s time to withdraw. Those enticing numbers are essentially bait thrown by the big players; the more excited the retail investors get, the higher the probability of them taking over. In contrast, a few veterans I know never enter the market when it's bustling; instead, they quietly open their trading screens amidst the community's cries of 'uninstalling software'. Remember, the market is always reversed; when others panic, you stay calm, and you can pick up the bloody chips.
2. Don't put all your eggs in one basket; cash is your 'lifeline'
People often ask me whether they should dump all their assets into a certain popular coin; each time I directly scold them back. There’s no myth of 'guaranteed profit' in the crypto market; no matter how good a project is, it could suddenly crash. My principle is: never hold more than 30% in a single asset, always keep at least 20% in cash. This money isn’t meant for saving in the bank; it’s for when the market crashes, allowing you to confidently say ‘when others panic, I’m buying the dip’.
3. Going all in is for gamblers; keeping bullets is for players
'When an opportunity arises, you have to all in'—how many people have been trapped by this saying? I've seen someone gamble everything and double their investment, only to become so euphoric they forget who they are. When the next market comes, they throw everything back in, and in the end, they lose everything, principal and profit. Remember, opportunities in the crypto circle are like cabbages in a market, coming in waves, always more than your bullets. If you fire all your positions at once, even if the next wave is a thousand-fold market, you can only stand on the shore, slapping your thighs. Those who survive till the end are all masters of position management who understand 'leaving some room'.
It's not enough to just tread carefully on the red line; these six 'stupid methods' are the true skills that increase account value, each one verified with my hard-earned money:
1. Don't reach out randomly during sideways; it's safest to remain a 'viewer'
Sideways is like the calm before the storm, especially when high positions suddenly have a 'false breakout'; it looks like it's about to take off, but it's actually a trap set by the big players, and going in is just delivering your head. My rule is: unless a clear directional signal appears, it’s better to stare blankly at the candlestick chart than to touch your position. The trading fees are less than the losses from random operations; you need to calculate this clearly.
2. A big bearish candle is not a nightmare, it’s a 'big gift' of money
Many people get scared and run for their lives when they see a big bearish candle, quickly cutting losses; this precisely plays into the big players' trap. How about thinking in reverse? Behind a big bearish candle, it’s either retail investors panicking and selling, or big players washing out positions. As long as the project itself is fine, this is a great opportunity to enter at a low price. When others panic and cry, you have to smile and pick up the pieces; this is the reverse logic for making money.
3. The harder it falls, the harder it bounces; prepare your 'bags' in advance
Have you seen a waterfall market? Some people are so scared they uninstall the software, while others are calculating 'how much to buy back'. My conclusion is: as long as it’s not a project crashing due to a major issue, a drop of over 30% is worth paying attention to; the larger the drop, the more astonishing the rebound often is. Next time you encounter a waterfall, don’t panic; plan your funds in advance, and when the rebound comes, you'll know what joy it is when 'the bags are not enough'.
4. Building positions in a pyramid, compressing costs to the point where the big players doubt their lives
This trick is my trump card, ridiculously simple: pick a project, first enter with a 20% position, add 10% for every 10% drop; the more it drops, the less you add. Calculating this way, your average cost will keep decreasing. Even if the big players want to shake you out, they have to weigh their options; your cost is lower than theirs, how can they cut you? Last time I used this trick, the cost of a coin I held was 15% lower than the big player's selling price, and in the end, they could only watch me make money.
5. There are two types of sideways; don't be a 'bag holder' and don’t be a 'sucker'
The sideways after a spike is a 'trap for people'; don’t be greedy for that little profit, hurry to take out your principal and let the profits fly. Even if it drops later, you haven’t lost your principal, and you can still make some profit; but if it goes sideways after a crash, don’t fantasize about 'rebounding'; at this time, decisively stop the loss, and be quicker than your finger swiping through short videos. Remember, when it’s time to withdraw, withdraw; when it’s time to cut, cut; hesitation is the biggest cost.
6. Sideways is a 'killing zone'; holding back is the best operation
I have statistics showing that 80% of liquidations happen during sideways periods, because people get itchy and always want to 'buy high and sell low', resulting in more and more losses. During sideways, it tests people's patience the most; what you need to do is not to stare blankly at the candlestick chart, but to eat when it’s time to eat and sleep when it’s time to sleep. One of my brothers, during the sideways period last year, held back for a month without trading, while others were crying for their losses; his account remained steady. Later, when the market moved, it directly doubled. So, holding back that itch is the best operation.
Do these methods sound particularly 'stupid'? There are no indicators, no insider information, just the simplest discipline and patience. But precisely because it seems stupid, no one is willing to stick with it; and because no one persists, those who can do it make money.
