There are many tricks in cryptocurrency trading, but the real way to profit often lies in the simplest rules.
Eight years ago, my life hit rock bottom: divorce, debt, confusion. After accidentally getting involved in the crypto space, I did not chase the illusion of 'getting rich overnight' like most people, but instead, I calmly summarized a method that was simple enough to be mocked as 'outdated'. It was this strategy that allowed me to leap from the quagmire of debt to an eight-figure asset. Today, I will break down the underlying logic of this method for you, not as a 'secret', but as a reverence for market laws.
1. My core principle: Trend is king, quantitative stop-loss
The cryptocurrency market is highly volatile, but the inertia of trends is more stable than expected. My method revolves around two key points:
Only follow trends
The market is always volatile, but once a trend is formed, it won't easily reverse in the short term. I give up predicting tops and bottoms, focusing instead on identifying and following already formed trends. It's like surfing; you don't need to create waves, just find the right moment to ride the wave.
Discipline above all
I once lost 30% in a single day because I thought 'just wait a little longer', and since then I've set a strict rule: all operations must have quantifiable standards. For example, the stop-loss point is clearly set at -8%, not 'I feel it can still rise'; the buy signal must meet both price and volume conditions to avoid false breakouts.
Humorous moment: A friend said I am like 'the Tang Seng of cryptocurrency trading', only reciting the three true scriptures of 'moving averages, stop-loss, discipline'. But true scriptures ward off demons, and in bull and bear markets, Tang Seng actually made it to the West.
2. Four-step operation method: How to beat the market with 'dumb' rules?
Step 1: Choose coins only with 'strong golden crosses'
Logic: MACD golden cross represents momentum reversal, but only golden crosses above the zero axis are worth participating in, indicating the trend is in an upward cycle, not a rebound trap.
My adjustment: Overlay and filter for cryptocurrencies with trading volume increased by more than 30% compared to the previous day, avoiding major players' traps.
Step 2: Buy on moving average breakout + volume confirmation
Logic: A price breakout of key moving averages (such as daily MA30) is a signal for trend initiation, but it requires synchronized volume expansion to prove real capital entry.
Counterexample warning: Common tutorials on Xiaohongshu about 'Volume-less Breakouts' are just schemes to cut leeks by the market makers; do not trust easily.
Step 3: Gradually take profits from positions, refuse greed
Ladder-style profit-taking: Reduce positions by 1/3 at a 40% increase, another 1/3 at 80%, and keep the remaining position to bet on trend continuation. This locks in profits while retaining upward space.
Key: Invest spare money to avoid mental imbalance. I've seen too many people operate in distortion after betting their entire fortune.
Step 4: Exit immediately if the stop-loss breaks the moving average
Iron rule: Once the closing price breaks below the moving average, regardless of profit or loss, liquidate immediately. Even if there is a subsequent rebound, do not regret; the market lacks opportunities, not capital.
Case study: In May this year, a certain altcoin broke below MA30, I decisively cut losses, avoiding a subsequent drop of 50%. Meanwhile, players in the group who 'held on' are still deeply trapped.
3. Why do most people fail? The 'Human Nature Trap' and the way to break it
Trap 1: Overtrading
The cryptocurrency market trades 24 hours a day, and many people trade frequently, which instead consumes transaction fees and energy. My strategy triggers signals only 2-3 times a month; most of the time, I just need to wait.
Trap 2: Superstitions about 'Guaranteed Profit Secrets'
Common on Zhihu: '99% Winning Rate Strategy' is actually a probability game. Wang Lijie once bluntly said: If you are not at the top of the food chain, 99% of cryptocurrency traders will be trapped. My method has a winning rate of about 60%, but a strict risk-reward ratio (1:3) ensures long-term profitability.
Trap 3: Emotion-driven decisions
Fantasy of breaking even during losses and dreaming of doubling profits during gains is human nature, but machines are suited for trading. I use preset conditional orders to execute automatically, avoiding emotional interference.
4. Additional advice for beginners: Survive to laugh last
Safety first: If assets exceed $50,000, always use a hardware wallet and keep the mnemonic offline.
Diversify risk: Allocate main positions in BTC/ETH, with a small portion of funds exploring potential coins.
Beware of leverage: Leverage is an 'accelerator', but 99% of users end up liquidated.
In conclusion: Whether in a bull market or bear market, only those who survive are the winners
The cryptocurrency world is not short of myths, but behind the myths is often survivor bias. My 'dumb' method essentially acknowledges ignorance, respects the market, and quantifies survival. If you can accept 'slow is fast', perhaps this strategy can open new perspectives for you.
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