Small funds die from volatility, but more die from greed.
Last night, another fan cried to me, saying his 800U vanished during two rounds of volatility. This reminded me of a junior I mentored three years ago, who started with 1280U and strictly followed a set of 'turtle interest rules,' surprisingly rolling it to 30,000U in three months.
What's the most amazing thing? He later told me that during those three months, he slept particularly well because the principal was long withdrawn, and he was playing with profits the whole time. Today, I will break down this seemingly slow but actually steady strategy for you, suitable for those who are tired of liquidation and willing to exchange patience for compound interest.
90% of small fund failures stem from 'itchy hands'.
The harsh truth in the crypto world is: 90% of the time is in a sideways market, with only 10% of the time showing a unidirectional trend. The most common mistake for small funds is frequent trading in a sideways market, ultimately being eaten away by fees and slippage.
I have seen too many people hold 1000U, yet fantasize about turning it into ten times within a week. What happened? High-leverage contracts, chasing prices, blindly investing in 'meme coins'... The account balance fluctuates more wildly than Bitcoin.
Why do I advocate the 'Turtle Breathing Method'? Because its core principle is simple: survive until that 10% market opportunity arrives. Just as the Turtle Trading Rules prove, simple rules combined with disciplined execution can enable even beginners to become excellent traders.
My 'Turtle Slow Growth' principle: slow is fast.
Choosing coins is like choosing a date; better to be selective than to settle.
Don't touch every coin like you're in a vegetable market. My principle is: focus only on 2-3 mainstream coins (like BTC, ETH), completely abandon those seemingly enticing small coins.
Why? Small coins may become worthless overnight, while mainstream coins, even if temporarily trapped, have a chance to recover. The fundamentals involve daily research on the supply and demand of these two coins, on-chain data, and large transaction trends, such as observing the order flow tool for key price levels' buy and sell order volumes. When you notice a significant number of buy orders repeatedly at a specific price level, that is your potential support level.
Divide the funds into three portions, layered for protection like a turtle shell.
First portion 600U: Spot bottom position. Only buy after confirming a large trend, for example, when the weekly line is above the MA20 moving average.
Second portion 300U: Add to positions upon breakout. When the price breaks through a key resistance level with volume, use this money to increase your position. Remember: if the breakout fails, stop-loss immediately; even if you lose, it's only this portion.
Third portion 100U: Reserve ammunition. Never use it unless a black swan event occurs (such as a sudden drop of 30%), to pick up cheap chips.
Withdraw principal quickly, be as decisive as a turtle retracting into its shell.
This is a critical step in mindset trading: when your position profit reaches 15%~20%, immediately withdraw the principal. For example, if you have 1000U and earn 150U, transfer the 1000U back to your wallet, leaving 150U profit to continue operating.
The benefit of this approach is: you enter a 'zero-cost' state. Regardless of subsequent rises or falls, you're playing with profits. You'll find that your sleep quality significantly improves, and decisions are no longer influenced by emotions.
The stop-loss line is a lifeline; once set, don't be reckless.
If the daily loss exceeds 5% of the principal, shut down and stop trading immediately. This is not advice; it's a hard rule. I have a painful lesson: once I hesitated and didn't set a stop-loss, resulting in a liquidation within a day. Later, I set a rule for myself: place the stop-loss line 2%~3% below the key support level.
A more advanced approach is to use moving stop-losses to protect profits. For instance, if the price rises by 10%, move the stop-loss to the cost line +5%. This way, you won't fear profit retreat and can let profits run.
Compounding is a miracle, but daily compounding of 1% is unrealistic.
Don't be fooled by '1% a day, 30 times in three months'; that's a mathematical game, not market reality. True compounding is: catch a trend and use a rolling strategy to let profits run.
For example, bottom-fishing during a major drop in a bull market or adding positions when breaking out at the weekly level. Of course, rolling positions must be accompanied by moving stop-losses. After each increase in position, the stop-loss should be adjusted upwards to prevent profit retreat.
The core is: turn yourself into a 'strategy execution machine'.
This method sounds simple, but 90% of people can't stick to it. Why? Because human nature always yearns for quick riches.
I do three things every day:
Morning review for 10 minutes: check if key positions have broken through, without getting caught up in minute fluctuations.
Check the market only twice: to see if the stop-loss or take-profit conditions have been triggered.
Write a trading journal in the evening: record operations, emotions, and reflections.
Real opportunities never belong to those who stare at the market every day; they are given to the patient and systematic 'turtles'.
Conclusion: When the next wave of the market comes, where will you be?
Now, ask yourself: Should I continue chasing every hot topic, ultimately exhausting myself in the fluctuations? Or should I patiently plan and strike when the wind comes?
Remember, the crypto world is never short of stars, only lacking in longevity. If you find this method insightful, consider following me. In the next article, I will share how to discover signs of institutional accumulation through on-chain data, which is the advanced principle of the 'Turtle Breathing Method'.
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