I still remember the first time I stepped into the crypto world, my eyes were filled with the glow of 'doubling overnight.' With the hard-earned money I had saved for three years, I spent every day in various communities waiting for 'insider information,' and whenever I heard someone shout 'go all in,' I would get excited and jump in.
What about the results? After three continuous liquidations in six months, my account balance went from six figures to a devastating three figures. At that time, even spending on a good meal felt painful.
Now, I have steadily walked through seven years in the crypto space. It's not based on any advanced technical indicators or insider information, but rather on six seemingly simple rules. Today, I will share these valuable insights with everyone; this is entirely my personal trading philosophy for your reference.
1. The unusual activity list is a mirror, specifically treating various 'news diseases.'
In my early years, I was also deceived by the rhetoric of being 'led by big players.' Later, I realized that the real flow of funds is clearly written on the unusual activity list.
I have developed a habit of closely monitoring the unusual activity list for the past 15 days, specifically looking for targets that have seen a volume increase for three consecutive days to add to my watchlist. Why 15 days? Because too short might be speculation, and too long might mean missing the best timing. Funds do not lie, but news can be fabricated.
2. The monthly line determines the universe; do not go against the trend.
Newbies are most likely to stumble on 'catching the bottom' — I am too; my first two liquidations were because I thought 'the drop has hit the bottom,' only to be taught a lesson by the trend.
Now I am determined: I will only consider entering when a monthly MACD golden cross appears, and at most use 20% of my principal. Until there is a clear trend, I will not reach out for even the most enticing rises. Remember, the market will not change its rhythm because you are anxious.
3. The 60-day moving average is a lifeline; do not act without a signal.
People often ask me when it is safest to enter the market. My answer is simple: when the price is close to the 60-day moving average and the trading volume has increased by more than 30%.
Last year, I patiently monitored a target for 21 days, only entering when it met this condition. Although I didn't catch the bottom, it rose 25% just three days after I entered. In the crypto market, staying alive is much more important than making quick profits.
4. Run when the level is broken; don’t fall in love with the market.
Making money is not difficult; the challenge is truly putting the profits into your pocket. I once had an experience where I made 20% but was reluctant to sell, only to end up with a loss.
Now my rules are very harsh: as soon as a held target breaks a key moving average, I immediately liquidate. Once, I painfully sold a target that broke, and later it dropped another 40%. Profits are earned, not endured.
5. Tiered profit-taking, don't be greedy for the last penny
Those who want to capture all profits are often taught a lesson by the market. My profit-taking strategy may seem rigid but is effective: reduce positions by 50% when the price rises by 30%, and move the stop loss for the remaining; when it rises to 50%, reduce by 30%, leaving only 20% of the position to seek greater returns.
Last year, using this method, although I didn't catch the highest point, the profits I pocketed were double those who stubbornly held on until the correction. In the crypto market, greed is the most expensive luxury.
6. Only by staying alive can there be output; preserving principal is the bottom line.
This is the rule I value the most, and it is truly a lifesaver. Once the 60-day moving average is broken, the short-term trend has likely reversed, so stop fantasizing about a 'rebound' or 'exhaustion of bad news.'
During the bear market in 2022, I strictly followed this rule, preserving 70% of my principal, leaving a spark for the later rebound. In this market, merely surviving is already a victory.
In conclusion: doing simple things repeatedly makes you a winner.
These six rules may seem plain and even a bit clumsy. But after seven years of practical testing, I found that the simpler the rules, the better they can navigate complex bull and bear cycles. Last year, I practiced these methods with a few friends who trust me, and the worst among them also achieved a 40% return.
The crypto market is not about who runs faster, but about who survives longer. Those who can consistently profit are merely executing simple rules to the extreme.
Real trading masters are slaves to discipline, and the market will always reward those who respect the rules. In this highly uncertain market, getting your act together and holding the line is essential to truly ride the wave when the opportunity arises.
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