To you in front of the screen, if you have ever stared at the K-line chart at midnight unable to sleep, this article may give you a bit of peace.
When the message popped up, I flashed back to that early morning when I stared at the ceiling until dawn after the liquidation. I didn’t care about the moving average chart, I just asked him: “If tomorrow this 2700U goes to zero, can you sleep?”
The other side was silent for two minutes, then replied: “I can't sleep.”
“Then treat insomnia first, then talk about making money.” I typed this line.
01 Cut the cake first, then talk about doubling.
I had him divide 2700U into three parts, each 900U, and put them into three different mental accounts.
The first strategy is called "Short-term Assault Rifle", with a maximum of two trades per day; after finishing, shut down the software. The second is called "Trend Ambush Squad"; never use it unless the weekly line has not stabilized above the 20-day moving average and the trading volume has not increased. The third is the "Lifesaving Oxygen Tank"; it can only be used in extreme market conditions, 5 minutes before almost getting liquidated, and must be replenished after use.
This is similar to traditional capital management logic: survive, and you'll have a chance to counterattack. A liquidation is like a severed finger, injuring the muscles and bones; losing all principal is a beheading, with no chance for a comeback.
02 Give up on being smart, only eat the fatty meat.
I used to be a heavy patient of high-frequency trading, constantly "adding knives" in volatile markets, and ended up being the one who got harvested.
Now my strategy is simple to the point of being naive: I only recognize three signals—bullish alignment of daily moving averages, breakout with increased volume above previous highs, and closing price stabilizing at key levels. Only when all three signals are on do I use 30% of my short-term position to enter.
When profits reach 30% of the principal, withdraw half the profit immediately and set a trailing stop for the rest. Remember, the market is a river, and we only take a sip. The market specializes in treating various forms of disobedience, it may drown the bold but starve the greedy.
03 Emotions are wolves, they must be caged.
Before the market opens, I force myself to write three lines: entry price, stop loss price, shutdown time.
Set a stop loss at 3%, and when it hits, cut the position like a robot, giving no excuse for "let's see again". When profits reach 10%, immediately pull the stop loss to the breakeven point; every cent earned thereafter is a market bonus.
At midnight, no matter how alluring the K-line is, just shut down the computer. If you can't sleep, uninstall the trading app—monitoring time is positively correlated with emotional intensity and negatively correlated with account balance.
A friend said this approach would miss out on night trading opportunities. My experience is: decisions made while staying up late are 80% giving away money. The real big trend won't finish in one night; missing out is not scary, making mistakes is fatal.
Three months later, he sent a screenshot: 5,000 U. I replied: "Withdraw the principal, continue to have a good sleep."
The market opens every day, but the principal is not always there. First swallow these three "sleeping pills", then go study the fancy indicators—you'll find that living longer is the greatest leverage in a bull market.
If you still can't sleep, feel free to check in and shut down together after the market closes every day. The more people, the more reassuring the sound of shutting down.
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