High leverage is a trap; stability is what truly matters.
I have been involved in the cryptocurrency space for nearly six years now. I still remember the initial stage when I cautiously entered with just 2,600 USDT. Now my account barely reaches eight figures, and I earned 1,500 USDT this year over the past five months. I own a house in Shanghai and have hidden a villa in my hometown in Zhejiang. My time is free, and my wealth is steadily growing.
The biggest realization along this journey is that experts in the cryptocurrency space are not those who charge in the fastest, but rather those who are stable and can endure for a long time.
Last month, I met a friend who used a capital of 50,000 and made it to 200,000 in three weeks during the first wave of the market. In the second wave, it took two months to reach 1,000,000. Throughout the process, only 6 trades were made, with 80% of the profits coming from just 2 trades. In this industry, it's not about luck, but relying on a set of 'simple methods' to make steady profits for many years. Today, I'm sharing my invaluable experience, which if understood, can help surpass 90% of retail investors.
Why do most people always get liquidated when trading contracts?
High leverage leads to quick losses. Newbies always want to 'double their money in one go,' opening full positions with 50x or 100x leverage, and when the market fluctuates slightly by 1%-2%, they get liquidated directly. Leverage amplifies both profits and risks. Playing with 10x leverage can wipe you out with a 10% price fluctuation; if it's 50x, a 2% market fluctuation could mean you're gone.
Not willing to set stop-losses, stubbornly holding on. Always thinking, 'Just wait a little longer, it will definitely bounce back,' but it keeps dropping deeper until liquidation. Losing 50% feels too painful to cut losses, and only regretting after a 100% loss. A stop-loss is not cowardice but the bottom line for survival.
Going all in can result in total loss. Opportunities are rare, All in! The result is the market reverses, leading to direct liquidation. Many people think, 'I'll just play this one round, and if I profit, I won't play anymore,' but often they end up losing everything and leaving. Each time you open a position, it should not exceed 5% of total funds to survive longer.
Emotional trading, chasing highs and cutting losses. Seeing a surge triggers FOMO (fear of missing out), leading to high-position chasing. During a crash, there's panic selling at the floor price. Staying up all night watching the market, emotions driven by K-lines, is a common cause of liquidation.
Not understanding the exchange's tricks. Exchanges can 'spike' prices, causing rapid drops/rises, triggering a large number of stop-loss orders and then quickly recovering. The slippage problem is particularly evident during extreme market conditions, where the actual transaction price differs greatly from expectations. Choosing mainstream exchanges and understanding these mechanisms can help avoid unnecessary losses.
My 5 practical iron rules
Profit should be secured first. My principle is to withdraw 400U to my bank card for every 1000U profit. Only real cash in hand is reliable, and I won't be greedy for a double. There are always opportunities in the crypto world; as long as you are alive, there is a future.
Indicators set the direction; do not become a slave to emotions. I mainly use TradingView to monitor MACD and RSI. For ETH, I look at 1H for short-term trades and 4H for trends, only entering when both indicators point in the same direction. This can help avoid emotional gambling and improve the win rate.
Stop-loss is a guardian, not a sign of cowardice. When monitoring the market, dynamically raise the stop-loss line to lock in profits, and during busy times, set a 3% hard stop-loss to guard against extreme market conditions. A stop-loss is not failure; it's a way to survive and continue fighting.
Fixed withdrawals break the cycle of going to zero. Every Friday, I unconditionally withdraw 30% of profits, regardless of gains or losses. This habit has helped me break the cycle of 'earnings then losses,' leading to a healthier account curve.
Red lines must not be tolerated. Leverage ≤ 10x (newbies 3-5x), daily operations ≤ 3 times, stay away from junk coins, do not borrow money, do not stay up late. Trading is a profession, not gambling.
Bottom-fishing and escaping the peak: my practical skills
Bottom-fishing is not about guessing the bottom, but about observing the strength divergence. I summarize it in three steps: find the dense area, compare sizes, and observe the divergence. The dense area is the zone of heavy trading formed by price fluctuations, akin to a 'rest stop.'
Identify all the dense areas during a decline and find the one with the largest area and the most K-lines. Then compare the decline segment before entering this dense area (segment a) and the decline segment after leaving (segment b). If segment b is shorter than segment a, it indicates strength divergence, and the downward momentum is exhausted, at which point you can consider bottom-fishing.
The principle of escaping the peak is the same, just reversed. When an upward movement shows strength divergence, and each upward segment is weaker than the last, it's a signal to reduce positions.
But be careful, during divergence, only partial positions should be operated, do not go all in and out. Only after the price breaks through the previous maximum dense area can you consider fully entering or exiting.
The last heartfelt words
There is no foolproof method in the crypto world; only strategies with a high probability of success. In this line of work, surviving longer is more important than making money quickly. Control greed and execute strictly, and you can surpass 90% of contract players.
I have also been liquidated, stayed up all night monitoring the market, and experienced anxiety and confusion. Now I summarize these experiences and lessons to help you avoid detours.
Remember, crypto experts are not those who charge the hardest, but those who can stay steady and endure the longest. As long as you can survive, making money is just a matter of time.
Follow A Ke to learn more firsthand information and precise points of knowledge about the crypto world, becoming your navigation in the crypto space. Learning is your greatest wealth!#加密市场观察 #巨鲸动向 $ETH
