Strictly adhere to discipline, it's better than chasing limit-ups.
When I first started playing with cryptocurrency, I also stared at the K-line chart all day without daring to blink, resulting in a lot of hair loss, but my account didn't show any improvement. After years of trial and error, I finally understood one principle: Making money in the crypto world doesn't rely on IQ, but on discipline and execution.
Today I will share with you the six principles I've summarized over the past five years, simple enough to be engraved on my forehead, yet it helped me transform from being 'cut as a little leek' to now being a 'profitable veteran.'
Step 1: First, be a 'popular judge' and only select lively targets
Every day when the market opens, the first thing I do is check the gainers list, but I'm not looking at who is rising the fastest at the moment; instead, I focus on the assets that have had 'bouncing records' in the past two weeks. What is a bouncing record? It means there has been a significant upward trend, with sufficient volatility.
Why choose this way? Because the crypto world is a game of attention; assets with a memory of rising are like small stars with representative works, making them easier to attract market attention again. Those lifeless coins, which have no volatility, are like wilted vegetables in the corner of a market; waiting for them to rise in price is not as good as buying a lottery ticket. This step seems simple but can help you filter out 90% of 'lying flat goods' directly.
Step Two: Monthly MACD golden cross; only follow the 'clear trend'.
There are so many indicators, but after looking around, I finally left only one—monthly MACD golden cross. This thing may lag, but it is the 'official certification' of the trend. When the golden cross appears, it means the general direction is basically stable; if there's no golden cross and you want to enter the market? It’s no different than crossing the street with your eyes closed.
I've long since put 'buying the dip to bet on rebounds' on my blacklist. This is gambling, not trading. If you want to survive in the market for a long time, you have to be a 'follower of trends', not a 'reckless person' against the trend. Remember, the market is always right; the only ones who can be wrong are you and me.
Step Three: Wait for the daily line to 'step on the line and increase volume'; don't be a 'low-price接盘侠'.
After identifying an asset with an upward trend, I don’t rush in. Instead, I patiently wait for it to pull back near the 60-day line, and the trading volume must 'suddenly increase'—this is a real signal of funds entering the market.
Too many people get excited when the price drops, thinking they’ve found a bargain, only to often buy halfway up the mountain. The drops in the crypto world can have no bottom; there might be a basement below the 'floor price' under the 60-day line. Remember, low price does not equal safety; only low prices backed by funds are opportunities.
Step Four: Don't be 'infatuated' with your positions; if it's time to go, just go without looking back.
After entering the market, stick to one principle: if the key support line hasn’t broken, hold on with peace of mind; once it breaks, sell immediately, and don't give a second of fantasy space for 'let's wait a bit longer'.
I've seen too many people go from profit to loss just because they fantasized about 'maybe it will come back'. The 'infatuation' in trading is the least valuable; the market will never be moved by your persistence. When it’s time to take profits or cut losses, be decisive; it’s stronger than any technical analysis.
Step Five: Take profits in batches; don't try to eat the 'last bite'.
My profit-taking rule is: sell half at a 30% profit and basically liquidate at 50%. Don’t always think about eating the whole fish tail; that little bit of meat often has a lot of bones.
In the early days, I also stubbornly waited for the 'highest point', only to go from a 20% profit to a 10% loss—the feeling was worse than eating a fly. Now I've figured it out: making small profits accumulate is a hundred times more reliable than a big profit followed by a crash.
Step Six: If it breaks the 60-day line, you must cut losses; this is the lifeline!
No matter how long you've been buying, no matter how much you've already lost, as long as the price effectively breaks below the 60-day line, don’t hesitate; you must sell immediately. This rule has saved me at least three times.
There was a time when I endured a 20% loss, and finally gritted my teeth to cut my losses and exit, only to find that the coin later dropped another 50%—looking back now, it's terrifying. Cutting losses isn't about admitting defeat, but about protecting your principal. As long as you keep the green mountains, you don't have to worry about not having firewood.
Some say my method is too rigid and not 'flexible' enough. But ask those who suffered losses; who didn’t die from 'flexible adjustments'? The market is never short of smart people and gamblers; what it lacks are those who can steadfastly execute rules.
These six steps are not magical; the magic lies in your ability to follow each step without discount. The core of making money in the crypto world is not predicting the market but controlling yourself—controlling greed, controlling fear, and controlling the impulse to get rich overnight.
Remember, in this market, living long is ten thousand times more important than making quick profits.
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