The profits you hold onto are yours; chasing the rises and falls is just an illusion.
At two o'clock in the morning, the phone screen suddenly lit up, and a private message from a fan popped up: 'Teacher, I chased the high again and got stuck. This is already the third time I've been liquidated this month. Am I really not suited for this market?'
After eight years in the industry, I have long been accustomed to such news. There is never a shortage of people in the market who desire to 'get rich overnight,' but those willing to 'slowly become wealthy' are few and far between. Interestingly, the true essence of this industry is precisely hidden in the 'slow' word that most people overlook.
Not long ago, I helped a friend achieve a transformation of assets: in three months, he went from 5,000 trading units to 130,000 trading units. There was no high leverage risk, no so-called insider information, and he didn't even stay up once to watch the market. Some may find it ridiculous, but all I insisted he do was: stop messing around.
He exhibits all the typical symptoms of a retail investor.
When this friend first entered the market, he perfectly demonstrated the 'self-cultivation of retail investors': as soon as the market turns bullish, his hands moved faster than his brain; seeing others in the group post profit screenshots, he copied their trades with more seriousness than he did taking notes in school. In the most extreme instance, he chased after a certain 'hundredfold concept coin', went all-in, and ended up with a 40% drop that day, after which he was depressed in my office for the entire afternoon.
Later, I asked him: 'Do you know where you differ from stable profit-makers? It's not luck, but whether you have your own 'trading rhythm'.' In this market, those who are led by the market are always the first to be eliminated; those who can survive and continuously profit all have their own stable operating rhythm.
After reviewing, we jointly explored a method, the core of which can be summarized in eight words: divided layout, cyclical rotation.
Practical guide for beginners: divided cyclical method
If you have 100,000 units of principal, don't be afraid of trouble; divide it into 5-6 equal parts. Use only one portion of funds to purchase spot assets each time, and remember two ironclad rules: never chase assets that have risen more than 5%, and never exceed 20% of total funds for a single position.
Next is mechanized operation: if the purchased asset drops by 10%, buy an additional portion to average down the cost; if it rises by 10%, sell a portion to realize some profits. This method does not require staring at candlestick charts all day guessing price movements, nor does it require belief in so-called 'big shots' predictions; just execute at the right time, as regular as an alarm clock.
Some may think this method makes money too 'slowly', preferring to leverage for quick gains. But just last month, during the market's severe fluctuations, those who once mocked him for 'earning too little' either got deeply trapped or liquidated, while he managed to make two additional purchases through a diversified strategy, not only avoiding losses but actually gaining 20% against the trend. This is the power of compound interest—seemingly slow, but in reality, it rolls like a snowball, continuously and steadily.
Why can't most people achieve it?
I have probably stumbled in the market more times than many beginners have seen candlestick charts. I have also made quick money by 'gambling', with a maximum daily gain of three times, but within half a month I gave it all back, along with my principal. Later, I understood: the crypto market is like a roller coaster; those who chase thrills will eventually be thrown off the track, while those who buckle their seatbelts and proceed at their own pace can reach the finish line smoothly.
The most difficult part of this method is not remembering the rules, but being able to 'exercise restraint during a frenzied market rise and maintain composure during a market crash.' My friend had a position that rose by 15%, and he could hardly resist selling everything; I advised him to 'act according to the rules', and three days later, it rose another 10%. Now he tells everyone, 'The teacher's 'brake key' is more effective than my 'charge key'.
The market is always changing, while human nature remains similar.
A significant feature of the current crypto market is structural differentiation, with funds rotating among assets of different risk levels. For example, Bitcoin, as a core asset, maintains a market dominance of around 42.1%, while some MEME coins have dropped over 50% this year. This differentiation means that blindly chasing hot topics may pose greater risks.
According to a report by UBS, one of the certain strategies for ordinary investors to profit in the market is to focus on mainstream assets and participate through dollar-cost averaging. For example, a combination of '70% Bitcoin + 20% Ethereum + 10% stablecoins' as core holdings can effectively smooth out volatility risks in the long term.
Diversifying holdings is an effective method to cope with rapid rotation of hot topics. By allocating funds to different assets or sectors with lower correlations, one can avoid massive losses due to significant fluctuations in a single asset. When a hot topic fades, other non-hot assets may remain stable or even rise, thus balancing the overall performance of the portfolio.
If you want to try, I recommend starting with these.
Choose mainstream assets: allocate Bitcoin, Ethereum, and other mainstream cryptocurrencies as core holdings; these assets have good liquidity and relatively small volatility.
Set up a phased plan: divide the funds into multiple portions and establish simple buy-sell rules, such as buying more after a 10% drop and selling after a 10% rise.
Stick to execution: avoid emotional trading, strictly follow the predetermined plan, and do not be swayed by short-term market fluctuations.
Maintain patience: the market never lacks opportunities; what it lacks is the determination not to be swayed by emotions. Slow down a bit, be steadier, and you can go further.
Successful investing is essentially a refinement of one's mindset. Through a divided investment strategy, not only can one manage funds well, but also manage the heart that is intertwined with greed and fear when facing market fluctuations. In this high-risk and high-potential crypto market, establishing and adhering to one's own rhythm may be the most reliable 'moat'.
Have you encountered similar difficulties in investing? Feel free to share your experiences—the market is always changing, but the wisdom we explore together can be eternal.
Follow Xiang Ge for more first-hand information and precise points on cryptocurrency knowledge, becoming your guide in the crypto space; learning is your greatest wealth!
