I have seen too many people rush into the cryptocurrency market with their principal, and most end up with a situation of 'making a noise when entering, leaving in silence.' However, Sister Lin, who had tea with me last week, turned a bad hand into a royal flush—three months ago, she was crying to me with only 600U left, saying that her initial capital of 20,000 had dwindled to just a pittance, and she had to be frugal even when buying milk powder for her child. Now, she is smiling and saying there are 150,000U lying in her account.
Don't think this is a fairy tale. I dare to be certain only after accompanying her to review the entire process: this is not just a stroke of luck, but the inevitable result after the realization of understanding. The cryptocurrency market is never short of myths of overnight surges; what is lacking is the execution ability to engrave the 'principles' into one's bones. Today, I will break down the core logic of Sister Lin's comeback for everyone; each point is a lesson she bought with real money.
1. Chaotic period: Don’t be a “hand extender,” remaining in cash is a top strategy.
Newcomers often make one mistake: when they see someone in the group shouting “take off,” they rush in, under the guise of “fearing to miss the opportunity.” Sister Lin lost money like this in her first three months—she followed the market’s fluctuations, chasing up when it rose and cutting losses when it fell, eventually finding that the fees exceeded her remaining principal. Later, she realized: 90% of the temptations in the crypto market are “traps.” When the candlesticks are erratic and core indicators have no direction, the best thing to do is not to “find opportunities” but to “wait for opportunities.” When in cash, focus on key data like trading volume and MACD, and wait until the trend is as clear as chopsticks in clear water before entering, even if it means missing ten small fluctuations, you must never step on a big mine.
2. Popular assets: Exit quickly and decisively, don’t be a “bag holder.”
Every time a new concept emerges in the market, there are always a few assets that surge wildly, which can easily make people lose their heads. Sister Lin has learned this lesson too; in her early years, she chased a popular asset, didn’t sell after it rose 20%, and ended up falling back to square one, turning floating profits into locked losses. Now she has only one strategy for popular assets: a lightning strike. Before entering, she sets her profit-taking line (usually at 15%-20%) and stop-loss line (8%-10%) firmly; once triggered, she exits immediately; what’s more crucial is watching the heat signals—when no one in the group is discussing this asset and search volume starts to decline, she pulls out even if she hasn’t reached her profit-taking line—no matter how wildly a popular asset rises, it can drop just as fiercely, don’t hold onto the fantasy of “just a little more rise” and become the last bag holder.
3. Big surge market: Move less and watch more, passive gains are better than “blind operations.”
Many people panic more when prices rise than when they fall, always thinking about “making more profits through trading,” and end up selling halfway up the mountain. The key battle for Sister Lin's turnaround was last year's big surge: at that time, the candlestick opened high, and the trading volume skyrocketed to three times that of the previous day, which was clearly a signal of trend establishment. After she entered the market with a full position, she turned off her trading software and didn't react no matter how small the fluctuations were in between—if it had been before, she would have been cutting losses back and forth during the volatility. In the end, she captured 80% of the price increase in this wave, earning three times more than those who traded daily. Remember: during a big surge, the most important thing is to avoid being “itchy,” hold onto your chips, and withstand short-term fluctuations to reap the rewards of significant trends.
4. Giant bullish candlestick: Partial profit-taking, don’t be greedy for that “last copper coin.”
This is a point I repeatedly emphasize to my fans, and it’s also Sister Lin’s “lifesaving trick”: regardless of whether at high or low positions, as long as there’s a giant bullish candlestick, it’s highly likely that the main force is offloading. Now, whenever Sister Lin sees such a candlestick, she immediately implements “partial profit-taking”—first selling 50% to lock in profits, then observing the subsequent trend, selling another 30% if there’s a pullback, and leaving 20% for extreme situations. Once, a stock she held produced a giant bullish candlestick, and after following her process to take profits, it dropped 30% in the afternoon, with many people asking her “how is she so magical?” The truth is, she simply wasn’t greedy for that “last copper coin.”
5. Moving average strategy: Understand the “navigation tool,” use data instead of intuition.
The most common mistake retail investors make is trading based on “feeling.” Sister Lin used to say “I feel it’s going to rise,” but ended up being schooled by the market every time. Later, she used moving averages as a “navigation tool,” only trading on the daily level: for short-term trades, she watches the 3-day and 7-day moving averages, entering when they cross upwards and exiting immediately when they cross downwards; for long-term trades, she watches the 30-day moving average, holding as long as it doesn’t break below it, and decisively cutting losses if it does. Don’t think this method is outdated; Sister Lin avoided six major declines with this tactic, and its accuracy is much higher than those so-called “insider news”—in the crypto market, data is always more reliable than intuition.
6. Trend is king: Operate against human nature, don’t be a “slave to emotions.”
I’ve seen too many people “chase highs and cut lows”: going in crazily when prices rise and desperately cutting losses when they fall, ultimately losing all their principal and blaming the market. Sister Lin's core logic for turning around is “against human nature”: when the upward trend hasn’t broken, even if everyone in the group is shouting “it’s going to fall,” she steadfastly holds; when the downward trend stabilizes, even if she feels anxious inside, she averages down in batches. For instance, a stock fell 50% last year, and while everyone was cutting losses, Sister Lin averaged down three times, and in the end, it rose three times—remember, the market is always harvesting “emotional slaves,” only by following the trend can you stand on the winning side.
7. Position management: Build positions in batches, don’t be a “gambler.”
Finally, this line is the “lifeline”: Never go all in. Sister Lin lost so much in her first three months because she went all in with her entire principal from the start and had no chance to average down when the market crashed. Now her position management principle is “30-30-30-10”: first take 30% of the principal to build a position, add another 30% when it rises, wait for stabilization to add another 30% when it falls, and keep 10% for extreme situations; moreover, before each trade, she sets a stop-loss line, and once it’s breached, she exits immediately without hesitation. Stop thinking about “going all in to win life,” this gambler’s mindset won’t last more than three months in the crypto market.
At the end of the conversation, Sister Lin told me: “I used to think the crypto market was about luck, but then I realized that those who can make money are the ones who have internalized their methods and execute them rigorously.” I particularly agree with this statement—there is never a lack of opportunities in the crypto market; what is lacking is the execution power of “having enough understanding and being able to implement it.”
Every day I share practical insights and trend judgments here, such as which indicators to focus on next week and which traps to avoid. Follow me, and next time we can deeply discuss the core logic of trend judgment, helping you avoid those pitfalls that are “easy to see but costly to act on”—after all, in the crypto market, avoiding just one pitfall can earn you double what others make!
