Today we must tear off the veil of shame from the crypto market - those shouting 'double overnight' and 'getting rich with new coins' are all just tales to harvest retail investors!
I have squatted in this market for a full 7 years, from the initial 800 yuan capital, rolling all the way to now a market value of 30 million. In these 7 years, I have seen too many crazy gamblers: some relied on luck to hit a dark horse, flaunting their earnings everywhere, switching to luxury cars and buying famous watches, only to find that within half a year, they returned all their capital plus interest to the market, and in the end even borrowed money to add to their positions, pushing themselves to the brink; others followed the trend and chased hot spots, going all in as soon as a new coin was launched, only to see it crash as soon as it opened, losing years of savings in one day.
As for why I can survive and grow larger, it has never been because of 'luck' or 'insider information,' but a set of logic that has been tested and proven to be replicable and winning.
Recently, I taught this logic step by step to a little brother who just entered the market. He followed my instructions, not chasing any hot topics, not touching any new coins, and even ignoring the 'hundredfold coins' that were causing a stir in the community, focusing solely on the methods I taught. As a result, within three months, his principal doubled! Watching him transition from anxiously asking 'Should I cut my losses?' to being able to judge when to enter and exit, I feel that the pitfalls and losses I’ve experienced over these 7 years should be shared.
Today, I’m laying bare the core insights I’ve kept under wraps; they are all lessons learned from real battles. Newbies can at least avoid 3 years of detours after reading, and seasoned traders can also shore up their discipline weaknesses.
1. Position control: the only password to survive; guard it, and you win against 90% of people.
Retail investors who just entered the market, 90% of them die on 'full position betting.' Winning once makes them forget their own last name, thinking they are the chosen ones; losing once leads to complete collapse, losing all their capital, directly eliminated by the market — this is not trading at all, it's gambling with one’s life!
In these 7 years, my ability to stand firm is entirely based on one bottom line: the 5-point position rule. Divide all your capital into 5 parts, and only move 1 part each time you enter the market; don't touch a single extra part.
Set a stop-loss line at 10 points; even if you misjudge, a single loss only accounts for 2% of your total capital. Even if you're extremely unlucky and make 5 consecutive mistakes, your total loss will only be 10%, and there will still be plenty of opportunities to turn around; conversely, don’t set a hard upper limit on profits, but at least wait until you earn over 10 points before considering taking profits, so you can steadily catch the main upward trend without being shaken out by small fluctuations.
To be honest, in the crypto market, staying alive is more important than anything else. If you can adhere to this position rule, you have already outpaced 90% of trend-following retail investors.
2. Core of win rate: follow the trend, don't be the 'bag holder' against the trend.
I have seen the dumbest operation, bar none: buying frantically at the bottom during a downturn while muttering, 'It has dropped so much, it should rebound'; yet hesitating to enter during an uptrend, fearing 'it will go too high and get stuck.' In the end? Those who bought the bottom are halfway up the mountain, while those who miss out watch the market rise all the way, their mindset collapses, and they chase in at a high point, perfectly picking up the tab.
The money in the market has always been earned by those who 'follow the trend.'
Rebounds in a downward trend are 90% traps for enticing retail investors. It looks like a sea of red, rising joyfully, but in fact, the main players are secretly unloading, waiting for retail investors to rush in and take the bag; conversely, pullbacks in an upward trend are the real opportunities to board. Buying low at this time is at least 10 times more stable than blindly bottom-fishing.
There’s another iron rule to remember: never touch crypto assets that surge in the short term! Whether they are mainstream coins or niche coins, after high-level stagnation, they will inevitably pull back. Don’t hold onto the luck of 'I’m not the last one holding the bag' — I’ve seen too many people fall for the fantasy of 'doubling overnight,' ultimately going from profit to loss in just one day.
3. Technical analysis: don't be greedy; three indicators are enough to catch the main upward trend.
Many people feel daunted as soon as they enter the market, learning dozens of indicators like MACD, KDJ, Bollinger Bands... it's dazzling, and in the end, the more they analyze, the more confused they become, leading to wrong judgments.
In these 7 years, I have focused on three core indicators, which are enough to judge trends and find the right buy and sell points; simple and straightforward, even beginners can get started.
MACD: the most stable entry signal. Enter when the golden cross breaks the 0 axis; you are likely to catch a wave of the main upward trend; if a dead cross appears above the 0 axis, don’t hesitate, quickly reduce your position — this is a signal that the trend is about to turn. Delaying even a second could mean less profit or even a loss.
Trading volume: the 'barometer' of funds. When there is a breakthrough in volume at a low level, it can be followed, indicating that large funds are entering the market; when there is a high volume but no price increase, you must leave immediately, as the main force is secretly selling off. If you don't leave, you'll get buried.
Moving averages: trend compass. I only look at four moving averages: the 3-day line for short-term fluctuations, the 30-day line to judge medium-term direction, the 84-day line to catch the main upward trend opportunities, and the 120-day line for long-term fundamentals. Only invest in assets where all moving averages are moving up; those where the moving averages are in a messy state, fluctuating up and down, no matter how lively, don't touch them — they are all traps.
4. Two iron rules: Guard this line of defense, and profits won't fly away.
Having a method is not enough; in the crypto market, discipline is more important than technology. For the past 7 years, I have adhered to two iron rules without fail, and only by keeping them can I steadily put the money I earn into my pocket.
First, never average down when at a loss. How many people keep averaging down as they lose, holding onto the idea of 'diluting costs' and turning small losses into big losses, ultimately losing all their principal? Averaging down on losses is like filling holes in a sinking ship; the more you fill, the faster it sinks; instead, when in profit, you can increase your position, letting your profits help you earn more — that's how you roll a snowball.
Second, review every trade. Every day after the market closes, I unwaveringly spend 20 minutes reviewing: Is the reasoning for entering still valid? Do the trends and weekly candlestick patterns match? Where did this operation go wrong? How can I optimize next time? Don’t underestimate this 20 minutes; half of my profits come from correcting past mistakes. Those who forget once they earn and curse when they lose will always stay in place.
To be honest, there are no 'easy wins' in the crypto market, only 'certain win' logic. My market value of 30 million did not come from a single dark horse or a stroke of luck, but from controlling my position each time, judging the trends each time, and maintaining discipline each time, gradually rolling it up.
If you find this valuable, make sure to follow! I will break down specific trend cases later, teaching you how to recognize traps at a glance, how to accurately seize the main upward trend opportunities, and even share my daily review notes.
Follow me, and the next time you encounter a market crash or community panic, you won't be flustered and cut losses randomly or bottom-fish chaotically — after all, in this market, stability is the fastest way to make money!