Five years ago, when I just started making money in the crypto world, people around me said I was 'too stupid.' Now they understand that in this tempting market, not making mistakes is more important than being able to predict.
While others study hundredfold coins, I study how not to lose money.
While my friends were flaunting 'contract profits' and 'altcoins doubling in a day,' I was diligently writing down my trading rules in a notebook. While others stayed up late drawing candlestick charts and tracking large wallets, I was just waiting for a few simple signals.
Five years have passed, and those who once mocked me, some have exited due to liquidation, while others are still caught in the cycle of chasing highs and lows. Meanwhile, I steadily earned my first 2 million with this 'simple method.'
01 Refuse to predict, only recognize signals
The crypto world is never short of 'prophets.' Every time Bitcoin oscillates sideways, someone jumps out to shout 'imminent crash' or 'upcoming surge.' I once saw in a group chat someone predicting the direction correctly three times in a row, being revered as a 'master,' only to bet all their assets the fourth time and face immediate liquidation.
I set a strict rule for myself: no predictions, only reactions.
My trading system is simple to the point of being laughable: short if Bitcoin breaks a certain key level (like $29,000), and only consider going long if it stands above another level (like $32,000). All fluctuations in between are irrelevant to me.
I remember last year BTC hovered around $30,000 for a full two weeks. The group was in an uproar, some shouted 'the bull is back,' while others said 'it's about to fall below $20,000.' I didn't make any trades for ten consecutive days, until the price actually broke below the $29,000 support, then I shorted as planned.
Later someone asked me, 'How can you resist the urge to trade?' My answer is: a smart trader knows when to act, while a smarter trader knows when not to act.
02 Restrain greed, maintain discipline
In the crypto world, greed is the number one killer of profits and the best companion of losses.
I've seen too many examples like this: earning 25% wanting 50%, earning 50% wanting to double, only for the market to reverse, profits to evaporate, and getting trapped. My response is two fixed values: taking profit at 25% is a must, and cutting losses at 2.5% is resolute.
This set of rules has caused me to 'miss' many opportunities. Once, the ETH I bought surged 15% in a day, and everyone in the group shouted 'hold on, it will at least double.' I decisively sold at a 25% profit, and it indeed rose another 10% later, but then plummeted, while those greedy people got trapped.
What's more critical is the 2.5% stop-loss line. It seems small, but it is this tiny stop-loss point that has helped me avoid countless significant losses. Just like wearing a seatbelt while driving, it feels unnecessary most of the time, but it can save your life at crucial moments.
Traders who survive longer in the crypto world often prioritize 'stability.'
03 Slow is fast, less is more
The two most harmful words in the crypto world are 'get rich.' This mentality makes people restless, wishing they could grab the limit up every day.
But I go against the tide: catching a reliable opportunity once every half month is enough.
My trading frequency is so low that it's hard to believe. Sometimes I only trade two or three times a month, and I only focus on mainstream coins. Most of the time, I'm either observing or waiting. It seems inefficient, but it's this kind of 'laziness' that has helped me survive three bull-bear cycles.
I once held a Bitcoin position for a full three weeks, during which the fluctuations were significant, but I neither panicked and sold during the short-term drop nor took early profits during the small rebound. In the end, this trade brought steady returns.
This strategy sounds boring, unlike those thrilling stories of 'doubling in a day.' But slow is fast, less is more. One day in the crypto world is like a year in real life, but what you need to do is not chase time, but make time work for you.
04 The wisdom of dumb methods, the answers given by time
Five years have passed, and the market has educated everyone.
Most of those who once mocked me for being 'too dumb' have largely disappeared in the waves of the crypto world. Some exited due to high-leverage trading liquidation, while others suffered heavy losses chasing various 'air coins.' Yet I'm still here, continuing with the same 'dumb method.'
True investment experts spend most of their time 'not trading.' The crypto world lacks stories of getting rich quickly, but it has stories of longevity.
My old notebook still has the original few rules written down; the paper has yellowed, but the principles still shine. In this highly emotional market, calmness and discipline are the greatest competitive advantages.
Even now, I still adhere to that 'dumb method': using signals instead of guesses, using discipline to restrain greed, and using patience to achieve stability. Every time I see newbies exhaustedly chasing every hot topic, I think of myself five years ago.
Smart traders look for the holy grail, while wise traders continuously walk a path that can be traversed, avoiding clever tricks, not relying on luck, and not self-sabotaging.
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