I entered the cryptocurrency space in 2022. At that time, some people around me made ten thousand in three days from Dogecoin, and my social circle was full of screenshots of 'financial freedom.' Like many newcomers, I rushed in with brute force and ended up losing thousands of USDT in just a few months. The market taught me a lesson: there are no myths in the crypto world, only probabilities and discipline. Today, I want to share 7 practical insights that helped me turn things around in the simplest words.
1. Capital management: Surviving is more important than making quick money.
I initially lost money, mostly due to greed and stubbornness. Now I divide the principal into 5 parts, using only one part for each trade, setting a 10% stop-loss. Even if I lose 5 times in a row, the total loss is only 10%, and the account won't be severely impacted.
When I make a profit, I aim to take partial profits in batches above 10%. The crypto market is volatile; a single spike can lead to liquidation, but it can also let you give back profits. Remember: restrain greed and refuse to hold losses; that's the key to long-term survival.
2. Trade with the trend: Don't go against the trend
I once traded against the trend, hoping for a rebound as prices fell, only to get stuck deeper. I later understood that the trend is your friend. Trying to catch rebounds in a downtrend is like catching flying knives; pullbacks in an uptrend are the quality entry points.
Now, I only operate in clear trends: when moving averages align bullishly, I look for pullbacks to go long; when they align bearishly, I wait for rebounds to go short. Go with the flow, and your win rate will double.
3. Stay away from 'Dogecoin': Most coins that skyrocket are traps
I still remember how a single comment from Musk caused Dogecoin to plummet by 40%. Coins that surge in the short term may seem enticing, but they are actually high-risk: market makers pump the price to sell, not to make you rich.
I firmly avoid coins that double within a week. A high position sideways doesn't equal accumulation; it may signal a downturn. Don't think about making the last cent; you never know who the bag holder is.
4. Technical indicators: Three tools are enough
I've seen people with dozens of indicators on their screens, and they end up conflicting with each other. In fact, MACD shows trends, RSI indicates strength, and VPVR finds support and resistance; that's more than enough.
For example, MACD golden crosses are more effective above the zero axis; RSI above 70 warns of overbought conditions, while below 30 warns of oversold conditions. Indicators are tools, not scriptures. Simple rules + strict execution are better than complex strategies.
5. Don't average down on losses; only add to profitable positions
I've suffered losses from 'averaging down': when a coin drops 10%, I buy more, and then it drops another 30%, magnifying my losses. I eventually understood that averaging down in losses equals compounding mistakes.
Now, I only add positions when I'm in profit. When the trend confirms a positive direction, adding is a bonus; when the trend turns negative, a stop loss is a means of survival. Let profits run and let losses be fixed.
6. Price-volume relationship: Understand the 'subtext' of the market
A sudden volume breakout after a period of low trading is likely a signal to start; high volume at a peak with stagnant prices may indicate an impending sell-off.
I check the trading volume rankings every day. Volume is the footprint of money; the market makers can manipulate the candlestick charts, but it's hard to fake sustained volume. Combined with trend positions, you can avoid many pitfalls.
7. Multi-period review: Don't be fooled by 1-minute candlesticks
I used to be obsessed with short-term trading, making dozens of trades daily. I didn't make any money, and my nerves were fraying. Later, I switched to determining direction in 1 hour, finding entry points in 4 hours, observing trends on daily charts, and setting the big picture on weekly charts.
After the market closes each day, I always review: Were my entry reasons valid? Were my stop loss and take profit settings reasonable? The market is always right; the only thing wrong can be your strategy.
Lastly, a few words from the heart
The crypto space is not short of smart people; what it lacks are disciplined 'fools.' Don't envy those who flaunt screenshots of their wealth—they may only show you their wins and not their losses.
As a female player, I feel we actually have an advantage: we are more cautious, less prone to FOMO (fear of missing out), and willing to collaborate and learn. Many female players around me tend to gradually invest in mainstream coins, rarely touch contracts, and end up surviving longer.
Remember: The crypto space is a game of probabilities. Invest with spare money, operate with discipline, and let time bring stability. Instead of gambling for a comeback, it's better to be steady and survive. Let's encourage each other! Follow Ake for more up-to-date information and precise crypto knowledge, becoming your guide in the crypto space; learning is your greatest wealth!#加密市场反弹 #美联储降息 $ETH
