Eight years. A number, from fifty thousand to eight digits. Many people see the results and attribute it to luck. To be honest, I just smile when I hear that. What this circle lacks is not stories of 'once made money,' but what it lacks is those who can still stand on the shore in pants when the tide goes out. The reason I can stay this long without being thrown off the bus is not due to any 'magical operation,' but rather a few rules that I find 'old-fashioned' myself. Today, let's talk about something practical; listen up.
1. Diversify your positions, diversify your positions, still diversify your positions
Don't put all your eggs in one basket. This saying is overused, but 90% of people can't do it. My iron rule is to always split the principal into several parts. Each time I invest, I only use one part. Moreover, for each trade, think about the worst-case scenario first and clearly outline the stop-loss line. By doing so, even if I make a mistake once, the damage is only superficial and won't affect the foundation. Many people bet everything; it's not about betting on the future, but gambling on tomorrow. The market specializes in dealing with all forms of defiance.
2. The trend is your friend, don’t always think about being its teacher.
In a downtrend, all rebounds feel like 'a brief flash of light', looking tempting, but often burying people. In an uptrend, normal pullbacks are actually opportunities. Don't always think you're smart enough to guess the tops and bottoms. Following the big trend may be slower, but it's much easier than guessing every day and repeatedly getting slapped in the face, and you’ll live longer too.
3. Don’t chase after a surge; wait for it to cool down.
Seeing a coin multiply several times in a few days, are you itching to jump in? But to be honest, after such a crazy surge, the vast majority that follow are long sideways movements or declines. Those that can continue to surge without looking back are few and far between. Many people lose big money because they can't accept 'missing out', and eventually jump in, standing at the peak. Remember, missing out means at most not making money, while chasing highs could lead to huge losses.
4. Trust one or two indicators, use them as 'traffic lights'.
I don't deal in metaphysics. Tools should be simple and practical. For instance, I’m used to looking at an indicator called MACD. You can think of it as a traffic light at an intersection: when a golden cross forms below the zero axis and stays steady, that's the 'green light' initially on, so you can look for opportunities. When a dead cross forms at a high above the zero axis, that's the 'yellow light' turning 'red', and you should consider reducing your position and taking a break. Trading isn't fortune-telling; it's about acting on signals.
5. If you're losing, don't think about 'averaging down'.
This is one of the fastest paths to liquidation, no exceptions. When the price goes down, you keep adding positions, calling it 'lowering the cost', but in reality, you're digging a deeper hole for yourself. My rule is the opposite: I never average down on losing positions. Only positions that are profitable and prove the direction is correct can be considered for appropriate scaling at key levels. This is called 'adding to profitable positions, cutting losses'.
6. Volume doesn't lie, listen more.
Prices can be drawn, but volumes are usually more real. If there’s a breakout with increased volume at a low point, it’s worth paying closer attention. At a high point, if the price stagnates or even falls back, but the volume spikes, this is often a signal for 'distribution'. Don't hesitate; running fast is more important than understanding clearly.
7. Only look for work in an uptrend.
This is my basic principle. If the short-term trend of several days is upward, I consider a short-term trade. If the medium-term trend of several tens of days is upward, I plan for a medium-term layout. A true main upward wave often requires longer-term moving average support. Trend going down? Sorry, I won’t even look at it. Rowing against the current is not bravery, it's a hard and thankless task.
8. Your trading records are your best teacher.
For every trade, regardless of profit or loss, you must review it afterward. Just ask yourself three simple questions: Why did I enter the market? Does the reason still hold? If I encounter the same situation next time, will I act the same way? Many people are obsessed with finding the next dark horse but never look back at the pits they’ve fallen into. True growth comes from these tedious self-examinations.
Finally, let me say a couple of things. This market is full of stories of wanting to turn things around overnight. But those who have truly walked this path know well that from five figures to eight figures, it's never about one thrilling victory, but rather a set of rules that allow you to survive amidst the market's volatility. It's not glamorous, and it can be a bit tedious, but it truly works. Let’s encourage each other.
Follow Crypto Brother, let him guide you to understand more first-hand information and cryptocurrency knowledge at precise points, becoming your navigation in the crypto world. Learning is your greatest wealth!#币安KOL引荐计划 #美国2月PPI超预期 $ETH
