Let me say something from the bottom of my heart—
How much did I lose in the first two years of trading cryptocurrency? Staring at the K-line at three in the morning, my palms were sweaty, my heart was pounding, wanting to cry but unable to.
Later I realized: it wasn't that I wasn't smart enough, but that I was too eager to be 'smart'.
What high throw low absorption, what trend tracking, what escaping the top and bottom... I have tried them all. In the end, I found that what truly allowed me to survive and make money was a set of methods that were too simple to be true.
No bragging. Today I lay it all bare.
1. Capital iron rule: survive first, then talk about making money.
No matter how great your strategy is, if you blow up your account once, it all goes to zero.
I've set three strict rules for myself:
1. With a hundred thousand principal, only take ten thousand for a trial order
Total position should never exceed 20%. You never know what will happen tomorrow.
2. A single loss of 2%, must exit
No matter how optimistic you are or how reluctant you feel, set your stop-loss order in advance. When it hits, exit without hesitation or fantasy.
3. Leverage? Beginners should avoid it altogether
Even experienced traders should not exceed one-tenth of their position. Leverage is the illusion of getting rich and the reality of liquidation.
This one can help you avoid 90% of the pitfalls.
Two, core strategy: do less, earn more instead
The market never rewards 'diligence', only rewards 'doing it right'.
Only do one direction
Don't keep flipping back and forth. If today is good and tomorrow is bad, the win rate will be halved. Choose one direction and stick to it.
Mechanical discipline: stop-loss at 3%, take-profit at 5%
Set orders in advance, and exit when it hits. Don't rely on feelings or watch the market.
A maximum of three trades per day
The first two trades should have the highest quality. Exceeding three times is basically giving fees to the exchange.
Three, forbidden zones: 90% of beginners die here
Don't add positions against the trend
Every time you add, you're one step closer to liquidation.
Don't engage in high-frequency trading
Transaction costs are invisible vampires. The earnings are not enough to cover the fees.
Profit not taken is just a number
Most liquidations stem from that one statement: 'I think it can still rise.'
Comparison: with the same hundred thousand principal, the outcome is worlds apart
Wrong strategy
Full position + high leverage → buy the dip → hold the position → liquidation to zero
Correct strategy
20,000 base capital + 3% stop-loss + 5% take-profit + two high-quality trades a week
And the result? Stable monthly returns of 8%. Compounding annualized over 150%.
Expert's rules: six points are enough
Need:
Use spare money to enter the market
Strictly adhere to discipline
Only do one-sided trades
Do not:
Gambling all in
Stubbornly hold on
Block both ends
The last sentence is also the most important one
Those who gamble their living expenses on the future eventually die halfway.
Only by protecting the principal and living long enough can you qualify to talk about 'making big money' in the crypto world.
This method is not sexy or exciting, but it is the only answer that has taken me from 'losing sleep over losses' to 'earning a million a month.'