At the beginning of the year, I took on a student who was a complete novice. When he first entered the trading world, he couldn't even understand candlestick charts and was dizzy looking at the red and green bars on the trading interface. He asked me, "Is this line jumping around trying to scam me?"
He had a capital of 1000U, holding it tightly, afraid that any operation would make it go to zero.
But who would have thought, three months later, he turned that 1000U into 10,000U.
Many people came to ask me if I had given him some insider indicators. I really didn’t; he relied entirely on a "ridiculously simple" five-step method that allowed him to stand firmly in the crypto space, especially when trading $ZEC and $BEAT, this method worked particularly well.
The first step is strict position sizing.
He divided the 1000U into 10 parts, only daring to invest 100U each time. Some laughed at him for being too timid, saying that placing a 100U order was like playing house. He didn't care and firmly believed in "not putting all eggs in one basket."
The second step is even more "rigid," only recognizing one type of signal.
He never looked at random indicators; he focused on two charts: the 1-hour chart where the 7-line crosses the 21-line, and then looking at the 4-hour MACD crossing above the zero line. Only when both conditions were met would he take action. Once, $ZEC was just about to meet the conditions, and he stayed up until dawn waiting for the signal. I said, "That’s close enough," but he shook his head and said, "Rules cannot be broken."
The third step is discipline to an extreme.
As soon as he opened a position, he would set his take profit and stop loss. If he lost 1%, he would immediately run. If he made 3%, he would walk away. The first time he set a stop-loss order, his finger hovered over the screen for a long time, afraid that as soon as he sold, the price would rise. However, the moment the trade was executed, it dropped by 2%. Since then, he never hesitated again.
The fourth step relies on compound interest to snowball. If he wins, he reinvests the profits along with half of the principal. If he wins a second time, he only operates with 2% of the total capital. It seems slow, but after a month, the returns were significantly higher than those who chased highs and cut losses.
The final step is to avoid the retail trader graveyard. He had previously lost money due to reckless trading on non-farm payroll nights, so he created a blacklist: avoiding trading before and after non-farm payrolls, not trading from 8 PM to 10 PM on Fridays, and only choosing to trade $BEAT between 1 AM and 3 AM. "During this time, there aren’t many big players causing trouble, it’s stable," this was the most valuable lesson he learned.
This method is not "high-end," but he relied on this strictness to change from someone who couldn't even understand candlesticks to someone who can now make consistent profits.
In the crypto world, it’s not about technology that leads to losses; it’s about impulsiveness and a restless heart. Don’t envy others for getting rich quickly; the difference between 1000U and 10,000U is just the "ridiculously stubborn" persistence. If you are still wandering aimlessly, feel free to come chat with me at @加密珂姐 $ETH