Haven't you seen it too: some people stare at the market all night and end up with panda eyes, only to have their accounts wiped out; some listen to 'insider information' and go all in, only to find themselves in a worse situation than old vinegar? But today I want to reveal a truth: the cryptocurrency market is not a casino, but a battlefield that tests strategies and human nature. I took a complete novice, starting with 1500 basic units, and in 5 months, reached 42,000+, without ever letting the account show a 'danger red light'. This isn't about mysticism, it's all based on practical logic I've summarized from 8 years of experience!
1. Capital allocation: Surviving is the key to waiting for the opportunity to feast.
The deadliest mistake for newbies: Treating capital as chips, thinking 'I can turn it around in one go'! I never let my students trade like this; my 'capital firewall' strategy has 3 simple rules that can be easily memorized:
30% for 'day trading guerrilla positions' (450 units): Focus on small fluctuations. For example, if mainstream currencies move 2%-3%, I only aim for a 1% profit and quickly exit, never getting attached! Don’t underestimate small gains; accumulating small amounts is much more reliable than 'gambling it all away'.
40% for 'trend sniper positions' (600 units): It's better to stay out than to act blindly! Only enter with a small position when the daily and 15-minute charts are aligned (for example, when short-term moving averages cross above long-term moving averages with accompanying volume increase); at other times, act as a 'market observer'.
30% lock for 'life-saving base position' (450 units): This part of the money is your 'turnaround card'. It should only be touched in two situations: either when mainstream currencies drop over 30% in an extreme undervaluation phase, or when encountering a certain major event (like a core currency's technical upgrade); otherwise, just store it in an offline wallet and 'lie flat'.
Core viewpoint: The market is never short of opportunities, but lacks 'surviving capital'! Operating with a full position is not bravery; it is voluntarily disarming. Diversifying your position is the only foundation that retail investors have to fight a protracted war.
II. Opportunity Capture: It's better to miss out than to be a 'hardworking fool'.
I have seen too many newbies trading 8 times a day, only to end up making less than the trading costs, yet they feel proud of how 'hard they worked' — don’t be foolish! In the crypto market, 'busy work' loses money faster than 'lying flat'! My opportunity filtering principles are just 3, helping you filter out 90% of the traps:
Only follow the trend, and don't engage in 'random trades': The 15-minute chart and the daily chart must be 'in sync', for example, both showing an upward trend, before considering entering the market; if the candlestick chart is erratic, even if others say 'it will skyrocket', stand firm with no position.
Lock in profits at 18%: For example, if you made 180 units with a guerrilla position, immediately withdraw 40% (72 units) to your offline wallet, and let the rest follow the trend. Remember: Only what you cash out is your money; the numbers in your account are 'floating clouds' and might disappear in the next moment.
Keep a close eye on 'major events' and stay away from 'rumors': Compared to chasing daily price swings, those certain events that can be predicted in advance (such as technical iterations of core currencies or the implementation of industry policies) are the real 'opportunities to win effortlessly'. I often tell my students: 'Waiting two years for a good opportunity is better than being busy with 200 random actions in two years.'
III. Trading Discipline: Emotion is the devil; rules are your armor.
The biggest enemy in trading is not the main force, but your own emotions — chasing when you see prices rise, panicking when you see prices fall, and in the end either buying at the peak or selling at the bottom! I’ll share with you my three iron rules that I haven't broken since entering the market:
Set a stop-loss at 1.8%: No matter how optimistic you are about a currency, if the loss reaches 1.8%, exit immediately! Don't think 'just wait a bit and it will bounce back'; those who hold on end up becoming 'stuck investors'. A stop-loss is not a loss; it’s about preserving your life for the next battle.
Reduce your position when profits exceed 5%: For example, if you earn 50 units, sell half to recover your capital, and let the remaining part follow the trend with a 'trailing stop', allowing profits to 'run', and don’t be greedy thinking 'I’ll sell at the highest point'.
Never blindly increase your position: Increasing your position should only be a 'planned action', such as when the trend retraces to key support levels, or when there is new positive news in the fundamentals. You must never add to your position just because you 'feel it will rise'. Trading based on feelings is no different from crossing the street with your eyes closed.
To be honest, the crypto space is full of traps and fewer opportunities. A newbie wandering alone is very likely 'to lose their head'. I have seen too many people lose their hard-earned money in the market due to a lack of strategy, which is why I want to share my 8 years of practical experience: Making money in the crypto market is not about luck; it's about 'strategic money' and 'discipline money'.
If you are still losing sleep over a few hundred units of floating profit or loss, it indicates that your trading system lacks a safety net; if you are still acting on rumors and making blind trades, it means you have not grasped the underlying logic of the market.
