Today we won't talk about miracles or getting rich quickly; I just want to share a simple yet often overlooked principle with you: in this market, true profit comes from the moments you refuse to trade.
1. That night of total awakening due to liquidation
In March 2019, Bitcoin fluctuated around $4000. I spotted a 'perfect opportunity' and invested the only 1800U I had at that time. Three hours later, an unexpected rapid pullback left me with nothing. The glaring red numbers on the screen and my hollow heartbeat made up the entire memory of that night.
But that night also gave me a gift: I realized I am not a genius and cannot predict the market. From that day on, I gave up the illusion of 'beating the market' and began to learn the art of 'coexisting with the market.'
Second, my '333' position rule: How to build certainty amid uncertainty
First part: Core position (one-third) in favor of the trend
This 700U only participates in trend markets above the monthly chart level.
My entry conditions are extremely strict:
Price remains above the 200-day moving average for more than three weeks;
Trading volume continues to expand;
At least two technical indicators must resonate.
In the past three years, this position has only traded four times, but each time the profit exceeded 50%.
Its mission is not to profit frequently, but to ensure I am present when a major trend arrives.
Second part: Swing position (one-third) to capture intermediate opportunities
This 700U is used for swing trading on the 4-hour chart level.
My rules are:
Only participate when the trend is clear (buy when moving averages are bullish, sell when bearish);
Single stop-loss not exceeding 3% of the principal;
After reaching a profit of 10%, move the stop-loss to the cost price.
This position averages 2-3 trades per month, with an annualized return stable at 20-30%.
Third part: Observation position (one-third) the eternal safety cushion
This 400U is always stored in stablecoin form for:
Opportunity capture in extreme market conditions;
Make up for potential losses from the previous two positions;
Maintain a stable mindset with 'psychological anchor points'.
Knowing there is always ammunition available allows me to remain calm amid fluctuations.
Third, the three 'certain signals' I only wait for
After reviewing hundreds of trades, I found that only three types of signals are worth my real investment:
Signal one: Confirmation of a pullback after a breakout
When the price breaks key resistance with volume and retraces to that level within 3-5 trading days without breaking it, I will intervene at the end of the pullback.
Key validation: The trading volume at the breakout must be more than 1.5 times the average volume of the past 20 days.
Signal two: Strong recovery after a false breakdown
Price quickly breaks an important support level but strongly recovers within 2 hours, and the closing price re-establishes above the support level.
Key validation: The buying pressure during recovery must be significantly stronger than the selling pressure during the breakdown.
Signal three: Volume contraction pullback in a trend
In a clear upward trend, the price retraces to near the 20-day moving average, and trading volume shrinks to below 70% of the previous average.
Key validation: The pullback amplitude must not exceed 50% of the previous wave's increase.
I regard the remaining 99% of fluctuations as market noise.
A cruel truth is: The market offers 100 opportunities every day, but 95 of them are traps, and only 5 are real opportunities. My task is not to seize all opportunities but to avoid all traps and wait for the arrival of that 5%.
Fourth, my discipline checklist: things more important than technique
Discipline one: Stop-loss is not an option, it is breathing
Before entering each trade, I must write down:
Entry price;
Stop-loss price (maximum loss 1.5%);
Target price (profit-loss ratio of at least 1:3).
Set stop-loss orders simultaneously with entry, giving myself no chance to 'wait a bit'.
Discipline two: Profit withdrawal is a habit, not a reward
Whenever the total account value reaches a new high, I will immediately withdraw 20% of the profits to a separate wallet.
This money has four uses:
Improving life (30%);
Buying low-risk assets (40%);
Learning to invest (20%);
Charitable donations (10%).
Only the money that leaves the account is the truly earned money.
Discipline three: Mandatory breaks are the best risk control
After two consecutive losing trades, or a daily loss of 3%, I will:
Immediately close all trading software;
Do not check the market again within 24 hours;
Review trading records to identify emotional decision points.
In the market, pausing is not weakness, it's wisdom.
Fifth, for those still searching for the 'Holy Grail'
If you have also lost yourself in trading, I suggest:
First phase: Establish your 'do not do' list
Instead of learning new skills, first list out behaviors you absolutely won't engage in, such as:
Absolutely no heavy positions;
Absolutely do not add to positions after a loss;
Absolutely do not open positions 5 minutes before data release;
Absolutely do not trade based on 'feelings of rising/falling'.
Limiting your mistakes is easier for profit than expanding your abilities.
Second phase: 'Just observe' for three months
Choose three assets you are interested in and record them daily:
What signals conforming to your system have appeared?
If you traded, what would the result be?
What signals did you miss? Why?
The goal of this stage is to understand the market, not to make money.
Third phase: Practice with the smallest unit
When you have 70% confidence in your system, start real trading with the smallest tradeable unit (like 0.01 lots or 0.1 Bitcoin).
The goal of the first 100 trades is not to make a profit but to validate whether your system can survive in the real market.
Sixth, the final confession
Nowadays, my trading life is calm to the point of being boring:
Daily market watching time not exceeding 2 hours;
Weekly trading frequency not exceeding 3 times;
Monthly profit target set at 5% (often exceeded in reality).
A friend asked me: 'Isn’t trading like this boring?'
I replied: 'I came to this market to improve my life, not to seek excitement. And true improvement often comes from those seemingly boring persuasions.'
The friend who once went bankrupt with me finally started using a similar system last year.
He recently told me: 'I can finally sleep well now. It turns out that the feeling of stable profits is more reassuring than the excitement of gambling-style trading.'
Starting from 1800U to today, what I learned is not the magic of predicting the market, but the art of managing oneself.
The market is always fluctuating, and opportunities always arise. But only those who understand how to wait, how to restrain, and how to reconcile with themselves can elegantly reap the fruits.
If you are also looking for a more relaxed and sustainable trading method, consider following me.
I will continue to share:
How to identify high win-rate trading signals
The psychology and practical skills of position management
Additionally, specific methods to maintain emotional stability during trading
There are no shortcuts to overnight wealth, only an honest exploration of the essence of trading.
After all, in this infinite game—controlling oneself is more important than predicting the market.
Follow me@链上标哥 , don't get lost! Move forward steadily and wait for the flowers to bloom. 🌿
