The 'foolish tactic' that even the main forces fear.
Brothers, I am Brother Bin.
Today, we won't discuss complex indicators or teach you how to read candlestick secrets. The method I want to share is so simple that it feels foolish—but it is precisely this 'foolish' method that allowed me to turn a million loss into an eight-figure gain within a year.
Once I was also obsessed with various advanced technical analyses, staying up late to study every day, but ended up losing my way. Until I understood a principle: the crypto world specializes in dealing with all kinds of dissent, but it always rewards those 'fools' who follow the rules.
1. The rule of picking up money during a crash: Others are fearful while you are greedy.
There is a rule in the cryptocurrency world: any popular coin that has dropped continuously from a high position for 7-9 days has a very high success rate for bottom fishing with eyes closed.
During last year's plummet of SOL, I entered on the 8th day, and within less than 10 days, it rebounded by 40%. This isn't some profound technique; it's just exploiting market panic. When everyone can't help but cut their losses, that is the best time to pick up money.
Core point: After a continuous crash, when no one in the trading group is showing their positions anymore, that is an entry signal.
2. Two-day surge top escape technique: Those who can buy are disciples, but those who can sell are masters.
Has there been a surge for over 48 hours? Immediately reduce your position by 80%! This is a lesson I learned with real money.
Data shows that after two consecutive days of significant gains, the probability of a pullback on the third day exceeds seventy percent. It's like running; if you accelerate too quickly, you'll inevitably be out of breath. Don't be greedy to grab every bit of profit; leave some space for others, as it also leaves a way out for yourself.
3. A three-day consolidation must change: The quiet period is the calm before the storm.
Whenever a coin consolidates for three days, it means the main force is preparing a big move. At this moment, you should wait patiently like a hunter—either chase the breakout or exit if it breaks down.
The lesson from SHIB is still fresh in my memory: I didn't exit during consolidation, resulting in a direct loss of 30% when it broke down. Now my rule is: if it doesn't break out before the close on the third day of consolidation, I immediately cut my position in half.
4. Volume-price divergence top escape signal: Listen to what the market is saying.
Is the coin price high, but the trading volume is increasing yet it won't rise? This is the most dangerous exit signal.
It's like someone shouting loudly but has no strength to act; just a display of bravado. Last year, many people lost heavily on LUNA because they ignored the dangerous signal of 'high volume with no increase'.
5. Moving average survival rule: Use the 30-day line to select coins and the 3-day line for operation.
This is my most important insight: for long-term coin selection, look at the 30-day line, and for short-term trading, look at the 3-day line.
Treat the 30-day moving average as the boundary between bull and bear markets, only go long above it and do not participate below it. The 3-day moving average is a short-term rhythm indicator; if the K-line breaks below the 3-day line, reduce your position, and if it breaks above, increase your position. Simple enough? Simple to the point where many people look down on it, but this is the secret to sustained profitability.
6. Fish body theory: There are three thousand weak waters, only take one ladle to drink.
If small funds want to grow quickly, never think about consuming the whole fish—just eat the fattiest part of the fish body.
My strategy is: enter when the coin price starts to rise, and begin to take partial profits when a profit of around 20% is reached. You might miss out on further gains, but you also avoid most of the risks. Remember, the cryptocurrency market is never short of opportunities; what it lacks is the capital that remains in the market.
7. The most crucial point: position management surpasses all technicals.
This is the 10th rule, and 90% of people can't do it: never go all in; always leave some room.
My position rule is: divide the total capital into 10 parts, with no single coin position exceeding 3 parts, and always keep 2 parts in cash for emergencies. This ensures that when a black swan event occurs, I won't be liquidated and still have funds to buy the dip.
Written at last.
In the cryptocurrency world, it's not about who is smarter, but who can last longer. Those 'smart people' who chase gains and cuts every day have mostly been eliminated by the market. Meanwhile, we 'dumb people' who rely on simple methods and repeat actions are actually the ones who laugh last.
Complex techniques are all the same; effective methods are as simple as common sense—this is the most ironic truth of the cryptocurrency world.
Remember this saying from Bin Ge: In the cryptocurrency world, longevity is king; the last one standing is the ruler. Follow Bin Ge for more first-hand information and accurate points on cryptocurrency knowledge, becoming your navigation in the crypto space; learning is your greatest wealth!#加密市场回调 #沃什美联储政策前瞻 $ETH
