Having been in the crypto world for so many years, I've seen too many smart people stumble.
"This wave is definitely going to skyrocket," "If I don't get in now, it'll be too late," "I have a good feeling about this one"... I had these thoughts too, but the results are often painful lessons. I discovered a strange phenomenon: in the crypto world, the simpler methods are the ones that no one sticks to, while the more complicated strategies attract more attention.
Retail investors suffer the most, basically falling for three main issues:
First, they get greedy when they see a big rise and chase the highs. As soon as the candlestick shows a bullish trend, they rush in, only to find themselves trapped at the peak.
Second, the single bet is too heavy. Thinking that if the direction is right, one can go all in, but when the market slightly corrects, it leads to a direct liquidation.
Third, emotions lead to going all in. Treating gambling as faith, even if the trend is right, it doesn’t help because there’s no remaining funds to adjust positions, and when opportunities arise, one can only watch others make money.
What is the 'dumbest' yet most effective method?
My summarized experience is: the true essence of trading coins isn't complex techniques but a set of anti-human disciplines.
Do not trade during sideways consolidation. When the market has no clear direction, patiently waiting is the best strategy. How many people have lost their positions and patience due to market fluctuations?
Buy on the downside, sell on the upside. Buy after a big drop, sell after a big rise, act against market sentiment. When there’s panic from a crash and complaints abound, no one dares to reach out, but the ones who truly make money are those who buy the dip at that moment.
In a high-level sideways market, push higher quickly; in a low-level sideways market with new lows, it’s a good time to buy in full. This seems simple but requires overcoming the greed of 'what if it keeps rising' and the fear of 'it might still drop.'
How to build your own 'foolproof method' system?
Position management is key. I adopt a pyramid adding strategy: profitable positions increase by a ratio of 1:0.6:0.3, and when losing, halve the position each time. The leverage usage rate does not exceed 20% of the account's net value; this is the lifeline.
The stop-loss rule must be followed. A single loss should not exceed 2% of the total funds, a daily loss of 5% requires a mandatory stop of trading, and a weekly loss of 10% leads to a review and cooling-off period. This is not to limit profits, but to protect the principal.
Avoid staring at the market all day. After setting stop-loss and take-profit points, stay away from the market to avoid disrupting judgment due to short-term fluctuations. The price fluctuations in the crypto world are huge; it’s common for Bitcoin to drop 20% in a day, and altcoins may get halved.
Why do 90% of people not persist to the end?
Cognitive biases are the greatest enemy. Confirmation bias leads us to only seek information that supports our views, while overconfidence bias makes us overestimate our judgment.
An impatient mindset is hard to overcome. Many enter the market with the hope of getting rich overnight but are unprepared for a total loss. The era of tenfold or hundredfold growth in crypto is over; now, being able to avoid losses is already exceptional.
Lack of continuous learning. Statistics show that very few investors can accurately explain 'what blockchain technology is.' If one doesn't even understand what they are investing in, how can they make rational decisions?
Conclusion
In this market, living longer is more important than making quick profits. The so-called 'dumbest method' is actually a rational investment approach that follows market rules, controls risks, and maintains patience.
The principle is simple: the survival rule in the crypto world ultimately is: work diligently, invest spare money, hold long-term, and eat and sleep on time. These principles seem simple, but those who can truly do them are often the final winners. Follow Bin Ge to learn more first-hand information and accurate points in the crypto world; becoming your guide in the crypto space, learning is your greatest wealth!#加密市场回调 #以太坊L2如何发展？ $ETH
