Rules are more reliable than luck, and discipline lasts longer than intuition.
I have survived in the market not by always predicting the right direction, but by adhering to a set of ironclad trading principles. Today, I’ll share the core insights I’ve gained over the years through blood and tears; don’t expect to get rich from just one or two trades, we aim to stay steadily in the market.
Profit Protection: Don’t let the cooked duck fly away
Setting a stop-loss order is the bottom line; I invest no more than 5%-10% of my total funds in each trade to ensure that even with consecutive losses, overall fund safety is not affected.
My stop-loss line is clear: cut losses decisively at 15%, wrong trades must pay the price, and deep traps must be avoided. Don’t grieve over past losses; the key is to protect the remaining principal.
Profit-taking also requires strategy: sell directly if it rises 10% and falls back to the cost price; keep 10% profit when earning 20% and then sell; lock in at least 15% profit when earning 30%. Do not guess the peak; let profits roll naturally.
Market Rhythm: Quick in and out is not just aimless tossing.
Short-term trading is not about frequent operations, but about selective actions. I trade at specific times to avoid the impulse of constantly checking my phone or studying candlestick charts. Choose cryptocurrencies with strong liquidity and avoid obscure coins; low trading volume may lead to difficulties in execution.
I mainly rely on technical analysis: using candlestick charts, trading volume, etc., combined with technical indicators such as moving averages (MA), relative strength index (RSI), and MACD to judge market trends. An RSI overbought (>70) may indicate a correction, while an oversold (<30) may suggest a rebound.
Mindset Management: Be an Emotionless Trading Machine
Do not become emotionally attached to a particular asset. Many traders suffer heavy losses because they easily become emotionally attached to certain specific altcoins. When you feel angry, tired, or stressed about something, do not trade; your mindset will affect your judgment.
I insist on keeping a trading diary to review the decision-making basis, profit and loss situation, and psychological state of each trade. This habit helps me avoid making the same mistakes and grow quickly.
Avoid revenge trading; after executing a stop loss, try not to check it again within 24 hours. Opening a position with a vengeful mindset can likely expand losses.
My unique coping strategy
What to do if I sold too early? My principle is: if the price drops after selling and I am optimistic about it in the long term, buy back the same amount at the original price; if it drops slightly after selling and then rises back to the selling price, buy back unconditionally. It’s better to pay the transaction fee than to risk missing out.
What to do in extreme market conditions? Don't try to catch flying knives with bare hands. Waiting for stabilization and rebound, then entering the market after resistance levels turn into support levels is a more prudent approach.
The most important thing is: Don't overtrade. The number of trades is not positively correlated with profits. Even when the market provides multiple opportunities, I try not to operate more than 3 trades at the same time.
Written at last
In this market, what is most abundant is opportunity, and what is most precious is capital. These principles of mine may seem conservative, but it is precisely these that have allowed me to survive multiple market upheavals.
Remember, what we want is to earn U for a lifetime, not to earn U for a lifetime. A single tree cannot support a forest; mastering the basic principles is more important than blindly following trends. The market is always there; only those who survive can laugh last.
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