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Eight years ago, when I invested my entire savings of 20,000 yuan into the crypto market account, my hands were trembling.
Now, with the account reaching tens of millions, I feel much more at peace. Throughout this journey, what truly changed me was never how much I earned, but learning how to survive in the market, and then gradually grow my wealth.
First, let's talk about capital management.
I rarely go all-in; I only use about 20% of my position each time. Opportunities are always present in the market, but your principal is only once. Once it's gone, everything is lost.
Stop-loss is an iron discipline.
Keep single-loss trades within 10%. When hit, execute immediately without hesitation. Even if I make five consecutive wrong calls, I only lose at most half of my capital. But as long as I catch a trend, I can quickly recover the losses. Many people lose money by saying "wait a bit longer," but I survive by "cutting losses when needed."
When trading trends, I have a clear principle: no bottom-fishing.
Guessing the bottom during a decline is essentially walking into a flying knife. I only wait for the trend to emerge, then look for opportunities to enter during pullbacks. The direction has been validated by the market, so the win rate is naturally higher.
I rarely touch coins that double in a day.
Many seem like opportunities, but in reality, it's just the big players pushing prices up to attract buyers. Instead of betting on this uncertainty, I prefer to miss out and avoid becoming the last bag-holder.
Regarding indicators, I keep it simple, with one core: MACD.
I only consider entering when a bullish crossover occurs below the zero line and breaks above zero; once a death cross appears above zero, regardless of profit or loss, I choose to reduce or exit my position.
Trading is not about predicting the future but following the trend that has already happened.
Adding positions also has principles.
Adding to a losing position only amplifies mistakes. Only adding when in profit truly follows the trend and maximizes gains.
If the price breaks out with significantly increased volume, indicating capital is pushing the market, this could be the start of a major upward wave, and it's worth following.
After many years of reflection, I’ve summarized three key points: follow the trend, control losses, and patience.
When multi-timeframe moving averages align upward, hold with confidence. Once the structure weakens or the trend reverses, exit decisively.
There is no such thing as a "Holy Grail" in trading. The real factors that determine whether you can make money long-term are only two things—discipline and execution.