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Still experiencing frequent losses? If you’ve entered the crypto world and haven’t found a stable way to make money yet, this approach might be worth your serious consideration. It’s a summary of years of trading experience, and many people have turned their situations around after adjusting according to this framework.
First, it’s essential to recognize one fact: capital safety always comes first. Taking BTC as an example, suppose you have a capital of 3000U; never invest it all at once. Divide it into three parts of 1000U each. Having different responsibilities for each part is key:
- Short-term positions are used to capture intraday fluctuations, but discipline is crucial—no more than two trades per day, and stop after completing them. Greed is the biggest killer in this market.
- Trend positions focus on medium-term movements. If there are no clear trend signals, stay out of the market, especially when the weekly chart shows no signs of upward movement. "Lying flat" might be the smartest choice.
- The safety cushion is the last line of defense, used to handle sudden market spikes. If a margin call occurs, immediately add to your position to ensure you remain in the game. Many people make the fatal mistake of full-position trading, which is like betting all chips on one hand—once you lose, you’re out completely.
For high-volatility coins like SOL, the strategy should be more cautious. Range-bound markets are like a harvester—enter nine out of ten times only to be cut. The correct approach is to participate only during the most stable trend segments. Judging signals is simple: stay out of the market if the daily moving averages haven’t formed a bullish pattern. Wait until volume increases, the previous high is broken, and the daily close is stable before making your first entry. After entering, if profits reach 30% of your capital, immediately transfer half of the profit to a safe account. Set an 8% trailing stop to lock in gains. Opportunities are available every day; there’s no need to rush in. Choosing a clear "tailwind" often yields better profits than rushing into uncertain trades.
Finally, mental preparation is perhaps more important than technical analysis. Before trading, write a clear plan: set your stop-loss at 3%, and close positions automatically without hesitation when hit. Also, set a rule: exit trading software after 22:30. Don’t watch the candlestick charts anymore, even if they look tempting. If you can’t sleep, just uninstall the app. The more mechanically you execute, the less emotional fluctuation you’ll have, and the longer you’ll survive in this market.
Ultimately, from capital preservation to profitability, it’s not about chasing after "divine signals" or "miracle trades," but about accumulating through avoiding mistakes. The market is there every day, but capital is like a spark—once extinguished, it can never reignite. Strengthen these basic frameworks first, then study wave theory, technical indicators, and other tools. Only by surviving can you qualify to make big money.
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Lying flat and waiting for signals is truly the best, much more profitable than reckless trading.
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I have to write down the tip about uninstalling the APP after 22:30, it's so soothing haha.
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Nine out of ten entries get cut, SOL was really fierce this time, need to wait for stable signals.
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Capital safety > technical indicators, this phrase must be engraved in your mind, too many people go against it.
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It feels like a game of mentality; technical skills are secondary, the hard part is execution.
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Writing an operation plan sounds simple but is actually the hardest to stick to, I always want to break it.
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Transfer 30% of profits, setting this ratio well means no greed, no loss.
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"The spark once extinguished can never be rekindled," this sentence is perfect.