A friend asked: "Why do I stare at the market every day, stay up late chasing trends, yet my account keeps getting thinner?" I reflected on my journey from repeatedly losing money to achieving stable profits and found one issue: smart people always want to take shortcuts, while 'foolish people' are willing to put in the hard work. The method I'm discussing today may seem technically simple, but it has allowed me to steadily profit month after month in the volatile market of 2025. This is not some 'wealth code,' but a system approach that any ordinary person can replicate.
Step 1: Choose coins carefully, don't look for gold in a pile of garbage
I have seen too many people holding onto 'hundredfold altcoins' analyzing charts as if they were treasures, only to end up stuck. My principle is very simple: only choose coins that have high capital attention and a healthy trend.
Initial screening: spend 5 minutes each day to glance at the gainers list, but there is a key action—immediately eliminate coins that have fallen for more than 3 days. For instance, last month a certain Hong Kong concept coin surged 80% in one day, but then the trading volume dropped sharply; this is a sign of capital retreat, chasing in would be giving away money.
Deep logic: popular but non-sustainable coins are often pumped and dumped. True potential coins will remain active after capital enters, and even reach new highs after short-term adjustments.
Step 2: Use the monthly chart to determine the overall trend, refuse to bet against the trend for a rebound.
90% of losses in the crypto market come from 'buying the dip halfway up the mountain.' My foolish method is to open the monthly chart and only look at whether the MACD has golden crosses.
Why the monthly chart? Short-term fluctuations are full of traps, but golden crosses on the monthly level indicate that the medium-term trend has reversed. For instance, this year, after the monthly MACD golden cross near $0.12 for CFX, it rose to $0.31 in three months, with each retracement along the way offering opportunities.
The cost of counter-trend operations: some always want to bet on a V-shaped reversal, but in a downward trend, rebounds are mostly traps. Trading with the trend is like taking an elevator up; counter-trend trading is like being kicked while climbing stairs.
Step 3: Find buying points on the daily chart, compressing costs under the main force.
If you see the trend correctly but don’t buy right, you’ll still lose. My entry secret is simple: watch the daily 60-day moving average, only act when it retraces properly.
Specific action: when the price of a coin retraces to the 60-day moving average (especially when it briefly drops below and quickly recovers), accompanied by increased trading volume, it signals heavy positions. For example, Bitcoin rebounded 15% in the week after retracing to the 60-day line in June; entering at this position has small stop losses and large profit potential.
Countering human nature: many fear missing out, and rush in as soon as they see a rise, resulting in buying at the peak. Looking back at the candlestick chart, most coins will retrace to the moving average after a rise; waiting patiently for a few days often yields safer opportunities.
Step 4: Selling should be mechanical; profits taken are truly yours.
The most painful thing in the crypto market is not never having made money, but having made money and giving it back. My discipline is posted in red on my screen: hold coins online, stay in cash offline.
Layered profit-taking: sell 1/3 at a 30% increase, sell another 1/3 at a 50% increase, and use the remaining position's profits to seek greater space. Even if you miss the peak, there's no regret; the crypto market is full of opportunities.
Life-saving bottom line: once it drops below the 60-day line, clear out decisively! Even if it goes back up later, it's better than being deeply trapped. This year I had a coin that stopped loss when it broke below the 60-day line, avoiding a subsequent 40% drop; preserving capital is the foundation for turning things around.
Let's talk about mentality: why can 'foolish methods' win over most smart people?
Quantitative thinking against emotion: 'buying the dip' is human nature, but 'cutting losses at a break' is against human nature. Writing the rules in black and white (for example, 'must cut if it drops below 8%') helps avoid being controlled by fear and greed.
Give up predictions, focus on reactions: no one can buy at the lowest point every time. My system only does one thing: follow the trend when it comes, leave when the trend ends. It seems passive, but it simplifies complex problems.
Slow is fast: some laugh at me for only trading a few times a month, but accumulating coins in a bull market and staying in cash in a bear market yields far greater returns over the years than frequent trading.
A few heartfelt words at the end.
The biggest challenge of this method is not the technique, but persistence. Many people try for two weeks without making big money, then chase hotspots and play contracts, resulting in diminishing capital. In the crypto market, living longer is more important than running faster.
If you are still in a loss right now, consider a different approach: use a foolish method and play honestly. The simpler the rules, the better they can counter complex human emotions. Perhaps you only earn 10% in the first month, but if you persist, you'll find that your account curve is no longer a rollercoaster, but steadily climbing.
The market always has opportunities, but your capital only gets one chance.
Interactive topic: What is the most 'foolish' yet effective trading method you've used? Let's chat in the comments!
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