In the face of discipline, intelligence takes a backseat.
Many people ask me how I survived in the cryptocurrency world for eight years and even turned my debts into stable profits.
My answer may disappoint you: it is not based on some profound technical analysis or insider information, but rather on refining a few of the simplest 'foolish methods' to perfection.
In 2018, I got divorced and was in debt, and I reluctantly entered the cryptocurrency market. At first, I was like a headless fly chasing after rising and falling prices until I couldn't take the losses anymore, and only then did I realize a principle: in this 24/7 market, fancy techniques are no match for simple discipline. Today, I want to share the four iron rules I've summarized through my struggles over the years, hoping to help those of you who are struggling in the cryptocurrency world avoid unnecessary detours.
01 Choosing coins, just focus on the daily MACD
When I first entered the market, I was obsessed with 15-minute candlesticks, staring at the screen all day, my mood fluctuating with every small movement. What was the result? Not only was I physically and mentally exhausted, but my account also became thinner and thinner.
Later, I learned to be smart: don’t look below the daily line, and don’t touch unless there's a MACD golden cross.
Why use daily charts? Because daily-level trends are not easily manipulated by big players in the short term, filtering out most market noise. The MACD golden cross, especially the golden cross above the zero line, indicates that the trend has shifted from weak to strong, with higher odds of success.
For example, the wave of Ethereum that started last October is a typical golden cross above the zero line. I waited for the signal to confirm before entering, and while I didn’t catch the lowest point, I benefited from more than 80% of the subsequent rise. In the crypto world, slow is fast; don’t be greedy waiting for the lowest point; it’s safer to act when the signal is clear.
02 Position holding, a moving average determines life and death
My trading system only has one 20-day moving average, the rules are simple to the point of making people laugh:
When the price is above the 20-day line: no matter how scary the fluctuations in between are, hold on firmly. Last year, I wasn't shaken out of several leading coins in the AI sector because I held on tightly to this line.
Break below the 20-day line: even if it only drops 0.5%, immediately clear all positions! Don’t fantasize about 'bouncing back'; opportunistic thinking is the root of losses.
I have deeply realized this point. 90% of the deep losses in the crypto circle come from 'waiting a bit longer.' Now I cut positions as decisively as chopping vegetables, not because I don't care, but because I've paid too much tuition.
03 Take profits, selling in batches allows profits to run
Those who can buy are apprentices, and those who can sell are masters. My profit-taking strategy is as cold-blooded as a machine:
Sell 1/3 after a 40% rise: recover the principal and let the remaining profits continue to pursue higher space;
Sell 1/3 after an 80% rise: lock in most profits while leaving the base position;
Clear all positions if it breaks the moving average: never hesitate about 'will it go up again.'
This method helped me maintain profits during the last wave of Meme coins. For example, during the second surge of Pepe, I took profits in two batches, leaving 10% of my position; even if it goes to zero, I won't regret it.
In the crypto circle, don’t catch the tail of a fish, don’t earn the last penny; this is the wisdom of survival.
04 Discipline, run when breaking the line without any luck
This is the harshest rule: if the price breaks the moving average the next day after buying, stop loss unconditionally!
Last week I tried a Layer2 project; on the first day, I bought after breaking the moving average, but on the second day, it unexpectedly dropped back below the line. I immediately cut my position; although I had a small loss, I avoided a subsequent 20% drop.
Even if it goes back up later, I won’t regret it. Because I know very well that discipline is much more important than a single profit.
What the crypto circle lacks is not opportunities, but people who follow discipline. Many people clearly have a good trading system but lose out due to 'inconsistency between knowledge and action.'
05 The core thinking behind the clumsy methods
These four steps seem simple, but simple does not mean easy. They helped me climb out of the debt valley, and the key is two points:
Extremely simple: no need to study complex indicators, reduce decision fatigue. In a high-pressure environment, people are more likely to execute simple and clear rules.
Execution beats intelligence: how many people fail because 'being clever backfires'? Admit that you are an ordinary person, use discipline to restrain your nature, and you can achieve better results.
Some readers may ask: can such a simple method really make money? What I want to say is that any method can fail at times, but as long as you persist in consistent execution, it will show its power over the long term.
I used to be the type who was obsessed with complex indicators and pursued perfect trades. Until one day I realized: the crypto circle is not about who makes more money, but about who survives longer.
Conclusion
One day in the crypto circle is like a year in the human world. This market is never short of stars, but lacks longevity. Eight years have passed, and most of those who entered the market with me have quietly left, while I can still share experiences here, relying on these 'clumsy methods.'
If you can't control yourself, you might need to find a circle for mutual supervision. Remember: the premise of stable profits is to first admit that you are an ordinary person.
The market is always changing, but human nature never changes. Using a simple set of rules to restrain yourself may be the smartest 'clumsy method' in this highly volatile market.
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