Making money in the crypto world is not that complicated; the highest-level techniques are often the simplest.
At the beginning of the year, a new student came in, and their situation was worse than most: when they first opened the trading interface and saw the red and green K-line fluctuations, they were dizzy. They secretly asked me, “Are these jumping bars specifically trying to scam me out of my money?” They only had a cautious 1000U in capital, tightly gripping it, fearing that it would vanish in the blink of an eye.
But three months later, this novice who was even confused by K-lines had their account balance steadily rise to 10,000U. There were no insider tips, no magical indicators, just a set of methods I taught them that seemed 'ridiculously simple.' Especially when trading coins like ZEC and BEAT, this method was used by them with incredible skill.
Now I will share with you these five 'hard truths' that helped him break through; perhaps this is the key you have been looking for.
Sticking to position management, distributing funds like a miser.
The first thing he did sounded particularly 'cowardly': he divided the 1000 U principal into ten equal parts, and never placed an order exceeding 100 U. Many people laughed at him back then, saying it was no different from playing house; in the crypto world, one must dare to take risks.
But he completely ignored it. His thinking was very simple: 'I don’t understand anything, and if I lose everything in one go, I won’t even have a chance to make it back.' This reflects the old saying, 'Don't put all your eggs in one basket.'
I told him this is the first and most important step in risk control. The volatility in the crypto world is huge, with daily fluctuations exceeding 20% being commonplace. Without reasonable position management, no amount of principal can withstand a few fluctuations. He built himself a safety net in the simplest way.
Only recognize one type of signal, and perfecting it becomes a secret weapon.
As a beginner, the biggest taboo is wanting to look at every indicator and follow every piece of news. I told him to delete all those flashy indicators and focus on two of the most classic and simple combinations: the 7-period moving average crossing above the 21-period moving average on the 1-hour chart; at the same time, the MACD indicator on the 4-hour chart starts to turn positive below the zero line.
It seems simple, but he executed it so 'rigidly' that it was admirable. Once, while watching ZEC, the signal was almost satisfied, and he stubbornly stayed up until dawn, only acting when the signal was fully established. I said, 'That's enough.' He replied, 'Teacher, if the rules are broken, can it still be called a rule?'
What I appreciate about him is this point. For beginners, it's unnecessary to master all indicators; understanding one or two classic signals thoroughly is far more effective than blindly switching between various techniques.
Discipline is the firewall; always set stop-loss and take-profit orders when opening a position.
This was the fastest step in his growth and the key to his mindset transformation. Our rule is: as long as a position is opened, immediately set the stop-loss and take-profit orders; exit decisively at a 1% loss and take profits at a 3% gain.
I remember when he first set his stop-loss, his finger hovered over the confirm button for a long time, but he just couldn't press it down. He was scared, fearing that the price would skyrocket right after he sold. As a result, after he set the stop-loss that day, the price dropped by 2%. Since then, he has never hesitated again.
'Those who can make money are not the old hands; those who can cut losses are the real old hands.' In the crypto world, a single wrong anti-position can make all your previous efforts go to waste. Setting stop-loss and take-profit points in advance essentially prevents emotional trading, which is the key to surviving in the market long-term.
Believe in compound interest; slow is fast.
He understood that with a small principal, it was unrealistic to rely on one or two operations to get rich. So we adopted a compounding rolling strategy: after each profit, merge the profit with half of the principal as total funds for the next operation; after consecutive profits, only invest 2% of the total funds for trading.
This method seems slow, but it's like rolling a snowball; as long as the win rate is guaranteed, the capital curve will be very stable. After a month of review, his cumulative profits actually exceeded those of peers who were frantically chasing highs and lows, appearing to be lively. The crypto world is not about who runs the fastest, but about who survives the longest and goes the farthest.
Avoid the 'graveyard' of retail investors and choose a battlefield that suits you.
He once lost money due to reckless operations when U.S. non-farm payroll data was released, so we made a 'trading blacklist' together: no trading within an hour before and after the non-farm data release, and no trading from 8 PM to 10 PM on Fridays (when market sentiment is highly volatile). He found that his most comfortable trading time was actually between 1 AM and 3 AM, specifically trading coins like BEAT that have relatively regular fluctuations.
During this time, there aren't so many large funds deliberately causing trouble, and the charts move quite 'cleanly.' This is a valuable lesson he learned from his own experience. Identifying and avoiding high-risk periods is a form of advanced risk control.
This student later told me that the most profound aspect of this method is that it freed him from the anxiety of 'predicting the market.' 'I used to think about buying at the lowest point and selling at the highest point. Now, I don’t think about that anymore; I just focus on whether the signal appears and whether the conditions are met. Instead, it became easier, and I made money.'
Opportunities in the crypto world are always there, but if the principal is lost, everything is lost. These five 'simple methods' together form the outline of a complete trading system: position management, signal recognition, discipline execution, capital growth, and timing selection.
Truly effective methods are often not complicated; what is complex is the heart that strictly adheres to simple discipline.
Follow me to learn more first-hand information and precise points in the crypto world, becoming your navigation in the crypto space; learning is your greatest wealth!
