Having navigated the crypto world for so many years, there are some things worth clarifying. Let’s not get caught up in those fancy theories; let’s focus on the practical—turning 20,000 yuan of principal into over 30 million. There’s no big secret behind it, just strict adherence to two ironclad rules: risk management and trend judgment.
The core strategy isn’t complicated: divide your funds into five parts, and only use one part at a time. Set a fixed stop-loss at 10 points, so each individual loss is at most 2% of your total capital. Even if you get it wrong five times in a row, the overall loss is only 10%. But as long as the direction is correct, take profit at more than 10 points. This risk-reward ratio makes sense. $ETH $ZEC $SUI The volatility of such coins is enough to support this approach.
The second key point is to follow the trend. This is not empty talk—rebound rallies in a downtrend are often trap setups, while pullbacks in an uptrend are the real entry points. For coins that have experienced a short-term surge, whether mainstream or altcoins, it’s best to stay away. Coins that can produce multiple main upward waves are rare; if they stagnate at high levels and can’t move up, they will fall. This logic is solid.
As for technical indicators, MACD is sufficient. A golden cross of DIF and DEA below the zero line, combined with a break above zero, is a clear entry signal. Conversely, a death cross above zero indicates it’s time to reduce positions—don’t wait.
The word "averaging down" has tripped up many people. Buying more as the price falls, only to lose more—this is a big taboo. Remember—never add to your position when losing money; only increase when making profits. This is an iron rule.
Volume-price relationship is crucial: when a low-level consolidation breaks out with increased volume, seize the opportunity. When volume increases at a high level but the price doesn’t move up, get out immediately—don’t be sentimental. Only trade coins in an uptrend; your win rate will naturally be higher. Watching the 3-day moving average turn upward is a short-term signal, the 30-day moving average rising indicates a medium-term trend, the 84-day moving average starting an upward main wave signals a major upward trend, and the 120-day moving average rising confirms a long-term trend.
Finally, every trade must be reviewed. Check whether your holding logic has changed, whether the weekly K-line trend is correct, whether the trend direction has shifted. Adjust your strategy at any time—don’t get stuck in a rut.
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liquiditea_sipper
· 12-20 08:49
That's correct, the two main strategies are risk control and riding the trend; everything else is superficial.
DCA during losses is indeed a big pitfall; many people around me have lost money this way.
Turning 20,000 into 30 million is truly impressive, but I have to ask, how many people can endure those moments of five consecutive mistakes? Mindset is the biggest enemy.
Watching the 3-day, 30-day, and 84-day moving averages can indeed filter out a lot of junk coins, but in real trading, only a few can actually execute it properly.
I agree with a 10-point stop loss; I just worry about being soft when executing, watching the price drop and still hesitating to cut.
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JustAnotherWallet
· 12-20 08:32
The idea of buying more as it drops is really a trap that will ruin you; I've fallen into this trap myself.
View OriginalReply0
PretendingSerious
· 12-20 08:27
This 2% risk control is indeed strict, but to be honest, most people can't follow through.
Having navigated the crypto world for so many years, there are some things worth clarifying. Let’s not get caught up in those fancy theories; let’s focus on the practical—turning 20,000 yuan of principal into over 30 million. There’s no big secret behind it, just strict adherence to two ironclad rules: risk management and trend judgment.
The core strategy isn’t complicated: divide your funds into five parts, and only use one part at a time. Set a fixed stop-loss at 10 points, so each individual loss is at most 2% of your total capital. Even if you get it wrong five times in a row, the overall loss is only 10%. But as long as the direction is correct, take profit at more than 10 points. This risk-reward ratio makes sense. $ETH $ZEC $SUI The volatility of such coins is enough to support this approach.
The second key point is to follow the trend. This is not empty talk—rebound rallies in a downtrend are often trap setups, while pullbacks in an uptrend are the real entry points. For coins that have experienced a short-term surge, whether mainstream or altcoins, it’s best to stay away. Coins that can produce multiple main upward waves are rare; if they stagnate at high levels and can’t move up, they will fall. This logic is solid.
As for technical indicators, MACD is sufficient. A golden cross of DIF and DEA below the zero line, combined with a break above zero, is a clear entry signal. Conversely, a death cross above zero indicates it’s time to reduce positions—don’t wait.
The word "averaging down" has tripped up many people. Buying more as the price falls, only to lose more—this is a big taboo. Remember—never add to your position when losing money; only increase when making profits. This is an iron rule.
Volume-price relationship is crucial: when a low-level consolidation breaks out with increased volume, seize the opportunity. When volume increases at a high level but the price doesn’t move up, get out immediately—don’t be sentimental. Only trade coins in an uptrend; your win rate will naturally be higher. Watching the 3-day moving average turn upward is a short-term signal, the 30-day moving average rising indicates a medium-term trend, the 84-day moving average starting an upward main wave signals a major upward trend, and the 120-day moving average rising confirms a long-term trend.
Finally, every trade must be reviewed. Check whether your holding logic has changed, whether the weekly K-line trend is correct, whether the trend direction has shifted. Adjust your strategy at any time—don’t get stuck in a rut.