People often ask me the same question: Why does the market fall when I open a long position, and rise when I open a short? My answer is always very straightforward — because you're gambling, not trading.
I've been in the cryptocurrency market for nearly nine years. I've seen Bitcoin surge from a few thousand dollars all the way to sixty thousand, and I've also witnessed countless altcoins wipe out completely in bloodbaths. From initially blindly following the trend to gradually developing my own trading system, the tuition fees for this process have exceeded seven figures.
These nine years have taught me a truth that most trading experts know but rarely speak aloud: there are no secrets in the market. The real secret lies in your mindset and discipline. Today, I want to share some practical methods that might inspire you.
**Money Management: Staying Alive Is Winning**
Many people say to divide your funds into five parts, using only one-fifth each time — this idea is correct but still far from enough. I personally use a three-tier position management model.
How exactly do I allocate? 50% is the core position, only holding mainstream coins like BTC and ETH, buy and hold long-term; 30% is for swing trading, chasing short-term opportunities; the remaining 20% is kept for opportunities, only to be used during market panic-driven dips to buy the bottom.
There's also a strict rule: the risk on a single trade must never exceed 2% of your total account balance. Suppose you have $10,000 in your account, then $200 is your life-and-death line. What does this mean? It means you should determine your position size based on your stop-loss level, rather than going all-in in a hot-headed moment.
**Follow the Trend: The Secret to Win Rate**
Every rebound during a downtrend is digging a trap to lure more buyers, and every correction during an uptrend is a golden opportunity — there's nothing wrong with this statement.
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SleepTrader
· 01-10 04:30
That's right, nine out of ten people are gambling, and the remaining one may not really understand either.
Mindset and discipline are the real keys, but unfortunately most people rely on luck.
I agree with the 2% stop-loss rule; many people end up losing because they refuse to cut losses.
It's a good point, but it seems that 90% of people still go all-in after hearing it.
Holding 50% of the core position passively—I'd like to try this approach.
The difference between gambling and trading is just a thin line; most people simply can't tell the difference.
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InscriptionGriller
· 01-10 03:12
That's right, most people are just gambling and mistakenly think they're trading. They deserve to get cut.
Nine years and seven math fees? Brother, the cost is indeed affordable, but most retail investors simply can't afford this price and just exit.
I also use the 50-30-20 approach, but the key is not to move. That 30% in swing trading is really a test of psychology. Most people can't hold on for two weeks and collapse completely.
The 2% stop-loss rule is crucial. To put it simply, you can only make money if you survive. If you die, you lose everything. Many still choose to go all-in, not shedding tears until the coffin.
That last sentence about诱多 (诱导多头, false signals to lure bulls) and黄金坑 (golden pit, trap) honestly, market sentiment is so volatile that it constantly ruins people's mental state. No matter how good the technical analysis is, it can't withstand blindly following the trend and reckless operations.
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SadMoneyMeow
· 01-07 06:49
Wake up, everyone. You're absolutely right; mindset and discipline are the true keys to success.
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TokenTherapist
· 01-07 06:42
Nine years of tuition fees in the seven figures, this guy has really fallen down before. Now he's sharing a history of blood, sweat, and tears.
Operation, the key is still mindset and discipline? Not wrong to say that, but few can truly do it.
The 50/30/20 allocation strategy is a good idea, but I'm worried most people still can't hold on. When they see a swing up, they want to go all-in.
I agree with the 2% stop-loss line; otherwise, one bad move could send you back to square one.
View OriginalReply0
NftMetaversePainter
· 01-07 06:39
actually the algorithmic beauty of position sizing here is precisely what separates the computational thinkers from the emotional gamblers... the 2% risk rule is basically a hash function for your portfolio's topological stability
People often ask me the same question: Why does the market fall when I open a long position, and rise when I open a short? My answer is always very straightforward — because you're gambling, not trading.
I've been in the cryptocurrency market for nearly nine years. I've seen Bitcoin surge from a few thousand dollars all the way to sixty thousand, and I've also witnessed countless altcoins wipe out completely in bloodbaths. From initially blindly following the trend to gradually developing my own trading system, the tuition fees for this process have exceeded seven figures.
These nine years have taught me a truth that most trading experts know but rarely speak aloud: there are no secrets in the market. The real secret lies in your mindset and discipline. Today, I want to share some practical methods that might inspire you.
**Money Management: Staying Alive Is Winning**
Many people say to divide your funds into five parts, using only one-fifth each time — this idea is correct but still far from enough. I personally use a three-tier position management model.
How exactly do I allocate? 50% is the core position, only holding mainstream coins like BTC and ETH, buy and hold long-term; 30% is for swing trading, chasing short-term opportunities; the remaining 20% is kept for opportunities, only to be used during market panic-driven dips to buy the bottom.
There's also a strict rule: the risk on a single trade must never exceed 2% of your total account balance. Suppose you have $10,000 in your account, then $200 is your life-and-death line. What does this mean? It means you should determine your position size based on your stop-loss level, rather than going all-in in a hot-headed moment.
**Follow the Trend: The Secret to Win Rate**
Every rebound during a downtrend is digging a trap to lure more buyers, and every correction during an uptrend is a golden opportunity — there's nothing wrong with this statement.