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Having navigated the cryptocurrency market, just having capital is far from enough—the key is to find the rhythm that suits you. Many people have been trading crypto for over a year, yet their accounts remain at low levels. The fundamental issue isn't the market, but the approach.
Over the past few years of practical experience in the crypto space, I’ve stepped on many pitfalls and summarized some feasible trading logic. Sharing ten pieces of advice, I hope to help you avoid repeating mistakes.
**Capital Management and Position Control**
If your capital is under 10,000, never go all-in right away. When the market isn’t moving, patience itself is the strongest weapon. As long as you seize three main upward waves a year, you can achieve good returns. This isn’t conservatism; it’s the survival rule in a probability game.
Mid- to long-term operations must keep sufficient cash reserves. Rolling buy low, sell high is the right way. Don’t expect to harvest full gains from a single wave—only market makers can play that game. Retail investors who hold on blindly will only get washed out.
**Mindset and Practical Preparation**
Your cognition determines how much you can earn. Before trading with real money, practice your mindset with a demo account. Demo trading allows unlimited trial and error, while a single big mistake in real trading could mean immediate exit. The costs of the two are entirely different.
**Identifying Good News and Risks**
Good news turning into bad news isn’t mysticism; it’s a market-verified pattern. If a major positive event doesn’t materialize on the day, consider taking profits quickly on the next day’s gap-up. Don’t be greedy waiting for the next wave—often, that leads to getting trapped.
Be especially cautious during holidays. Historical data repeatedly shows that reducing positions before holidays or staying completely out is the smartest move. The saying “Holidays must fall” is a painful lesson learned with real money.
**Short-term Trading Strategies**
For short-term trading, select only active coins with sufficient liquidity and volatility. Niche coins waste time and wear down your mindset. Never touch them.
Focus on 15-minute K-line charts combined with the KDJ indicator to relatively accurately capture golden buy and sell points. But this method requires repeated practice; it’s not something you can master after just one look.
**Grasping the Rhythm of Downtrends**
Bearish declines are the most frustrating, but rebounds after accelerated drops often come very quickly. Timing this rhythm is much more important than blindly bottom-fishing. Sometimes, avoiding a big drop is equivalent to making a profit.
**Stop Loss and Capital Protection**
If you buy wrong, you must cut losses. This isn’t about admitting defeat; it’s about protection. With your capital intact, opportunities remain. This is the fundamental logic of survival in the crypto space—never hold onto luck.
**Learning and Methodology**
Technical methods aren’t about how many you learn but about mastering a few thoroughly. Perfecting one or two techniques often yields better results than blindly learning a bunch. Trading is like warfare—depth is more valuable than breadth.
Avoiding detours itself is a way to make money. I hope these experiences can give you some inspiration.