Some say that getting rich in the crypto world requires luck, but my experience tells me that discipline is more important.
Looking back on my trading career over the past few years, I started with a capital of 10,000 and grew it to 5 million in less than three years. Honestly, the secret isn’t that mysterious; the core is strict risk control combined with trend following. Later, I shared this method with a few traders, and they doubled their capital within three months. Today, I want to share some practical insights with everyone.
**Tip 1: Divide Funds into Portions for Entry** Split your total funds into 5 parts, investing only one-fifth each time. What are the benefits of this approach? Set a 10-point stop loss; a single mistake can at most lose 2% of your total funds. Five mistakes would only lose 10%. Conversely, if you do well, set a take profit of more than 10 points. Calculated this way, your chances of getting trapped are naturally reduced.
**Tip 2: Follow Market Trends** These two words are the most valuable—trend following. In a downtrend, every rebound could be a trap for false signals; in an uptrend, every dip might be a golden opportunity. Recognizing the direction is the first step.
**Tip 3: Avoid High-Position Coins** Be cautious with coins that surge rapidly in the short term, whether mainstream or small-cap. Historical experience shows that it’s rare for a coin to continue rising after a short-term spike. After a period of stagnation at high levels, the momentum often weakens, leading to a decline.
**Tip 4: Use Technical Analysis as a Reference** MACD can help with judgment. When DIF and DEA form a golden cross below the zero line and break above zero, it’s a relatively stable entry signal. Conversely, when MACD forms a death cross above the zero line and moves downward, it’s a sign to reduce positions.
**Tip 5: About Adding and Averaging Down** Averaging down is a trap many retail investors fall into. Stories of losing more by adding to losing positions are too common. Remember one rule: never add to a losing position; only add when in profit. This is the bottom line for protecting yourself.
**Tip 6: Choose Coins in an Uptrend** Trade only coins that are in an upward trend, maximizing your chances of success and saving time. A 3-day moving average turning upward signals short-term bullishness; a 30-day moving average turning indicates medium-term strength; an 84-day rising trend suggests a main upward wave; and a 120-day moving average turning upward signals a long-term bull market.
**Tip 7: Continuous Review and Adjustment** Review every trade. Check whether your holding logic still holds, whether the weekly K-line trend matches your original judgment, and whether there has been a trend reversal. Adjust your trading plan promptly; this is a necessary process to optimize your strategy.
The crypto market changes rapidly, and there is no absolute winning formula, but these principles can definitely help you avoid many detours.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
15 Likes
Reward
15
6
Repost
Share
Comment
0/400
StablecoinArbitrageur
· 11h ago
actually... the 2% max loss per trade math checks out, but you're conveniently glossing over survivorship bias here. backtested this exact position sizing on 10k simulations and the sharpe ratio only holds if you nail trend direction >55% of the time. most retail traders? closer to 48%.
Reply0
ChainMaskedRider
· 11h ago
10,000 to 5 million? I've heard this story too many times, but discipline really hits the point.
I agree with the idea of adding to positions; how many people get trapped by the pitfall of adding more as they lose more?
Following the trend is the simplest but also the hardest move. Those who understand make money, while those who don't are still trying to catch the bottom.
The MACD golden cross... sounds good, but when the market behaves strangely, it’s immediately useless.
Reviewing past trades is essential; not reviewing is pure gambling.
View OriginalReply0
GasSavingMaster
· 11h ago
10,000 to 5 million? Just listen, I don't believe you.
---
Discipline is indeed important, but this story is a bit... too perfect.
---
I agree with the point about adding positions, but the real challenge is execution.
---
MACD golden cross and death cross, I've heard this theory a million times, but the key is that understanding and doing are two different things.
---
The five-part method of position sizing is a reliable approach, saving you from going all-in at once.
---
Avoiding pitfalls in high-position coins is crucial; many people get caught chasing the pump and end up losing.
---
Backtesting is real; not doing it is like gambling.
---
Following the trend is truly effective; going against it is asking for death. I've paid the price for this.
---
Doubling in three months? The sample size is too small, survivor bias hits hard.
---
No matter how eloquently you say it, this remains a game of probabilities.
View OriginalReply0
SignatureLiquidator
· 12h ago
You're talking pretty loudly, but I just want to ask if that 5 million is still there now.
View OriginalReply0
SilentObserver
· 12h ago
From 10,000 to 5 million sounds exciting, but can this set of things really teach people? Or do you have to fall flat on your face yourself?
View OriginalReply0
AirdropGrandpa
· 12h ago
The numbers from 10,000 to 5 million sound pretty crazy, but the strategy of entering with one-fifth and strictly controlling stop-losses is indeed effective. It's much more reliable than my previous random buying and averaging down.
Some say that getting rich in the crypto world requires luck, but my experience tells me that discipline is more important.
Looking back on my trading career over the past few years, I started with a capital of 10,000 and grew it to 5 million in less than three years. Honestly, the secret isn’t that mysterious; the core is strict risk control combined with trend following. Later, I shared this method with a few traders, and they doubled their capital within three months. Today, I want to share some practical insights with everyone.
**Tip 1: Divide Funds into Portions for Entry**
Split your total funds into 5 parts, investing only one-fifth each time. What are the benefits of this approach? Set a 10-point stop loss; a single mistake can at most lose 2% of your total funds. Five mistakes would only lose 10%. Conversely, if you do well, set a take profit of more than 10 points. Calculated this way, your chances of getting trapped are naturally reduced.
**Tip 2: Follow Market Trends**
These two words are the most valuable—trend following. In a downtrend, every rebound could be a trap for false signals; in an uptrend, every dip might be a golden opportunity. Recognizing the direction is the first step.
**Tip 3: Avoid High-Position Coins**
Be cautious with coins that surge rapidly in the short term, whether mainstream or small-cap. Historical experience shows that it’s rare for a coin to continue rising after a short-term spike. After a period of stagnation at high levels, the momentum often weakens, leading to a decline.
**Tip 4: Use Technical Analysis as a Reference**
MACD can help with judgment. When DIF and DEA form a golden cross below the zero line and break above zero, it’s a relatively stable entry signal. Conversely, when MACD forms a death cross above the zero line and moves downward, it’s a sign to reduce positions.
**Tip 5: About Adding and Averaging Down**
Averaging down is a trap many retail investors fall into. Stories of losing more by adding to losing positions are too common. Remember one rule: never add to a losing position; only add when in profit. This is the bottom line for protecting yourself.
**Tip 6: Choose Coins in an Uptrend**
Trade only coins that are in an upward trend, maximizing your chances of success and saving time. A 3-day moving average turning upward signals short-term bullishness; a 30-day moving average turning indicates medium-term strength; an 84-day rising trend suggests a main upward wave; and a 120-day moving average turning upward signals a long-term bull market.
**Tip 7: Continuous Review and Adjustment**
Review every trade. Check whether your holding logic still holds, whether the weekly K-line trend matches your original judgment, and whether there has been a trend reversal. Adjust your trading plan promptly; this is a necessary process to optimize your strategy.
The crypto market changes rapidly, and there is no absolute winning formula, but these principles can definitely help you avoid many detours.