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Having navigated the crypto world for so many years, from the worst times when my account shrank by 70%, to now being able to support my family with this, I have truly walked this path. I'm not bragging; I've seen too many stories of people doubling their holdings in two months only to go completely to zero in a year. I decided to summarize what I’ve accumulated over these years, not for anything else, but to help newcomers avoid some pitfalls.
Honestly, those who make money trading coins are not necessarily tech geniuses. What's the real difference? It's the understanding of risk and discipline—these need to be ingrained in your bones. The following principles are lessons I’ve learned the hard way, exchanged for real money.
**What to do when a strong coin falls for 9 consecutive days at high levels? Staggered entries are the right way**
When a strong coin pulls back at high levels and drops for 9 days in a row, it’s probably a sign that the main force is finishing a shakeout. Many people panic when they see the K-line at this point, thinking it will explode if it drops further. But actually, the opposite is true—you should slowly build positions during this time. Of course, the key is to only buy coins with genuine fundamentals, such as a project team still actively working and a vibrant community. Avoid "garbage coins" that have been falling for 90 days; don’t touch them. I previously bought into a governance token on a DEX during an 8-day decline in batches, and when it rebounded, I gained 50%. That’s a good example.
**If it rises for two days in a row, sell half immediately**
A common flaw in the crypto world is "inertia-driven surges." After two consecutive days of gains, there’s a high chance of a correction on the third day. If you’re still greedy at this point, you’re just asking for trouble. My usual approach is: regardless of how optimistic I am about the market, I lock in half of my position to secure profits. Set a trailing stop for the remaining position to let profits run. When NOT, this coin, rose for two days, I cut my position by 50%. Sure enough, on the third day, there was a sharp sell-off, and I avoided a 15% drop.
**A 7% surge in one day? Never chase the next day**
Especially for coins that are not in the hot spotlight, a sudden single-day increase of over 7% is often a test by the main force to gauge market selling pressure. If it peaks the next day, it might look like an opportunity, but it’s usually a trap—chasing it will likely get you caught. True potential opportunities won’t make you so anxious that you can’t get in.
**No movement after three days of sideways trading? Wait three more days, then exit if no change**
Sideways coins are like "time black holes" that eat away at your opportunity cost. My standard approach is: if there’s no significant movement after three days of sideways trading, give it another three days of observation. If still no clear direction emerges, just exit and reallocate your funds elsewhere. Instead of holding onto a stagnant coin, better to find assets with rhythm and momentum.
These principles sound simple, but few can truly follow them. The key is discipline—repeat it over and over until it becomes instinctive.