Profit-Holding Strategy: Using Profits to Ride the Entire Bull Market Wave

Don’t let short-term fluctuations cloud your vision. In the cryptocurrency market, big profits don’t come from constant trading but from following the trend correctly and holding positions long enough. I once witnessed a very ordinary trader, with an initial capital of only 3,000 USDT, starting to buy LDO from the 0.8 USDT range. He didn’t “all-in,” didn’t FOMO, and didn’t recklessly buy the dip. The entire process involved only increasing his position five times, with the common point being: only adding when in profit. When LDO hit the 2.6 USDT range, he exited all positions, with total profits exceeding 100,000 USDT. He is not a genius, nor does he have insider information. All he has is discipline to preserve his principal and let profits work for him. During periods when Bitcoin continuously hits new highs and then corrects sharply, I notice a very familiar weakness among most retail investors: When prices rise, they are afraid and don’t dare to hold their positions. When prices fall, they hope and try to hold on through losses. As a result, accounts are gradually eroded, not because of a major crash, but due to many small wrong decisions repeated over and over. This article shares a strategy I have applied for many years: increasing positions according to the trend, or simply put, using profits to expand positions during major waves. This is not a get-rich-quick formula but a system that helps preserve capital and maximize profits when the market is truly trending.

1. Great Opportunities Come from Patience, Not Impulsiveness Each year, the market only presents a few truly significant trends worth participating in. Missing out is okay, but entering at the wrong time can be very costly. Looking back at the market: Bitcoin once reached around 126,000 USD and then quickly corrected to about 81,000 USD, a decline of over 36%. Amid bad news piling up, many large institutions quietly accumulated, while most retail investors sold off in fear. To identify major opportunities, I focus on two main signals: Panic-driven correction: Sharp declines across the board, with market sentiment falling into extreme fear. This is often a time when risks diminish rather than increase. Breaking resistance with high volume: When the price consolidates long enough at a key level and then explodes with increased liquidity, it’s a sign that real money is entering. Don’t buy when good news appears frequently. Many times, that’s when big money starts to withdraw.
2. Core Strategy: Only Accept Risk with Profits The main focus of this strategy is clear: prevent your principal from being under pressure. How I implement: The first order should not exceed 20% of total capital – this is a trend-following exploratory order. When the price rises as expected and yields a profit of 15–25%, don’t rush to take profits. Wait for technical corrections to dynamic support levels (such as MA7, MA10), and when the upward structure remains intact, use part of the profits to buy more. Key point: if the market reverses, you are losing the profits you’ve made, not your initial capital. This is completely different from the very dangerous habit of many traders: buying more when prices fall to “recover.” This is the fastest way to turn a wrong trade into a large loss.
3. Exiting Positions Is More Important Than Entering Buying correctly gives you an advantage. Selling correctly helps you preserve your money. My simple take-profit rule: Price breaks below the short-term moving average → reduce half of the position. Price breaks below the longer-term moving average → exit all. This approach helps me avoid watching my account go from big profits back to break-even or negative. In highly leveraged markets like crypto, a strong shakeout can wipe out many accounts. After exiting, I don’t rush to trade immediately. I observe, reassess the market, and wait for signals that align with my system. Not trading is also a correct decision.
4. Psychology Is More Important Than Strategy The best position-adding strategies work in markets with clear trends. During sideways phases, impatience can quickly erode profits. A few principles I always follow: Divide capital into small parts; each trade should not use more than 10% of total capital. Don’t increase position size just because of a few consecutive wins. Trade only when the market aligns with your strategy. The longest-lasting traders are not necessarily the best predictors but those who maintain discipline in all circumstances. They stay calm during panic and cautious when the crowd becomes greedy. The crypto market is full of opportunities. The rarest qualities are patience and discipline. When a major wave truly forms, you will see that the biggest earners are not those who trade the most but those who dare to hold positions and let profits run. The strong don’t always “bet big,” but those who know when to bet when the odds are in their favor and exit at the right time. The strong bull market waves always belong to those who protect their capital and let profits work for them.