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In the Crypto Assets market, I started with 50,000 and eventually achieved a rise in assets to 1,200,000. Throughout this process, I realized that success does not come from intuition, but from strictly adhering to the following six principles:
1. Survival first, profit second
The investment market is highly volatile, and a 50% drop can wipe out a 100% rise. Therefore, before each trade, I assess the risks to ensure I do not face a liquidation crisis.
2. Stability is better than volatility
High volatility does not equate to high returns. I have seen friends experience wild fluctuations over two years, yet their annualized return was still not as good as bank wealth management. True compounding growth requires stable and continuous accumulation.
3. Balance rules and patience.
Short-term windfall profits are often an illusion. I adopt a strategy of a 15% take profit and an 8% stop loss, using automated tools to execute it, avoiding human emotional interference. Although this method seems conservative, it is more reliable in the long run.
4. Accurately calculate the cost of margin replenishment
When replenishing positions, accurately calculating the average cost is crucial. Incorrect calculations can lead to ongoing losses, ultimately forcing one to cut losses at a low point.
5. Lock in profits in a timely manner.
When the account reached 1.2 million, I withdrew 1 million, leaving only 200,000 to continue investing. This way, even if there are severe market fluctuations, the realized profits will not be affected.
6. Identify Quality Assets in a Bear Market
In a bull market, it's hard to discern the real from the fake, while a bear market can filter out truly valuable projects. My core investment portfolio was built during the market downturn in 2022.
The Crypto Assets market operates around the clock, and opportunities are everywhere. The key is to control your emotions, analyze data rationally, decisively cut losses, and take profits at the right time. Staying calm and disciplined is essential for long-term survival and success in this market.