New Version, Worth Being Seen! #GateAPPRefreshExperience
🎁 Gate APP has been updated to the latest version v8.0.5. Share your authentic experience on Gate Square for a chance to win Gate-exclusive Christmas gift boxes and position experience vouchers.
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Staring at that constantly fluctuating candlestick chart, I almost lost all my principal. It wasn't until I explored these three methods that I started to see stable profits.
I still remember the early days when I first entered the crypto market. Like most beginners, I was completely led by short-term price movements. The 15-minute chart seemed like a half-day, and my mindset swung wildly with the market. I experienced many ups and downs—being shaken out, chasing highs and getting caught, cutting losses only to see a rebound—these things happened often. After three months, my account balance was less than one-fifth of the original.
That day, looking at my account figures, I finally understood: blindly focusing on minute-level operations is just giving money to the market. From then on, I began to rethink my trading logic. After years of practical experience, I summarized a three-step strategy to share with those who have also fallen into the trap.
**Step 1: Use the 4-hour chart to see the big picture clearly, don’t be fooled by noise**
Longer timeframes are the decisive factor. My lesson is: before opening a position, always check the 4-hour level; the overall trend becomes immediately clear.
When the candlesticks ascend in a stair-step pattern, with each pullback low higher than the last, that’s a standard uptrend. In such cases, instead of going against the trend to short, it’s better to wait for a pullback to buy. Conversely, if the highs keep making lower lows and rebounds also make lower lows, then decisively avoid long positions—counter-trend bottom fishing often ends badly.
Sideways consolidation tests patience the most. I used to trade frequently during consolidations, only to pay high fees repeatedly. Without understanding the trend, frequent trading is futile.
My straightforward view: crypto markets are indeed volatile, but the major trend directions are usually clear. As long as you grasp this big picture, small fluctuations are not to be feared.
**Step 2: Identify key support and resistance levels, and position accordingly**
Not every price is suitable for entry. Each chart has several critical points that often determine the next move.
If a support level is broken effectively, it’s dangerous—protecting your principal is more important than anything else. Breaking resistance levels signals new opportunities. I habitually set stop-losses near support levels and chase breakouts at resistance, balancing risk control with catching the trend.
In practice, I found that price zones with high trading volume and longer duration in previous periods tend to be the most effective support or resistance levels.
**Step 3: Strictly implement risk management—this is the secret to longevity**
No matter how good a strategy is, poor risk management makes it useless. My current principle is simple: risk no more than 2% of the account on a single trade. Even if I hit ten consecutive stop-losses, the account remains intact.
It’s easier said than done. During volatile times, it’s tempting to leverage up or increase position size. But those moments are often when things go wrong. I’ve learned that: steady account growth is more important than occasional big wins.
These three steps seem simple, but executing them requires discipline. Once habits are formed, market volatility becomes less intimidating and can even be a source of steady income. The key is to acknowledge the market’s complexity, abandon unrealistic ideas, and use the simplest methods to keep making money.