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Sharing a not-so-glamorous fact—my trading win rate isn't actually high. But over the years, my account has been steadily growing. It sounds like a paradox, but there's a method to it.
Recently, I've been frequently trading back and forth, wearing down over 200,000 dollars. It sounds terrible, but this is actually my defensive strategy. Why intentionally wear down? Because I'm afraid of a situation where I get wiped out in one big move. Once the market trend doesn't feel right, I close the position immediately. Although this approach may lead to multiple small losses, at least I won't get liquidated in extreme market conditions.
Of course, the obvious cost is that frequent trading erodes profits. If no clear trend emerges later, those gains from winning trades can't cover the accumulated wear and tear, resulting in significant losses. This strategy works for me, but most people can't learn it or maintain the mindset of losing a few times and still opening new positions.
However, after experiencing a major crash, you realize the value of wear and tear. Those extreme market conditions made me completely give up on full-position gambling. Now, I prefer small frequent losses rather than risking everything to zero. Once, I even saw a drawdown from the peak of 60-70%. The simple approach I developed is—when there's a large unrealized profit, take half off.
Key observation: As long as a coin moves independently and forms a trend, bullish divergence will begin. For large-cap coins with sufficient trading volume, such trends usually don't end quickly; they go through a process of topping out and distribution. During wear and tear, as long as I don't open reckless trades, when the trend truly unfolds, profits will explode rapidly. Most people's big money is actually made during trending markets.
For example, the recent ZEC movement is very typical—bullish divergence is very obvious, with a rise of dozens of times, which is a strong trend indicator. Even after dropping from over $700 to around $300, it still rebounds and forms a top. I initially wanted to buy around the MA120 moving average (about $230), but didn't catch the bottom. However, several moving averages below are supporting, so the probability of going to zero is low.
Final tip: Don't overly rely on any technical analysis or indicators; always be mentally prepared for a coin to go to zero. I have no faith in any coin—once I make a profit, I take it out, and I never recharge. If the market crashes to zero, I don't mind.