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Notes on Crypto Trading

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Position Sizing

Position sizing is everything. Split your capital into three, risk only one at a time. No more than 10x on BTC, 5x on alts. If you lose, grind it back. If you win, take profit. Keep size constant.

Why: split + low leverage survives wicks. Even when tilted, you blow at most a third. Mind stays stable.

Three rules to lose less:

  1. No high leverage
  2. No counter-trend trades
  3. Every trade needs a thesis

Sentiment Cycle

When water is full it spills; when the moon is full it wanes. A full cycle: launch → small divergence / consolidation → second wave → acceleration / distribution → drop → panic → consolidation → launch

Follow the trend when there is one. Don’t trade when there isn’t. Be aggressive at launch and second wave, cautious at major divergences.

Coin Selection

Like dating — look for leaders with strong momentum, clean structure, and hot narrative. Scan Layer-1/2, Meme, DeFi, GameFi — the leaders are obvious at a glance.

Take-Profit and Stop-Loss

Take profit in tranches by support/resistance. Take 50% at the first level to lock in cost, let the rest run.

Stop loss: cut immediately, don’t scale. When price pulls back to your entry, exit without hesitation.

Entries and Exits

People obsess over entries and exits and get it backwards. Drop the forest of indicators. Just read price action.

Three things for an entry: trend (up / down / range), location (support / resistance), price (high / low).

Combine with sentiment cycle — enter at launch or second wave. Always enter with a stop, wait for stabilization, probe with a tight stop.

Exits: triggered by take-profit / stop-loss, or step aside when news drives violent swings.


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