Spot Investment Guide to Avoid Traps: How I Went from "Continuous Stop-Loss" to Stable Trading

2026-01-12 07:00:45

Many people think that spot investing is simply “Buy and Hold, Wait for Price Increase.” But in reality, many newcomers to the market get caught holding the wrong positions, sell at the bottom, and buy at the top. Today, I share some hard-earned lessons with real money to help you avoid the most common traps when trading spot.

Catching the Top – Selling the Bottom: The Path to Becoming a “Clueless Investor” Have you ever seen a coin increase by 30–50% in a single day and felt “if I don’t buy now, I will miss the life-changing opportunity”? Then right after buying, the price reverses sharply downward? The truth is simple: when the price rises too quickly, it’s often whales pulling the price to unload their holdings. And the last buyer is you. My rule: Coin increases more than 30% in a day → do not buy.Wait at least 3 days to observe price reactions.If there’s a correction of 15–25% with decreasing volume, that’s a safe entry zone. The market is never short of opportunities. What’s missing is patience.
Catching the Bottom but Hitting the “Mountain Slope” Many think that when a coin has dropped 70–80%, it’s “cheap.” But cheap doesn’t necessarily mean the bottom. The real bottom isn’t where the price drops hardest, but where: Price moves sideways for a long time.Trading volume dries up.The market is almost silent with no one talking. My strategy: Only consider buying when volume drops to about 1/3 of the average.Price consolidates for at least 7–10 days.Prioritize projects with on-chain data showing whales are accumulating. Don’t rush. A true bottom always takes time to form.
Over-Diversification = Accelerated Losses Many hold 10–15 coins in their wallet and call it “risk management.” But in reality: Good coins are held too little.Poor coins are held too much.When the market rises, profits are insignificant.When the market falls, accounts evaporate quickly. My capital allocation: 60% Bluechips: BTC, ETH – stable, safe, resilient to volatility.30% Potential Altcoins: carefully selected, with a 20% stop-loss.10% Cash: used during major market crashes to seize opportunities. Less is more. Focus on 3–5 projects you understand well rather than holding 15 coins without knowing what you own.
Cycle Thinking: When the Market Rises, Don’t Be Greedy; When It Falls, Don’t Be Afraid The biggest mistake of small investors: Market up → greedMarket down → panic While experienced traders do the opposite: Bull market: protect profits, gradually take profitsBear market: accumulate assets, buy gradually Big money doesn’t come from chasing the top but from quietly accumulating when no one dares to buy.
Three Survival Principles When Investing in Spot Don’t buy coins that surge wildly in a day – wait at least 3 days.Don’t catch the falling knife – wait for accumulation, low liquidity.Don’t hold more than 5 coins – focus on research to make accurate decisions.

Conclusion Spot investing isn’t a game of luck. It’s a game of knowledge, discipline, and psychology. The market isn’t responsible for your buy points. But you can protect yourself with the right strategies. Remember: Great opportunities are those you wait for, not those you chase. If you’re tired of being constantly “harvested” by the market, start changing your mindset today. Patience, discipline, and understanding cycles are the true paths to long-term success in crypto.

BTC3,75%

ETH5,4%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.