Conversation with Traders: Money Will Stay Away from Foolishly Hardworking People

A certain trader had some early exposure to Bitcoin but did not delve deeply into it. It wasn't until the rise of DeFi in 2020 that he realized it could disrupt traditional finance, and thus he fully devoted himself to the cryptocurrency industry.

At first, he worked for a listed mining company, responsible for DeFi and Staking business. Later, he started trading independently, experiencing a complete bull and bear cycle. With the market warming up in 2024, he decided to invest and trade full-time.

After multiple attempts, he summarized a set of "barbell strategies":

• 90% of funds are invested in stable assets, such as Bitcoin.
• 10% of funds are used for high-risk, high-reward projects, such as Meme coins.

This strategy was formed from his observations of the market: value coins performed below expectations, and the overall macro environment was unfavorable for value investing. He realized that the profit model in each cycle is different, and investors need to adapt.

In the search for assets that are not fully priced by the market, this trader has unique insights. For example, he once analyzed the political situation in the United States and strategically positioned himself with tokens related to specific political figures, achieving considerable returns.

He emphasized that successful trading requires establishing a complete process:

1. Gain a deeper understanding of the project background
2. Analyze Chip Structure
3. Develop a detailed trading plan
4. Set stop-loss levels and identify trading patterns
5. Adopt diversified profit-taking strategies
6. Real-time monitoring of market trends

For beginners, he emphasizes the importance of learning to take profits in batches and proposes three effective profit-taking methods:

1. Partial exit when "pushing up the pin"
2. Exit in a timely manner when key events are priced by the market.
3. Strictly adhere to the preset valuation targets

In addition, he also shared a useful tip: create a real-time monitoring list of popular cryptocurrencies to quickly seize market opportunities.

In the end, he pointed out that even professional traders can experience losses. The real core lies in understanding the flow of funds and market sentiment, and making decisions at the right moment. For large investors, the annualized return is often more important than the multiple of a single return; certainty and liquidity are their primary considerations.

This also explains why many retail investors lose interest in certain tokens - their performance is often disconnected from fundamental analysis. In contrast, tracking addresses through on-chain analysis may be more valuable, which is one of the reasons why Meme coins are popular: at least they do not mislead investors with flashy stories.