Many people panic when they see the market plummet, but true traders quietly pick up bargains during these times. What logical reasoning supports this contrarian approach? Let me share my practical insights from these years of experience.

**A sharp decline does not equal a buying point, but "misjudgment" definitely does**

When the market drops, the group is filled with lamentations, but I open my trading interface to place orders. It’s not about stubbornly going against the trend, but selectively targeting those mainstream coins that have been unfairly punished. For example, if Bitcoin or Ethereum suddenly break through key support levels, but the project fundamentals remain unchanged—teams are advancing technological iterations, and ecosystem data is still growing—then I buy in batches at lower prices. This often allows me to lower my average cost below the panic selling prices of most people.

The key is: never go all-in at once. My habit is to split my funds into 5 parts, and whenever the price drops by 10%, I add one part to my position. This helps spread out the risk. Even if the price continues to fall, I still have enough ammunition to wait for the real bottom.

**Do your homework before the rise, don’t be fooled by rebounds**

Buying the dip is just the first step; the real signal is the starting gun. I usually monitor these indicators:

Is the 4-hour chart firmly above the EMA30 moving average? Is the trading volume continuously increasing during the breakout? Do at least 3 consecutive candles close above the resistance level? When these conditions are met, I add to my backup positions. The bottom positions I accumulated earlier remain unchanged, which thickens my profit cushion and keeps my mindset stable.

Last year, a friend of mine started accumulating Ethereum from 1900. When it reached 2100, he thought the rise was too slow and sold everything. A month later, the price shot up to 2800. That’s the market’s most hated trait: "impatience."

**Profits are rolled out, not gambled out**

I make at most two trades per day. As soon as I make more than 3% profit, I immediately cut my position in half, withdraw the principal, and let the profits run. The benefit of this approach is reduced psychological pressure; even if the market reverses later, I won’t lose my principal.

Position rotation is crucial. For example, if the AI sector surges sharply, I transfer those profits into Layer2 projects that haven’t started yet. Never be greedy for the last penny. This strategy essentially involves using profits from a rising sector to bet on the next rising sector. Risks are diversified, and opportunities are amplified.

Stop-loss is an iron law. Never lose more than 2% of your principal on a single trade. Once this red line is hit, exit immediately. Even if you hit the stop-loss 10 times in a row, your account only loses 20%, and you can fully recover through subsequent trades.

The market works this way: surviving longer is more important than earning more.