Ten years of Cryptocurrency Trading, from losing everything to earning back 10 million: the top ten iron rules!

-
Having been through the ups and downs of the cryptocurrency trading world for over ten years, starting with a principal of 5000 yuan, I made over 10 million during the bull market, only to lose it all and even go into debt for 7 million in three years. In the end, I turned my fortunes around with a borrowed 200,000 and earned back 10 million. Throughout this journey, I have summarized the ten iron rules of cryptocurrency trading, which I will share with you today, hoping it will help you avoid some detours!
-
Rule One: Understand market sentiment; trading volume is the core indicator.
• Trading volume rises while price stabilizes: A significant increase in trading volume while prices remain stable may signal the end of a downward trend.
• High trading volume with stagnant prices: A surge in trading volume without significant price increases may indicate a short-term peak.
• Price increase accompanied by increasing trading volume: During the price increase, the trading volume should maintain steady growth. An abnormal decrease or surge may indicate the end of the upward trend.
• Key point of decline with increased trading volume: When the price drops to a critical position, the trading volume surges, and the downward trend may continue further.
-
Iron Rule 2: Key price levels guide trading decisions
• Support, Resistance, and Trend Lines: When the price reaches these key levels, decisive action is crucial!
• Golden Ratio Rule: I use it to accurately predict support and resistance, and the results are remarkable.
-
Iron Rule Three: Multi-Timeframe Comprehensive Analysis of the Market
• One Minute Chart: Capture precise entry and exit timing.
• Three-minute chart: Monitor the price fluctuation trend after entry.
• Thirty minute to one hour chart: Capture the subtle changes in intraday trends.
-
Rule Four: Stay Calm After Stopping Losses
• Stop-loss means the end of a trade: Each trade is an independent starting point, don't let the past affect your judgment.
-
Iron Rule Five: Efficient Position Management Strategy
• Three-Stage Positioning Method:
1. Initial Positioning: The coin price rises above the five-day moving average, first purchase.
2. Increase Position: Break through the fifteen-day line and continue to increase the position.
3. Waiting with Full Position: Stand firm on the 30-day moving average and complete the building of the position.
• Strict Stop Loss Discipline:
• Break below the five-day moving average, reduce positions;
• Break below the fifteen-day line, reduce further;
• Break below the 30-day line, full withdrawal!
-
Rule Six: Selling Strategy is Just as Important
• Break below the five-day moving average at a high position: moderate reduction of positions, watch and wait for changes.
• Break below the 15-day and 30-day moving averages: decisively liquidate, leaving no regrets.
-
Iron Rule Seven: Be wary of market news and don't let emotions dictate your rhythm.
• Frequent positive news but prices are not rising: Beware of market makers offloading, take profits in time.
• Negative news keeps coming but the price doesn't drop: Perhaps it's a bottom signal, pay close attention.
-
Iron Rule 8: Stick to reviewing trades and deeply analyze trading experiences.
• Daily Review: Summarize the reasons for success and failure, and extract experiences.
• Regular Review: Analyze past trades, adjust strategies, and enhance understanding.
-
Iron Rule Nine: Set profit targets and do not be greedy.
• Clearly define profit ranges: decisively take profits when targets are reached, and avoid chasing highs or panic selling.
• Learn to take profits in batches: Especially during a surge in the market, do not sell all at once.
-
Iron Rule Ten: Mindset is King, Always Stay Calm
• When in loss: Don't rush to recover, calmly analyze the mistakes.
• When making a profit: Don't be blindly confident, the market is always full of risks.
• Be patient and wait for opportunities: Do not rush or be anxious; it's better to miss an opportunity than to make a mistake.
-
These iron rules are valuable experiences that I have earned through countless failures and successes. On the path of Cryptocurrency Trading, may you avoid traps and move forward steadily!
-