Ten years of trading cryptocurrencies: The top ten iron rules from losing everything to earning ten million!

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After more than ten years of ups and downs in the circle, starting with a principal of 5,000 yuan, it reached more than 1,000 taels in the bull market, and then fell 700 taels in three years, and finally turned over by borrowing 20 taels and returning 1,000 taels again. Along the way, I have come up with the ten laws of stir-frying, and I will share it with you today, hoping that you will take less of the road!
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Iron Rule One: Insight into market sentiment, trading volume is the core indicator.
• Volume surges while price stabilizes: A significant increase in trading volume alongside stable prices may indicate the end of the downward trend.
• High trading volume with stagnant prices: A surge in trading volume without a significant price increase may indicate that a short-term peak has been reached.
• An increase accompanied by a rise in trading volume: During the upward trend, the trading volume should maintain steady growth. An abnormal decrease or surge may indicate the end of the upward trend.
• Key drop node trading volume increases: When the price drops to a key position, the trading volume surges, and the downtrend may continue further.
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Iron Rule 2: Key price levels guide trading decisions
• Support, resistance, and trend lines: decisive action is key when prices reach these critical levels!
• Fibonacci Retracement: I use it to accurately predict support and resistance, with significant results.
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Iron Rule Three: Multi-Period Comprehensive Analysis of the Market
• One-minute chart: Capture precise entry and exit timing.
• Three-minute chart: Monitor the price fluctuation trend after entry.
• 30-minute to 1-hour chart: Capture the subtle changes in intraday trends.
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Iron Rule Four: Stay Calm After a Stop Loss
• Stop-loss means the end of a trade: Each trade is an independent starting point, don't let the past affect your judgment.
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Iron Rule Five: Efficient Position Management Strategy
• Three-Stage Position Building Method:
1. Initial Positioning: The coin price rises above the five-day moving average, first purchase.
2. Increase Position: Break above the fifteen-day moving average, continue to increase position.
3. Full position waiting: Stand firmly at the thirty-day moving average and complete the position building.
• 严格止损纪law:
• Break below the five-day moving average, reduce positions;
• Break below the fifteen-day line, reduce further;
• Break below the 30-day line, retreat completely!
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Rule Six: The shipping strategy is equally important.
• The high has broken below the five-day moving average: moderately reduce positions and watch the changes.
• Break below the 15-day and 30-day moving averages: decisively liquidate your holdings without regrets.
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Iron Rule Seven: Be wary of market news, and don't let emotions dictate your pace.
• Frequent positive news but prices are not rising: Beware of the market makers offloading, and take profits in a timely manner.
• Negative news continues to come out but prices are not falling: Perhaps this is a bottom signal, keep a close eye.
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Iron Rule 8: Stick to reviewing and digging deep into trading experiences.
• Daily Review: Summarize the reasons for success and failure, and extract experiences.
• Regular Review: Analyze past trades, adjust strategies, and enhance awareness.
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Iron Rule Nine: Set profit targets, do not be greedy
• Clear profit zone: decisively take profits when the target is reached, do not chase highs or sell on dips.
• Learn to take profits in batches: Especially during a surge in market prices, do not sell everything at once.
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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: Don't rush or be anxious; it's better to miss out than to make a mistake.
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These iron rules are the invaluable experiences I've gained from countless failures and successes. On the road of trading cryptocurrencies, I hope you can avoid traps and move forward steadily!
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