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

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After more than a decade of ups and downs in the crypto world, starting with a capital of 5000 yuan, I made over 10 million during the bull market, but lost it all and incurred a loss of 7 million within three years. Finally, with a borrowed 200,000, I turned things around and earned back 10 million. Along the way, I have summarized the ten iron rules of crypto trading, which I hope will help you avoid detours!
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Iron Rule One: Understand market sentiment, trading volume is the core indicator.
• Trading volume rises while price stabilizes: A significant increase in trading volume with stable prices may indicate the end of a downward trend.
• High trading volume with stagnant prices: A surge in trading volume without significant price increase may indicate a short-term peak has been reached.
• Price increase accompanied by an increase in trading volume: During the price increase, the trading volume should maintain steady growth; an abnormal reduction or surge may indicate the end of the upward trend.
• Key nodes of decline see increased trading volume: When the price drops to a key level, 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: 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 significant.
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Iron Rule Three: Multi-timeframe Comprehensive Market Analysis
• 1-minute chart: Capture precise entry and exit timing.
• Three-minute chart: Monitor the price fluctuation trend after entering.
• 30-minute to 1-hour chart: Capture the subtle changes in the intraday trend.
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Rule Four: Stay Calm After Stopping Losses
• Stop loss means the end of a trade: Each trade is an independent starting point, do not let the past affect your judgment.
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Iron Rule Five: Efficient Position Management Strategy
• Three-Phase 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 firm on the 30-day moving average and complete the position building.
• Strict stop-loss discipline:
• Break below the five-day line, reduce positions;
• Break below the fifteen-day line, then reduce;
• Break below the thirty-day line, full retreat!
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Rule Six: The selling strategy is equally important.
• Price breaks below the five-day moving average: moderately reduce positions and observe the changes.
• Break below the fifteen and thirty-day moving averages: Act decisively to liquidate positions, leaving no regrets.
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Iron Rule Seven: Be wary of market news and don't let emotions dictate your rhythm.
• Frequent positive news but prices do not rise: Be vigilant against market manipulators offloading, and take profits in a timely manner.
• Negative news continues to emerge but prices do not fall: This may be a bottom signal, keep a close watch.
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Iron Rule 8: Stick to reviewing and deeply explore trading experiences.
• Daily Review: Summarize the reasons for success and failure, and extract experiences.
• Regular Review: Analyze past trades, adjust strategies, and enhance understanding.
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Iron Rule Nine: Set profit targets, do not be greedy.
• Clearly define the profit range: decisively take profits when the target is reached, avoid chasing highs and cutting losses.
• Learn to take profits in batches: Especially during a surge, do not sell all 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 profitable: Don't be blindly confident; the market is always full of risks.
• Be patient and wait for opportunities: Don't be anxious or hasty; it's better to miss an opportunity than to make a mistake.
These iron rules are the valuable experiences gained from countless failures and successes in the world of money. On your journey of trading coins, may you avoid traps and move forward steadily!