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

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After more than ten years of ups and downs in the cryptocurrency world, starting with an initial investment of 5000 yuan, I made over 10 million during the bull market, only to lose it all and incur a loss of 7 million within three years. Finally, I turned things around with a borrowed 200,000 and earned back 10 million. Along the way, I summarized the ten iron rules of trading cryptocurrencies, which I hope will help you avoid taking detours!
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Iron Rule One: Understand market sentiment, trading volume is the core indicator.
• Trading volume rises while prices stabilize: A significant increase in trading volume with stable prices may signal 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.
• Price increases accompanied by increasing trading volume: During the price increase, trading volume should maintain steady growth; abnormal reductions or surges may indicate the end of the upward trend.
• Increased trading volume at key downside nodes: When the price declines to a key level, the trading volume surges, potentially extending the downward trend.
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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, with significant results.
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Iron Rule Three: Comprehensive analysis of the market across multiple time periods
• One 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 intraday trends.
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Rule Four: Stay Calm After a Stop Loss
• Stop loss means the end of the 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-Phase Position Building Method:
1. Initial position building: The coin price rises above the five-day moving average, buy for the first time.
2. Increase Position: Break through the fifteen-day moving average and continue to increase the position.
3. Fully prepared: Stand firm at the thirty-day line and complete the position building.
• Strict Stop Loss Discipline:
• Break below the five-day moving average, reduce positions;
• Break below the fifteen-day line, then reduce;
• Break below the thirty-day line, retreat completely!
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Iron Rule Six: The shipping strategy is equally important.
• The price breaks below the five-day moving average: moderately reduce positions and wait for changes.
• Breaking below the 15-day and 30-day moving averages: Act decisively to liquidate positions, leaving no regrets.
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Iron Rule Seven: Be wary of market news, don't let emotions dictate your rhythm.
• Frequent positive news but prices are not rising: Be wary of market manipulators offloading their assets, and take profits in a timely manner.
• Negative news continues to come out, but the price is not falling: This might be a bottom signal, stay alert.
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Iron Rule 8: Stick to reviewing trades and deeply analyze trading experiences.
• Daily Review: Summarize the reasons for success and failure, and extract lessons learned.
• Regular Review: Analyze past trades, adjust strategies, and enhance awareness.
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Iron Rule Nine: Set profit targets and don't be greedy.
• Clear profit zone: set a target and decisively take profits, do not chase highs or sell on dips.
• Learn to take profits in batches: Especially during a surge market, do not sell everything at once.
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Iron Rule Ten: Mindset is King, Always Stay Calm
• When at a loss: Don't rush to recover, calmly analyze the mistake.
• 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, it’s better to miss than to make a mistake.
These iron rules are the valuable experiences gained from countless successes and failures in the world of money. On the path of trading cryptocurrencies, may you avoid traps and move forward steadily!