Newbies, stop trading coins randomly! I went from a few thousand to 1 million, and I’ve encountered enough pitfalls to circle the exchange three times. In the end, I summarized these two sets of rules that are 'life-saving and profitable' — as long as you follow them, you can at least reduce losses by 80%, and your earning speed will be twice as fast as others!
1. Eight iron rules for guaranteed short-term profits: Don’t trade blindly, following the rules will win half the battle!
The biggest taboo in short-term trading is to 'place orders based on feelings.' These 8 rules are what I have developed after countless pitfalls, and each one can help you avoid 'liquidation traps':
Only focus on the top 10 mainstream coins, don't touch altcoins! Just look at Bitcoin, Ethereum, BNB, and these top 10 coins every day, combined with news (like the Federal Reserve's interest rate hikes, ETF dynamics), daily MACD golden crosses and death crosses, and BOLL indicators to see if it's narrowing or widening. Only choose varieties that have high volatility but are reliable — altcoins may look like they are soaring, but they can drop to zero in a day; newbies should not touch them at all!
Split your position into 5 parts, and only move 1 part at a time! For example, if you have 50,000 U, split it into 5 parts, each 10,000 U, and only invest 1 part each time. Don't think that 'investing less means earning less'; in the crypto world, those who lose quickly are always 'all in'. Keep 4 parts of your capital to withstand volatility.
Never go all in! Use at most 50%! Even if the market is good, don’t exceed 50% of your position; you must keep 50% as a reserve. For example, if you have 100,000 U, use at most 50,000 U for orders, leaving the remaining 50,000 U aside — in case of a drop, you can add to your position (but remember rule 5, don’t add recklessly), and if the price goes up, you still have capital to chase — this is the strategy of 'attack when possible, defend when necessary'.
At most make 3 trades a day, even if your hands are itchy, you must endure! Short-term trading is most prone to 'making more mistakes as you go', and sometimes making 10 trades in a day earns less than what you lose. I strictly limit myself to 3 trades a day, regardless of whether I earn enough or not, I close the software when the time is up — controlling your hands is more important than anything!
Never add to your position! Withdraw if you lose 30%! If the market drops after entering, don’t think 'I’ll add to lower my average cost'; the more you add, the more trapped you become! As long as you lose 30%, immediately close your position and leave — this indicates you entered the market at the wrong time, and holding on will only lead to greater losses; don’t go against your money.
Set your stop loss at 30%, and run unconditionally if it's breached! Before placing an order, set your stop loss properly; for example, when buying 10,000 U worth of Bitcoin, if it drops to 7,000 U, it should automatically close — don’t hesitate! I’ve seen too many people 'holding on for a rebound', only to go from a 30% loss to a 100% loss, and then liquidate, having no time to cry.
Don’t fall in love with K-lines! Quick in and out! If you make a profit, run; don’t think 'I’ll sell if it goes up a bit more'; if you incur a loss, withdraw; don’t hope 'if it drops a bit more, I’ll add'. Bitcoin rises like a rocket and falls like a dive; competing with it means you will lose — quick in and out is the kingly way of short-term trading!
Go with the trend! The trend is more important than anything! If the daily chart shows an upward trend, just go long and be bullish; if it shows a downward trend, just go short and be bearish. Don’t think about 'catching bottoms or peaks'; new traders who go against the trend are no different from giving away money — the trend is king; remember this clearly!
Second, the 12 mantras for survival in the crypto world: memorizing them can help you lose 100,000 less!
These 12 rules are the 'principles' I summarize from daily trading; they apply to 80% of market conditions. Memorizing them can help you avoid the dealer's traps:
Don’t rush to run when there’s a big drop in the morning; a rebound is likely in the afternoon! Many times the morning drop is scary, but it’s actually the dealer washing the plates; wait for the funds to enter in the afternoon, and it’s likely to rebound. Don’t panic and cut your losses by giving away your chips.
Reduce your position when there’s a big rise in the afternoon; a pullback is likely at night! If there’s a sudden rise in the afternoon, don’t be greedy, sell half first — before the foreigners enter at night, there’s likely to be a drop first, and then buying back after it drops is better, right?
A rise on low volume will still increase, and a decrease on low volume will still fall! If the trading volume doesn’t increase and it’s rising, it indicates the upward trend hasn’t ended; if the trading volume is low and it’s dropping, it indicates the downward trend hasn’t reached the end, so don’t rush to catch the bottom.
Rise before good news, and drop once it’s realized! For example, when an ETF is about to be approved or a major meeting is to be held, the market will rise before the news comes out, but once the news is confirmed, it’s likely to be 'good news has been fully priced in and is now bad news', so hurry and take profits.
Don’t panic if you’re confused by the drop during the day; at 21:30, foreigners will pull the market! Domestic funds are less during the day and can easily drop, but at 21:30 when European and American funds enter, there’s often a pull-up. If the day has dropped sharply, you can wait with a small position.
The deeper the pin drops, the more accurate the buy/sell signals! When the market suddenly drops (like Bitcoin suddenly falling 10% and then bouncing back), the deeper the drop, the more stable the support/resistance is — a drop means buy, a rise means sell.
Heavy positions will lead to liquidation! You are on the dealer's list! As long as you have a heavy position, the exchange and the dealer are watching you, and any slight fluctuation could lead to liquidation. Never bet your entire fortune.
The stop loss for a short position just got triggered, and it immediately drops! Your short position just got stopped out, and the market drops — this is the dealer intentionally tricking you into exiting the market. If they don't liquidate your position, how can they pull the market down? For example, many people have been trapped like this before with TRB!
Stop as soon as you break even; don’t let yourself run easily! Just a little more and you'll break even, but the rebound suddenly stops — the dealer won’t let you close your position, forcing you to take a loss. Don’t panic at this time; wait for the next wave of rebound.
As soon as you take profit and sell, the price goes up; how can you pull it up if you don't exit! You just took profit, and the market went up — it's not that you sold at the wrong time, but the dealer needs you to exit first before they can pull the price up, otherwise, the weight is too heavy to move.
As soon as you get excited, a crash comes! You think 'this time I will surely make a lot of money', and you get so excited that you can't sleep — it’s highly likely to drop — your excitement is the trap the dealer is using to lure you in.
When you're out of money, everything goes up! When you lose all your capital, all coins start rising, just to make you FOMO (fear of missing out) into the market — at this point, don't act impulsively; entering the market will just trap you.
Lastly, let me say something heartfelt: in the crypto world, earning is not about quick money, but about discipline!
Newbies always think they can quickly turn a few thousand into 1 million, but I tell you: I can earn 1 million, not because I can read K-lines, but because I can stick to the rules — I don’t place the trades I shouldn’t, never hold on to stop losses, and never greedily reduce positions.
80% of people in the crypto world are killed by greed and fear. As long as you can control these two points and follow the rules above, it’s just a matter of time from a few thousand to 1 million. Remember: slow is fast; stability wins!
