-
Having experienced ups and downs in the crypto world for over ten years, starting with a capital of 5,000 yuan, I made over 10 million during a bull market, then lost everything and went into debt by 7 million in three years. Finally, with a borrowed 200,000, I turned around and earned back 10 million. Along the way, I’ve summarized the ten iron rules of trading cryptocurrencies, which I hope will help you avoid unnecessary detours!
-
Rule One: Insight into market sentiment, trading volume is the core indicator.
• Trading volume rises while prices stabilize: A significant increase in trading volume while prices remain stable may indicate the end of a downtrend.
• High trading volume with stagnant prices: Trading volume surges without significant price increase, indicating a potential short-term peak.
• Price increases accompanied by rising trading volume: During an uptrend, trading volume must maintain steady growth; abnormal reductions or surges may indicate the end of the uptrend.
• Increased trading volume at key downward points: When the price drops to a critical position, a surge in trading volume may indicate further continuation of the downtrend.
-
Rule Two: Key price levels guide trading decisions.
• Support, resistance, and trend lines: When prices reach these critical levels, decisive action is key!
• Golden ratio principle: I use it to accurately predict support and resistance, with remarkable results.
-
Rule Three: Comprehensive analysis of the market across multiple time frames.
• One-minute chart: Capture precise entry and exit timing.
• Three-minute chart: Monitor price fluctuation trends after entry.
• Thirty-minute to one-hour chart: Grasp subtle changes in intraday trends.
-
Rule Four: Stay calm after a stop loss.
• Stop loss means ending the trade: Each trade is an independent starting point; don’t let the past affect your judgment.
-
Rule Five: Efficient position management strategy.
• Three-phase position building method:
1. Initial position building: When the price stands above the five-day line, make the first purchase.
2. Increase positions: Break above the fifteen-day line, continue to increase positions.
3. Fully prepared: Stand firm on the thirty-day line and complete the position building.
• Strict stop loss discipline:
• Break below the five-day line, reduce positions;
• Reduce when breaking below the fifteen-day line;
• Break below the thirty-day line, fully retreat!
-
Rule Six: Exit strategies are equally important.
• High positions breaking below the five-day line: Moderate reduction in positions, observe changes.
• Break below the fifteen and thirty-day lines: Decisively clear positions, leaving no regrets.
-
Rule Seven: Be aware of market news, don’t be swayed by emotions.
• Frequent good news but prices do not rise: Beware of the manipulators selling off, take profits in time.
• Negative news emerging but prices do not drop: This may be a bottom signal, keep a close watch.
-
Rule Eight: Insist on reviewing trades and deeply exploring trading experiences.
• Daily review: Summarize the reasons for success and failure, distill experiences.
• Regular review: Analyze past trades, adjust strategies, and enhance awareness.
-
Rule Nine: Set profit targets, don’t be greedy.
• Clearly defined profit range: Once the target is reached, decisively take profits, do not chase highs or sell lows.
• Learn to take profits in batches: Especially during a surge, don’t sell all at once.
-
Rule Ten: Mindset is king, always remain calm.
• When in loss: Don’t rush to recover, calmly analyze mistakes.
• When in profit: Don’t be blindly confident; the market is always full of risks.
• Patiently wait for opportunities: Don’t rush, it’s better to miss than to make a mistake.
These iron rules are valuable experiences gained from countless failures and successes by Qianfeng. On the road of cryptocurrency trading, I hope you can avoid traps and move forward steadily! $BTC
