I summarized 8 iron rules using the dumbest cryptocurrency trading method
1️⃣ Small capital survival rule: Capture 1 wave a day, never fully invested
💸 Capital < 100K, making a profit once a day is enough!
• Reject high-frequency trading (more than 3 times a day is bound to fail)
• Position ≤ 50% (leave some bullets for reinvestment)
• Case: In the 2024 ETH waterfall market, shorted with a 5% position, gained 30 times in 3 hours
2️⃣ Good news cashing out is bad news: The art of running fast
🚨 Major good news = top escape warning!
• If no sales on the day of policy/project good news? Must sell on the next day’s high open!
• Beware of “news turning into a knife”
3️⃣ News + holidays: The God’s perspective of early layout
🌐 Check the calendar before trading!
• Must reduce positions on the 10th of every month (U.S. CPI data day)
• Clear contracts 48 hours before Chinese New Year/American Thanksgiving
⚠️ Extreme case: On the day of the FTX crash in 2023, the liquidation rate for those fully invested exceeded 90%
4️⃣ Medium to long-term: Light position guerrilla warfare
🛡️ “5% position conquers the world”
• Set stop-loss 5% below the support level (to prevent false breakouts)
• Take partial profits at 50% floating profit (reject greed)
✨ My holding table: BTC dollar-cost averaging position accounts for only 3%, yet the annualized return beats 90% of heavily invested parties
5️⃣ Short-term core: Fast, accurate, ruthless + empty position philosophy
⚡️ “15-minute K-line + KDJ golden cross = best hitting zone”
• Trend indicators: RSI > 70 to short, < 30 to long (harvesting against human nature)
• Holding an empty position during sideways trends ≠ cowardice, it's top-level self-discipline (shut down for safety when daily volatility < 2%)
6️⃣ Volatility rules: The time-space code of slow rise and fast fall
📉 “Rise like a snail, fall like an avalanche!”
• Slow rising market: Pullbacks must break previous lows (short signal)
• Rapid decline market: Rebounds don’t exceed previous highs
🌰 January 2025 SOL rapid decline case: 40% drop in 1 hour, rebound lasted only 18 minutes
7️⃣ Stop-loss: Dignity is more important than money
⛔️ “Cut immediately if the direction is wrong, hesitate for a second and lose 10%”
• Fixed stop-loss method: 3% of capital as the red line
• Dynamic stop-loss method: Must sell after a 20% pullback from a 50% floating profit
💔 Bloody lessons: In 2024, against a single ADA long position, lost all half a year’s profit in 3 days
8️⃣ Technical trader's bible: 15-minute chart + KDJ
🔍 “Microscope for short-term traders”
• KDJ golden cross + volume breakthrough: Go all in!
• MACD top divergence + shrinking volume: Run
