From 100,000 to 30 million in cryptocurrency trading: 7 life-saving rules (Understand early to earn 10 million)!!!
Survival rules summarized from ten years of practical experience, every word hits the heart! Here are the hard facts:
1. Don't waste small funds! With a principal of 100,000, only aim for one big move a day.
Don’t be like retail investors who stare at the charts and make random trades every day! With a principal under 100,000, think like a sniper, capturing one big fluctuation a day before calling it a day:
Positions should not exceed 3 hours; being greedy will only lead to transaction fees.
Core strategy: Settle during high-volatility periods (like 4 AM / before and after non-farm payroll data release), eat and run.
2. Positive news is when the scythe swings down!
When the project parties paint a rosy picture = signal for the main forces to unload! Remember:
On the day the good news is announced, one must reduce positions after a spike, and clear out the next day (no matter how high it opens).
Case study: A certain coin’s announcement of “going live on a certain exchange,” saw a 40% crash the next day; being greedy and holding on for one more day resulted in a 65% profit loss.
3. Clear out before major events! Don’t bet on the market’s mood.
Reduce positions 3 days prior to events like the World Cup or Federal Reserve interest rate hikes; if uncertain, go to cash:
Historical data: The probability of market fluctuations exceeding 50% around major events is 78%.
Counter-intuitive strategy: Wait for 3 stable K-lines after the event to re-enter; you might miss the initial peak but can still catch the middle.
4. Those who dare to go all-in for the medium to long term are fools!
Keeping half of your position is a hard rule:
For coins you’re optimistic about, initially buy 30% of your position, add 20% if it drops 10%, and sell 10% if it rises 20%.
Mathematical logic: Full position with a 20% pullback loses 20%, half position with a 20% pullback only loses 10% (doubled margin of error).
5. Short-term trading is like playing with your heartbeat! In a sluggish market, just lay flat.
Only trade during dramatic rises and falls; sideways movements are like a meat grinder:
Entry signal: 15-minute KDJ indicator J value < 0 and RSI < 30 (oversold).
Exit signal: J value > 100 and volume stagnation; must sell if it breaks below the MA60 moving average.
Discipline: If sideways for over 24 hours, close the software and rest, improving win rate by 40%.
6. Cut losses ruthlessly! Holding on equates to losing money.
A 3% drop must trigger a cut; don’t hold onto fantasies:
With a single stop loss of 3%, if you’re wrong 10 times in a row, you’re left with 70% of your capital; holding until a 20% stop loss, after 3 mistakes, you’re left with 51%.
Case study: A brother held onto ETH during a crash, going from a profit of 80,000 to a loss of 150,000, ultimately having to sell his house to repay debts.
Withdraw 30% profits monthly to buy a house / deposit in fixed terms; don’t let digital wealth turn into a bubble after experiencing three rounds of bull and bear markets. There’s plenty of rich market experience in the crypto space.