Everyone comes to the cryptocurrency world with the same intention, and this is beyond doubt. If you are just here to pass the time with a casual attitude, this place is not for you. We come to the cryptocurrency world to gain more income and improve our family's living conditions. If technical skills are a prerequisite for profit in the cryptocurrency world, then the strict rule that needs to be adhered to is the key to long-term profitability.
If you want to treat cryptocurrency trading as a second source of income, wish to share a piece of the pie in the cryptocurrency world, and are willing to invest time in growth and learning, then don’t miss this article. Read it carefully; each point is the essence of the cryptocurrency world. It can be said that regardless of a bull market or bear market, these 10 iron rules can help you! I will also share my ten years of experience in trading cryptocurrency!
After ten years of trading cryptocurrency, from having nothing to making a living off it, I have summarized '15 immutable laws of cryptocurrency trading,' each one is precious and worth its weight in gold; I recommend saving them!
Survival rules in the cryptocurrency world—whoever can survive is the king!
These rules may seem simple, but they are not easy to implement. Only those who can truly follow them will become the ultimate winners!
The above '15 immutable laws of cryptocurrency trading' are the essence I earned through years of trading with real money. Each one is crucial, and I genuinely find them useful, so I share them with everyone. I hope you can absorb them well in conjunction with your own operations and help you in the cryptocurrency world, avoiding years of detours!
How to find divergence signals? (Practical advice).
Although divergence trading can detect market reversal signals earlier, many traders complain that divergence signals are hard to find. So how can we easily find divergence signals?
Next, I will share five methods for finding divergence signals and their precautions. I hope they are useful to you.
1. Carefully observe market prices and pay attention to the following four situations.
① Price is above the previous high.
② Price is below the previous low.
③ Double top pattern.
④ Double bottom pattern.
The occurrence of the above situations is a prerequisite for divergence signals. If the market remains in a trend without obvious highs and lows, do not look for divergence signals in such situations.
As shown in the figure, if none of the above situations occur, trading divergence is not possible.
The double top and double bottom patterns are significant market reversal patterns that often appear simultaneously with divergence signals.
2. Draw lines between two consecutive high and low points.
Lines must connect high points to high points and low points to low points; they cannot connect high points to low points. The lines between adjacent high and low points can have three situations: upward slope, downward slope, or horizontal.
The high and low points here are significant price highs and lows, and small fluctuations in between can be ignored.
As shown in the figure below, connect two consecutive high points.
As shown in the figure below, connect two consecutive major low points, ignoring the low points of intermediate fluctuations.
Five laws of cryptocurrency trading for experienced traders, full of practical insights, shared for everyone, hoping to help newcomers avoid pitfalls.
1. Rapid rises and slow declines—market makers accumulate. If you see the market rising rapidly but falling slowly, this generally indicates that the market maker is quietly accumulating before the next round of increases. Don’t be easily frightened by small fluctuations; they may just be a warm-up before a big surge.
2. Rapid declines and slow rises—market makers are cashing out. When the market drops sharply and the rise is weak, it can generally be confirmed that the market makers are liquidating; at this point, do not harbor any delusions, as the market may soon enter a downward trend.
3. Don’t rush to sell at high volume; if volume shrinks, run quickly. If the price reaches a peak and the trading volume increases, don’t rush to sell; there may still be further increases. But if volume at the top is not significant, leave quickly; this indicates that the upward momentum is insufficient and danger is approaching.
4. Be cautious with volume at the bottom; continuous volume can be a signal to enter. When you see volume at the bottom, don’t rush to buy; it may just be a midpoint in the process. Wait for sustained volume to confirm that funds are continuously entering before considering an entry.
5. Trading cryptocurrency is about emotions; trading volume reflects consensus. The cryptocurrency world largely revolves around trading emotions, and trading volume is a manifestation of market sentiment.
Pay more attention to trading volume to better grasp market trends; following consensus will help mitigate emotional fluctuations.
Although the cryptocurrency world is full of uncertainties, it also hides opportunities. To walk steadily in this market, one must not only understand technology but also emotions, maintaining calmness and rationality, and not be deceived by short-term fluctuations.
In the cryptocurrency world, a simple yet practical trading plan.
1. Divide the available funds into five equal parts; for example, if you have $10,000, divide it into five parts, using $2,000 for each trade.
2. Use one portion of funds to buy a cryptocurrency at the current price.
3. If the coin price drops by 10%, buy one portion.
4. When the coin price rises by 10%, sell one portion.
5. Repeat the above steps until all funds are used up or all coins are sold. Under this strategy, once you buy in, you need not worry even if the coin price falls because we will continue buying when the price drops.
In reality, if all five portions of funds are used up, the coin price has likely dropped by nearly 50%. Unless a massive market crash occurs, the price will not fall that quickly.
From the perspective of profits, every sale can bring a 10% profit. For instance, with a total fund of 100,000, if you use 20,000 each time, each sale will yield a profit of 2,000.
However, this strategy also has certain problems. A 10% fluctuation range is relatively large and may lead to trades that are not easy to execute, requiring longer waiting times.
This will affect the efficiency of capital usage because funds may remain idle for long periods or be continuously occupied by individual currencies. However, this issue can be resolved by reducing the amplitude of fluctuations.
For example, you can choose stable coins to buy, and when funds are idle, consider investing in Binance financial products.
This way, you can earn additional income while waiting for price changes.
A must-read for new cryptocurrency traders! The brutal evolution from being a 'leek' to a 'hunter', with 99% of people failing at the third checkpoint!
Heartbreaking reality:
When first entering the market, everyone wants to make quick money, and the result is:
▫️ Day 1: Fantasizing about financial freedom.
▫️ Starting from Day 2: only want to break even.
▫️ Day 30: Start questioning life.
Novices must face three deadly checkpoints:
The difficulty of making money in this market is actually beyond your imagination.
1. It tests not only your capital (tuition fee impact) but also the funds you invested with hope, which can turn to nothing overnight.
2. The energy consumption of time (watching the market for 72 hours straight → eyes dazzling). The fluctuating lines on the K-line chart consume your energy and hope.
3. A mental purgatory—strong psychological resilience (moment of liquidation: heart stopping, missing a market opportunity: regretting and wanting to slap yourself, continuous losses: hands shaking, unable to hold the mouse, losing the courage to place orders).
The harsh reality:
The real threshold is not those fancy indicators and strategies, but the blood and tears earned through real money. You must feel the screen turning red during a margin call, experience the regret of missing the opportunity, and endure the fear of a heartbeat like a drum after consecutive losses.
The scenes not written in books are the true fuel for growth. Just as swords must be forged in the flames, market profits must be tempered with tears and losses.
⚠️ The market specializes in treating:
▫️ When greedy → it leads you to over-leverage and get buried.
▫️ When fearful → a sharp drop forces you to cut losses, then it rebounds.
▫️ Following blindly → makes you chase highs and become a big loser.
Those who can truly make money have honed the ability to go against human nature through countless moments of collapse—when the market is booming and the group chat is filled with cries of 'all in', they quietly liquidate their positions; when the market plunges to freezing point and the news is full of headlines about 'crashes', they increase their positions, telling themselves 'this is the bottom'.
They execute trading plans with a coldness like a machine, using iron discipline to gradually convert a weak win rate into a continuous profit.
When you can face the ups and downs directly, and the red and green fluctuations on the screen no longer make your heart race, when others panic and flee like headless flies during a market crash, you can stand at the center of the storm, calmly pulling the trigger with tears; this inner resilience and calmness is far more precious than any money.
The market always favors those lone wolves who stand tall amidst tears, but you must first endure the darkest nights, forge true courage through countless moments of 'wanting to give up', so that after the storm passes, you can stand in the sunlight to welcome your own victory.
Survival rules:
Use 2% of the position to test (maximum loss of 2000 on a 100,000 investment each time).
Set automatic take-profit and stop-loss (don't trust your own hands).
Establish a trading journal (record the emotions of each trade).
Weekly review (analyze which operations were influenced by emotions).
Evolution path:
▫️ Beginner: Crying from market abuse (90% fall here).
▫️ Intermediate: Learn to trade with discipline (6% can achieve this).
▫️ Advanced: Remain unfazed by fluctuations (0.9% are ultimate players).
▫️ God-level: Harvesting emotions (0.1% at the top of the food chain).
At which level did you experience a breakdown?
What five mentalities must novice investors overcome?
"When others are greedy, I am fearful; when others are fearful, I am greedy," said Buffett. Greed and fear are actually the two most direct and fundamental psychological factors that traders must face. They can fulfill the wealth dreams of inexperienced traders because greed drives trading, while fear is the premise of risk awareness. They can also destroy the past glory of financial magnates; excessive fear may lead to missed opportunities, while excessive greed may lead to ruin.
Throughout our trading journey, we will experience various ups and downs, accompanied by different emotional states, and all these emotional expressions are merely different ratios of two factors.
As an important dimension of the trading system, mentality affects our ability to profit steadily and plays a decisive role in whether we can become mature traders.
First, being overly concerned about gains and losses.
This mentality is a common problem among novice traders; they become extremely anxious with slight market changes and want to liquidate at the first signs of minor gains or losses, fearing a reversal. This shows excessive fear and insufficient greed, or simply put, thinking too much and understanding too little. Generally, as technical knowledge and trading experience increase, these emotions can be quickly overcome, but if they persist, it may indicate that trading is not suitable for them.
Second, following the crowd.
This is also a manifestation of self-doubt, and living in a group, one is easily swayed by the emotions of the crowd, as the saying goes, 'a crowd of sheep.' Of course, some traders belong to those who are overly greedy, unwilling to think and learn for themselves, preferring to hitch a ride, hoping for a lazy package. Some guidance from industry seniors may also lead us to misjudge the market, which requires us to discern; the most important thing is self-reliance and self-confidence.
Third, obstinacy.
This mentality may stem from a strong character trait, belonging to those who are stubborn and will not change until they see the tombstone. The market has moved far from their expectations, yet they still believe there is a chance for reversal, clinging stubbornly to losing trades, often resulting in significant losses or even liquidation. However, this mentality is also related to market differences and personal trading habits. Some traders have rough trading strategies; in my opinion, those without strict capital management strategies are unformed. Subjective mentality plays a greater role in trading, often leading to stubbornness and holding onto losing trades. Stop loss, you must set a stop loss!
Fourth, regret and impulse.
There are no regret pills for sale in the world, but many people wish there were. Many traders sigh and get annoyed when they make mistakes or miss opportunities, even wishing to bang their heads against the wall. Everything that has occurred belongs to sunk costs, which we can no longer change. Unsettled emotions will not only fail to recover our losses but will also negatively impact our subsequent trading. Therefore, once feelings of unwillingness arise, stop trading immediately; stubbornness will only lead to more mistakes.
Fifth, complacency.
This emotion is more common among experienced traders; after all, trading is an art of dancing on the edge of a knife, and a slight mistake can lead to a fall. Although experienced traders are very skilled or have achieved stable profits, it is also common for them to suffer significant losses due to slight relaxation of emotions or overconfidence, becoming careless in judgment and capital management. Therefore, it is essential to maintain a moderately tense emotional state, never be satisfied with current achievements, and continuously learn and improve.
The road of originality is tough, but I share daily insights tailored for retail investors. I have ten years of market battle experience in digital currencies. Unity of knowledge and action seems simple, but is not easy. Today's sharing is intended to light the path for cryptocurrency enthusiasts and reduce the pain of exploration.
Follow Su Ge closely, analyze with precise strategies, and select with massive AI big data to keep yourself undefeated? The market never lacks opportunities; the question is whether you can seize them. Only by following experienced people can we earn more!
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