As someone who went from a monthly salary of 3,000 to earning hundreds of thousands a month, I will break down the most practical survival rules in the crypto world for you—no need to stay up all night watching the market, no need to understand technical analysis, and you don't even need to spend too much time. As long as you avoid the 99% of pitfalls that newcomers will inevitably step into, you can also steadily make money in the crypto world.
1. Capital management + is the cornerstone of success.
Divide your capital into five parts, using only one-fifth at a time, and set strict stop-loss lines +-- each trade should not lose more than 10%, total capital.
Control losses within 2%. Even if you make five mistakes in a row, the total loss will only be 10%, but once you seize an opportunity, profits can often easily cover the losses.
2. Go with the trend, do not go against the current.
Do not recklessly catch the bottom during a decline; most of the time, it is a trap to induce buying. Patiently wait for clearer signals.
Do not rush to sell during an upward trend; it could be a 'golden pit.' Buying low is more stable and reliable than bottom fishing.
3. Stay away from coins that have surged in the short term.
Whether it's mainstream coins or altcoins, continuously surging coins are rare; most will enter a period of stagnation or even correction after a surge. Do not hold onto the illusion of betting on miracles at high positions.
4. Make good use of technical indicators.
MACD+ is a practical tool: consider buying when the DIF line and DEA line form a golden cross below the 0 axis and break through the 0 axis; conversely, consider reducing positions when a death cross occurs above the 0 axis.
Replenishing positions must be methodical: never add to a losing position, only add when in profit, otherwise, you may fall deeper.
5. Trading volume + is the soul of the crypto market.
Pay attention to low-level volume breakthroughs; this is an important market signal.
Persist in only trading coins in an upward trend; observe the 3-day, 30-day, 84-day, and 120-day moving averages +, an upward turn often indicates an established trend.
6. Review + and strategy adjustment +
After each trade, review and reassess your holding logic, and adjust your trading strategy flexibly in conjunction with the weekly K-line trends.
Let me share some iron laws of the crypto world:
1. Only participate in the irreversibly upward trends in the market.
"Only participate in the irreversibly upward trends in the market"; the market is the fact, it is indisputable, and cannot be challenged. Trends are irreversible. As an investor, you must dare to admit mistakes, correct them at any time, reject uncertain markets, and go with the trends that even the major players must follow; you must understand to go with the flow.
2. Refuse frequent trading.
The casino is open 24 hours, so there’s no need to frequently place trades. There are many logics here, such as timing, trial and error, and position control. We advocate waiting for the perfect moment like a hunter, rather than randomly investing as soon as you see a target.
3. Do not blindly trust technical indicators.
First, we must acknowledge that any technical indicator has its lag.
For example, when the MACD indicator issues a golden cross buy signal, in fact, the coin has already risen a wave, and when the golden cross occurs, you might very well be the one picking up the pieces!
4. Forget the cost price once you buy.
When you start to short or go long, the cost price has no relation to any subsequent operations, because whether to sell depends on market trends, and has nothing to do with whether you are still making a profit. If the pattern is good, continue to hold; if it deteriorates, reduce your position or even liquidate.
5. Use funds that you can afford to lose to participate.
Use spare money to trade coins; all investments carry risks. Investors can increase their capital after mastering the game's profit tips. Until then, always use funds you can afford to lose; borrowing money often leads to huge losses!
6. Withdraw profits on time if you are in profit.
Without cashing out, everything is just a number. Crypto investors are like gamblers who haven't left the casino; even if they temporarily make a lot of money, they can't be considered winners. Only when you extract cash from the market can you say you laughed last. In the crypto world, withdrawing funds on time is a good habit.
I have been trading cryptocurrencies for 10 years, earning 1.1 million as a small target. To change your fate, you must try the crypto world; if you cannot get rich in this circle, ordinary people will have no chance in their lifetime. Recently, I had the fortune to drink tea with a big shot in the crypto world and talked freely about the ups and downs of the crypto market.
His words deeply shocked me.
It turns out that he once suffered a liquidation of 50 million due to making contracts within three days. This experience was undoubtedly a profound lesson for him.
Looking back at my own journey in the crypto world, it has also been full of ups and downs. From initially entering the market with 50,000 to making ten million during a bull market; then from ten million back to 2,000, and now aiming for a small target of 1.1 million; and now, I am waiting for the next bull market, aiming to reach three small targets.
My trading method is not complicated, but it is exceptionally practical. In just one year, I turned my assets into 8 digits. My secret is to only trade one pattern, decisively enter when I see an opportunity, and not trade without a pattern.
For the past five years, I have maintained a win rate of over 90%, thanks to my patience and precise judgment.
As a veteran with ten years of trading experience, I have weathered storms and crossed bulls and bears. I stand firm in the crypto world entirely thanks to these ten golden rules, which are the crystallization of wisdom from my years of experience! Please read carefully, reflect on yourself, and I believe you will gain valuable insights from it!
Every word is a gem, each piece is worth savoring and chewing over repeatedly. Following these rules might help you avoid years of detours and multiply your wealth by millions!
Following the iron rules of trading is a solid defense against wealth and rationality.
"The smoke of battle never shows mercy to bleeding warriors; the world of trading is more brutal than the battlefield—there are no medals here, only legends of survivors. When I watch countless traders fall beneath their own knives, I finally understand: the true weapon is not the K-line strategy, but the iron rules of survival engraved in the marrow."
[First Admonition: Position Hell] "Do you think heavy positions are a fast track to wealth? No, that is a rollercoaster to hell! When leverage becomes a noose, even the most precise judgment will become a noose swinging on the gallows. Remember, the death knell of liquidation often begins the moment you press 'buy all in.'"
[Second Admonition: The Curse of Fatigue] "Caffeine at three in the morning won't save your account; bloodshot eyes can't see the truth of trends. Fatigue is the favorite poison of the market's devil; it can make you see stop-loss as take-profit and opportunities as traps. Remember, a trader who collapses on the keyboard will never see the dawn of light."
[Third Admonition: The Advantage Rule] "Trading without core competitiveness is like charging into a hail of bullets with bare hands. Ask yourself: If you could only use one sentence to describe your winning logic, is that sentence sharp enough? Is it simple enough? Does it make your opponent tremble? If not, you are just a lamb waiting to be slaughtered at the betting table."
[Fourth Admonition: The Poison of Boredom] "Opening positions out of loneliness will inevitably lead to destruction due to greed. The market will not pay for your lonely finger; it will teach you what it means to 'endure loneliness' through losses. A true hunter can turn the empty warehouse period into the moment of sniping, letting every trigger pull shatter the opponent's eardrums."
[Fifth Admonition: Gazing into the Abyss] "Revenge trading after a big loss is like throwing stones into the abyss while expecting an echo. The market will never pay for your blood and tears; it will only mock your weakness with deeper losses. Remember, when you gaze into loss, the loss also gazes into you—until it drags you into the bottomless abyss."
[Sixth Admonition: The Escape Route] "Every trade should have an escape route; stop-loss is not a shackle, but a parachute. Before greed devours rationality, and before fear distorts judgment, let the plan make the coldest decision for you. Remember, a position without a contingency plan is like a tightrope walk over a cliff."
[Seventh Admonition: Obsession Burning the Heart] "The market will never make way for obsession; your beliefs mean nothing in front of the market. When loss becomes the seed of obsession, not stopping loss in time will set you on fire. Remember, trading is not an altar for beliefs, but a battlefield of rationality."
[Eighth Admonition: The Rearview Mirror Trap] "Trading while staring at profit and loss numbers is like a driver focusing on the rearview mirror. The past has become a tombstone; the future is the battlefield. A true trader can fix their eyes on the forefront of trends, allowing every decision to penetrate the fog."
[Ninth Admonition: Signal Filtering] "The market generates hundreds of thousands of noise every day; the real signals are hidden at the eye of the storm. Cultivate iron-like determination, let the bullet fly a little longer, until you see a target worth pulling the trigger on."
[Tenth Admonition: The Trend Torrent] "Going against the trend is like trying to stop a mudslide with your body. Smart money always stands in the direction of momentum, harvesting the market with the principle of least resistance. Remember, true profits come from the compounding magic of going with the trend."
[Eleventh Admonition: The Fog of Value] "A decline is not a badge of value; it may be the death knell of value destruction. True value investing requires seeing the springs of free cash flow through the financial statements, not picking up cigarette butts in a garbage heap."
[Twelfth Admonition: The Holy Book of Discipline] "Trading discipline is a sanctuary built with blood and tears; every breach during emotional excitement destroys your throne. Remember, a professional trader is not a genius prophet, but a priest executing rules. Plan your trades, trade your plan—this is the only path to redemption in the trading world!"
[Final Scene: The Battle Song Fades] "When the market closing bell rings, may these iron rules become your armor. Remember, trading is not a casino for overnight wealth, but the ultimate training ground for cognition and discipline. Only traders who engrave these iron rules into their DNA can ride through bull and bear markets and become eternal survivors in the market."
There are still many common situations of emotional harvesting. The following three are the most common.
1. Intra-day fluctuations.
When a coin experiences intra-day fluctuations, it is essentially the major players taking retail investors as targets. During the up-and-down fluctuations, if retail investors buy too much, the coin price is likely to end with a significant drop; if retail investors panic and sell, the price is likely to rise after the fluctuations.
2. Chasing highs and selling lows.
Chasing highs and selling lows is also the most common emotion. Behind chasing highs and selling lows is the fear of missing out and the fear of being deeply trapped.
The emotion of chasing highs and selling lows can also be easily exploited by major players; when many people chase highs, it becomes easy for major players to sell. In the morning, they might induce buying heavily, and in the afternoon, they can crash the price to show retail investors, allowing trend-following traders to lose more than 10% in a day. Similarly, major players can take advantage of the situation to wash out retail investors, making the coin price fluctuate instead of chasing highs; it should be the trend that retail investors chase, not the coin price, and their half-understanding has turned them into the food for capital.
3. Bad news and good news.
One more thing is that both bad news and good news can be manipulated by the major players. Bad news can suppress the coin price, but it can also be interpreted as bad news reaching its limit, allowing the price to surge. Similarly, good news can push the price up or be used to sell at a higher price.
So how to interpret good and bad news is ultimately decided by capital. How capital operates is actually based on market reactions and retail investor actions. When retail investors panic, capital greedily buys in; when retail investors are greedy, capital immediately escapes. Using emotions to harvest retail investors is executed flawlessly by capital, almost effortlessly.
This is the experience I have summarized from years of struggle in the crypto world. I hope these principles and strategies can help you avoid detours and steadily accumulate wealth.
Success is not a coincidence; opportunities are reserved for those who are prepared.
One tree cannot make a boat; a lonely sail cannot voyage far! In the crypto world, if you do not have a good circle or first-hand information, I suggest you follow me; I will guide you to shore. Welcome to join the team!!!
