Remember my methods when trading cryptocurrencies; beginners can easily get a Mercedes!
Ten years of trading experience teaches you life-saving secrets!
I used to lose sleep over trading losses, but now I steadily earn 50%+ every year, just relying on these few simple methods:
1. Hand itching cut-off principle.
If the market does not show the patterns I have practiced a thousand times, I would rather scroll through Douyin than place an order.
It’s like playing Mahjong; I definitely won't play with a hand that can't win!
2. Night owl strategy.
Daytime market movements are erratic, with all sorts of fake news popping up.
After 9 PM, the dealers have finished eating, and only then does the market reveal its true form.
I often see the market better while sitting on the toilet than during the day!
3. Take a bite of the meat that’s in your mouth first.
Earned 1000 USDT? Immediately transfer 300 to the bank account! The rest can be played however you want.
I have seen too many people make enough for a Mercedes but can't stop, ultimately losing even their bicycles.
4. Install a "demon-revealing mirror" on your phone.
Before placing any orders on TradingView, you must check three indicators.
MACD golden cross and death cross (two lines crossing).
RSI overbought/oversold (above 70/below 30).
Bollinger Bands narrowing and widening.
At least two indicators must agree before taking action; feeling reliable? That thing is the most deceptive!
5. Stop-loss must be flexible.
Sitting in front of the computer, playing "Mobile Castle": earn 100 USDT, then raise the stop-loss line by 50 USDT, repeatedly nesting.
Going out to walk the dog? Set a hard stop-loss at 3%, and you won't be afraid even if the dealer crashes the market at midnight.
6. Must distribute profits every Friday.
No matter whether you earn 10,000 or 1,000, transfer 30% to your bank account promptly at 3 PM on Friday.
I specifically opened a "coffin fund" account on Alipay, unmovable.
7. Looking at candlesticks is like watching a drama.
If you want to make quick money, focus on the 1-hour chart; two consecutive bullish candles can lead to a stagnant market (sideways).
Switch to the 4-hour chart to find support levels, as accurate as finding a restroom sign.
8. These pitfalls are fatal.
Leverage over 10x = suicide (newbies are advised to start with 3x for practice).
Shit coins and Dogecoin are all tools for harvesting retail investors.
At most, place 3 trades a day; if you can’t stop like you’re munching on sunflower seeds, you’re doomed.
Borrowing money to trade cryptocurrencies? You might as well donate it directly to the Red Cross!
Remember:
Treat this like a job; shut down at the right time to spend time with your wife and kids.
The more zen you are, the fuller your wallet.
Now I only spend 2 hours a day watching the market, and the rest of the time fishing and walking, money will come to me.
The 15 rules I shared today for "must sell" are the essence of my years of practical experience. No boasting, no pie in the sky; as long as ordinary people strictly adhere to them, they can avoid 90% of loss traps.
1. Eat fish, only eat the middle section; leave the head and tail for others.
Don't fantasize about buying at the lowest point, nor hope to sell at the highest point. The main upward wave is your profit zone; greed at the beginning and end will only trap you.
2. No stop-loss = chronic suicide.
No matter how good a coin is, if it breaks key support, decisively cut losses. If the capital is gone, then you have nothing left.
3. Novices look at price, veterans look at volume, experts look at trends.
Candlestick patterns can deceive, but volume and the larger trend do not.
4. Only play with familiar coins; unfamiliar projects = high risk.
You don’t even know who the project team is; why trust it will rise? Investing in old friends is more stable than betting on new trends.
5. Buy quickly, hold steadily, and sell decisively.
Hesitating to buy = missing opportunities, selling randomly = losing profits, execution determines returns.
6. Opportunities come from declines, cash is accumulated by waiting.
Without capital, no matter how good the market is, it has nothing to do with you. Patience in waiting is the highest strategy.
7. Technology is a tool; mindset is the key.
No matter how good the technical indicators are, they can't compete with a brain dominated by FOMO.
8. The market often starts in despair and ends in madness.
When others panic, you are greedy; when others are greedy, you retreat. **Only those who go against human nature can win.**
9. Greed destroys profits, fear destroys opportunities.
Want to make 10 times and still hope for 20 times? Afraid to add to your position after a 30% drop? If you can’t control your emotions, you will eventually be harvested.
10. Make small money in the short term, make big money in the long term, and make quick money in swing trades.
Find a rhythm that suits you, don't blindly follow the trend of day trading.
11. Buy when others panic, sell when others are euphoric.
The market is often most active when it is most dangerous. Independent thinking is necessary to outperform the crowd.
12. Relying on luck to make money? You might as well buy a lottery ticket.
Investing is not gambling, **luck = self-destruction.**
13. Do not go all in on a downtrend; keep cash = keep opportunities.
Don't be afraid of missing out; be afraid of being trapped. Position management is more important than choosing coins.
14. Frequent trading = chronic bleeding.
Trading 10 times a day? The exchange laughs awake, your capital cries in despair. Experts wait for opportunities, not seek them.
If you are also a tech enthusiast and are studying technical operations in the cryptocurrency circle, you might want to follow the public account (YuanYuan Gather Wealth), where you will get the latest cryptocurrency information and trading skills!
If you are looking for rapid price fluctuations in the market, the daily chart may not be suitable for you.
You must wait until the end of each trading day to decide whether to set a trading strategy. This may be more challenging for forex traders since the forex market operates differently from stock or futures markets, which have clear opening and closing times.
On the daily chart, you won’t encounter trading opportunities as frequently as in lower time frames like 5 minutes or 15 minutes.
But the problem is... many novice traders are always eager to jump into the fast-paced world of day trading, even before they have succeeded on the daily chart.
For most people, this is an unwise practice.
Daily chart — why casinos hate it.
I used to be keen on trading on lower time frames because I believed that the more opportunities, the more money I would earn.
But besides not paying attention to trading costs, I realized I was addicted to the thrill of the next trade.
It’s just like being in a casino.
When I have a profitable trade, I feel very good, and sometimes I even firmly believe that the next trade will also be a winner. I ignore the "power of timely profit-taking," just indulging in the excitement of quick profits.
But losses are real, so I keep trading, thinking, "The next trading opportunity will definitely be profitable."
This is like a gambler. This is a huge mistake.
Entering the world of daily chart trading.
Using the same trading strategy, trading opportunities become fewer, which tests my patience. Over time, I learned that trading opportunities do not appear every day. The sense of "instant gratification" from quick profits is no longer there.
I no longer rely on frequent trading to pick up small amounts of money. I started spending less time but achieving better results, gradually getting rid of that "casino mentality."
This is a progress for me.
The 15-minute chart usually shows a lot of trading signals for most trading strategies. When I switch to the daily chart, we can see a simple pullback pattern trading opportunity and a bullish entry signal emerging.
Although trading opportunities are scarce, price action is very clear.
Five major benefits of trading on the daily chart.
I can only talk about the benefits of trading on the daily chart from my own experience (weekly charts shouldn't be ignored either), but I believe you will be attracted to them as well.
1. More time — less stress.
Unlike in shorter time frames where you need to watch every price fluctuation, I can choose to check the daily chart in the second half of each day to see if the trading patterns I want have appeared. By observing the daily chart, I can more objectively judge whether the market meets my entry conditions.
I don't need to stare at the 1-minute or 15-minute charts like when doing scalping or day trading.
I only check the charts once at the end of the daily candlestick or close to the close, quickly scanning each price chart for opportunities. I no longer need to rush to place orders, worrying that the price will take off immediately.
The impulse to "chase fast-rising markets" common in lower time frames is almost non-existent in daily chart trading. Because one candlestick takes the whole trading day to close, unless I use limit orders, I only need to focus on the closing price and its position on the chart.
Using basic retracement methods, standard trend lines, and support/resistance areas, you can quickly assess whether there are trading opportunities each day. The red cross in the chart indicates that it only takes you 3 seconds to see if there’s a trading signal on those days.
The green check indicates that you will stop to analyze the chart carefully to ensure it meets your specific trading pattern conditions. You will check each item according to your trading plan and execute trades as planned.
2. Lower trading frequency — higher win rate.
I don’t need to watch the market constantly because I know when to check the charts for trading opportunities.
Although I have tried to stick to a day trading schedule and set a stop trading time, I always worry about missing a big market move. In smaller time frames, trading signals come very quickly.
On the daily chart, I find that these trading patterns often trigger larger price movements. In smaller time frame charts, slight unfavorable price fluctuations can easily hit the stop-loss, while entries on the daily chart remain valid. Unknowingly, I have become a swing trader.
The stop-loss range on the daily chart is relatively large, allowing more room for prices to move in a favorable direction.
Of course, there are times when I enter on higher time frames and the price immediately shows unfavorable fluctuations. But with a more reasonable stop-loss range set, I can better manage trading risks, thus controlling the overall risk ratio.
My overall win rate has improved because I have less exposure to market risks.
My overall returns have increased while I spend less time in the market.
The fewer trades, the lower the trading costs.
Although the cost of each trade may not seem much, small amounts can add up to significant differences. Fewer trading opportunities are exactly what most traders, especially novice traders, truly need.
3. Less affected by news and data releases.
I still remember when I first started trading forex, I was attracted by trading the "Non-Farm Payroll" (NFP) data. These dramatic market fluctuations looked very tempting, but often, slippage made it all meaningless. Coupled with data transmission or order delays, I always ended up losing profits.
When using the daily chart trading approach, news events or widened spreads from forex brokers have very little impact on positions.
Most traders, in fact almost all traders in the market, usually use swing highs and lows as stop-loss locations. It is certain that many traders are stopped out at these two peaks in extreme positions of the trading range.
4. Focus on the trading process.
Daily chart trading gives you time.
Have time to execute your trading plan step by step.
Have time to learn how to let profits run.
Have time to develop other sources of income.
You don’t need to work full-time to choose to trade on the daily chart.
One thing I find interesting is that at our offline salon, some traders ask, "Since these teachers can make money trading, why still make trading videos or sell courses?"
My answer is: if you have time to increase another source of income, why not? That's why many people start learning to trade while having a job. They understand one principle — don't put all your eggs in one basket.
When trading on higher time frames, your daily trading time is actually very short.
Whether it’s swing trading or trend position trading, you don’t need to react to every small price movement on the screen.
Traders who adopt long-term trading strategies will gradually learn to let profits run. They won't rush to close positions for a small profit, risking significant losses.
Of course, this approach also has a downside: depending on your stop-loss strategy, you may give back a lot of floating profits because the price may not be favorable to you in the short term. But that’s the result of weighing options. Over time, you will learn that sticking to your own trading plan is always the best choice.
5. How much is your time worth?
In smaller time frames, you might spend hours at the trading desk, risking $50 to earn $100 — or even less.
Why are the profits so small?
Because most traders lack sufficient funds to bear larger positions.
What about losing trades? They accumulate constantly. In the end, you might find that you only made $20 all day, which is hardly worth it.
After using higher time frames, I can know a few days in advance whether a trading opportunity is about to arise. For example, if the price breaks the resistance level, I can set a buy stop order and wait for it to trigger.
I don’t need to sit in a chair all day waiting to click the mouse. Your time is far more valuable than making a few bucks in a few hours.
To think bigger: this is an opportunity to earn a full-time income with part-time hours.
Daily chart trading strategy.
Next, I will share a simple but suitable daily chart trading strategy for swing traders.
Don't be fooled by its "simplicity."
You only need two trading indicators:
20-period Simple Moving Average (SMA).
5-period ATR (Average True Range).
The rules for entering a long position are as follows:
1. Wait for the price to break above the 20-period moving average.
2. The lows of two consecutive candlesticks are completely above the moving average; this will serve as a trading signal.
3. After the second candlestick forms, place a buy stop order 20% ATR above the highest point of these two candlesticks.
4. Set the stop-loss 20% ATR below the moving average.
5. Use moving averages to track stop-loss.
Let’s look at a trading example on the AUD/USD daily chart:
We can see that the price has broken above the 20-period simple moving average (20 SMA), and now we need two candlesticks with their lows above the moving average.
After the second candlestick is completed, we see that its lowest point is also above the average line, so this is the second candlestick that meets the criteria. We place a buy stop order 20% × 5-period ATR above the highest point of these two candlesticks.
Initial stop-loss set at: 20-period moving average - 20% × 5-period ATR.
Move the stop-loss along 20% ATR below the moving average.
The first trade ultimately exited with a profit of 146 points after entering.
Although a short-selling signal has not formed, we have another valid bullish entry opportunity. Just repeat the method of the first trade.
Let’s look at some other entry opportunities, this time using Bitcoin as an example.
In trading, you must accept the existence of losses; and the first trade is a loss, as the price retraced 4.5% from the entry point. You just entered, and the price quickly reversed and triggered the stop-loss.
The next trading signal failed to trigger. Traders who understand price action may actively skip this signal due to strong downward price momentum.
Next, we see some signals that failed to trigger because of the ATR buffer.
Ultimately, we obtained a valid bullish entry signal, which successfully triggered, and from the entry price, it has now risen by 38%.
Skills for handling support and resistance.
I usually do not recommend overly adjusting strategies to avoid losses, but evaluating whether to enter based on price structure does have some value.
When we see prices continuously fluctuating above and below the moving average, it usually indicates that the market has entered a consolidation range.
The first trade on the left is valid, but the price eventually retraces, triggering the stop-loss, although the loss is less than the initial risk, which is actually a good thing.
Subsequently, the price action displayed significant range-bound behavior. Marking the highs and lows of that range on the chart can help us avoid entering trades that quickly reverse.
When the lower range is broken, some traders may choose to expand the range. However, the price eventually returns to the original range.
By doing this (expanding the fluctuation range), the price often needs to move far from the 20-period moving average, which can likely trigger a rapid "pullback" to the average.
Just spend two seconds analyzing the chart, and you will decide: exiting from this crude oil chart to look for other trading varieties is a more reasonable choice.
Summary.
Trading on the daily chart is much easier compared to fast-paced day trading.
You only need to check the market once a day, set your pending orders, and come back the next day to check. This way, traders can focus their energy on other sources of income. Yes, the number of trades has decreased, but for me, this is the right choice.
Of course, you must also understand that in certain markets, using moving averages as stop-loss levels may put significant pressure on your account funds. Always ensure that the market risk level you are trading in is within your financial capacity.
Think from a more macro perspective. Your trading account will thank you for it.
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