After 7 years of trading cryptocurrencies, from losing 800,000 to achieving financial freedom, I have summarized 5 'iron rules not passed down by crypto traders'
First, let me introduce myself:
I am an 'old retail investor' who has been struggling in the crypto world for 7 years—no, now I should be considered a free person, like a 'freed serf singing a song.'
I entered the market with 8,000 yuan, and rashly invested all in altcoins, at my peak, I lost 5 million...
During the times when I doubted life, I even considered selling tea eggs, but the tea egg vendor told me: 'You might as well keep trading cryptocurrencies, don’t take my livelihood away.'
Later, I survived the bull and bear markets, navigated through the pitfalls, and finally summarized a set of rules for trading cryptocurrencies that won’t get you cut off, and can occasionally yield profits.
1. Divide funds into five parts, don’t panic if you make a mistake
Never invest all your capital!
Divide your principal into 5 parts, use only 1 part at a time.
What does that mean? If you make a mistake once, you lose at most 2% of your total funds; if you make a mistake 5 times, you lose 10%.
It's like going to a casino with just a little pocket change; if you lose, you can still treat yourself to a milk tea.
2. The market is like dating, don’t go against it
When the market drops, there are always people shouting 'buy the dip...’ Don’t listen, that’s just a trap.
When it rises and then pulls back, people start shouting 'it’s over, it’s going to crash...’ In fact, that’s a golden opportunity.
The market has a rhythm; go with it, don’t sing against the tune.
3. See a skyrocketing coin and get excited? You probably want to get cut beautifully
Don’t touch coins that have surged 3 times in the short term.
If they are stagnant at a high position, they are likely to plummet; if you rush in, you’re just helping others escape their losses.
4. MACD is an old friend; entry and exit rely on it
Don’t understand candlesticks? No problem, just learn MACD:
Entry: When the DIF and DEA cross above the 0 line, then break through the 0 line—like a dog suddenly jumping out of a muddy pit, it might become a dark horse.
Exit: When MACD forms a dead cross above the 0 line and starts going down, get out!
MACD looks like a scientific experiment, but it’s actually a lifesaving candlestick tool.
5. Those who average down are emotional; those who add positions are professionals
Averaging down while losing: You’re an emotional player, when the market drops, you drop even more, it’s endless.
Adding positions while making a profit: This is a trend-following mindset; moving forward with victory won't lead you astray.
Additionally, remember to observe the relationship between volume and price:
Low-volume breakout = Opportunity
High-volume stagnation at a peak = Run!
The crypto world is not a paradise for workers; it’s a battlefield for high-IQ players.
