9 years of trading cryptocurrencies, from losing 7 million to earning back 10 million, I have realized 7 blood-and-tear iron rules!
At one point, I was broke, relying on borrowed 200,000 to make a comeback, and I managed to earn back 10 million!
Today, I won’t share motivational quotes or sell courses; I will only publicly share the 7 major iron rules of cryptocurrency trading that I have summarized. If you follow them, you can at least avoid losing several years of hard-earned money.
Iron Rule 1: If you don't understand trading volume, you're destined to be cut
If volume increases without a drop, it’s a signal that the decline has stopped; if volume increases without a rise, it’s a sign that a peak has been reached.
For an increase to be sustainable, there must be continuous volume; if key support levels have volume during a decline, it means it will continue to drop!
Many people only focus on price, but what really determines the rise and fall is the invisible hand of “volume.”
Iron Rule 2: Key price levels are the line between life and death
Resistance levels, support levels, trend lines—when they are reached, you must react.
I use the “Golden Ratio” to calculate key price levels, and it often gives accurate results.
If you are not sensitive to key positions, your operations will always be a beat slow.
Iron Rule 3: Time cycles are your third eye
1-minute cycles are for precisely finding entry and exit points; 3-minute cycles are for observing adjustment rhythms; 30-minute and 1-hour cycles help you grasp intraday trends.
Focusing on just one cycle is like a blind person feeling the K-line.
Iron Rule 4: Stop-loss is not surrender; it’s making way for the next opportunity
If a trade incurs a loss, acknowledge it; don’t stubbornly hold on, and don’t let emotions influence your next trade.
The largest source of loss comes from “emotional rebound trades.”
Iron Rule 5: The three-position method is a lifesaver for trading contracts
If the 5-day line is broken, reduce the first position; if the 15-day line is broken, reduce the second position; if the 30-day line is broken, clear it out completely.
The more you hesitate to cut losses, the more thoroughly you will lose.
Iron Rule 6: Without an exit strategy, it’s equivalent to playing a losing game
If the price breaks below the 5-day line at a high point, exit a portion; if it breaks below the 15-day and 30-day lines, clear out completely!
Profits not taken are worth nothing. Greedy people often end up losing their capital.
Iron Rule 7: If position and price are out of sync, be alert immediately
If the position increases but the price doesn’t rise, be cautious about unloading; if the position increases but the price doesn’t fall, it might mean accumulation in secret.
Those who can't understand these “detail signals” often suffer the worst losses.
These things sound simple, but it’s really hard to implement them.
But as long as you follow them, even if you only get it right 70% of the time, your survival rate in the cryptocurrency circle can exceed that of 99% of people!
Want to avoid detours and escape the fate of being repeatedly cut? Like and follow, don’t wait until you’ve lost everything to wake up.
