After nearly a year of accumulation, my personal account steadily rose from 300,000 to 1 million. However, the subsequent breakthrough was like a flash of lightning, with the account size skyrocketing to 90 million!
This thrilling journey has refined ten golden rules for me. They are succinct yet rich in meaning, directly addressing the core. If you aspire to survive and achieve in the cryptocurrency circle for a long time, this crystallization of effort will surely enlighten you and bring you great benefits!
Trend is king; the strong stay strong: The core of cryptocurrency trading lies in selecting strong cryptocurrencies and firmly adhering to the upward trend. For cryptocurrencies in a downward channel, decisively ignore them—time is precious; do not entangle with the main force. If a cryptocurrency is firmly positioned above the trend line (such as during the AI boom at the beginning of the year), holding it patiently is the best strategy. Key discipline: Adhere to the 30-day moving average (or your designated key trend line); if it doesn’t break, stay calm; if it breaks, exit immediately—never cling to a losing battle!
Define the main line: When the market is favorable, there must be a clear main line leading the way. If the main line is weak or absent, risks far outweigh opportunities. At this moment, it’s essential to restrain oneself, observe the changes calmly, and patiently wait for the new main line to become clear, and avoid rash actions!
Diversify to avoid risks: Trading cryptocurrencies is also an investment; diversification is crucial. Even if you are extremely optimistic about a particular cryptocurrency, avoid going all-in. Learn to manage your positions, and do not hold too many different cryptocurrencies (recommended not to exceed 3-4), effectively diversifying risks.
Avoid frequency, cultivate your mindset: Frequent trading is a major taboo; it is not only unhelpful but also depletes your finances and energy! Avoid 'itchy hands'; feeling uneasy if you don't trade for a day. The temporary pleasure from frequent trading will ultimately lead to a heavy price to pay; only the exchanges will benefit from commissions. If you lack top-notch skills for short-term high buying and low selling, do not fantasize about being a market maker.
Stay calm after profit and loss: After a significant loss, it's essential to take a break! Losses can easily trigger a gambler's mentality of 'recouping losses', leading to retaliatory actions and deeper entanglement. After a substantial gain, one must also be vigilant! Overexcitement can easily lead to complacency; victorious soldiers are bound to fail—it's not uncommon to see significant losses follow substantial gains, so keep the alarm bell ringing at all times!
Build positions gradually, aiming for steady long-term growth: Even if you have complete confidence in a particular cryptocurrency, do not bet everything at once. Even if subsequent events prove your judgment correct, this approach is still not advisable. The market changes rapidly; no one can accurately predict the next moment. Build positions in batches and leave room for adjustments.
Stay away from intraday 'noise': Retail investors should avoid being obsessed with small fluctuations in intraday lines all day. This only increases anxiety and can easily disrupt your mindset, leading to irrational actions. Trading cryptocurrencies requires balancing work and rest; focusing on reviewing trades for just one hour each day is sufficient to make clearer decisions.
Plan ahead, avoid impulse: Thorough pre-market analysis far exceeds last-minute decisions during trading! In the cryptocurrency market, it's important to 'boldly hypothesize, cautiously verify'. Through post-market reviews and meticulous pre-market planning, clarify market hotspots and potential directions, and anticipate trading strategies. Remember: anticipation is based on analytical preparation, not subjective speculation about the future—the latter is a major operational taboo!
Better to miss out than to make mistakes: In trading, missing an opportunity is far worse than incurring losses. True opportunities will always reappear. Stay rational, and handle issues objectively and neutrally. Focus on enhancing the effectiveness of successful trades rather than forcing trades under pressure.
Path to improvement: Make good use of trading logs: Enhancing trading skills and consistently recording detailed trading logs is essential. Record all trading-related data, logic, emotions, and reflections. Without logs, valuable experiences will be lost, and repeating mistakes is inevitable. Trading logs are, in fact, the ultimate tool for managing funds and risks. Only by clearly recognizing the issues can effective solutions be found. Therefore, please make establishing and perfecting trading logs one of your core goals.
