In this field filled with opportunities and risks, countless people enter with dreams of wealth, but many end up failing. Meanwhile, I, born in 1993, am now 33 years old and possess a net worth of 20 million. Looking back at my years of struggle in the crypto space, these seven iron rules serve as sturdy crutches, supporting me through challenges and helping me successfully navigate both bull and bear markets.
One, precise timing to grasp the evening trading window.
In the crypto space, news and market trends are complex and ever-changing. During the day, various true and false positive and negative news flood the market, causing significant fluctuations in market conditions, with prices jumping wildly as if they are untamed horses, making them difficult to grasp. In such a chaotic environment, rashly entering trades is like walking in a fog, easily misled and falling into loss traps. Therefore, I generally wait patiently until after 9 PM to start operating. By this time, the market news stabilizes, and the K-line trends are no longer disturbed by chaotic short-term fluctuations, becoming clearer, allowing us to judge the true direction of the market more accurately. For example, through analyzing the trends of multiple cryptocurrencies at different times, we have found that after market news stabilizes in the evening, trading decisions made based on K-line patterns have a significantly higher success rate compared to during the day.
Two, secure profits and reasonably plan for profit retention.
In crypto investing, one must not be overly greedy, always dreaming of doubling their assets overnight. When we gain profits from trading, we must know to timely secure part of the profits. For example, if you earn 1000U through trading that day, I strongly recommend that you immediately withdraw 300U to your bank card. This 300U is like the spoils of war you have captured on the battlefield; secure it properly, and the remaining funds can continue to be rolled in the market. Throughout the historical trends in the crypto space, we have seen too many cases of heavy losses due to greed. Some investors, when their assets have already tripled or more, are still unsatisfied, thinking only of achieving five or ten times the returns. As a result, when the market corrects, all previously accumulated profits vanish in an instant, and they may even lose their principal. Therefore, learning to take profits at the right time and reasonably allocating profits is key to surviving and profiting in the crypto space over the long term.
Three, rely on indicators and discard subjective trading assumptions.
When trading in the crypto space, one must never blindly operate based on personal feelings, as this is equivalent to gambling. We need to use professional tools and indicators to assist our decision-making. Install TradingView software on your phone; it provides us with rich technical analysis data. Before each trade, be sure to carefully examine the following important indicators:
MACD Indicator: Focus on whether it shows a golden cross or death cross. A golden cross often indicates that bullish momentum is beginning to strengthen, and prices are likely to rise; conversely, a death cross indicates that bearish momentum is prevailing, and prices may fall. For example, in a recent upward trend of Bitcoin, the MACD indicator showed a golden cross, and the price continued to climb for a period afterward.
RSI Indicator: Use this indicator to determine whether the market is in an overbought or oversold state. When the RSI value is above 70, the market enters the overbought zone, and prices may face a correction; when the RSI value is below 30, the market is in an oversold state with a possibility of a rebound. For example, during a market downturn for Ethereum, the RSI value once fell below 30, and subsequently the price rebounded.
Bollinger Bands Indicator: Pay attention to whether it shows a squeeze or breakout. A squeeze in Bollinger Bands indicates decreased market volatility and may precede significant fluctuations; a price breakout above the upper band is usually a bullish signal, while a breakout below the lower band is a bearish signal. In Litecoin's trend, there have been multiple instances where the price broke above the upper band, starting a new upward trend.
Only when at least two of these three indicators give consistent signals do we consider entering a trade, thus improving the accuracy and success rate of trading decisions.
Four, flexible stop-loss to effectively control investment risks.
Stop-loss is an important defense line to ensure fund safety in crypto investing. When we have time to monitor the market and if a trade is already profitable, we can flexibly adjust the stop-loss price upwards. For example, if we buy a cryptocurrency at 1000 and the price rises to 1100, we can raise the stop-loss price to 1050, which allows us to secure some profit while controlling losses within a certain range if the market reverses. However, if we are out and can't monitor the market in real-time, we must set a hard stop-loss, generally setting it at a 3% margin is appropriate. This is because the crypto market is highly volatile, and sudden sell-offs can occur at any time. Without a hard stop-loss, our assets could be wiped out in extreme market conditions. Through extensive statistical analysis of trading data, investors who set reasonable stop-losses can effectively control losses and maintain stable account funds over the long term.
Five, regularly withdraw funds to secure wealth.
In the crypto space, if the numbers in your account do not convert into real funds, they will always just be an illusion. I have always insisted on withdrawing 30% of the week's profits to my bank card every Friday without fail, while the remaining funds continue to be used for rolling operations. The benefit of this approach is that over time, we not only accumulate more operational funds in our accounts, but also genuinely secure a portion of our wealth. Psychologically, regularly withdrawing funds allows us to enjoy the fruits of our investments while enhancing our confidence in investing, avoiding the trap of blindly pursuing account number growth. Through analyzing my investment data over the years, this combination of regular withdrawals and rolling operations has allowed for steady growth in account funds while continuously accumulating actual wealth.
Six, cleverly use K-lines to gain insights into market fluctuations.
In crypto investing, K-line charts are an important tool for understanding market trends, and different trading strategies require attention to K-line charts of different periods.
Short-term trading: Focus on the 1-hour chart. When the price shows two consecutive bullish candles, it often signals an increase in bullish momentum in the market, at which point we can consider going long. For example, in the short-term trend of Ripple, after multiple occurrences of two consecutive bullish candles, the price continued to rise in the short term.
Dealing with sideways markets: If the market is in a sideways state, with little price fluctuation, switching to the 4-hour chart to find support lines is key. When the price drops near the support level and other bullish signals appear, such as a hammer candlestick, we can consider entering a buy. For example, in a long period of sideways movement, when the price dropped near the support level on the 4-hour chart and showed a bullish candlestick pattern, it later bottomed out and started an upward trend.
Seven, avoid traps and stay away from high-risk investment misconceptions.
In the crypto space, there are some obvious investment traps that we must resolutely avoid.
Control leverage ratios: While leverage trading can amplify profits, it also significantly increases risks. Generally, the leverage multiplier should not exceed 10 times, and for novice investors, it is best to keep leverage within 5 times. Excessive leverage can expose us to huge losses even with slight adverse market fluctuations. For example, some investors blindly use high leverage in contract trading, resulting in account liquidation with no funds left as soon as the market makes a slight correction.
Stay away from high-risk altcoins: Altcoins like Dogecoin and Shitcoin, while they may see significant price increases due to market hype at certain times, lack real value support and often carry the risk of being manipulated by whales. Many investors are attracted by their short-term surges, blindly following the trend to buy in, only to end up being the ones who get taken advantage of. We should focus our investment on mainstream cryptocurrencies that have real application value and strong technological strength to reduce investment risks.
Finally, I want to share a message with everyone: Trading cryptocurrencies is not gambling; we must treat it as a serious job. Every day, follow a predetermined trading plan and 'clock in and out' at set trading times, decisively shutting down afterward to return to normal life, eating when it's time to eat and sleeping when it's time to sleep. When we adopt this rational and calm attitude toward crypto investing, you'll be surprised to find that wealth can grow more steadily. If you're feeling lost in crypto investing and don't know how to apply these techniques and strategies, feel free to reach out to me so we can achieve steady wealth appreciation together in the crypto waves.
Cryptocurrency trading is about repeating simple things consistently. By persistently using one method for a long time, one can master it. Trading can become as skillful as any other industry, where practice makes perfect, allowing for instinctive decision-making.
This year marks my seventeenth year trading cryptocurrencies. I started with 10,000 and now I support my family through crypto trading! I can say that I have tried 80% of the methods and techniques in the market. If you want to treat crypto trading as a second career to support your family, sometimes listening and observing more will help you discover things beyond your current understanding, which could save you at least five years of detours!
Follow me @加密大师兄888 to keep up with the trend and become rich together! Together through bull and bear.