From tens of thousands to nine figures: A 10-year summary of practical experience in the cryptocurrency world, 8 iron rules for making money to help you avoid detours
Last year, I conducted an experiment with a fan using a principal of 6000 yuan.
We strictly followed the rules of position management, trend trading, and not chasing highs, experiencing several drawdowns along the way, but we never went all-in or blindly averaged down.
It's not about a single explosive rise, but about being steady and reliable with every transaction.
Today, I share these 8 iron rules for making money with you, to help you avoid detours and seize opportunities directly when they arise.
1. Position allocation - only use part of the funds
Divide the funds into five parts, using only one-fifth for each trade.
Single trade stop-loss should not exceed 10%, even if you are wrong 5 times in a row, you only lose 10% of the total capital.
Lock in some profits to prevent drawdowns from eating into your gains.
2. Trend-following operations - eat meat with the trend
Uptrend: A pullback is a money-picking opportunity
Downtrend: A rebound is mostly a trap
The power of the trend is more reliable than your emotions.
3. Don't chase highs - refuse to take the last baton
Cryptocurrencies that surge in the short term carry extremely high risks.
When prices stagnate at high levels, the upward momentum weakens, and a pullback is highly probable.
Wait for a pullback to confirm support before considering entry.
4. Make good use of MACD - grasp the rhythm
Buying: DIF crosses above DEA below the zero axis and breaks through the zero axis
Reducing positions: MACD crosses below the zero axis and declines
It cannot predict the future, but it can help filter out most erroneous operations.
5. Increase positions when profitable, do not average down when losing
Only increase positions when in profit; averaging down when losing accelerates deep entrapment.
Remember: the market will not spare you just because you average down.
6. Combine volume and price - assess bullish and bearish strength
Low volume breakthrough: signal for major players to enter
High volume stagnation: signal for major players to exit
Trading volume is the most authentic market language; those who ignore it will eventually be eliminated.
7. Only trade cryptocurrencies in an uptrend
Use the 3-day, 30-day, 84-day, and 120-day moving averages to assess short, medium, and long-term trends,
Only look for opportunities in cryptocurrencies where multiple moving averages are in a bullish arrangement, as they offer the highest win rate.
8. Review each trade
Reviewing is not just a formality; it’s about identifying mistakes and retaining correct methods.
Ask yourself: Has the logic changed? Is the trend still there? Has the main direction reversed?
The market is still brewing, and if you still don't understand how to play, that's okay, join me in planning, and I’ll clearly arrange the positions for you!
