In the crypto world these past few years, I've seen too many people go from riches to bankruptcy. Being able to grow my net worth to 20 million by the age of 30 is not due to luck, but because of these seven rules ingrained in me. Regardless of bull or bear markets, sticking to them helps avoid pitfalls and earn more.
Rule 1: Make your moves after 9 PM
During the day, the crypto market is just a vegetable market, full of fake good news and baseless rumors, with prices fluctuating wildly. Beginners are most easily led by this chaos and impulsively jump in to become bag holders. Check the market after 9 PM when the news has clarified and the K-line trends have stabilized; at this time, making orders is more reliable. Most of my big trades in the past few years were made during this time window.
Rule 2: Pocket your profits immediately
Don't always think 'I'll sell after another rise'; the crypto world is full of greedy people. If you make a profit of 1000U today, quickly transfer 300U to your bank account, and play with the rest. I've seen too many people who made three times their investment but wanted to double it again, only to lose everything in a pullback, and some even ended up in losses. Remember, what you can actually pocket is real money; the numbers on the screen can be wiped out at any time.
Rule 3: Trust indicators, don't trust feelings
Making trades based on 'I feel it's going to rise' is no different from gambling with your eyes closed. Install TradingView on your phone, and before making orders, check if the MACD has a golden cross, whether the RSI is overbought or oversold, and if the Bollinger Bands have broken out. Only consider entering when at least two indicators are aligned; this is when you can feel secure. When I first started, I lost tens of thousands based on my feelings; later, by strictly following indicators, my win rate increased to over 60%.
Rule 4: Stop loss should be like an elastic band
When you have time to watch the market, manually move the stop loss up when you make a profit. For example, if you bought for 1000, and it rises to 1100, move the stop loss to 1050 to protect half your profit. If you can't watch the market when you go out, you must set a hard stop loss of 3%, so even if there's a sudden crash, you won't lose everything. This strategy has saved me several times; on the day LUNA collapsed last year, I only lost 5% because I set a stop loss.
Rule 5: Withdraw funds every Friday without fail
Unwithdrawn money is just a numbers game in the exchange. Every Friday, I make it a point to transfer 30% of my profits to my bank account and roll the rest. Don't underestimate this amount; over time, it adds up, and your account can grow like a snowball. More importantly, seeing the numbers in your bank account grow gives you peace of mind, preventing sleepless nights due to market volatility.
Rule 6: Learn to switch perspectives when looking at K-lines
For short-term trading, focus on the 1-hour chart. When there are two consecutive bullish candles, consider going long; if the market is sideways, switch to the 4-hour chart to find support levels and enter when it hits key positions, which significantly increases your chances of winning. Just like taking photos, look closely for details in close-ups and see trends in long shots; switching perspectives helps avoid being misled by local fluctuations.
Rule 7: These pitfalls lead to significant losses
Never exceed 10 times leverage, and beginners should control it within 5 times; otherwise, even a small fluctuation could lead to liquidation. Stay away from coins with ridiculous names like Dogecoin or Shitcoin; the manipulators pump quickly but dump even faster, entering means you are just giving away your money. A couple of years ago, I was curious and bought Shitcoin once, and lost 20,000 in just a few minutes. Since then, I never touched such coins again.
Ultimately, trading cryptocurrencies is not gambling; treat it like a serious job. Check the market and make trades at set times, and when the time comes, turn off the computer. Spend time with your family and get proper sleep. No matter how good the market is, don’t stay up late; no matter how bad it is, don’t panic. Maintaining a stable mindset is essential for long-term survival in this market. Follow @魔术手宝哥 to navigate the crypto world.
