4 years ago, I stared at the remaining 500,000 in my account, my palms sweating as if I could squeeze out water. Following the market blindly with short-term crypto trading, chasing highs and lows like a headless chicken, I was on the verge of losing my last bit of principal, cursing myself in the middle of the night: this is not investment, it's clearly giving money to the market!
The '10-minute trading method' forced out in a dire situation unexpectedly became my confidence for a comeback. Now the crypto market is stuck in a consolidation phase, with Bitcoin (BTC) repeatedly bouncing between 100,000 and 110,000; new traders need to be cautious lest they get trapped. This trick can help everyone avoid pitfalls, and today I'll share the core logic from my 4 years of practical experience, all of which is directly usable practical knowledge!
Let me state my core point first: To make steady profits in the short term, don't be greedy and try to make quick profits. Determining buy and sell points within 10 minutes is the safe zone for beginners! However, you must strictly adhere to 3 key entry indicators; if any one of them is missing, don't even try: First, the RSI indicator must be below 30, which means the asset has bottomed out, and the probability of further decline is extremely low. This is when you have the highest margin of error when entering the market. Second, the price must stabilize above a minor resistance level. For example, BTC is currently hovering between 100,000 and 110,000. 105,000 is a crucial threshold. Any upward movement that fails to hold above this level is just a "false breakout," so don't even touch it. Third, the trading volume must be more than 3 times the usual amount. An upward movement without buyers is just a castle in the air, and no matter how good the indicators look, it's a trap.
Regarding leverage, I must be upfront about this: beginners should stick to 1-2 times leverage and not blindly follow those "gamblers" who use high leverage! In 2022, I saw someone operate with 20 times leverage, and as a result, a big bearish candlestick wiped out their entire position. All the money they had painstakingly saved evaporated instantly. This kind of operation is pure suicide; anyone who tries it will lose money!
The signals for opening and closing positions are ridiculously simple. Just look at two things on a 10-minute candlestick chart: if the price touches the lower Bollinger Band and the RSI is at a low level, buy immediately. If you make a profit, follow the rules. If you have a principal of 500,000, you can only add to your position with a maximum of 15,000 in profit. Never touch your principal. This is an ironclad rule I've learned from countless mistakes. The moment you touch your principal, you're not far from losing it all.
Don't be ambiguous about stop-loss and take-profit orders: sell 20% to lock in profits after earning 15%, and clear out all positions if the RSI exceeds 70! Last year, I was greedy and held on for 10 more minutes, which resulted in losing 30,000 yuan. I still feel the pain when I think about it now. In short-term trading, greed is the biggest enemy.
Different market conditions require different strategies; don't stick to one approach. In a volatile market, divide your 500,000 in half: use 250,000 as a base position and the other 250,000 for day trading (T+0), buying on dips and selling on rallies. Accumulating small gains is more reliable than blindly chasing rallies. If a bull market arrives, hold 150,000 as a base position and use the remaining 350,000 to ride the trend. Don't waste opportunities, but don't go all in either. In a bear market, hold the remaining 350,000 as a stable position and use the remaining 150,000 for short-term trading to reduce costs. Preserving your capital is always more important than making money.
Finally, here are the survival rules: these three rules will help you survive in the market: Divide your 500,000 into four parts, and only use 125,000 for each trade; limit your single loss to a maximum of 10,000 (2% of your principal), and cut your losses immediately when the time is right, don't hold onto the illusion that "it will rebound"; never add to your position with your principal, you can make profits however you like, but never touch your principal!
Common pitfalls for beginners: high leverage, no stop-loss, and reckless adding to positions. I experienced all of these back then. The reason I was able to grow my capital from 500,000 to 25.54 million was not luck, but by adhering to these disciplines.
Are there any brothers like me back then, holding onto losing positions until the middle of the night and unable to sleep, only to end up either missing out on tens of thousands in earnings or losing everything?
