On this journey, I have summarized the nine iron rules of cryptocurrency trading, and I would like to share them with you today, hoping they can help you avoid detours!
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Iron Rule One: Understand market sentiment; trading volume is key
- Volume without decline: Trading volume increases but price does not fall, this may be a stop-loss signal.
- Volume without rise: Trading volume increases but price does not rise, it may be at a short-term peak.
- Upward trend requires sustained volume: During an uptrend, trading volume must steadily increase; if it suddenly decreases or spikes, the upward trend may end.
- Key level volume during decline: During a decline, if key levels break with increased volume, the downward trend may continue.
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Iron Rule Two: Key points determine buying and selling
- Resistance levels, support levels, trend lines: When the price touches these levels, act quickly!
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- Golden ratio: I use it to predict resistance and support, and it works very well.
Iron Rule Three: Monitor multiple time frames
- 1-minute chart: Look for entry and exit opportunities.
- 3-minute chart: Monitor the wave situation after entering.
- 30-minute/1-hour chart: Judge intraday trend changes.
Iron Rule Four: Don’t rush to recover after a stop-loss
- Stop-loss = trade ends: Each trade is a new beginning; don’t let previous operations affect your mindset.
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Iron Rule Five: Simple and practical position management method
- Three-position method:
1. When the price breaks the 5-day moving average, buy the first portion;
2. When it breaks the 15-day moving average, buy the second portion;
3. When it breaks the 30-day moving average, buy the third portion.
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Iron Rule Six: Increased position with stagnant rise/fall is a signal
- Increased position with stagnant rise: Price does not rise, but positions increase, may be a short-sell opportunity.
- Increased position with stagnant fall: Price does not fall, but positions increase, may indicate an imminent rebound.
Iron Rule Seven: Focus on one asset
- Periodic focus: Trade only one asset for a period of time, continuously track it until it no longer has speculative value.
Iron Rule Eight: Opportunities are always present; don’t rush to recover losses
- Stay calm after a stop-loss: Don’t rush to open new trades to recover losses; each trade is independent.
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Iron Rule Nine: Stick to the rules for stable profits
- Rules are greater than mindset: Strictly follow trading rules and avoid emotional trading to achieve steady profits.
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The secret to my full-time cryptocurrency trading that allows me to earn hundreds of dollars daily is these ten iron rules! If you can persist in executing them, making money in the crypto world is as easy as breathing!
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