After more than a decade of trading cryptocurrencies and 7 years professionally, starting with a principal of 8000 and not working in between, I have achieved financial freedom! From being 8 million in debt to achieving financial freedom today, supporting my family through trading. By 2024, my capital has multiplied by 50 times; if not for withdrawing funds twice to buy a house, it would have been 85 times. Today, I am sharing my trading strategies and insights with fellow traders.
As someone who has been through it, being cut in trading is normal. Only by dancing with the market makers, having strong skills and methods, and a mature trading system can one succeed.
I want to share with everyone how I avoid being harvested and make money in the crypto space.
After more than a decade in the crypto space, I have compiled these 10 trading rules, hoping they will help everyone! Worth collecting.
1, never trade out of revenge. After completing a trade, whether profitable or not, I steadfastly adhere to my plan. I close the charts and do not open them again for 24 hours. This prevents me from making revenge trades. There is a reason we close trades, which means there is no reason to re-enter immediately. Revenge trading is a major reason why emotional traders lose. This is especially critical when leveraging trades in Bitcoin. Cryptocurrency traders often spend many hours watching Bitcoin prices every day, making it difficult to leave and not re-enter after a loss.
2, avoid trading cryptocurrencies on weekends. The cryptocurrency market typically experiences high volatility and low trading volume on weekends. This makes it difficult to predict price movements. Crypto whales can manipulate prices more easily in low liquidity conditions, putting individual traders at a significant disadvantage. Additionally, weekends are a time for relaxation and entertainment, and one should stay away from charts and rest well.
3, trade only during specific time periods. I can only trade when I am fully focused sitting at my desk. The cryptocurrency market operates year-round, so we cannot constantly monitor it. I set trading periods for myself, during which I will check the market. This avoids the impulse to constantly engage with the market and my phone, allowing me to spend time with family and do other meaningful things.
4, never become emotionally attached to assets. If you fall in love with an asset or investment you are trading, it can lead to poor decision-making. Trading without emotions means that decisions are not influenced by subjective factors. People tend to have emotional preferences for certain altcoins, teams, or projects. This is good for investors but potentially disastrous for traders.
5, keep it simple and stupid. This is one of my firm rules. When I was a beginner, I would check multiple indicators, news sources, and patterns to try to find the optimal trading method. This often led to overanalysis. When I see a trading opportunity on the chart, understanding stop-loss and position sizing is much more important than the timing of entry and exit.
6, trade only when calm. This is key. When I feel angry, tired, or stressed, I do not trade. I must trade with my best judgment when I am calm. Life outside of trading is crucial to maintaining the right mindset. Spending time with family and friends, reading, and participating in sports are all key to my trading success.
7, keep a diary. Journaling is boring and tedious. It is also very important because it helps us avoid making the same mistakes twice. I must remind myself to slow down, stop looking at charts, and take the time to record as much information about my trades as possible.
8, daily simulated trading. I still regularly engage in simulated trading. I simulate trading Bitcoin and some altcoins every day, which helps avoid risks and test new ideas and indicators.
9, do not blindly chase dips. Trying to perfectly time the bottom is unwise; one should wait for safer trend change confirmation signals. Trading with the trend is far less risky than trying to buy low and sell high.
10, do not overtrade. I have found that the fewer times I trade, the more money I make. Even when there are many opportunities in the market, I try to keep the number of open trades to less than 3. Managing multiple trades is much more difficult because if every trade goes against you at the same time, you could incur significant losses.
