This is a practical guide summarized from the hard-earned lessons of a cryptocurrency trader. From being a loser who experienced 15 liquidations and lost $30,000, to earning $1 million using the same methods after 500 liquidations, he distilled 9 golden rules:
1. Secrets to doubling small capital 1. Three major trading taboos • Bet no more than 5% of your principal each time (some focused on Bitcoin's main rally and earned 4 times in a year) • Absolutely do not touch newly listed coins (some lost everything overnight because of this)
2. Time codes to avoid traps 2. Moments when good news turns into bad news • 4 hours after major news is announced (large institutions begin to sell off) • When exchanges suddenly open futures trading (the market makers are preparing to harvest) • When there are abnormal transfers in the project wallet (can be discovered in advance using a blockchain explorer)
3. Danger alarms during special periods 3. Dangerous dates to remember • Clear out miscellaneous coins 5 days before the Spring Festival • On the day the Federal Reserve raises interest rates (prices fluctuate violently) • On the expiration date of quarterly contracts (81% probability of a surge or crash)
4. Techniques to identify true market trends 4. Understanding capital flow signals • Continuous decrease in coin volume on exchanges • High funding rates for contracts • Large transactions account for over 15%
5. Spotting false market scenarios 5. Breaking down false moves in the early session • Common false market signals in the morning Beijing time (70% will reverse) • True breakthroughs should see: volume doubling, more than 50 Bitcoin in orders, and a simultaneous increase in contract positions
6. Smart stop-loss formula 6. Automatically calculating stop-loss levels Stop-loss ratio = (volatility × 2.5) ÷ leverage multiplier Example: Ethereum has a daily volatility of 4%, using 5x leverage, set stop-loss at 2%
7. Emergency guide after failure 7. Essential lessons after liquidation • Immediately disconnect from the internet for 3 days • Handwrite a reflection (must record emotional state at the time) • Practice similar market conditions 30 times using a simulation account
8. Evolution table of capital management 8. Combat plans for different stages • Below $10,000: only use spot trading, do not touch leverage • $10,000 - $100,000: use 3x leverage for trends • Above $100,000: use options to hedge risks
Conclusion by Sanma Ge: Earning $1 million only proves that you have mastered survival skills; the real victory is gaining the ability to survive long-term in this bloody market. Each of these rules has been bought with real money; beginners are advised to start practicing with a simulation account or use $100 for practice.
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