To Lifelong Traders: The Ten Commandments
If you are determined to take the cryptocurrency market as a companion and trade for a living, the following iron rules are the foundation of survival forged in blood and tears, and must be deeply remembered:
1. Cautiously Choose Timing: Only consider reverse layout opportunities after a significant adjustment of the asset (continuous decline), not impulsively entering the market.
2. Know When to Stop: After a short-term surge (like consecutive days of upward movement), timely realize some profits to prevent the risk of trend exhaustion.
3. Hold Strong and Observe: After a significant single-day anomaly (like a rise exceeding 7%), one can temporarily hold for a day to capture potential momentum.
4. Follow the Trend and Avoid Risk: Before a strong asset's pullback stabilizes, never go against the trend; “avoiding danger” should come before “pursuing profit.”
5. Abandon Weakness to Preserve Effectiveness: Continuous narrow consolidation (like more than 3 days) requires vigilance against loss of momentum; if silence continues afterward, decisively switch assets.
6. Cut Losses to Protect Yourself: If entering the market leads to immediate losses and the next day shows no ability to return to cost, immediately stop loss to prevent further damage.
7. Control the Rhythm: The market does have short-term inertia (like the continuation of leading gains), but peaks are often hidden during accelerated climbs (like around the 5th day); beware of extremes turning back.
8. The Secrets of Volume and Price:
• Significant volume accompanying a low-level breakout: Focus on tracking.
• Abnormal volume accompanying high-level stagnation: Decisively exit.
9. Trends Are Key: Focus on assets with an upward trend, choosing timing based on cycles:
• Short-term: 3-day line confirms an upward trend.
• Medium-term: 30-day line guides direction.
• Main rise: 80/120-day lines resonate upwards.
10. Simplicity Is Key: Capital scale is not core; victory lies in method systems, mindset management, iron discipline, and enduring patience.
The Essence of Trading: Still as water, dynamic as thunder.
• If there is no shape that meets the rules, it is better to hold cash.
• Year after year of stable profits (win rate over 90%) relies solely on rigorous adherence to principles, not luck.
The Nature of the Market: Reward discipline and rationality, severely punish greed and luck. This mindset is the only way to navigate through bull and bear markets. A gentleman does not stand by a dangerous wall; a wise person follows the path.
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