I've been in the cryptocurrency circle for ten years. Six years ago, I quit my job to trade cryptocurrencies. What changed me was a night five years ago. Words from an old senior resonated deeply with me, helping me to position myself correctly and understand the eight major periods every cryptocurrency investor must go through. I constantly reflect on this, using it as a mirror, and finally reclaimed what I had lost!
Perhaps in the eyes of some, retail investors are always lambs waiting to be slaughtered!
If you are preparing to enter the cryptocurrency circle, I sincerely hope this article can help you. As someone who is fairly good at summarizing and expressing, I believe some of my thoughts may be of assistance to you. Alright, enough chit-chat, let's get straight to the point~
When it's hard to make a selling decision in cryptocurrency trading, ask yourself: If your analysis is correct, then why is the market moving in the opposite direction? The only reason is that you are wrong, because the market never makes mistakes!
Trading cryptocurrencies is not gambling; wealth is a marathon.
Those who envy short-term trading end up being fodder.
Slow is fast; stability wins.
These eight iron rules are lessons bought with real money:
1. Supplementing positions is only for survival; don't fantasize about getting rich quickly.
Adding to a position when stuck is fine, but expecting a quick reversal? The big players are waiting for you to think that way.
2. It's always particularly quiet before a storm.
The longer the sideways movement lasts, the harsher the change will be. Don't let your guard down in calm waters.
3. When prices are surging crazily, it's time to buckle up.
Every straight rise will pause for breath; K-lines turning into triangles? The market is holding back for a big move.
4. Buy when blood flows like a river; sell when the drums are loud.
When the aunties outside the exchange start discussing Bitcoin, it's time to quietly withdraw.
5. Don't chase after rapid surges, don't panic during steep drops, and don't get itchy fingers during sideways movement.
When the market surges, don't rush to exit; during a cliff-like drop, don't be afraid to catch the knife; only during sideways movement should you keep your hands steady.
6. Look for ceilings when prices rise, and find floors when they fall.
Previous highs are resistance levels, and previous lows are support levels—keep an eye on these two positions.
7. Always leave a bullet.
Those who go all in are either geniuses or daredevils—unfortunately, geniuses are few and far between in the market.
8. The essence of trading cryptocurrencies is self-cultivation.
FOMO at the sight of a bullish candle and panic sell at the sight of a bearish candle? You're playing with coins, not a heartbeat simulator.
Remember, the whales that live long are the ones that grow slowly.

The golden rule of trend trading: The art of matching large and small cycles—big cycles determine direction, small cycles find opportunities.
The big cycle is your navigation system (daily/weekly):
Observe the trend: Instantly recognize bull markets, bear markets, or sideways markets, and answer the soul-searching question of 'should I take action'.
Find the key: Lock onto those support and resistance levels where prices are 'irresistible'; these are the places where big movements are most likely to occur.
The small cycle is your sniper scope (4 hours/15 minutes):
Wait for the right moment: Find the best entry point within a big trend, just like waiting for a bus—there's no need to chase after it.
Set defense lines: Draw stop-loss lines in advance; if you must lose, lose clearly; if you gain, gain securely.
2. The four mysteries of cycle interaction.
Suppression effect:
When a small cycle hits the high point of a large cycle, it's like hitting a ceiling. Is this the time to chase the price up? Be careful of being knocked out!
Breakthrough effect:
When a small cycle violently breaks through a key point of a large cycle, it's like opening up a major channel. The trend might take off.
Support effect:
When the big trend is upward and the small cycle pulls back to the support level of the large cycle, it’s like jumping on a trampoline; it often bounces even higher.
Characteristics of a healthy trend:
A truly good trend has small and large cycles working in harmony—high points keep getting higher, and low points also keep getting higher—like climbing stairs, one step at a time.
Practical mindset:
Look to the big for guidance, wait for small confirmations. The big cycle tells you where to go, and the small cycle tells you when to step. Remember, the market is always playing psychological games with you, and the small and large cycles are your secret weapons.
Key points:
Don't be greedy; if you make money, first withdraw a portion to secure your gains.
Don't hold onto losing positions; if losses exceed 2%, cut them immediately; the market won't pity you.
Don't play recklessly; rolling positions only suit trending markets; don't seek death in a sideways market.
The core of making money in the cryptocurrency circle boils down to two points: find the trend + strictly execute.
The most important rule:
If the price falls below the 60-day moving average on the day of purchase, you must clear your position immediately! Don't hesitate, don't fantasize. Remember: surviving in the cryptocurrency circle is more important than anything else.
This method seems simple, but it excels in stability. I have avoided countless crashes with this simple method and caught several big movements. Sometimes, the simplest approach is the most effective.
Those who survive in this industry all have their own survival codes. My code consists of these seven sentences—they helped me survive the volatility and still thrive.
When the leader moves, the whole market comes alive.
Every track has its leading figure. When the big brother starts charging, don't rush to follow; turn around and look at the second and third brothers—opportunities are often hidden in the following crowd.
Volume doesn't lie.
Slowly accumulate during quiet times, fully load when volume increases at the bottom, and clear out when there's explosive volume at a high level. Trading volume is the most honest indicator; it’s more reliable than any analyst.
Low volume is a friend, high volume is an alarm.
Is volume shrinking during a pullback? That means the main force is resting. If volume suddenly spikes? Be careful, they might be offloading.
Indicators speak.
Buy when RSI hits the bottom three times, sell when it touches the top three times. Below 10, buy with closed eyes; above 85, hurry and sell. New highs in price but weak indicators? That’s the market coughing to remind you. KDJ is the compass for short-term players, while long-term players should pay more attention to TRIX.
Forget the fairy tales of 'good coins' and 'bad coins.'
The market only recognizes strength and weakness. Strong coins are like armored warriors, while weak coins are like deflated tires—no matter how good the story sounds, the flow of funds reveals the truth.
Moving averages are the big players' hidden cards.
Buy on golden crosses, sell on death crosses. When the 5-day and 10-day lines support each other, you can relax; be alert if the 10-day line breaks, and if the 5-day line turns around, that's a signal to retreat. The big players protect their thresholds like guarding their own doorsteps, and the 10-day line is often their bottom line.
The trend is your ally.
Those who dare to rise will continue to rise; those playing dead may actually die. Don’t go against the trend, and don’t fight against yourself—the market shows no mercy to stubborn people.
Here are three additional painful mantras:
Don't chase rapid surges, don't panic during deep drops, and control your hands during sideways movement.
Buy on bearish candles, sell after bullish candles.
After prolonged sideways movement, a change is inevitable; clear out on breaking lower at high levels, and fully load on breakthroughs at low levels.
Remember, these are not spells; they are scars from surviving. The market is always changing, but human nature has never changed—this is the essence of the game.

This market is always repeating the same secret: 90% of the fodder watches news to trade coins, 9% of the smart ones watch the big players’ movements, while 1% of the wolf-like players are dissecting the market's genes using moving averages.
Step one: Verify the moving average by treating the daily moving average as three distinct old doctors— the 5-day line is the head of the emergency department, the 30-day line is the internal medicine expert, and the 60-day line is like an expert sitting comfortably in the clinic. When the emergency department head suddenly perks up and checks the pulse of the two old doctors (the 5-day line crosses above the 30/60-day lines), this signals that the market is preparing for ICU rescue. Conversely, if the emergency department head slips and rolls down from the expert's chair (the 5-day line crosses below the 30/60-day lines), don’t hesitate, clear your position immediately.
Step two: Build a trading system to prevent impulsive decisions.
Now please stick a note on your trading interface, written in bold with a marker: When moving averages fight, commoners retreat. When the 5-day line and the 30-day line are tangled like twisty dough, rushing in is equivalent to rolling dice and guessing odds. True hunters only pull the trigger when all three lines are marching in the same direction.
Here’s an unconventional cold knowledge: In a cryptocurrency market where volatility is common, simpler strategies using daily moving averages can be more lethal. Just like true martial arts masters, they never need to show fifty different moves; a breakthrough of the 5-day line is the signal to draw the sword, and a turn of the 60-day line is the moment to sheath it.
Step three: Weld discipline into the operating table.
I've seen too many people write trading plans on napkins, only to tear them up in the middle of the night when startled by a sudden spike. The most cruel yet merciful aspect of the daily moving average strategy is that it forces you to become a signal execution machine devoid of emotions.
Here’s a dark humor: A trader who has been profitably using the daily moving average strategy for three years received a 5-day line break alert at his wedding last year. He actually hid in the restroom to close his positions before coming out to exchange rings. Afterward, his bride scolded him, but upon seeing the account balance, she quietly got him a top-of-the-line monitor.
(Carve this phrase into your brain: You can doubt your operations, but never doubt the moving averages that have formed a force.)

True rolling positions are not gambling, but using mathematics to crush the market; here are three core logics:
1. The stop-loss line is a false proposition.
Most people set a 3% stop-loss and end up repeatedly cutting losses.
Real risk control is 'volatility anchoring'; for example, after ETH breaks through the midline of the weekly Bollinger Bands, during the pullback phase, using 5x leverage allows for an 8% stop-loss space, but the triggering probability drops by 60% (data backtested from 2023 to present).
2. The timing for adding positions = 50% pullback level + shrinking volume.
For instance, when BTC drops from 70,000 to 65,000, if the 4-hour chart shows 'long lower shadow + volume shrinking to MA20', the success rate for adding positions triples. Blind pyramid adding positions equals suicide.
3. Profits must be 'locked across cycles.'
Withdraw principal every time you profit 30%, and continue rolling with profits. Remember: the money in your exchange account is just a number; the money in your wallet is yours.
(To prevent the strategy from being misused, specific parameters and coin selections will not be disclosed for now, but you must at least know 'what convex positions are.')
Warning: If you are still opening positions based on 'feelings', no strategy can save you.
How do true experts play?
Withdraw the principal first when you make money and let the profits continue running; total losses must not exceed 30%; only take action during market panic or craziness; at other times, just enjoy the show.
The market always has its rules:
After a significant drop, there will definitely be a rebound. The longer the sideways movement, the more intense the breakout. When everyone in the group is shouting 'take off', it's time to run.
Finally, a painful truth: In this market, 90% of people are just fodder, and 10% earn 90% of the money. Which one do you want to be? Keep giving money away, or learn the rules and become a hunter? You choose.
The market is like a knife; how can retail investors survive in a sea of blood?
"A general's success comes at the cost of countless bones." The recent market massacre is like a quick knife cutting through chaos—whether it's a surge or a drop, by the time you react, it's already too late. You won't feel the pain, but your head is already separated from your body, with no chance to protest. A fight between Trump and Musk can cut you; a shift in the direction of Sino-US negotiations can cut you; the outcome of the Russia-Ukraine negotiations can cut you; even if Trump just mutters in his sleep, it can cut you.
The wisest choice lately is to cash out once you make money. First, protect your principal and ensure your living bottom line; even if you encounter a correction, it won't hurt too much. Watching the market bleed and seeing corpses everywhere, the feeling of desolation is heart-wrenching—most retail investors just want to earn a bit of pocket money, but end up losing a whole pig with a single operation. How can one live like this?
Economic recession, pressure on the real economy, employment difficulties, high debt, and obstacles in foreign trade; who isn't struggling in this life of hard work? No one wants to touch contracts, but looking at the little coins in your pocket, you must choose this high-risk path—otherwise, how can you bear the weight of life?
Follow Brother Liang, here, penetrate the fog of information, discover the real market, seize opportunities, and find truly valuable opportunities—don't miss out and regret later.#币安Alpha上新 $BTC