After 9 years of trading cryptocurrencies, I have walked the harshest road: starting with a principal of 5,000, riding a bull market to over 10 million, but after a market reversal, I lost for three years, ending up 7 million in the hole... At my worst, I was broke, relying on a borrowed 200,000 to stand up again, and I managed to earn back 10 million.
Today, no motivational speeches, no course promotions, just laying out the '7 Iron Laws of Cryptocurrency Trading' that I have forged with my own hard-earned money. Follow these, and it can at least save you years of unnecessary losses.
Iron Law One: If you don’t understand trading volume, you are the lamb waiting to be slaughtered.
Increased volume without a drop is a signal to stop falling; increased volume without a rise is a sign of reaching a peak.
Rising prices must be supported by continuous volume; when critical points see increased volume during a drop, it’s very likely to continue falling! Don’t fixate on price; volume is the true heart that cannot be hidden.
Iron Law Two: Key points are the dividing line between life and death.
Resistance levels, support levels, trend lines; you must react when they are hit! Want to be more accurate? I use Fibonacci ratios to calculate points, and I’m almost always spot on.
Iron Law Three: Time cycles are not a decoration; they are your third eye.
Use the 1-minute chart to find precise entry and exit points, the 3-minute chart to monitor wave adjustments, and the 30-minute/1-hour charts to grasp the internal trend. Ignoring multiple timeframes is like groping around in the dark with K-lines.
Iron Law Four: Stop-loss is not giving up; it’s leaving a chance for the next opportunity.
If you lose on a trade, accept it and don’t carry that emotion into your next trade. How many people have fallen due to emotional trading in the hopes of bouncing back?
Iron Law Five: The three-position method, a lifesaver for contract trading.
If it breaks the 5-day moving average, cut the first position; if it breaks the 15-day moving average, cut the second position; if it breaks the 30-day moving average, cut the third position. If it breaks, cut it; hesitating for even a second could be fatal.
Iron Law Six: Trading without a strategy for selling is equivalent to working hard for nothing.
If it breaks the 5-day line at a high, sell part of it first; if it breaks the 15/30-day lines, clear all positions!
Real profit is only when you lock in gains; being greedy for one more second could lead to losing it all.
Iron Law Seven: Are position and price out of sync? Be alert immediately!
If you increase your position but it doesn’t rise, be careful; it may be a selling signal. If you increase your position but it doesn’t drop, it may be quietly building a long position. Too many people have fallen victim to these 'detail signals.'
These principles seem simple, but putting them into practice is harder than climbing to the sky. But as long as you can achieve 70%, you can outlast 99% of people in the crypto space.
Do you want to avoid taking detours and being repeatedly harvested? Like + Follow.
Don’t wait until you’ve lost everything to think of turning back.
