Let me tell you a story; when I was suffering the most, I lost 2 million in three days due to contract liquidation, deeply in debt, almost losing my family and life. But the cryptocurrency circle is so magical. By chance, I received guidance from a master, and in the stormy night, I realized I had to start over and become a professional trader, studying technology tirelessly, spending thousands of days and nights in research and learning!
The journey in the cryptocurrency market is long; I hope everyone can take fewer detours and experience fewer tragedies! Having achieved financial freedom, I continue to create content because many people do not understand why I still do this after reaching financial freedom and achieving several small goals. I have also asked myself the same question. In the process of rediscovering my original intention, part of it is for my hero dream; I dedicate everything to trading, and I do not want my exceptional skills to go unnoticed! On the other hand, I want to provide a pathway for those who are eager to learn; what I have gained in the market is now also a process of giving back to the market. The way of nature reminds me of the many months I struggled with the issues of using multiple leverage, with no paths to learn from, repeating the charts over and over, countless days and nights, crawling and rolling to where I am now, deeply aware of the difficulties faced by retail traders in the cryptocurrency market, and I can empathize with them more!
In addition to solid technical sharing, I also strictly adhere to the following 9 trading rules:
1. Avoid revenge trading +
When a trade is closed, whether at a profit or a loss, it is necessary to unwaveringly adhere to the rules. After executing a stop-loss, try not to look at it again within 24 hours. This can effectively avoid revenge trading; opening a position out of revenge is likely to exacerbate losses. Some believe that one should get up from where they fell, but before new entry conditions are triggered, it is more important to calmly observe. Since traders spend several hours a day looking at charts, it is difficult to resist the temptation to open positions again to recover after a stop-loss. When using leverage for swing trading, avoiding a revenge mentality is especially important.
2. Try not to participate in trading on weekends
Every weekend, the volatility of cryptocurrency prices increases, and the trading volume is low. This makes it difficult to predict short-term price movements. The reason is simple: buy and sell orders over the weekend are usually smaller, liquidity in the market is lower, and whales can more easily manipulate short-term prices, making the disadvantages of retail traders more pronounced. Additionally, since the cryptocurrency market operates 24/7, the trading intensity is much higher than that of the stock market, and weekends are a good time to relax and rest; after all, life is more important than trading.
3. Maintain trading at specific times
As mentioned earlier, the cryptocurrency market operates 24/7 without stopping, and even full-time traders cannot continuously monitor the market. To maintain a clear mind, one can set fixed trading times. After opening a position during trading hours, set take-profit and stop-loss orders, and then go do other things. This eliminates the impulse to constantly check your phone or study candlesticks, allowing trading to not affect normal life.
4. Do not develop feelings for a specific asset
If you fall in love with the asset you are trading, it can easily lead to poor decision-making. Excellent traders make money through efficiency and rules, giving themselves an advantage, as most people's trading behavior in the market is driven by emotions. "Be an emotionless trading machine" can ensure decisiveness and principle in trading. A significant reason many traders suffer heavy losses is that they easily become emotionally attached to certain altcoins, teams, or projects. This may be acceptable for medium- to long-term investors, but it is a potential disaster for short-term traders.
5. Maintain simple trading rules
Traders often combine various indicators, news, and candlestick patterns to try to find suitable convergence points for trading. This in itself is not a problem, but care should be taken to avoid over-analyzing, which can complicate issues. In fact, when suitable candlestick patterns appear on the chart that fit one's own system, trading can begin. At the same time, it is important to set stop-loss orders and control position sizes, which is especially crucial.
6. Trade only with the right mindset
When you feel angry, tired, or stressed, do not trade; your mindset will affect your judgment. The key to maintaining a good mindset is to have other daily activities outside of trading. For example, exercising, reading, and spending time with family and friends can help cultivate the right trading mentality.
7. Keep a trading journal
Reviewing a trading journal can be tedious, but it is very meaningful because it can help you avoid making the same mistakes. Behind profitable and losing trades, there are specific reasons; recording trade details is a way to learn and allows you to grow quickly.
8. Do not try to catch falling knives with bare hands
"Catching falling knives with bare hands" refers to traders attempting to bottom fish in assets that are crashing. The motivation to bottom fish is often to lower the cost price to recover losses caused by significant declines. Trying to accurately bottom fish during a crash is unwise. Waiting for stabilization and rebound, and when resistance turns into support before entering the market is a more prudent approach.
9. Do not overlook extreme market conditions
While referring to technical analysis indicators, one must not overlook black swan events or other extreme market conditions. Ultimately, the market is driven by supply and demand relationships, and sometimes the market can be extremely unbalanced.
These valuable pieces of advice are the wisdom crystallized from years of practical experience and are worth our thoughtful consideration and strict adherence. I hope these suggestions can help everyone avoid detours in the market and steadily progress toward success.
