In the first few years of trading cryptocurrencies, like many others, I stayed up all night monitoring the market, chasing highs and cutting losses, losing sleep over it.
Later, I gritted my teeth and insisted on using a simple method, and surprisingly, I survived and gradually started to stabilize my profits.
In the 2024-2025 period, my capital reached an 8-digit number. My current life consists of monitoring the market every day and making a few contracts. When necessary, I layout a bit of strategy, and I never stay up late, let alone stay up all night! When I go out, I basically don’t worry about money. My worth has exceeded 60 million, and I have no worries!
Looking back now, this method may be clumsy, but it works: 'If the signals I’m familiar with don't appear, I absolutely won't act!'
I would rather miss the market than place random orders.
Thanks to this iron rule, my annual income rate can now be stabilized at more than 50%, and I finally don’t have to rely on luck to survive.
Here are some investment advice for beginners, based on my experience with real losses:
1. Place orders after 9pm
There is too much news during the day, with all kinds of false good and bad news flying around, and the market fluctuates like a freak, making it easy to be deceived into entering the market.
I usually wait until after 9 p.m. before taking any action. At that time, the news is basically stable, the K-line is cleaner, and the direction is clearer.
2. Cash in your profits immediately
Don't always think about doubling your winnings! For example, if you win 1,000U today, I suggest you immediately withdraw 300U to your bank card and continue playing with the rest.
3. Look at indicators, not feelings
Don't make orders based on your feelings, that's blind.
Install TradingView on your phone and check these indicators before placing an order:
• MACD: Is there a golden cross or a death cross?
• RSI: Is there overbought or oversold
• Bollinger Bands: Is there a narrowing or a breakout?
Only consider entering the market when at least two of the three indicators give consistent signals.
5. Must produce j every week
Q that does not withdraw cash is all a numbers game!
I transfer 30% of my profits to my bank account every Friday without fail, and I continue rolling over the rest. This way, my account will grow bigger and bigger over the long term.
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6. There are tricks to reading K-line
• For short-term trading, look at the 1-hour chart: if the price has two consecutive bullish candlesticks, you can consider going long.
• If the market is sideways, switch to the 4-hour chart to find the support line: consider entering the market only when it falls near the support level.
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7. Don’t fall into these traps!
• Leverage should not exceed 10 times, and beginners should keep it within 5 times
• Don’t touch Dogecoin, Shitcoin and other counterfeit coins, they are easy to be harvested
• Do no more than 3 orders a day, too many orders can easily lead to losing control
• Never borrow money to trade cryptocurrencies!
I have hardly ever had any business dealings with anyone, so I rarely have any troubles.
I have the patience to summarize my insights. The most important thing about cryptocurrency trading is a good mentality, and technology comes second.
1. In most cases, Bitcoin is the leader in the rise and fall of the cryptocurrency market. Strong-quality coins such as Ethereum sometimes break away from Bitcoin's influence and move out of a unilateral trend. Altcoins basically cannot escape its influence.
2. Bitcoin and USDT move in opposite directions. If you find that USDT is rising, you should be wary of Bitcoin falling. When Bitcoin is rising, it is a good time to buy USDT.
3. The phenomenon of pinning is easy to occur between 0:00 and 1:00 every day, so domestic coin friends can set the buy price of the favorite coin as low as possible and the sell price as high as possible before going to bed. Maybe the transaction will be completed and you can make money;
5. 5 p.m. is a key time for rumors. Due to the time difference, American cryptocurrency traders get up and go to work, which may cause fluctuations in the price of the cryptocurrency. Some big rises or falls have indeed occurred at this time, so be especially careful.
6. There is a saying in the cryptocurrency circle that “Black Friday” happens to happen. There have been a few cases where the market plummeted on Friday, but there have also been cases of sharp rises or sideways movements. It is not particularly accurate, so just pay attention to the news.
7. If a coin with a certain trading volume drops, don't worry. Hold on patiently and you will definitely get your money back. It could be as short as 3-4 days or as long as a month. If you have extra USDT, you can buy more in batches to push the price down, which will help you get your money back faster. If you don't have extra money, just wait and see. You won't be disappointed. Unless you really bought I-coins;
8. For spot trading, holding the same coin for a long time and trading less frequently will bring greater returns than frequent trading. It all depends on your patience. I bought Dogecoin at 0.1 and it has increased more than 20 times since then.
Who can't sleep in the middle of the night?
1. The best gambler among gamblers
This should be something that many people agree with. There are many bad gamblers in the currency circle, but those who can't sleep are basically short-term high-multiple players. This group of people will not use much capital to operate, and the base is not large. Their endurance is checked, and the basic survival time is about 5 days. It is a high-risk occupation with high job mobility.
2. Project parties who are facing time difference
Some people in China who have worked with project parties know that some tasks can be done during the day, but they are also considered to be done at night. Some brand, public relations, and community maintenance work are better done at night than during the day. In addition, some project parties have requirements for time differences, but they are only a very small minority, and the salaries are mostly not high.
3. Traders who confuse right and wrong
This is quite different from being a gambler. While many in the cryptocurrency world don't know what they're doing, a smaller number do, such as traders specializing in nightclubs. These traders might use 10x or 5x leverage, but their overall position size isn't too large. They trade both short-term and long-term, emphasizing a balance between work and rest. Many of them have their own trading strategies, but the emptiness created by long hours of trading makes them feel more secure at night.
I'm Lao Chen. I've experienced multiple bull and bear cycles and have extensive market experience in various financial sectors. Here, I'll penetrate the fog of information and discover the real market. Seize more opportunities to unlock wealth and discover truly valuable opportunities. Don't miss out and regret it!
Here's my daily chart trading strategy for making consistent profits, simple and practical! Save it!
If you are looking for fast market price fluctuations, the daily chart may not be for you.
You have to wait until the end of each trading day to decide whether to set up a trading strategy. This can be difficult for forex traders because the forex market operates differently from the stock or futures markets, which have clear opening and closing times.
On the daily chart, you won’t encounter trading opportunities as frequently as you will on lower timeframes like the 5-minute or 15-minute chart.
But here’s the thing…many new traders are always too eager to jump into the fast-paced world of day trading, even before they have achieved success on the daily charts.
For most people, this is unwise.
Daily Chart – Why Casinos Hate It
I used to be keen on trading on lower time frames because I believed that the more opportunities there were, the more money I would make.
But in addition to not paying attention to transaction costs, I realized that I was obsessed with the thrill of the next trade.
It's like being in a casino.
When I had a winning trade, I would feel so good that sometimes I was even convinced that the next trade would also be a winner. I ignored the "power of timely profit taking" and just immersed myself in the excitement of making a quick profit.
But losses are real, so I keep trading, thinking to myself, "The next trading opportunity will definitely make money."
It's like being a gambler.
This is a huge mistake.
Enter the World of Daily Chart Trading
Using the same trading strategy, trading opportunities became rarer, which tested my patience. Over time, I learned that trading opportunities don't appear every day. The feeling of "instant gratification" and quick profits were gone.
I no longer relied on frequent trading to pick up small profits. I started spending less time, getting better results, and gradually got rid of the "casino mentality".
This is progress for me.
The 15 minute chart usually has quite a few trading signals for most trading strategies, but when I turn to the daily chart, we can see a simple pullback pattern trading opportunity with a long entry signal.
Trading opportunities are few and far between, but the price action is very clear.
Five Benefits of Daily Chart Trading
I can only speak from my own experience about the benefits of trading with daily charts (weekly charts shouldn't be overlooked either), but I'm sure you'll be drawn to them too.
1. More time — less stress
Unlike shorter timeframes where I need to watch every price fluctuation, I can choose to check the daily chart in the second half of each day to see if the trading pattern I want appears. By observing the daily chart, I can more objectively judge whether the market meets my entry conditions.
I don't need to watch the 1-minute chart or the 15-minute chart like I do when I'm scalping or day trading.
I only check the chart once a day, at or near the close of the daily candlestick chart, and can quickly scan the various price charts to find opportunities. I no longer have to rush to place orders, worrying that the price will take off immediately.
The urge to "chase a fast-moving market" that is common on smaller timeframes is virtually nonexistent when trading daily charts. Because a candlestick takes an entire trading day to close, unless I use limit orders, I only need to focus on the closing price and its position on the chart.
Using basic retracement methods, standard trend lines, and support/resistance areas, you can quickly determine if there are trading opportunities every day. The red cross in the figure indicates that on these days it only takes 3 seconds to see if there is a trading signal.
The green check mark means that you will stop and carefully analyze the chart to make sure it meets your specific trading pattern conditions. You will check each item against your trading plan and execute the trade according to the plan.
2. Lower trading frequency — higher win rate
I don't need to stare at the screen every moment to watch the market, because I know when to look at the charts for trading opportunities.
Although I tried to stick to a day trading schedule and set stop times, I was always worried about missing out on a big move. On smaller timeframes, trading signals came very quickly.
On the daily chart, I found that these trading patterns often triggered larger market moves. On the smaller timeframes, a minor adverse price fluctuation could trigger a stop-loss, while the entry on the daily chart would still be valid. Before I knew it, I had become a swing trader.
The wider stop-loss range on the daily chart gives the price more room to move in a favorable direction.
Of course, there were times when I entered a trade on a higher timeframe and the price immediately took a negative turn, but because my stop-loss was set more appropriately, I was able to better manage my trading risk and control my overall risk tolerance.
◔ My overall win rate has increased because I am less exposed to the market
◔ My overall returns increased while I spent less time in the market
The fewer transactions, the lower the transaction costs.
While the fees per trade may not seem like much, they add up to a big difference. Fewer trades is exactly what most traders, especially new traders, really need.
3. Less interruptions from news and data releases
Most traders, in fact traders in almost all markets, typically use swing highs and lows as stop-loss placements. It is safe to say that many traders get stopped out during these two spikes at the extremes of a trading range.
4. Focus on the transaction process
Daily chart trading gives you time.
◔ Have time to execute your trading plan step by step
◔ Have time to learn how to let profits run
◔ Have time to develop other sources of income
You don’t need to work full time to choose to trade using the daily chart.
One thing I find very interesting is that at our offline salons, some traders would ask, “If these teachers can make money trading, why do they still make trading videos or sell courses?”
My answer is: if you have the time to add another source of income, why not? This is why many people start learning to trade while they still have a job. They understand the importance of not putting all their eggs in one basket.
When trading higher timeframes, your daily trading time is actually very short.
Whether you are swing trading or trend holding trading, you don't need to react to every little fluctuation on the screen.
Traders who adopt a long-term trading strategy will gradually learn to let profits run. They will not hastily close their positions for a small profit, only to suffer a huge loss.
Of course, this approach has a downside: depending on your stop-loss strategy, you might lose a significant portion of your profits as prices move against you in the short term. But that's the trade-off. Over time, you'll learn that sticking to your own trading plan is always the best option.
5. How much is your time worth?
On smaller timeframes, you might spend hours at your trading desk and risk a $50 loss just to make $100—or even less.
Why are the returns so small?
Because most traders do not have enough funds to afford larger position sizes.
What about the losing trades? They'll just pile up. Eventually, you might find yourself with a profit of just $20 all day, which isn't worth it at all.
By using a higher timeframe, I can know days in advance if a trading opportunity is about to arise. For example, if the price breaks through a resistance level, I can set a buy stop order and wait for it to be triggered.
I don't need to sit in a chair all day waiting for the mouse to click. Your time is far more valuable than a few hours and a few dollars.
Think bigger: This is an opportunity to earn a full-time income in part-time hours.
Daily chart trading strategies
Next, I will share a simple but suitable daily chart trading strategy for swing traders.
Don't be fooled by its "simplicity".
You only need two trading indicators:
20-period Simple Moving Average (SMA)
◔ 5-period ATR (Average True Range)
The long entry trading rules are as follows:
1. Wait for the price to break above the 20-period moving average.
2. The lowest price of two consecutive candlesticks is completely above the moving average, which will serve as a trading signal;
3. After the second candlestick forms, place a buy stop order 20% ATR above the highest point of the two candlesticks.
4. Set your stop-loss at 20% ATR below the moving average.
5. Use moving averages to trail your stop loss.
We can see that the price has broken above the 20-period Simple Moving Average (20 SMA), and now we need two candlesticks with lows above the 20 SMA.
When the second candlestick is completed, we see that its lowest point is also above the moving average, so this is the second candlestick that meets the conditions. We place a buy stop order above the highest point of the two candlesticks plus 20% × 5 period ATR.
◎ The initial stop loss is set as: 20-period moving average - 20% × 5-period ATR
Move your stop loss 20% of the ATR below the moving average.
◎ The first transaction was finally exited when the profit was 146 points after entry.
Although no short signal was formed, we have another valid long entry opportunity. Just repeat the operation according to the first trade.
Let’s look at some other entry opportunities, using Bitcoin as an example.
You have to be prepared to take losses in your trades, and your first trade was a losing trade because the price retraced 4.5% from your entry point. As soon as you entered the trade, the price quickly reversed and triggered your stop loss.
The next trading signal fails to trigger. A trader who understands price action might actively skip this signal due to excessive downward price momentum.
Then we see some signals that failed to trigger due to ATR buffering.
Finally, we got a valid long entry signal, which was successfully triggered, and the price has risen 38% from the entry price.
Tips for dealing with support and resistance
I generally don't recommend over-adjusting your strategy to avoid losses, but there is value in considering price structure when evaluating whether to enter a market.
When we see prices constantly crossing the moving average and fluctuating above and below, it usually indicates that the market has entered a range of fluctuations.
The first trade on the left was valid, but the price eventually pulled back and the stop loss was triggered, but the loss was less than the initial risk, which is actually a good thing.
Subsequently, the price action exhibited clear range-bound behavior. Marking the highs and lows of this range on the chart helped us avoid entering trades that quickly reversed.
When the range low is broken, some traders may choose to extend the range, but the price eventually returns to the original range.
By doing this (widening the range), the price often needs to move away from the 20-period moving average, which is likely to trigger a rapid "pull back" to the moving average.
It only takes two seconds to analyze the chart and you will decide that it would be a more reasonable choice to exit this crude oil chart and look for other trading products.
Summarize
Trading using the daily charts is much more relaxing than the fast-paced day trading.
You only need to check the market once a day, set your pending orders, and check back the next day. This allows traders to focus on other income streams. Yes, the number of trades is reduced, but for me, this is the right choice.
Of course, you should also understand that in some markets, using a moving average as a stop-loss may put a lot of pressure on your account capital. Make sure that the market risk level you are trading is what you can afford.
Think bigger. Your trading account may thank you for it.
Finally, I'd like to share with you: After more than 10 years of cryptocurrency trading, I've summarized the following blood-stained experience, ironclad rules, and advice. I hope it can help you avoid some detours! It's worth saving!
The Iron Law of Cryptocurrency Trading
First, don’t rush into those currencies that are complex and unclear to you. You should pick the weak ones and the same applies to currency speculation.
Second, don’t put all your money into buying the same coin at once, even if you are very optimistic about it and later prove that you are right. Because the market changes rapidly, no one knows what will happen tomorrow.
Third, if you mistakenly buy a currency that is on a downward trajectory, you must sell it quickly to avoid further losses.
Fourth, if the currency you bought has not yet lost money but has entered a downward trajectory, you should also exit and wait and see.
Fifth, if the currency is not on an upward trajectory, it is recommended to pay less attention to it. No matter what happens to it in the future, don't accompany the main force to build a position. Retail investors don't have time to waste with them.
Sixth, don't indulge in short-term trading, trading in and out every day, dreaming of making money. Frequent trading may give you a thrill, but it will cost you a lot of money. The only one who benefits is the exchange, and you won't be that skilled, nor are you a market maker. Don't buy too many currencies, preferably no more than 10; you won't have the energy to keep track of them all. It's like wanting to marry five wives—even if you're in good health, you won't be able to satisfy them all. Wei Xiaobao's story only happens in novels.
Seventh, this coin is very cheap and has fallen a lot, but this is not a reason for you to buy it, never! It may even be cheaper!
Eighth, even though this coin is very expensive and has already risen a lot, that’s not a reason to refuse to buy or sell. It may even rise even higher!
advice
1. Don’t throw away the bull coins easily. First choose the bull coins. Get half of the way. Do both hot and strong coins. Investment and speculation are both suitable. Get the whole way.
2. The most important thing for a trader is the ability to respond during trading.
3. Qualitative analysis is a must. Qualitative analysis of large cycles, weekly coin selection, monthly identification, and daily tracking
4. Follow the established rules and use Bollinger Bands or other moving averages that you think are feasible to analyze the market.
5. There is no way to teach ability, it all depends on technical skills, repeat successful experiences, make money a habit, and make money frequently is more important than making a lot of money.
As a seasoned cryptocurrency trader, I've compiled 12 ironclad rules for cryptocurrency trading. Each one is a lesson learned through hard work and tears. Reading these will save you 100,000 yuan!
1. Time difference between the East and the West: Stay up late to watch the market. The cryptocurrency market is basically concentrated in European and American time (21:30-7:30 Beijing time), and the big rise is in the early morning! So, want to make money? Staying up late is a must! Go to bed at 20:00 and get up at 4:00 to watch the market. This is the work and rest schedule of a qualified trader.
2. Don't panic if the market drops sharply during the day: Foreigners pull up the market at night. Is there a big drop in the market during the day? Don't be afraid! Once foreigners enter the market at 21:30 in the evening, they will pull it back in minutes! Remember: a big drop during the day is an opportunity to buy the bottom. Don't chase high prices when the market rises sharply during the day, as there is a high probability that the market will fall back at night.
3. The deeper the insertion, the stronger the signal: K-line insertion (long upper and lower shadows) is a common method used by bankers. The deeper the insertion, the stronger the reverse signal!
After the pin is often the best time to buy or sell, don't let the dealer trick you out!
4. The news is bad news: before a major meeting or good news, the price will definitely rise, but as soon as the news comes out, it will immediately fall back! Therefore, plan ahead and run away as soon as the news comes out. Don't be greedy!
5. Heavy positions will inevitably lead to liquidation, while light positions are the way to go: Heavily invested? Congratulations, you're already on the exchange's liquidation list! Market makers are targeting heavily invested users, and with a single pull or drop, you can be liquidated in minutes! Therefore, light positions are the key to survival!
6. The price falls after the stop loss is completed, and rises after the take profit is completed: the price falls after the stop loss of the short position, and rises after the take profit is completed. The dealer does not want you to make money! Therefore, stop loss should be cautious, and take profit in batches. Don't be led by the dealer!
7. You are almost out of the trap: Don’t dream: You will be out of the trap immediately? The rebound suddenly stopped! How can the dealer let you escape so easily? Therefore, reduce your position appropriately when you are close to being out of the trap, don’t be greedy!
8. Excitement = Waterfall Warning: When you are too excited, the waterfall is coming! The dealer is taking advantage of your emotions to cut leeks, so staying calm is the best way!
9. When you have no money, the market is full of opportunities: When you are penniless, every coin is rising, and the FOMO sentiment is full! But remember, 80% of the market is manipulated, don't get out easily, only patience and waiting will make you a winner!
How can we survive in the market for a long time? To survive and succeed in the market for a long time,
Here are a few key strategies to follow:
1. Risk Management
Use spare money for investment and avoid using high leverage or loans.
Set a stop-loss point. Once the preset loss limit is reached, sell decisively to avoid further losses.
2. Investment Strategy
Diversify your investments: Don't invest all your money in one project, but instead diversify your investments across different currencies and projects to reduce risk. Long-term holding: For high-quality projects, hold them for a longer period of time and use the compound interest effect to achieve wealth growth. Sell at the right time: When the market is high, if there is obvious bad news, it may be a good time to sell.
3. Information acquisition and processing
Learn to distinguish the authenticity of information and avoid being misled by false information
4. Psychological adjustment
Stay calm and don't be affected by short-term market fluctuations.
Set reasonable expectations and avoid excessive trading and frequent operations.
5. Continuous Learning
Regularly learn about blockchain technology and digital currency, keep pace with industry developments, participate in community discussions, exchange experiences with other investors, and broaden your horizons.
6. Balance between life and investment
Ensure that investment activities do not interfere with your daily life and health.
Maintaining physical and mental health will help you better cope with the challenges of the investment process
To put it bluntly, playing in the cryptocurrency world is a battle between retail investors and bankers. If you don't have cutting-edge information and first-hand information, you will only be harvested! If you want to plan together and harvest the bankers together, you can come to me. Welcome like-minded people in the cryptocurrency world to discuss together~
There is a saying that I strongly agree with: the boundaries of knowledge determine the boundaries of wealth, and people can only earn wealth within the boundaries of their knowledge.
You must have a good mentality when trading cryptocurrencies. Don't let your blood pressure soar when there is a big drop, and don't get carried away when there is a big rise. It is more important to lock in your profits.
For people who don’t have many resources, being down-to-earth is the irrefutable way of survival.
Giving roses to others leaves a lingering fragrance on your hands. Thank you for your likes, following Lao Chen, and forwarding! I wish everyone financial freedom in 2025!
$ETH $BTC #加密市场回调
