Ten years of trading cryptocurrencies: the ten iron rules from losing everything to making back 10 million!

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After more than ten years of ups and downs in the cryptocurrency world, starting with a principal of 5000 yuan, I made over 10 million during the bull market, only to lose it all and incur a debt of 7 million within three years. In the end, I turned my fortunes around with a borrowed 200,000 and earned back 10 million again. Along the way, I have summarized the ten iron rules of trading cryptocurrencies, which I hope to share with you today, hoping to help you avoid detours!
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Iron Rule 1: Insight into market sentiment, trading volume is the core indicator.
• Rising Trading Volume with Stable Prices: A significant increase in trading volume while prices remain stable may signal the end of a downtrend.
• High trading volume with stagnant prices: A surge in trading volume without a significant price increase may indicate a short-term peak has been reached.
• Price increase accompanied by increasing trading volume: During the price increase, the trading volume should maintain steady growth; any abnormal reduction or surge may indicate the end of the upward trend.
• Key volume increases at the drop: When the price drops to a key position, the trading volume surges, and the downtrend may continue further.
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Iron Rule Two: Key Price Levels Guide Trading Decisions
• Support, Resistance, and Trend Lines: Taking decisive action is key when prices reach these critical levels!
• Golden Ratio Rule: I use it to accurately predict support and resistance, with remarkable results.
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Iron Rule Three: Multi-Period Comprehensive Analysis of the Market
• One Minute Chart: Capture precise entry and exit timing.
• Three-Minute Chart: Monitor the price fluctuation trend after entry.
• 30-minute to 1-hour chart: Capture the subtle changes in daily trends.
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Rule Four: Stay Calm After a Stop Loss
• Stop-loss means the end of the trade: Each trade is an independent starting point, don't let the past affect your judgment.
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Iron Rule Five: Efficient Position Management Strategy
• Three-Stage Position Building Method:
1. Initial Positioning: The coin price surpasses the five-day moving average, buy for the first time.
2. Increase Position: Break through the 15-day line, continue to increase position.
3. Full position waiting: Stand firm on the 30-day line and complete the position building.
• Strict stop-loss discipline:
• Break below the five-day moving average, reduce positions;
• Break below the fifteen-day line, reduce further;
• Break below the thirty-day line, full retreat!
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Iron Rule Six: The shipping strategy is equally important.
• The price breaks below the five-day moving average: moderately reduce positions and observe the changes.
• Fall below the 15th and 30th days: Leave no regrets.
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Iron Rule Seven: Beware of market news and don't let emotions dictate your pace.
• Frequent positive news but prices do not rise: Beware of the dealers unloading their assets, and take profits in a timely manner.
• Negative news continues to come out but the price does not fall: Perhaps this is a bottom signal, stay tuned.
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Iron Rule 8: Persist in reviewing and deeply explore trading experiences.
• Daily Review: Summarize the reasons for success and failure, and extract lessons learned.
• Regular Review: Analyze past trades, adjust strategies, and enhance awareness.
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Iron Rule Nine: Set profit targets, do not be greedy.
• Clear profit range: decisively take profit when the target is reached, do not chase highs or sell on dips.
• Learn to take profits in batches: Especially during a surge in the market, do not sell everything at once.
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Iron Rule Ten: Mindset is King, Always Stay Calm
• When in loss: Don't rush to recover, calmly analyze your mistakes.
• When profitable: Do not be blindly confident, the market is always full of risks.
• Be patient and wait for opportunities: Don't be hasty or anxious, it's better to miss out than to make a mistake.
These iron rules are the valuable experiences gained from countless failures and successes in the money market. On the path of trading cryptocurrencies, may you avoid traps and move forward steadily!