Ten years of trading cryptocurrencies, the top ten iron rules from losing everything to earning back ten million!

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Having been in the cryptocurrency space for over a decade, starting with a principal of 5000 yuan, I rode the bull market to earn over 10 million, only to lose it all and incur a further loss of 7 million within three years. Finally, I turned my fortune around with a borrowed 200,000 and earned back 10 million. Throughout this journey, I have summarized the ten iron rules of trading cryptocurrencies, which I hope will help you avoid taking wrong turns!
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Rule One: Insight into market sentiment, trading volume is the core indicator.
• Rising Trading Volume Stabilizes Price: A significant increase in trading volume while prices remain stable may indicate the end of a downward trend.
• High trading volume with stagnant prices: A surge in trading volume without significant price increase may indicate a short-term peak has been reached.
• An increase in price accompanied by a rise in trading volume: During the price increase, trading volume should maintain steady growth. An abnormal reduction or surge may indicate the end of the upward trend.
• Increased trading volume at key downward nodes: When the price drops to a critical position, the trading volume surges, indicating that the downward trend may continue.
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Iron Rule 2: Key price levels guide trading decisions
• Support, Resistance, and Trend Lines: When the price reaches these key levels, decisive action is crucial!
• Golden Ratio: I use it to accurately predict support and resistance, with significant results.
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Iron Rule Three: Multi-Period Comprehensive Market Analysis
• One Minute Chart: Capture precise entry and exit timing.
• Three-minute chart: Monitor the price fluctuation trend after entering.
• 30-minute to 1-hour chart: Capture the subtle changes in intraday 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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Rule Five: Efficient Position Management Strategy
• Three-Stage Position Building Method:
1. Initial Position Building: The coin price rises above the five-day moving average, first purchase.
2. Add positions: Break through the 15-day moving average, continue to add positions.
3. Wait with a full position: Stand firm on the thirty-day line and complete the building of the position.
• Strict stop-loss discipline:
• Break below the five-day line, reduce positions;
• Break below the fifteen-day line, reduce again;
• Break below the thirty-day line, full retreat!
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Iron Rule Six: The strategy for selling is equally important.
• Breaking below the five-day line: moderately reduce positions and wait and see.
• Breaking below the 15-day and 30-day moving averages: act decisively and clear out positions, leaving no regrets.
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Iron Rule Seven: Be wary of market news, and don't let emotions dictate your rhythm.
• Frequent positive news but prices are not rising: Beware of the market makers offloading, and take profits in a timely manner.
• Negative news keeps coming but the price doesn't drop: This may be a bottom signal, pay close attention.
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Iron Rule 8: Insist on reviewing and deeply excavating trading experience
• Daily Review: Summarize the reasons for success and failure, extract experiences.
• Regular Review: Analyze past trades, adjust strategies, and enhance awareness.
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Iron Rule Nine: Set profit targets and do not be greedy.
• Clearly define profit range: decisively take profits upon reaching the target, and avoid chasing highs or selling lows.
• 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 remain calm.
• When at a loss: Don't rush to recover, calmly analyze the mistakes.
• When profiting: Don't be blindly confident; the market is always full of risks.
• Be patient and wait for opportunities: Don’t rush, it’s better to miss than to make a mistake.
These iron laws are valuable experiences gained from countless failures and successes in the world of money. On the path of trading coins, may you avoid traps and move forward steadily!