Ten years of trading cryptocurrencies: the top ten iron rules from losing everything to regaining ten million!

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Qian Feng has been in the cryptocurrency circle for over ten years. Starting with a principal of 5000 yuan, he made over 10 million during the bull market, only to lose everything and incur a loss of 7 million within three years. Finally, he turned things around with a borrowed 200,000 yuan, earning back 10 million once again. Along the way, I have summarized the ten iron rules of trading cryptocurrencies, and I am sharing them with you today in hopes of helping you avoid some detours!
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Iron Rule One: Understand market sentiment, trading volume is the core indicator.
• Volume increases while price stabilizes: A significant rise in trading volume while prices remain stable may signal the end of a downward trend.
• High trading volume with stagnant prices: A surge in trading volume without a significant price increase may indicate that a short-term peak has been reached.
• Increase accompanied by rising trading volume: During the upward trend, trading volume must maintain steady growth; any abnormal reduction or surge may indicate the end of the upward trend.
• Key volume expansion at the downturn: When the price drops to a key level, trading volume surges, potentially extending the downward trend.
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Iron Rule Two: Key price levels guide trading decisions.
• Support, resistance, and trend lines: decisive action is key when prices reach these critical levels!
• Golden Ratio Rule: 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 entry.
• 30-minute to 1-hour chart: Capture the subtle changes in intraday trends.
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Rule Four: Stay Calm After Stopping Losses
• Stop-loss means the end of a 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-Phase Position Building Method:
1. Initial Positioning: The coin price breaks above the five-day moving average, first purchase.
2. Add position: Break above the fifteen-day line, continue to add position.
3. Full position awaits: Stand firm at the 30-day moving average 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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Rule Six: Selling strategies are equally important.
• The high position has broken below the five-day line: moderately reduce positions and observe changes.
• Break below the 15-day and 30-day lines: Act decisively to liquidate positions, leaving no regrets.
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Iron Rule Seven: Be wary of market news and don't let emotions dictate your pace.
• Frequent positive news but prices do not rise: Beware of market makers unloading, and take profits in a timely manner.
• Negative news keeps coming, but the price doesn't drop: Perhaps this is a bottom signal, keep a close watch.
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Iron Rule 8: Stick to review and deeply explore trading experiences.
• Daily Review: Summarize the reasons for success and failure, and 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 defined profit zone: Take profit decisively upon reaching the target, do not chase highs or sell lows.
• Learn to take profits in batches: Especially during a surge, do not sell all at once.
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Iron Ten: Mindset is King, Always Stay Calm
• When in loss: Don't rush to recover, calmly analyze the mistakes.
• When making a profit: Do not be blindly confident; the market is always full of risks.
• Be patient and wait for opportunities: Don't rush or be anxious; it's better to miss out than to make a mistake.
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These iron rules are the valuable experiences I have gained through countless failures and successes. On the road of trading cryptocurrencies, I hope you can avoid traps and move forward steadily!
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