Ten years of Cryptocurrency Trading, from losing everything to earning back ten million: the top ten iron rules!

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Having been in the cryptocurrency trading world for over a decade, starting with a principal of 5000 yuan, I capitalized on the bull market and earned over 10 million, only to lose it all within three years and end up losing another 7 million. In the end, I turned my fortunes around with a borrowed 200,000, earning back 10 million again. Throughout this journey, I have summarized the ten iron laws of cryptocurrency trading, which I hope will help you avoid unnecessary detours!
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Iron Rule One: Understand market sentiment, trading volume is the core indicator.
• Volume Rising, Prices Stabilizing: A significant increase 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 increase in price may indicate that a short-term peak has been reached.
• Price increase accompanied by increasing trading volume: During the price increase process, the trading volume must maintain steady growth; an abnormal reduction or surge may indicate the end of the uptrend.
• Key support level volume increases during a decline: When the price drops to a key position, the trading volume surges, and the downtrend may continue.
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Iron Rule 2: Key price levels guide trading decisions.
• Support, resistance, and trend lines: Acting decisively is key when the price reaches these critical levels!
• Golden Ratio: I use it to accurately predict support and resistance, with significant results.
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Iron Rule Three: Comprehensive Analysis of the Market Across Multiple Time Frames
• 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 Cutting Losses
• Stop-loss means the end of the trade: Each transaction is an independent starting point, do not let the past affect your judgment.
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Iron Rule Five: Efficient Position Management Strategies
• Three-Phase Position Building Method:
1. Initial Positioning: Coin price breaks above the five-day moving average, first purchase.
2. Add Position: Break through the 15-day moving average, continue to add position.
3. Full position waiting: Standing firm on the thirty-day moving average, completing the position building.
• Strict Stop-Loss Discipline:
• Break below the five-day line, reduce position;
• Break below the fifteen-day line, then reduce;
• Break below the thirty-day line, retreat completely!
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Rule Six: The exit strategy is equally important.
• Break below the five-day moving average at a high position: moderately reduce positions and observe changes.
• Break below the 15-day and 30-day moving averages: decisively liquidate positions, leaving no regrets.
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Rule Seven: Be wary of market news and don't let emotions dictate your pace.
• Frequent good news but prices do not rise: Beware of whales offloading, take profits in a timely manner.
• Negative news keeps coming but the price doesn't drop: Perhaps this is a bottom signal, pay close attention.
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Iron Rule Eight: Adhere to reviewing trades 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 understanding.
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Iron Rule 9: Set profit targets and do not be greedy.
• Clearly define profit zones: decisively take profits when targets are reached, do not chase prices or panic sell.
• Learn to take profits in batches: Especially in a surge market, don't sell everything at once.
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Iron Rule Ten: Mindset is King, Always Stay Calm
• When at a loss: Don't rush to make up for it, calmly analyze the mistakes.
• When profitable: Don't be blindly confident, the market is always full of risks.
• Be patient and wait for opportunities: Do not rush or be anxious, it is better to miss out than to make a mistake.
These iron rules are valuable experiences gained from countless failures and successes in the world of money. On the path of Cryptocurrency Trading, may you avoid traps and move forward steadily!