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

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Qian Feng has been through ups and downs in the crypto world for over a decade, starting with a principal of 5000 yuan, making over 10 million during a bull market, then losing everything and paying back 7 million in three years, and finally turning things around with a borrowed 200,000 yuan, earning back 10 million again. Along the way, I have summarized the ten iron rules of trading cryptocurrencies, which I will share with you today, hoping to help you avoid detours!
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Iron Rule One: Understand market sentiment, trading volume is the core indicator.
• Rising Trading Volume and Stabilizing Prices: A significant increase in trading volume coupled with stable prices 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.
• Price increase accompanied by increasing trading volume: During the upward trend, the trading volume must maintain steady growth; an abnormal reduction or surge may indicate the end of the upward market.
• Increased trading volume at key downside nodes: When the price drops to a key position, the trading volume surges, which may further extend the downtrend.
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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 Principle: I use it to accurately predict support and resistance, with remarkable results.
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Iron Rule Three: Multi-timeframe Comprehensive Market Analysis
• 1-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 a Stop Loss
• Stop loss means the end of the trade: Each trade is an independent starting point, do not 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 rises above the five-day moving average, first purchase.
2. Add Position: Break through the 15-day line and continue to add position.
3. Fully invested: Stand firm at the 30-day moving average and complete the positioning.
• Strict Stop Loss Discipline:
• Break below the five-day moving average, reduce positions;
• Break below the fifteen-day line, further reduction;
• Break below the thirty-day line, full retreat!
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Rule Six: The selling strategy is equally important.
• High position breaks below the five-day moving average: moderately reduce positions and watch for changes.
• Break below the 15-day and 30-day moving averages: decisively liquidate 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 do not rise: Beware of the market makers offloading, take profits in a timely manner.
• Negative news keeps coming, but the price doesn't drop: This may be a bottom signal, keep a close watch.
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Iron Rule 8: Stick to reviewing and deeply mining 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, don’t be greedy.
• Define profit range clearly: Take profit decisively when the target is reached, do not chase after rises 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 losing: Don't rush to recover, calmly analyze the mistakes.
• When making a profit: Don't be blindly confident; the market is always full of risks.
• Be patient and wait for opportunities: Don’t be anxious or impatient; it’s better to miss an opportunity 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 path of trading cryptocurrencies, may you avoid traps and move forward steadily!
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