In just two years, I turned 50,000 yuan into 20 million trading cryptocurrencies. How? With discipline, strategy, and hard-earned lessons from the highs and lows of the crypto rollercoaster. Here are the 8 key rules that helped me master the market—your guide to trading smarter.
1️⃣ Divide Your Funds Like a Pro
🔹 Break your funds into 5 parts—only trade with one-fifth at a time.
🔹 Risk control is king: Limit stop losses to 10%.
• A single mistake costs you only 2% of your total funds.
• Five mistakes = only 10% loss.
🔹 Set a stop profit above 10%. The math? When you win, you win big; when you lose, it’s small.
💡 Key takeaway: Survival first, profits second.
2️⃣ Follow the Trend, Not Your Emotions
🔹 In a downtrend: Resist the urge to “buy the dip.” Most dips keep dipping.
🔹 In an uptrend: Every pullback is a golden opportunity.
💡 Ask yourself: Is it easier to fish at the bottom or buy when the market is rising? Always go with the flow.
3️⃣ Avoid Short-Term Pumped Coins
🔹 Coins that skyrocket in the short term often fizzle out just as fast.
🔹 A stalled market at a high level = likely to crash.
💡 Pro tip: Patience beats gambling. Stay away from the hype and focus on long-term value.
4️⃣ Master MACD for Entry/Exit Timing
🔹 Golden Cross (below the 0 axis): Strong buy signal when it crosses above the 0 axis.
🔹 Dead Cross (above the 0 axis): Signal to reduce positions or exit when it dips below.
💡 MACD = Your Market Compass. Use it to fine-tune your entries and exits.
5️⃣ Never “Cover” Losing Positions
🔹 Doubling down on losses is a death trap. The more you “cover,” the more you lose.
🔹 Instead, add to profitable positions to maximize gains.
💡 Golden Rule: Don’t fight the market—let your winners grow and cut your losers early.
6️⃣ Volume Is the Soul of the Market
🔹 Watch for large-volume breakouts at low consolidation levels.
🔹 Strong volume = Strong buying pressure = Big opportunities.
💡 Volume tells the story before the price does.
7️⃣ Only Trade Upward Trends
🔹 3-day upward trend: Signals short-term gains.
🔹 30-day upward trend: Medium-term rally incoming.
🔹 120-day upward trend: Long-term bull market—get ready for massive gains.
💡 Stay in sync with the trend. The odds are in your favor.
8️⃣ Always Review and Adapt
🔹 Weekly check-ins: Is your coin still aligned with your strategy?
🔹 Review trading performance: Did the market change, or did you misjudge?
💡 Refine your edge. The market evolves—so should you.
Final Thoughts:
Crypto trading isn’t just about luck—it’s about discipline, data, and decisiveness. Whether you’re just starting or looking to level up, these 8 rules can transform the way you trade.
📈 Ready to master the market? Start building your strategy today!
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