I’ve been trading for almost 10 years. My first three years were spent in the stock market, where I invested 1.2 million yuan. Unfortunately, due to a lack of strategy, I lost most of it and was left with just 100,000 yuan. I faced mockery from friends and family, calling me reckless. Their harsh words made me question myself, but I refused to quit. I promised my partner I would give it one last shot, using my remaining funds wisely.
I spent months analyzing charts, learning from my mistakes, and developing my own trading rules. The result? I turned 100,000 yuan into an incredible 30 million yuan in just three years. This success wasn’t due to luck—it was the result of disciplined trading and consistent learning. Here, I’ll share my strategies and key principles, so you can apply them too.
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Key Trading Rules for Beginners and Professionals
1. Understand Market Sentiment
Market sentiment is one of the best indicators. Pay close attention to trading volume and market activity.
High volume without price declines signals a potential end to the downturn.
Strong volume without rising prices might indicate the bullish trend is ending.
Rising volume during an uptrend signals strength, while spikes in volume may signal reversals.
Volume spikes breaking key levels confirm continued downtrends.
2. Critical Price Levels
Always identify resistance, support, and trend lines.
Use tools like Fibonacci retracement to predict key levels and act quickly when these points are tested.
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Effective Trading Timeframes
1-Minute Chart: Ideal for precise entry and exit points.
5-Minute Chart: Useful for short-term price action.
1-Hour Chart: Helps track overall market trends.
Important Note: If a trade turns against you, avoid rushing to recover the loss. Accept it, reset, and treat the next trade as a fresh opportunity.
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Simple, High-Win Trading Method
This beginner-friendly strategy works with discipline. Here’s how:
1. Set Moving Averages
Apply three moving averages to the chart:
6-day moving average (short-term trend).
20-day moving average (medium-term trend).
40-day moving average (long-term trend).
2. Fund Allocation
Split your capital into three equal parts.
Phase 1: Invest 33% when the price crosses above the 6-day moving average.
Phase 2: Add another 33% when the price crosses above the 20-day moving average.
Phase 3: Invest the final 33% when the price breaks above the 40-day moving average.
3. Exit Strategy
Sell 33% if the price falls below the 6-day moving average.
Sell another 33% if it falls below the 20-day moving average.
Sell everything if the price breaks below the 40-day moving average.
4. Reentry Rules
Reenter with the same allocation if the price rebounds and breaks above any of the moving averages.
5. Selling at Highs
Follow the reverse method when selling:
Sell 33% if the price drops below the 6-day moving average.
Hold the rest unless the price breaks below the 20-day and 40-day moving averages.
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Discipline is Everything
While the strategy is simple, its success comes from strict execution. Emotional trading and ignoring stop-loss levels lead to unnecessary losses. Stick to the plan, and over time, you’ll see consistent results. This method transformed my trading and my life. While no strategy guarantees 100% success, these principles can help you confidently navigate the market and reduce risk.