From Struggle to Success: My Proven Cryptocurrency Trading Strategy...!
I had been trading for nearly a decade. During the first three years, I invested 1.2 million yuan in the stock market. Unfortunately, due to the lack of proper methods, I lost most of it. My balance dropped to only 100,000 yuan. Friends and family ridiculed me, calling me irresponsible and foolish. Their harsh words made me doubt myself. But deep down, I wasn’t ready to give up. I promised my partner that I would try one last time, using my remaining money wisely.
I spent months analyzing charts, learning from mistakes, and developing my own trading rules. The result? I turned 100,000 yuan into an astonishing 30 million yuan in just three years. This wasn’t luck – it was the result of disciplined trading and continuous learning. Below, I’ll share my key strategies and principles so you can apply them too.
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Basic Trading Rules for Beginners and Professionals
1. Understanding Market Sentiment
Market emotions can be your biggest guide. Watch trading volume and activity closely.
If the trading volume is high but the price stops falling, it often means that the decline is over.
If volume remains strong but prices stop rising, the uptrend may be nearing its end.
During the Rise: Consistent and moderate increases in volume indicate a strong uptrend. Sharp spikes in volume can indicate a potential reversal.
During the decline: Increased volume when key levels are broken confirms the continuation of the downtrend.
2. Critical price levels
Identify resistance, support and trend lines on the chart.
Use tools like Fibonacci retracement to predict key levels.
Be quick to act when prices approach or break these points.
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Effective time frames for trading
1-minute chart: Best for determining precise entry and exit points.
5-minute chart: Ideal for monitoring price action during short-term trades.
1-hour chart: Helps you track the overall market trend and trends.
Important note: If a trade goes against you, don't rush to make up your loss right away. Accept the loss, reset, and treat the next trade as a new opportunity.
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Simple and highly profitable trading method
This strategy is suitable for beginners, and with discipline, it can work for anyone. Let's dive into it:
1. Set moving averages
Apply three moving averages to your chart:
6-day moving average (short-term trend).
20-day moving average (medium-term trend).
40-day moving average (long-term trend).
The 40-day moving average acts as a major support or resistance level.
2. Allocating funds
Divide your capital into three equal parts.
Stage 1: When the price breaks above the 6-day moving average, invest 33% of your capital.
Stage 2: If the price breaks above the 20-day moving average, add another 33%.
Stage 3: Once the price crosses the 40-day moving average, invest the remaining 33%.
3. Exit Strategy
If the price drops back below the 6-day moving average, sell your first position.
If it drops below the 20-day moving average, sell another 33%.
If all three moving averages are broken, sell everything and exit the trade completely.
4. Re-entry Rules
If the price bounces and breaks above the 6-day or 20-day moving average again, re-enter with the same allocation strategy.
5. Sell at Rise
Use the reverse method to sell:
When the price starts to decline, sell 33% when it drops below the 6-day moving average.
Hold the remaining portion unless the price drops below the 20-day and 40-day moving averages.
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Discipline is everything
This strategy may seem simple, but its success lies in strict execution. Emotional trading or ignoring your stop loss levels will lead to unnecessary losses. Stick to the rules and you will see consistent results over time. This method has changed my trading and my life. While no strategy is 100% guaranteed to succeed, following these principles can help you navigate the market with confidence and minimize risk.