#news I have been trading for almost 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 stupid. Their harsh words made me doubt myself. But deep down, I was not ready to give up. I promised my partners that I would try one more time, using the rest of my 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 a whopping 30 million yuan in just three years. This wasn’t luck—it was the result of disciplined trading and consistent 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. Understand Market Sentiment

Market emotions can be your greatest guide. Watch trading volume and activity closely.

If trading volume is high but prices stop falling, it often means the decline is over.

If volume remains strong but price stops rising, the bullish trend may be nearing its end.

During an uptrend: A consistent and moderate increase in volume indicates a strong uptrend. A sharp spike in volume can signal a possible reversal.

During a decline: Increased volume upon breaking through key levels confirms the continuing downtrend.

2. Critical Price Levels

Identify resistance, support and trend lines on the chart.

Use tools like Fibonacci retracements to estimate key levels.

Act quickly when price approaches or breaks these points.

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Effective Trading Time Frames

1-Minute Chart: Best for determining precise entry and exit points.

5-Minute Chart: Ideal for monitoring price action during short-term trading.

1-Hour Chart: Helps you track the overall market direction and trend.

Important Note: If a trade goes against you, do not rush to recover your losses immediately. Accept the loss, reset, and treat the next trade as a new opportunity.

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Simple and High-Win Trading Method

This strategy is beginner-friendly, and with discipline, it can work for anyone. Let's get started:

1. Set Moving Average

Apply three moving averages to your chart:

6-day moving average (short-term trend).

20-day moving average (intermediate-term trend).

40-day moving average (long-term trend).

The 40-day moving average serves as a key support or resistance level.

2. Allocation of Funds

Divide your capital into three equal parts.

Phase 1: When the price breaks above the 6-day moving average, invest 33% of your capital.

Phase 2: If price breaks above the 20-day moving average, add another 33%.

Phase 3: After the price crosses the 40-day moving average, invest the remaining 33%.

3. Exit Strategy

If price falls back below the 6-day moving average, sell your first position.

If it falls below the 20-day moving average, sell another 33%.

If all three moving averages break, sell everything and exit the trade completely.

4. Re-entry Rules

If price bounces and breaks above the 6-day or 20-day average again, re-enter with the same allocation strategy.

5. Selling at the Peak

Use the reverse method to sell:

When price starts to fall, sell 33% when it falls below the 6-day moving average.

Hold the remaining positions unless price falls below the 20-day and 40-day moving averages.

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Discipline is Everything

This strategy may sound 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 changed my trading and my life. While no strategy can guarantee 100% success, following these principles can help you navigate the markets with confidence and minimize risk.