From Struggles to Success: My Proven Crypto Trading Strategy

I’ve been trading for nearly a decade, and my journey hasn’t been without challenges. In the first three years, I invested 1.2 million yuan in the stock market. However, due to a lack of proper strategy, I ended up losing most of it. My balance dwindled to just 100,000 yuan, and I became the target of mockery from friends and family, who called me irresponsible and foolish. Their harsh words made me question myself, but I wasn’t ready to give up. I promised my partner that I would make one last attempt with the little I had left.

I dedicated months to analyzing charts, learning from my mistakes, and developing my own set of trading principles. The outcome? I turned 100,000 yuan into a remarkable 30 million yuan in just three years. This wasn’t luck; it was the result of disciplined trading and continuous learning. Now, I’ll share my strategies and key principles, so you can apply them too.

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Key Trading Principles for Beginners and Professionals

1. Understand Market Sentiment
The market’s emotions are a valuable indicator. Pay attention to trading volume and activity.

If the volume is high but the price stops falling, it often indicates the decline is ending.

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

During an uptrend, moderate and consistent increases in volume suggest a strong rally, while sharp volume spikes can indicate a reversal.

During a downtrend, increased volume breaking key levels confirms a continued decline.

2. Identify Critical Price Levels
Recognize resistance, support, and trend lines on the chart. Tools like Fibonacci retracement can help predict important levels. Be quick to react when prices approach or break these points.

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Effective Timeframes for Trading

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

5-Minute Chart: Useful for tracking short-term price movements.

1-Hour Chart: Ideal for identifying overall market direction and trends.

Important Tip: If a trade moves against you, don’t rush to recover your loss immediately. Accept the loss, reset your mindset, and approach the next trade as a fresh opportunity.

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Simple, High-Win Trading Strategy

This method is beginner-friendly and, with discipline, can be effective for anyone. Here’s how it works:

1. Use 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 serves as a key support or resistance level.

2. Fund Allocation
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 the price breaks above the 20-day moving average, invest another 33%.

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

3. Exit Strategy

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

If it drops below the 20-day moving average, sell the second 33%.

If the price breaks all three moving averages, exit the trade completely.

4. Reentry Rules
If the price rebounds and breaks above the 6-day or 20-day moving average, re-enter the market using the same allocation strategy.

5. Selling at Highs
Follow the reverse method for selling:

When the price starts to fall, sell 33% when it 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 Key

While the strategy may seem simple, its success relies on strict discipline. Emotional trading or neglecting your stop-loss levels can lead to unnecessary losses. Stick to your plan, and over time, you’ll see consistent results.

This approach transformed my trading career and my life. While no strategy is foolproof, following these principles will help you navigate the market with confidence and reduce risks.
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