8 iron rules summarized from 7 years of experience in the cryptocurrency circle:
1. Capital allocation: If the capital is less than 100,000, it is recommended to buy only one coin; 200,000-300,000 can consider buying two; within 500,000, buy 3-4. No matter how much capital, do not hold more than 5 positions. Concentrate funds in a bull market, and hold a small position when the market is not good, so as to stop losses in time.
2. Improve the winning rate: The purpose of paying attention to news and learning technology is to improve the winning rate. Trends dominate everything: Rebounds in a downtrend are often a lure to buy more, while declines in an uptrend may be a pitfall. Don't fantasize about bottom-fishing, and don't try to speculate on the main trend.
3. Operate when the market is active: Only trade when the market is active and stay flexible.
4. Stop loss and exit: Set a fixed stop loss when losing money, and never move it down. When making a profit, keep raising the exit point to prevent profit taking.
5. Decisive buying and selling: Be decisive when buying and resolute when selling. Indecision will only miss opportunities.
6. Ask yourself before adding positions: Ask yourself: If you don’t buy this coin now, will you choose to buy it again? If the answer is yes, you can consider adding positions.
7. Avoid frequent short-term trading: Don’t indulge in intraday short-term trading, small fluctuations will interfere with your judgment. Make big money by following the trend.
8. Be wary of bottom-fishing: Don’t rush to bottom-fishing because of a large drop. Only 20% of people in the market can make money.
