Discipline is more important than everything; it's not the smartest that survive, but the most disciplined.
I still remember when I first entered the cryptocurrency world, I would watch the K-line charts every day, my mood fluctuating with the numbers. Seeing a certain coin start to rise, I would rush in eagerly, often buying at the highest point. After finally making some money, my greed prevented me from leaving, and I ended up losing money instead.
This habit of 'jumping in early' and 'holding on to too much' has cost me a lot in tuition.
After so many years of ups and downs, I've finally understood that trading cryptocurrencies is not about who is smarter, but who is more disciplined. The ten iron rules below are experiences I’ve gained through real money, and I hope they can help you avoid unnecessary detours.
One, once a strong coin has fallen for 9 consecutive days, decisively follow up.
Once strong coins start to pull back, they often attract a lot of attention from funds. But the key is to be patient and not rush in as soon as they drop. After a continuous decline of 9 days, the probability of a rebound significantly increases. Many people fail because they can't wait those 9 days, reaching out too soon and getting stuck.
I once operated a coin that I bottomed out on the seventh day, but it dropped another 30% before truly bottoming and rebounding on the ninth day. This lesson taught me that the market has its own rhythm; we can only wait rather than predict.
Two, for two consecutive rises, you must reduce your position and secure profits.
There is an old saying in the crypto space: 'For coins that rise for two consecutive days, you must reduce your position; don't be greedy.' The logic behind this is that after a short-term surge, there will inevitably be profit-taking.
My own approach is to reduce my position by half after two days of consecutive rises; this way, even if it continues to rise afterwards, I still have a position. If it pulls back, I have locked in half the profit. Trading cryptocurrencies is not about selling at the highest point but about finding a balance between risk and reward.
Three, if a coin rises more than 7% in a single day, observe the next day without chasing high.
When a coin's daily increase exceeds 7%, it indicates that market sentiment has become overheated. The next day, it often continues to rise, but this is also when the most traps are set. My personal principle is: better to miss out than to make a mistake.
A truly good opportunity will not only last one day. If this coin is really strong, it will definitely provide an opportunity to enter on a pullback. There is no need to hurry; the market is never short of opportunities.
Four, wait for a pullback before entering strong coins, never chase high.
Many people see a coin skyrocketing and can't help but chase high, only to find themselves stuck for a long time. For already launched strong coins, the correct approach is to wait for it to confirm the end of the pullback before entering.
How to judge the end of a pullback? Looking at moving averages is a good method. For example, the likelihood of stabilizing after a pullback to the 30-day moving average is very high. In a bull market, a strong coin's pullback is an opportunity to get in, but you must have the patience to wait for the right entry point.
Five, if there is no movement for three days, observe for another three days before changing positions.
What is the most valuable thing in the crypto space? It is the cost of time. If a coin has been stagnant for three days without any movement, I will give it a final three days. If it is still stagnant, I will decisively change positions.
Market funds always flow towards coins with hotspots; stubbornly holding onto sideways coins will only waste opportunities. My experience is that the longer a coin stays sideways, the greater the probability of a decline. Because the main funds are quietly withdrawing, and only retail investors have not yet noticed.
Six, if you can't break even the next day, exit without hesitation.
This is my most important stop-loss discipline: if the cost price cannot be recovered the next day after buying, it indicates that the judgment may be wrong. At this point, immediately stopping loss is the best choice.
Many people lose money because they are reluctant to stop losses, resulting in small losses turning into large ones. The crypto space is volatile with many opportunities; there is no need to stubbornly stick to a mistaken judgment. Preserving capital and waiting for the next opportunity is the wise choice.
Seven, grasp the rhythm of 'three five one seven', buy at low points and sell at high points.
In the list of gains, if there are 'three', there must be 'five'; if there are 'five', there may be 'seven'. For coins that rise for two consecutive days, the third day is a buying opportunity, and the fifth day is often a selling point.
This principle has helped me capture many short-term opportunities. The principle is simple: grasp the market rhythm. When a coin starts to move, there will be a certain inertia. Buy on the pullback on the third day and sell on the surge on the fifth day; the risk-reward ratio is very favorable.
Eight, the relationship between volume and price is the soul; understanding it means understanding the market.
A breakout on low volume is an opportunity, while a stagnation on high volume is a risk. Trading volume is the market's 'emotional amplifier' and will not deceive you.
If a coin's price suddenly breaks out after consolidating at a low level, it indicates that there are main funds entering the market. This is a very good buy signal. If there is a volume breakout at a high level but no increase, it indicates someone is dumping; caution is advised.
Nine, only trade coins in an upward trend; go with the trend.
This is my most important principle: only trade coins in an upward trend; never touch those in a downward trend.
How to judge the trend? Look at the moving averages:
3-day moving average trending upwards: short-term opportunities exist.
30-day moving average trending upwards: mid-term trend is improving.
80-day moving average trending upwards: a main rising wave may be starting.
120-day moving average trending upwards: a long-term bull market is expected.
Different cycle moving averages can help you judge the strength of trends. My personal strategy is to only trade coins with a 30-day moving average trending upwards; this greatly increases the win rate.
Ten, small funds rely not on luck, but on discipline execution.
Many people with small funds always want to go all in for a quick doubling, but the result is often a rapid loss to zero. If small funds want to grow, the key is to stick to the method, maintain a steady mindset, and execute decisively.
There is a compounding effect in the crypto space; earning a little each time can accumulate to a considerable amount. More importantly, good trading habits will allow you to seize opportunities when they arise.
In these years of trading cryptocurrencies, my greatest realization is that the market punishes all forms of noncompliance. If you want to survive in this market, you must respect the market and adhere to discipline.
These rules seem simple, but the difficulty lies in persistence. Many people know them but can't follow through, which is why the market is always making money for a minority.
A true expert is not defined by how skilled they are technically, but by their ability to control their actions. In the crypto space, those who survive are not the smartest, but the most disciplined.
I hope my experience is helpful to you, and may we both achieve stable profits in the crypto space and enjoy freedom in our lives.
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