If you really want to make a living from trading, these eight iron rules must be deeply ingrained in your heart.
I have been in the cryptocurrency space for ten years, and every day before entering the market, I go through them; they have helped me survive various market crashes and liquidations.
Today, I'm sharing this with those who read this; perhaps it can save you some tuition.
1. Just looking at the daily chart is not enough; for short-term trading, you must look at the 30-minute chart.
Some daily charts with long upper shadows may look like they are about to drop, but the 30-minute structure is not the same at all.
The next day’s reversal into a strong bullish trend can usually be seen in the smaller timeframes.
Short-term = big cycle trend + small cycle resonance.
2. If the trend is chaotic, don’t touch it.
If the direction is wrong and the pattern is broken, even if you feel itchy, resist.
Going with the trend is an iron rule; going against it is full of pitfalls.
3. You must stay in the hot spots for short-term trading.
No liquidity, no attention, no theme—no matter how well you analyze the charts, it’s useless.
4. Impulsiveness is the biggest enemy of short-term trading.
Stick strictly to your plan; don’t let the market randomly dictate your rhythm.
Entering without a plan leads to regret nine times out of ten.
5. Don’t treat anyone's opinion as the answer.
Opinions are just references; your judgment is the one that ultimately matters.
6. Direction takes precedence over choosing coins.
When the big direction is right, anything you do will likely succeed; when the direction is wrong, the harder you try, the faster you lose.
7. Trade the rising ones; don’t touch those that "look like they are about to bounce back."
Prices only move in the direction of least resistance.
Getting in during an uptrend is a hundred times safer than trying to guess the bottom.
8. After making a big profit or a big loss, you must be calm and stay in cash.
Stop to review your trades and understand yourself.
I have verified over the years: after big ups and downs, taking a break leads to a significant increase in decision accuracy later.
If you can follow seven out of these eight rules, you will survive in the cryptocurrency market longer than most people.
Last night, the market took off, and this wave of long positions has already made a profit; did you keep up?
