Ten iron rules on how to earn back ten million in trading over ten years after losses!

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I have been in the crypto industry for over ten years. Starting with a capital of 5000 yuan, I made over 10 million during the bull market, but lost everything in three years and even invested 7 million from my own pocket. In the end, by borrowing 200,000 yuan, I was able to recover and earn 10 million again. During this time, I summarized ten ironclad rules for trading cryptocurrency and today I want to share them with you, hoping this will help you avoid unnecessary mistakes!
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Iron Rule 1: Understanding market sentiment, trading volume is a key indicator.
• Trading volume is increasing, price is stabilizing: A significant increase in trading volume with a stable price may indicate the end of a downward trend.
• High trading volume, price remains stable: Trading volume is sharply increasing, but the price is not showing significant growth, possibly indicating that a short-term peak has already been reached.
• The growth is accompanied by an increase in transaction volume: During the growth process, the transaction volume should remain stable, while an abnormal decrease or sharp increase may herald the end of an upward trend.
• Increase in trading volume at key support levels: when the price drops to a key level, trading volume spikes sharply, and the downward trend may continue.
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Iron rule two: key price levels guide trading decisions
• Support, resistance, and trend lines: decisive actions are key when the price reaches these critical levels!
• The golden ratio law: I use it for accurately predicting support and resistance levels, the results are impressive.
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Iron Law Three: Multi-Period Comprehensive Market Analysis
• Minute chart: capture the exact moments of entry and exit.
• Three-minute chart: monitoring the price fluctuation trend after entry.
• Thirty minutes to the hour: catching subtle changes in the intraday trend.
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The fourth rule: stay calm after setting the stop-loss.
• A stop-loss means the end of a trade: each trade is an independent starting point, do not let the past influence your judgment.
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Iron Five: Strategies for Managing Effective Positions
• Three-stage position formation method:
1. Initial position opening: the coin price rose above the five-week line, first purchase.
2. Position increase: Break of the fifteen-day line, continue to increase the position.
3. Waiting with a full position: holding on the thirty-day line, completing the purchase.
• Strict discipline in limiting losses:
• Breaking the five-week line, reducing positions;
• Breaking the fifteen-day line, reduce further;
• Break of the thirty-day line, complete retreat!
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Iron Six: Exit strategy is also important.
• The high position broke the five-day line: moderately reduce positions, monitor developments.
• Break through the 15 and 30-day moving average: sell decisively, leaving no regrets.
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Iron seven: beware of market news, do not let emotions control you.
• Frequent positive news, but the price is not rising: be cautious, sellers may be offloading assets, secure profits in time.
• Negative news continues to come in, but the price is not falling: this may be a signal of a bottom, watch closely.
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Iron Eight: Stick to Analysis, Study Trading Experience Deeply
Daily Review: Summarizing the reasons for successes and failures, extracting lessons.
• Periodic review: analyze past trades, adjust strategies, increase awareness.
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Iron Nine: Set a profit target, don't be greedy
• Clearly define the profitable zone: upon reaching the target, decisively secure the profit, do not chase growth and do not sell at a loss.
• Learn to take profits in parts: especially in the case of sharp growth, do not sell everything at once.
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Iron 10: Mindset is king, always stay calm.
• In case of losses: do not rush to recover, calmly analyze the mistakes.
• When making a profit: do not be blindly confident, the market is always full of risks.
• Be patient and wait for the opportunity: do not rush, it is better to miss than to make a mistake.
These iron rules are valuable experiences gained from many failures and successes in the world of money. On your cryptocurrency trading journey, I wish you to avoid traps and move forward confidently!