Simple rules executed repeatedly are more effective than complex strategies
Brothers, I am Brother Bin. Today I won't talk nonsense, I will share 10 trading rules I have summarized from my own practical experience. These methods may seem 'stupid', but they helped me not only survive during these five years of market fluctuations but also achieve stable profits.
1. Wait for a strong coin to correct, be patient for the right opportunity
I never chase high prices, especially those coins that surged recently. Once I notice it has been declining for several days, I won't rush in immediately but first confirm whether it is a normal correction rather than a trend reversal. The market always rotates, and after a deep correction of previously strong coins, there are often rebound opportunities; the key is to find the right entry point.
2. After two consecutive rises, rationally reduce positions.
There is an old saying in the cryptocurrency world: "Continuous large increases are hard to sustain." From my own experience, if any coin rises strongly for two consecutive days, I will consider reducing my position by one-third. This does not mean I am bearish, but rather that the market needs to catch its breath, and buying during a pullback can expand profit margins.
3. After a large upward candle, do not rush to chase the high.
For coins with a daily increase of over 7%, there is usually an inertial surge on the second day, but I never rush to follow. At this time, it is better to observe changes in trading volume; if the increase is on low volume, it is likely a trap. My strategy is to wait for a pullback near the 5-day line before considering entry.
4. Avoid the frenzy of popular coins.
Seeing past bull coins surge, many people can’t help but want to jump in, often resulting in getting stuck at the peak. I always adhere to one principle: study after the craze subsides. When a hot topic fully erupts, it needs to cool down for a period before the true value can be seen.
5. For coins in sideways consolidation, act calmly.
If the coin price fluctuates gently for three consecutive days, I will observe for another three days. If there is still no directional choice within six days, I will consider temporarily switching positions. There are many opportunities in the cryptocurrency world, and there is no need to waste time in stagnant waters. Market funds always flow toward active varieties.
6. Cut losses timely to protect capital.
This is my most important principle: if I haven't made back the cost price from the previous day after buying, it indicates that my judgment may be wrong. At this point, don’t fantasize; decisively exit and wait for the next opportunity. As long as you have resources left, you won't worry about running out of fuel.
7. Grasp the rhythm of strong coins.
"Where there are three, there must be five; where there are five, there must be seven" - this rule indeed holds for strong coins, but it must be combined with the overall market environment. I usually enter the market on the second day of a continuous rise and start taking profits in batches around the fifth day. Remember, the market will not always rise; it's best to catch the middle of a trend.
8. The relationship between volume and price is key.
Trading volume is the soul of the cryptocurrency world; this is the indicator I value the most. When there is a significant breakout at a low level, I will pay close attention. When there is a large volume at a high level without further rise, I will decisively exit. Price can be deceiving, but volume is hard to fake. Especially for coins with sustained volume increases, there is often potential.
9. Only trade in upward trending varieties.
I always choose to operate only with coins in an upward trend, as this maximizes my chances. Different period moving averages represent different trends: a 3-day line trending up suggests a short-term opportunity, a 30-day line trending up indicates a mid-term opportunity, an 80-day line trending up may signal a major upward wave, and a 120-day line trending up indicates long-term strength. Following the trend is key.
10. Small funds can also achieve big results.
The size of the funds is not the key; methods and mindset are fundamental. When I started with small funds, I insisted on a cycle of "trial and error - summary - optimization." The most important thing is to never trade cryptocurrencies full-time, and definitely not to trade cryptocurrencies with borrowed money—these are all hard lessons.
Brother Bin's sincere words.
After five years of trading cryptocurrencies, I have seen people become wealthy overnight and others lose everything. The key to my stable profits is encapsulated in eight simple words: simple execution, repeated persistence.
The market always offers opportunities, but not every opportunity belongs to you. Finding a method that suits you is far more important than blindly following the crowd. I still only use spare money to operate, maintaining a good mindset; after all, investing is a long-distance race, not a sprint. Follow Brother Bin to learn more firsthand information and cryptocurrency knowledge, precise points, and become your guide in the crypto world. Learning is your greatest wealth!
