From 50,000 in starting capital to eight figures, what I truly relied on wasn’t luck, but a simple set of trading rules.
After three bull-bear cycles, I’d been liquidated, fallen into traps, and chased rallies and sold in panic—I’d paid almost every tuition fee there was to pay. Eventually, I realized that staying in the game long term isn’t about predicting price movements every day. It’s about building a trading system with clear screening criteria, entry points, and exit rules.
I’m sharing a set of ideas on coin selection and trading that I’ve put together, for your reference.
Step 1: Screen for strong coins
If a coin has fallen for more than three consecutive days recently, rule it out for now to avoid blindly entering a persistently weakening market. Keep in mind, though, that consecutive declines don’t necessarily mean funds have already flowed out. You still need to assess trading volume and price structure.
Step 2: Observe the monthly trend
Prioritize coins whose monthly MACD has formed a golden cross.
The monthly chart is mainly used to assess the medium- to long-term trend. Try to avoid assets where the broader direction is unclear and a trend has yet to form. A monthly golden cross is only a screening criterion; it doesn’t mean the price is certain to rise afterward.
Step 3: Wait for a daily-chart entry point
On the daily chart, pay close attention to the 60-day moving average.
When the price pulls back toward the 60-day moving average, don’t rush to buy the dip. Wait for signals such as a pickup in volume and price stabilization, or a renewed strengthening in price, before considering entering in stages.
Core principle: Wait for confirmation; don’t try to guess the bottom.
Step 4: Take profits in stages and set strict stop-losses
Set exit rules in advance to avoid giving back profits or letting losses continue to grow:
If a swing move rises more than 30%: Consider taking profit on one-third of the position to lock in some gains.
If a swing move rises more than 50%: Consider taking profit on another third, and let the remaining position follow the trend.
If the price decisively breaks below the 60-day moving average: Exit at a loss according to your preset rules. Don’t hold on based on subjective judgment.
If the entry conditions are met again later, you can reassess the opportunity—but don’t rush to buy back in just because you were previously bullish.
The monthly chart helps determine direction, the daily chart helps identify opportunities, position management controls risk, and trading discipline determines whether you can stick with the plan over the long term.
What’s truly worth sticking to isn’t the supposed magic of any one indicator. It’s having a reason for every entry, a rule for every exit, and knowing the maximum loss you can bear on every trade.
The market never runs out of opportunities. What’s scarce is the ability to keep your hands off the keyboard when an opportunity isn’t right for you.
After three bull-bear cycles, I’d been liquidated, fallen into traps, and chased rallies and sold in panic—I’d paid almost every tuition fee there was to pay. Eventually, I realized that staying in the game long term isn’t about predicting price movements every day. It’s about building a trading system with clear screening criteria, entry points, and exit rules.
I’m sharing a set of ideas on coin selection and trading that I’ve put together, for your reference.
Step 1: Screen for strong coins
If a coin has fallen for more than three consecutive days recently, rule it out for now to avoid blindly entering a persistently weakening market. Keep in mind, though, that consecutive declines don’t necessarily mean funds have already flowed out. You still need to assess trading volume and price structure.
Step 2: Observe the monthly trend
Prioritize coins whose monthly MACD has formed a golden cross.
The monthly chart is mainly used to assess the medium- to long-term trend. Try to avoid assets where the broader direction is unclear and a trend has yet to form. A monthly golden cross is only a screening criterion; it doesn’t mean the price is certain to rise afterward.
Step 3: Wait for a daily-chart entry point
On the daily chart, pay close attention to the 60-day moving average.
When the price pulls back toward the 60-day moving average, don’t rush to buy the dip. Wait for signals such as a pickup in volume and price stabilization, or a renewed strengthening in price, before considering entering in stages.
Core principle: Wait for confirmation; don’t try to guess the bottom.
Step 4: Take profits in stages and set strict stop-losses
Set exit rules in advance to avoid giving back profits or letting losses continue to grow:
If a swing move rises more than 30%: Consider taking profit on one-third of the position to lock in some gains.
If a swing move rises more than 50%: Consider taking profit on another third, and let the remaining position follow the trend.
If the price decisively breaks below the 60-day moving average: Exit at a loss according to your preset rules. Don’t hold on based on subjective judgment.
If the entry conditions are met again later, you can reassess the opportunity—but don’t rush to buy back in just because you were previously bullish.
The monthly chart helps determine direction, the daily chart helps identify opportunities, position management controls risk, and trading discipline determines whether you can stick with the plan over the long term.
What’s truly worth sticking to isn’t the supposed magic of any one indicator. It’s having a reason for every entry, a rule for every exit, and knowing the maximum loss you can bear on every trade.
The market never runs out of opportunities. What’s scarce is the ability to keep your hands off the keyboard when an opportunity isn’t right for you.