Many people want to quickly grow their profits with a small capital, but they often end up losing more and more quickly. Instead of blindly chasing sudden wealth, it's better to master a few ironclad trading rules.
**Grasp the Golden 30 Minutes After Market Open**
Day traders should pay close attention to the price action during the first half-hour after the market opens. If a coin first drops and then rebounds, but the rebound doesn't surpass the opening price, definitely avoid trading it — it will likely continue to decline. Conversely, if it drops first and then rises but doesn't break the opening price, this is usually a shakeout by the main players. When it retraces back to the opening price, consider buying in at the low, and take profits when gaining 3-5 points — don't be greedy.
**Use Dual Moving Averages to Set the Rhythm**
No need for complicated indicators. Focus on the 5-day moving average for short-term trades; if the price stays above it, hold confidently, and sell immediately if it closes below. For medium-term, use the 20-day moving average as an anchor; confidence remains as long as the price stays above it, but if it drops below, clear your positions. Many traders master these two moving averages and thus become part of the top 10% who profit most from trading.
**Identify Main Players' Shakeout Actions**
Before a big surge, there's usually a signal — the main players create a false appearance of "trapped" positions. This shows as a dull morning, followed by a sudden sharp rise in the afternoon, often with low volume. If a volume decrease occurs during a pullback afterward, it's often a good opportunity for the second wave of entry. Add it to your watchlist and track closely.
**Volume Precedes Trend Direction**
During strong upward phases, volume often shrinks — rising with less volume is a sign to hold confidently; falling with less volume but no trend break is also fine. But if volume increases and the price breaks down, cut your position in half immediately to protect your capital — preserving your principal always comes first.
**Follow the Trend, Be 100 Times Smarter Than Against It**
People who can't stand to buy cheap and just throw money in often end up losing everything. When the weekly moving averages form a bearish alignment, don't participate even if prices are low. Conversely, if the weekly trend is bullish, even slightly higher prices are worth following — that's called riding the trend. Only by following the trend can you survive the oscillation cycles and wait for the real bull market to arrive.
**Holding Cash Is Also a Way to Make Money**
Most of the market time (about 80%) is sideways, with only 20% being actual upward moves. When you can't understand the market or lack clear signals, it's best to stay out of the market. Keep "capital preservation" in mind, trade less, make fewer mistakes, and this will improve your success rate. Those who can hold cash are truly part of the short-term trading circle.
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ProposalManiac
· 2025-12-30 15:50
It sounds good, but the key question is how long this mechanism can last in the hands of retail investors. The moving average framework is essentially a lagging indicator; the price has already moved before you see the signal. Isn't that just armchair strategizing after the fact? The ones who truly make money are never those who follow the rules blindly, but those who understand who is behind the manipulation of the rules.
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MissedTheBoat
· 2025-12-30 15:49
You're right, greed kills. I used to be the same way—losing everything in one go.
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blocksnark
· 2025-12-30 15:33
That's right, greed kills people. I used to be that kind of idiot who insisted on doubling 3-5 times.
Many people want to quickly grow their profits with a small capital, but they often end up losing more and more quickly. Instead of blindly chasing sudden wealth, it's better to master a few ironclad trading rules.
**Grasp the Golden 30 Minutes After Market Open**
Day traders should pay close attention to the price action during the first half-hour after the market opens. If a coin first drops and then rebounds, but the rebound doesn't surpass the opening price, definitely avoid trading it — it will likely continue to decline. Conversely, if it drops first and then rises but doesn't break the opening price, this is usually a shakeout by the main players. When it retraces back to the opening price, consider buying in at the low, and take profits when gaining 3-5 points — don't be greedy.
**Use Dual Moving Averages to Set the Rhythm**
No need for complicated indicators. Focus on the 5-day moving average for short-term trades; if the price stays above it, hold confidently, and sell immediately if it closes below. For medium-term, use the 20-day moving average as an anchor; confidence remains as long as the price stays above it, but if it drops below, clear your positions. Many traders master these two moving averages and thus become part of the top 10% who profit most from trading.
**Identify Main Players' Shakeout Actions**
Before a big surge, there's usually a signal — the main players create a false appearance of "trapped" positions. This shows as a dull morning, followed by a sudden sharp rise in the afternoon, often with low volume. If a volume decrease occurs during a pullback afterward, it's often a good opportunity for the second wave of entry. Add it to your watchlist and track closely.
**Volume Precedes Trend Direction**
During strong upward phases, volume often shrinks — rising with less volume is a sign to hold confidently; falling with less volume but no trend break is also fine. But if volume increases and the price breaks down, cut your position in half immediately to protect your capital — preserving your principal always comes first.
**Follow the Trend, Be 100 Times Smarter Than Against It**
People who can't stand to buy cheap and just throw money in often end up losing everything. When the weekly moving averages form a bearish alignment, don't participate even if prices are low. Conversely, if the weekly trend is bullish, even slightly higher prices are worth following — that's called riding the trend. Only by following the trend can you survive the oscillation cycles and wait for the real bull market to arrive.
**Holding Cash Is Also a Way to Make Money**
Most of the market time (about 80%) is sideways, with only 20% being actual upward moves. When you can't understand the market or lack clear signals, it's best to stay out of the market. Keep "capital preservation" in mind, trade less, make fewer mistakes, and this will improve your success rate. Those who can hold cash are truly part of the short-term trading circle.