A friend of mine who achieved financial freedom through trading Links said this.

A friend who achieved financial freedom through cryptocurrency investment has brought to life a real-life "comeback myth" with his personal experience. He once worked a nine-to-five job like us, but seized the opportunity to change his fate during the blockchain wave.

In the sweltering summer of 2018, while everyone was focused on Bitcoin, he keenly captured the potential of Chainlink (LINK). This "little transparent" token, which was less than $1 at the time, was identified as the rising star in the blockchain oracle field after he delved into its technical white paper. Faced with a 30% floating loss in his account, he held firm under pressure and ultimately reaped a 30-fold increase in 2020.

The wealth code of this "crypto hunter" goes far beyond that:

Precisely positioned in tokens like UNI and SNX during the DeFi boom of 2021
Quietly building positions on the eve of the NFT market explosion
Capturing early dividends from metaverse concept tokens

Of course, the painful lesson of leveraged liquidation made him realize: behind the frenzy of the crypto market, there is always a sharp scythe. Now he travels the world but always adheres to nine ironclad investment rules:

1. Taking profits requires more courage than cutting losses#

When account gains exceed expected targets, immediately execute a profit-taking strategy. It is recommended to convert 30% of profits into stablecoins and set a dynamic profit-taking point for the remaining portion. Remember: the market always has opportunities, but the principal is only once.

2. Activate the circuit breaker mechanism when losses exceed 10%#

When consecutive losses reach 10% of the principal, forcibly enter a "cooling-off period." During this phase, all trading operations should stop, and reassess: Has the market environment changed? Has the investment logic failed? Have technical indicators been misjudged?

3. Gray areas are risk minefields#

When facing unfamiliar new coins or complex derivatives, follow the "three no principles": do not invest without thorough research, do not touch unclear mechanisms, do not test uncontrollable risks. Better to miss out than to make a mistake.

4. Soaring coins are thorny roses#

Coins that surge more than 50% in a short period often come with these risks:

Project parties pump and dump
Exchanges collaborate to market make
Market sentiment is overheated
It is advisable to wait at least 3 trading days to observe changes in trading volume before making decisions.

5. Stay alert during massive trading volumes#

When a coin's daily trading volume breaks historical peaks, be wary of these signals:

Turnover rate exceeds 200%
Abnormal large orders appear in buy/sell orders
Social media suddenly floods with recommendations
At this point, gradually reduce positions instead of chasing prices.

6. Use contrarian thinking to grasp market rhythm#

Gradually build positions in value coins at the end of a bear market
Increase positions in leading coins during corrections in a bull market
Gradually convert to fiat during a bull market phase
It is recommended to use the "334" position-building method: 30% base position + 30% swing + 40% flexible.

7. Pyramid position-building rule#

Adding to positions must meet three conditions:

Existing positions have realized profits
Technical indicators show breakthrough signals
Significant positive news occurs in fundamentals
Each time you add to your position, do not exceed 50% of the original position.

8. Establish a dedicated trading model#

Successful investors all have unique "cognitive arbitrage" models:

Technical analysts: Focus on MACD + Bollinger Bands combination
Fundamental analysts: Deep dive into project development progress
Data analysts: Monitor large on-chain transfers
Find a methodology that suits you and continuously optimize it.

9. Weekly charts are the lifeline of trends#

Be cautious when these signals appear on weekly charts:

MACD death cross persists for 3 weeks
Trading volume decreases below previous lows
RSI indicator continuously overbought
At this point, reduce positions to below 30%.

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