I went from a newcomer in the crypto space to earning my first 5 million, relying on a set of seemingly simple yet extremely effective trading methodologies. Many people enter the crypto world with the idea of "getting rich overnight," trying to match a monthly salary of 5,000 with a lifestyle worth over ten thousand. But in reality, it's hard to achieve social mobility through traditional jobs; the crypto space instead offers a relatively fair arena—here, your background doesn't matter, only your level of understanding.

So what exactly should you do? I have summarized seven iron rules.

**First, only focus on mainstream coins.** Don't touch obscure altcoins; nine out of ten traders lose money on them. My strategy is simple—focus on Bitcoin and Ethereum's trend analysis. Mainstream coins have good liquidity, transparent information, and relatively manageable risks.

**Second, identify good short-selling opportunities.** The 4-hour chart's MA60 moving average is a good indicator. When the price is consistently suppressed by it, it's a sell signal. But don't sell all at once; reduce your position in three steps. For example, if the price rises to 2400, sell some first; if it continues to rise, sell more. This way, you lock in profits and don't miss out on further gains. Set a stop-loss decisively—at 2455, for instance. Although you might take a small loss, this loss is insignificant compared to a major retracement.

**Third, find solid support levels for long positions.** Look at the daily chart for historical support levels, which often serve as rebound points. Again, build your position in three steps—add at the 2300 support level first, then buy more if it dips further, to average your cost. Set a stop-loss at 2275. Small losses are much better than large ones.

**Fourth, risk management is the line between life and death.** If you lose 20% in a single day, stop immediately and go to sleep. This is an iron rule. Each trade's risk should not exceed 5% of your total capital. Avoid trading after 2 a.m., and take weekends off to recharge. Many traders blow up their accounts because they fail to control their position sizes.

**Fifth, follow hot trends with rules.** Only chase the top three coins in daily gains. Use 100 dollars of capital to aim for 300 dollars profit—take the profit and run. Once you're making money, move your stop-loss upward—if you earn 200, lock in your cost basis with a stop-loss near that level. This way, you protect profits and can ride the upward trend.

**Sixth, crashes are opportunities to buy cheap.** Keep 30% of your funds in reserve. When the price drops more than 8%, start buying in three steps, each time with a 3% price difference. This helps lower your average cost and prevents emotional breakdowns from a single large loss.

**Seventh, take profits when the time is right.** Lock in profits at 20 points for Ethereum and 350 points for Bitcoin—don't wait for a pullback. Once you've made enough, use the 5-minute chart to protect your gains. For example, after earning 500 points, reduce your position each time there's a 50-point retracement. If you make a 15% profit in a day, close for the day. Greed is the biggest killer in the crypto world.

The core of this methodology is: **Discipline outweighs intuition, stop-losses beat greed, and capital management surpasses prediction.** The crypto space is tough on the disobedient; only those who follow the rules can laugh last.