The personal account has gone from 50,000 to 1,000,000 over nearly 3 years, but upon reaching 1,000,000, it felt like a breakthrough, skyrocketing to 40,000,000. Currently, the assets are 80,000,000. I have summarized 7 iron rules, the words are long, but very real.
1. Focus on the leading stocks in the sector
Every sector has its leaders. When the leader moves, pay immediate attention to the subsequent ranked currencies in the sector; opportunities often lie behind!
2. Trading volume is key
When trading volume is low, buy in steps; when trading volume expands at low levels, go all in; when trading volume expands at high levels, sell all.
3. Buy on pullbacks with reduced volume, sell on increases in volume
You can buy when there is a pullback with reduced volume, and you should sell when volume increases. An increase in pullback volume usually indicates that the main force is unloading.
4. RSI and KDJ indicators
When the RSI indicator hovers at low levels for three times, it is a buying opportunity; when it hovers at high levels for three times, it's time to sell. Boldly buy when RSI is under 10; hurry to sell when it is above 85. If the currency price hits a new high, but RSI does not, you must sell. At the same time, the KDJ indicator can also be referenced. For short-term trading, the W%R indicator is crucial and should be studied carefully; for long-term trading, pay more attention to the TRIX indicator.
5. Don’t get tangled up; there are only strong currencies and weak currencies, only strong operators and weak operators. Don't be misled by 'high performance' or 'poor performance'; the key is to look at trends and capital flow.
6. Moving average crossover trading method
When the moving averages cross upwards, it’s a buying opportunity; when they cross downwards, hurry to sell. If both the 5-day and 10-day moving averages are moving upward, and the currency price is above these two moving averages, then buy with confidence. As long as the currency price does not drop below the 10-day moving average, don’t rush to sell. If it is confirmed to drop below the 10-day line, wait until the 5-day moving average turns down to sell. The 10-day moving average is very important to those who are operating; it is roughly their cost price, so they generally won't let the currency price drop below this line.
7. The strong stay strong, the weak stay weak
Sometimes chasing rises and killing falls can be quite effective. In the crypto world, the strong stay strong, and the weak stay weak. Timing is crucial when trading; never be rigid and compete against yourself.
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