I have been trading cryptocurrencies for ten years, and in 2024 I turned 50,000 into over 5 million. After experiencing ups and downs, these trading insights and suggestions should be read in full by beginners!!!
1. Divide your capital into 5 parts, and only enter one-fifth at a time! Control a 10% stop-loss; if you make a mistake once, you only lose 2% of your total capital, and if you make 5 mistakes, you lose 10% of your total capital. If you are correct, set a take-profit of over 10%. Do you think you will be stuck?
2. How can you further improve your win rate? Simply put, it’s all about going with the trend! In a downtrend, every rebound is a trap for buyers, and in an uptrend, every drop creates a buying opportunity! Which do you think is easier to profit from: catching the bottom or buying on dips?
3. Avoid trading any coins that have experienced a sharp rise in the short term, whether they are mainstream or altcoins. Very few coins can sustain multiple waves of upward movement. The logic is that it is difficult for a coin to continue rising after a short-term spike. When it stagnates at a high level and cannot push higher, it will naturally fall; it's a simple principle, but many still want to gamble on it.
4. You can use MACD+ to determine entry and exit points. If the DIF line and DEA form a golden cross below the 0 axis, and once it breaks above the 0 axis, it is a steady entry signal. When MACD forms a dead cross above the 0 axis and starts to decline, it can be seen as a signal to reduce positions.
5. I don't know who invented the term 'averaging down', but it has caused countless retail investors to stumble and suffer major losses! Many people keep adding to their losses, compounding their losses further, which is a big taboo in cryptocurrency trading. Remember to never average down when you are in a loss, but to increase your position when you are in profit.
6. The volume-price indicator is the first point of focus; trading volume is the soul of the cryptocurrency market. Pay attention when the price breaks out with increased volume at low consolidation levels.
7. Only trade coins in an upward trend, as this offers the greatest odds and saves time. A 3-day moving average turning upward indicates short-term rises, a 30-day moving average turning upward indicates medium-term rises, an 84-day moving average turning upward indicates a main upward trend, and a 120-day moving average turning upward indicates long-term rises.
8. Persist in reviewing each session, checking if your holdings have changed, technically observing whether the weekly K-line trend aligns with your judgment, if the direction has changed, and adjusting your trading strategy in a timely manner.
If you are just entering the market, come find me, follow me, and I will teach you to learn while you trade!!!
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