After a decade of navigating the cryptocurrency world, my assets have finally crossed the nine-figure mark. Through years of trial and error, I’ve distilled my hard-earned experience into key principles to share with you.
1. Capital Management
Divide your funds into five parts, investing only one-fifth at a time. Set a stop loss of 10 points—this way, even if your prediction is wrong, you’ll only lose 2% of your total capital. Even after five consecutive losses, your total loss will be just 10%. Once you’re in profit, set a take-profit target of over 10 points to minimize the risk of being stuck in a trade.
2. Mastering Trend Trading
Success in trading comes from following the trend. In a downtrend, every rebound could be a trap; in an uptrend, every pullback may be a great entry opportunity. Identifying and aligning with the prevailing trend can significantly boost your win rate.
3. Avoiding the FOMO Trap
When a coin skyrockets in a short time—whether mainstream or obscure—stay calm and resist the urge to chase it. History shows that very few assets sustain multiple waves of sharp increases. Most surges are followed by corrections, so if momentum slows at a high level, a decline is often imminent.
4. Using the MACD Indicator Wisely
The MACD is a powerful tool for timing trades. A golden cross below the zero line, followed by a breakout, signals a strong entry point. Conversely, if a death cross forms above the zero line and starts to decline, it’s time to consider reducing your position to mitigate risk.
5. Leveraging Trend Analysis for Smarter Trades
Focusing on coins in an uptrend improves both efficiency and success rates. By tracking key moving averages—short-term (3-day), medium-term (30-day), main rising wave (84-day), and long-term (120-day)—you can gain deeper market insights and develop a well-structured trading strategy.
6. The Power of Trade Reviews
Reviewing each trade is essential for long-term profitability. Assess whether your reasons for holding a coin still stand, whether recent price action aligns with expectations