I used the dumbest method for trading cryptocurrencies, and my win rate is close to 100%! (A must-read for all crypto traders)
1⃣ 【Idle Money Investment Principle|Use funds that do not affect your life to enter the market】
Always only use 10%-20% of disposable funds for trading, for example, if you have 100,000 in savings, you should only invest a maximum of 20,000. I have seen too many people bet their entire fortune or even borrow money, only to end up with a collapsed mindset. The real winners are those who are in a 'can afford to lose' state. For example, with Bitcoin dollar-cost averaging: invest 10% of your monthly salary in batches; even if the bear market drops by 50%, it won't affect your quality of life.
2⃣ 【Stop Loss is More Important than Profit|5% Mandatory Stop Loss Line】
When the direction is wrong, you must immediately stop loss at a 5% loss. I once held onto my position during the LUNA crash and watched as 100,000 turned into 1,000. Now my discipline is: exit on a short-term break of the 5-day moving average, and clear out on a medium-term break of the 20-day moving average. Remember: staying alive gives you a chance to turn things around.
3⃣ 【Position Management Pyramid|Never Full Position】
Divide your funds into three parts:
❶ 30% in mainstream coins (BTC/ETH) for long-term holding
❷ 50% for swing trading (enter and exit based on the 15-minute KDJ indicator)
❸ 20% reserved for additional buying as backup funds
During a market crash, make additional purchases in three batches at -15%, -30%, -50% intervals.
4⃣ 【Technical Indicator Combo|Three Charts Determine Everything】
❶ 15-minute candlestick chart to see short-term trends
❷ Daily MACD to determine bullish or bearish direction
❸ Weekly Bollinger Bands to identify support and resistance levels
When all three show a 'golden cross + middle band support + increased volume' resonance, it signals the best entry point. If you are also a tech enthusiast researching technical operations in the crypto space, you might want to follow the account 'Crypto General Instructor', where you will get the latest crypto intelligence and trading skills.