Today, I am willing to selflessly share the valuable experiences gained during this journey with every like-minded friend.
Sailing in the ocean of digital currencies, the art of capital management is crucial. I tend to divide my capital into five equal parts, using only one part for trading at a time. This way, even when facing storms, I can maintain the stability of the ship. I have set a strict rule for myself: once losses reach 10%, I will immediately retreat, regardless of how fierce the external winds and waves are. Even if I encounter five small setbacks in a row, my losses will only amount to half of my capital, but once I catch a profitable wave, the gains will far exceed this. Even if occasionally trapped briefly in the market, I can remain calm and composed.
Following the market trend is the most reliable beacon to success. During market downturns, do not blindly bottom fish, as that is merely an illusion akin to a mirage. When the market warms up and retraces, that is our golden opportunity to buy low, which is much safer than blindly holding onto the bottom.
When selecting digital currencies, we need to cultivate a discerning eye. Those coins that spike like meteors, whether mainstream or non-mainstream, should be cautiously avoided. Because their increase is too rapid, the correction can be equally dramatic, and with a little carelessness, one may fall deep into it.
In the field of technical analysis, I particularly trust the MACD indicator. When the DIF line and the DEA line intersect below the zero axis and successfully break through the zero axis, that is a good buying opportunity. Conversely, if they intersect above the zero axis and extend downward, that is a signal to reduce positions.
As for replenishing positions, it is a thorny path that should not be entered easily. Once in loss, do not blindly add to positions, as this will only deepen the pit and may ultimately lead to total loss. Remember, decisively stop losses when in loss, and only gradually add to positions when in profit.
Trading volume is also an essential factor that cannot be ignored. When the coin price breaks through at a low level, if the trading volume significantly increases, it often indicates that a significant opportunity is approaching.
The most crucial point is to act in accordance with the trend. By combining daily lines, 30-day lines, 84-day lines, 120-day lines, and other time periods, when a certain line starts to show an upward turning point, you can clearly perceive the market direction and make the right decision.
The road to digital currency investment is filled with risks but also holds infinite opportunities. Only by mastering the essence of capital management, the skills of trend analysis, and the insight to choose coins, can you, like me, gradually rise from a small starting point to become part of the middle class.
A super simple method for trading coins: with repeated operations, you can earn from two hundred thousand to tens of millions. Doesn't that sound a bit unbelievable?
In fact, those who lose money often just haven't found the right method. If you want to make money, the key is to find a method that suits you and practice it. Who knows, one day the numbers in your account might just soar. This was said by my mentor, and I have always remembered it. The method I used before, compared to other methods on the market, was truly both simple and practical.
When the market is sideways, we should wait and see, because often after a sideways trend, there will be big movements. Once the situation becomes clear, we can take action to ensure profits.
Additionally, do not fall in love with popular positions; be quick to change. Otherwise, you may end up with nothing. Those short-term flares are all speculative; once the heat fades, the funds will run away. If you’re half a beat slow, you’ll find yourself in disarray.
Let's talk again about the rise. If you see the K-line slowly climbing up and starting off well, and the trading volume is also increasing, it indicates that the market is about to accelerate. At this time, we must remain calm, hold on to our stocks, and there will definitely be big profits ahead.
However, if you see a particularly large bullish line, whether at a high or low level, you must quickly withdraw, even if there is a price limit. Why? Because we must guard against profits falling back.
There’s also a little trick: buy on the online down days and sell on the offline up days, and accept mistakes. Here, 'lines' refer to moving averages or important support and resistance levels. For short-term trading, typically just focus on the daily line and daily attacking line. I don’t like to dilly-dally, and my holding period generally does not exceed three days, at most a week; after that, I won’t linger.
In the cryptocurrency world, there is a basic principle: do not sell on highs, do not buy on dips, and stay steady during sideways trends.
Finally, before buying, be prepared to hold back; it's better to buy a little than to throw everything in at once. After all, in the market, the only constant is change.
In the past seven to eight years, my assets have achieved a growth of 30 million. Having gone through trials and accumulated valuable experiences, I would like to share some key insights in hopes of inspiring everyone:
1. Capital management is the key to success
Divide your capital into five equal parts, using only one-fifth at a time, while also setting strict stop-losses. Each trade should not lose more than 10%, and total capital loss should be kept within 2%. Even if there are five consecutive mistakes, the total loss will only be 10%, but as long as you seize one opportunity, profits can easily make up for the losses.
2. Follow the trend, never go against it
When the market is falling, do not blindly bottom fish, as it could easily be a trap to entice buyers. Be patient and wait for clear signals.
When the market is rising, don't rush to sell; it might just be a 'golden pit.' Buying low is more reliable than bottom fishing.
3. Stay away from coins that experience short-term spikes
Whether mainstream coins or altcoins, very few can sustain rapid increases. Most coins will enter a stagnant or correction phase after a spike. Don't harbor a lucky mindset and bet on low-probability events of high spikes.
4. Reasonably use technical indicators
The MACD indicator is very useful: when the DIF line and the DEA line form a golden cross below the zero axis and break through the zero axis, it is worth considering buying; conversely, when a dead cross forms above the zero axis and heads downward, it is time to consider reducing positions.
Replenishing positions must be strategic: do not add to positions when in loss, only increase when in profit, otherwise, losses can accumulate.
5. Trading volume is the core of the market
Focus on the situation of low-level volume breakthroughs, which is an important signal for market initiation. Only trade coins that are in an upward trend, closely monitoring 3-day, 1-hour, 4-hour, and 8-hour moving averages. When these moving averages turn upward, it usually indicates that the upward trend has been established.
6. Conduct reviews and adjust strategies
Every completed transaction should be reviewed, reorganizing the holding logic, and flexibly adjusting subsequent trading strategies based on weekly K-line trends.
I silently tell myself:
"Hold your Bitcoin! And Buy The Fucking Dip!"
Hold onto your coins, never sell at a loss, just like I raised my shield and bravely bottomed out. It really feels great, like swinging a sword of counterattack against the whole world. After all, losing only takes four years, but winning can make you a legend! On the road to creating legends, regardless of market fluctuations, the cryptocurrency world has never disappointed us.
These are lessons learned from real trading experiences, and behind each one lies a period of hardship. The purpose of sharing them today is to help everyone avoid detours, so it is essential to take them seriously!
