In fact, those who lose money often just haven't found the right approach. 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 shoot up. This is something my predecessor told me, and I’ve always remembered it. The method I used before was really simple and practical compared to others on the market.
When the market is consolidating, let's wait and see, as big movements often follow consolidation. Once the situation becomes clear, we can take action and ensure we profit without loss.
Also, don’t fall in love with popular positions; be quick to switch. Otherwise, you might end up with nothing. Those short-term hot spots are artificially inflated, and once the heat dissipates, the capital will flee. If you're a second too late, you'll be left in a chaotic situation.
Let's talk about when prices are rising. If you see the K-line slowly climbing and starting off well with increasing trading volume, it indicates that the market is about to accelerate. At this point, we need to stay calm, hold on to our assets, and there will definitely be big profits to come.
However, if you see a particularly large bullish candle, regardless of whether it's at a high or low, you need to withdraw quickly, even if it's a limit-up situation. Why? Because we need to guard against profits falling back.
Here's a little trick: buy on bearish candles and sell on bullish candles, and own up to mistakes. Here, 'candles' refer to moving averages or important support and resistance levels. For short-term trading, I generally look at the daily and hourly candles. I don’t like to drag things out; I usually don't hold positions for more than three days, at most a week, and I won’t linger even if the market improves later.
In the crypto world, a basic principle is: don't sell at highs, don't buy at lows, and stay steady during consolidation.
Finally, before buying, be prepared; it's better to buy a little less than to throw everything in at once. After all, the only constant in the market is change.
Over the past seven to eight years, my assets have grown by 30 million. Along the way, I have experienced many trials and accumulated valuable experience. Here are some key insights that I hope will inspire everyone:
1. Capital management is the key to success.
Divide your funds into five equal parts, using only one-fifth each time, while setting strict stop-losses. Each trade should not lose more than 10%, and total losses should be controlled within 2%. Even if you make five consecutive mistakes, your total loss would only be 10%, but if you seize one opportunity, the profit can easily make up for the loss.
2. Follow the trend; do not go against it.
When the market is falling, do not blindly try to catch the bottom, as it is likely to be a trap to lure buyers. Be patient and wait for clear signals.
When the market is rising, don’t rush to sell; this could just be a 'golden pit'. Buying low is more reliable than catching the bottom.
3. Stay away from cryptocurrencies that experience short-term surges.
Whether it's mainstream coins or altcoins, very few can sustain explosive growth. Most coins enter a stage of stagnation or correction after a surge. Don't hold onto any false hopes by betting on low-probability events of rapid increases at high prices.
4. Use technical indicators wisely.
The MACD indicator is very useful: when the DIF line and DEA line form a golden cross below the zero line and break through the zero line, consider buying; conversely, if a dead cross forms above the zero line and heads down, consider reducing your position.
When averaging down, it's important to have a strategy: never average down when you're at a loss; only add to your positions when you're in profit, otherwise, you risk losing even more.
5. Trading volume is the core of the market.
Pay close attention to situations where there is a breakout on increasing volume from a low position; this is an important signal for market initiation. Only trade cryptocurrencies that are in an upward trend, closely observe the 3-day, 1-hour, 4-hour, and 8-hour moving averages. When these moving averages turn upwards, it usually indicates that an upward trend has been established.
6. Do a good job of reviewing and adjusting strategies.
After completing each trade, conduct a review, reorganize your holding logic, and adjust subsequent operational strategies flexibly based on weekly K-line trends.
Having navigated the market for many years, Dao Shen understands the opportunities and traps within. If your investments aren't going well and you're feeling frustrated about your losses, leave a 999⑤ in the comments!!
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