Seven years in cryptocurrency trading, profits are all based on awareness and discipline

After seven years of trading, I lost over a hundred in the first three years, but made back several hundred in the following years. Every penny has its blood and tears behind it!

This market always repeats the same secret: 90% of retail investors focus on news to trade, 9% of smart people watch the movements of the big players, while 1% of aggressive traders are dissecting the market genes using moving averages.

Step 1: Verify the identity of moving averages Treat the daily moving average as three distinct old Chinese medicine doctors — the 5-day line is the director of the emergency department, the 30-day line is an internal medicine expert, and the 60-day line is like the grand master's chair sitting in the specialist clinic. When the emergency department director suddenly stands up and rushes to check the pulse and diagnose the two old experts (the 5-day line crosses above the 30/60-day line), this signals that the market is preparing to enter the ICU for rescue. Conversely, if you find the emergency department director slipping and rolling off the grand master’s chair (the 5-day line crosses below the 30/60-day line), don’t hesitate, immediately adjust your position.

Step 2: Establish a trading system to prevent impulsiveness

Now please stick a note on your trading interface, and write in bold marker: When moving averages clash, mere mortals retreat. When the 5-day line and the 30-day line are entangled like twisted dough, rushing into the market is equivalent to rolling dice and guessing odds. A true hunter only pulls the trigger when the three lines march in the same direction.

Here’s a counterintuitive piece of trivia: in the world of cryptocurrency where wild fluctuations are the norm, a simple daily moving average strategy can be more deadly. Just like a true martial arts master never relies on fifty opening moves, a breakthrough of the 5-day line is the signal to draw the sword, and a turn of the 60-day line indicates the time to sheath it.

Step 3: Weld discipline onto the operating table

I’ve seen too many people write their trading plans on napkins, only to tear them up in the middle of the night out of fear from a surprising market movement. The cruelest yet most merciful aspect of the daily moving average strategy is that it forces you to become an emotionless signal execution machine.