In the ever-changing cryptocurrency market, countless investors rack their brains studying complex technical indicators, chasing trends, and following news, trying to find a shortcut to overnight wealth, but often return empty-handed.
However, there is a trading method known as the 'dumbest yet most effective' approach, which is said to achieve nearly 100% profit. It does not rely on profound theories, nor does it require constant monitoring of the market, and through four simple steps, ordinary people can steadily profit from the cryptocurrency wave. Next, let us unveil the mystery behind this method.
Step One: Precisely select coins and lock in potential cryptocurrencies. In the vast ocean of cryptocurrencies, selecting coins is undoubtedly the first and crucial step in investing. This method focuses on the daily MACD indicator. Open the daily chart of the cryptocurrency and only pay attention to those that exhibit a MACD golden cross, especially those golden crosses above the zero axis. Why choose this way? From a technical analysis perspective, a MACD golden cross indicates that the short-term average has crossed above the long-term average, which is a strong signal suggesting that the price is likely to enter an upward trend. Furthermore, a golden cross above the zero axis is even stronger, indicating that the overall market is in a bullish trend; entering the market at this time is like going downstream, greatly increasing the probability of profit.
Step Two: Clarify the basis for buying and selling, and follow the trend. After selecting the right coins, grasping the timing for buying and selling becomes key. In this step, we only need to focus on one moving average—the daily moving average. When the coin price breaks through and steadily stays above the daily moving average, it is the time to consider buying; conversely, if the price falls below the daily moving average, one should decisively sell their position. This method may seem simple and crude, but it contains the wisdom of following the trend. The daily moving average, as a tool for trend identification, can clearly show the short-term trend of the coin price, helping us enter the market when the trend is clear and exit when the trend reverses, avoiding risks from blind operations.
Step Three: Scientific position management to control risks. Position management is the 'safety rope' in investing. Even if the right coin and timing are chosen, without reasonable position control, one could suffer heavy losses amid market fluctuations. According to this method, after buying, if the coin price not only breaks through the daily moving average but also the trading volume exceeds the daily average, one can choose to invest the entire amount. However, it is essential to note that while full position operations may bring higher returns, the risks also multiply. Therefore, it is crucial to ensure that the investment amount is within one's acceptable range and not to be blinded by greed, blindly increasing positions. Only by reasonably controlling the position can one maximize profits while ensuring the safety of the principal.
Step Four: Develop a selling strategy to lock in profits. The choice of selling timing directly relates to the final profit outcome. This method summarizes three key details: when the price increases by more than 40%, sell one-third of the total position to lock in part of the profit; when the increase reaches 80%, sell another third to further reduce risk; and once the price falls below the daily moving average, one should decisively liquidate the entire position to protect the remaining profits and principal.
In addition, decisive stop-loss is also an important principle of this method. If the price unexpectedly falls below the daily moving average the day after buying, regardless of how reluctant one may feel, they must resolutely sell all positions, avoiding any wishful thinking. At the same time, if the price rises above the daily moving average again after selling, one can re-enter, not missing any potential profit opportunities.
In addition to these four core steps, this method also summarizes a series of practical trading principles. For example, for strong coins, one can consider entering after they have fallen consecutively for 9 days at a high; any coin that has risen for two consecutive days should be considered for timely reduction; for coins that have risen more than 7%, one can continue to observe their upward opportunities the next day, but must closely monitor market changes; for bull coins, patience is required to wait for the end of the correction before entering; if a coin has remained stagnant for three consecutive days, observe for another three days; if there is no improvement, consider switching coins; if the next day fails to recover the previous day's cost price, exit promptly; additionally, the saying 'if there are three on the rise, there will be five, and if there are five, there will be seven' is worth considering. Coins that have risen for two consecutive days can be bought on dips, as the fifth day is often a good selling opportunity. This 'dumbest yet most effective' trading method seems simple, but it is a profound insight and summary of market rules.
It does not involve complicated operations, but through strict rules and discipline, it helps investors avoid common traps in the cryptocurrency market and achieve steady profits. Of course, the market is ever-changing, and no method can guarantee absolute success, but mastering this method undoubtedly gives us more confidence and less blind action on the investment path.
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