I lost money for the first two years of trading cryptocurrencies, but made a profit in the following five years! After many trials and errors, I summarized five golden rules. The content is not extensive, but it is very valuable. If you think it makes no sense after reading, feel free to say whatever you want!

1. Divide your capital into five parts and only invest one-fifth at a time! Control a 10% stop-loss; if you are wrong once, you only lose 2% of your total capital, and it takes five mistakes to lose 10% of your total capital. If you are correct, set a take-profit of over 10%. Do you think you will still get trapped?

2. How to improve your win rate again? Simply put, it’s about going with the trend! In a downtrend, every rebound is a trap for buyers, while in an uptrend, every drop creates a buying opportunity! Would you say it's easier to make money by catching the bottom or by buying low?

3. Avoid cryptocurrencies that have experienced rapid short-term surges, whether mainstream or altcoins; very few coins can sustain several waves of major rallies. The logic is that it’s challenging for a coin to continue rising after a short-term spike. When it stagnates at a high price and can't rise further, it will naturally fall. It's a simple principle, but many still want to take a gamble.

4. You can use MACD to determine entry and exit points. If the DIF line and DEA form a golden cross below the zero line and break above it, that’s a solid entry signal. When MACD forms a death cross above the zero line and moves downwards, it can be seen as a signal to reduce positions.

5. I don't know who invented the term 'averaging down', but it has caused many retail investors to stumble and incur significant losses! Many people keep averaging down as they lose more, leading to even greater losses. This is the biggest taboo in cryptocurrency trading, putting oneself in a dangerous position. Remember, never average down when in a loss; instead, add to your position when you are in profit.

Success is not coincidental; opportunities are also reserved for those who are prepared. Follow the official account (Bit Coach) for a chance to double your returns with compound interest. No matter how the market behaves in the future, I will walk this path with you. #交易经验 #BTC #策略交易 #复利效应