After 7 years in the crypto space, those who understand can definitely profit!
Play steadily, and once you learn, your profits will increase by at least 70%. Make sure to read these 8 points.
1. Divide your capital into 5 parts, and only invest one-fifth each time! Control a 10% stop-loss; if you make one mistake, you only lose 2% of the total. If you make 5 mistakes, you lose 10% of the total. If you are correct, set a take-profit of at least 50 points.
2. How to further improve your winning rate? Simply put, follow the trend! In a downtrend, every rebound is a trap for buyers, while in an uptrend, every drop presents an opportunity! Is it easier to profit from bottom fishing or from buying on dips? You know the answer in your heart!
3. Avoid coins that have surged rapidly in the short term, whether they are mainstream or altcoins; very few coins can sustain multiple waves of a major uptrend. The logic is that it's difficult for a coin to continue rising after a short-term surge. When a coin stagnates at a high price, it will naturally decline later on; it's a simple principle.
4. Use MACD to determine entry and exit points. If the DIF line and DEA form a golden cross below the zero axis, and then break above the zero axis, it is a stable entry signal. If MACD forms a death cross above the zero axis and starts to decline, it can be seen as a sell signal.
5. I don't know who invented the term 'averaging down', but it has caused many retail investors to take a hit and incur significant losses! Many people keep averaging down on losses, which leads to even greater losses. This is a huge taboo in trading; it puts you in a dangerous position. Do not increase your position when in loss; increase your position when in profit.
6. Volume and price indicators are crucial; trading volume is the soul of crypto. Pay attention to price breakthroughs with increasing volume at low levels during consolidation, and decisively exit when there is increased volume at high levels with stagnation.
7. Only trade cryptocurrencies in an uptrend; this greatly increases your chances and saves time. When the 3-day moving average turns upwards, it signals a short-term uptrend; when the 30-day moving average turns upwards, it signals a medium-term uptrend; when the 84-day moving average turns upwards, it signals a major uptrend; when the 120-day moving average turns upwards, it signals a long-term uptrend!
8. Persist in reviewing each trade, checking if your holdings have changed, analyzing whether the weekly candlestick trends align with your judgments, and whether there has been a trend change. Adjust your trading strategy promptly!
The most profitable aspect in this field is not the technique, but the discipline. Sleep when you should, run when you should, and don't fall in love with the market.
