On the path of trading coins, I started as a small retailer with 5000 yuan and finally reversed my fortune to become a middle-class with 25 million!
Today, I will share with you the insights I've gained along the way.
The most important point in trading coins is money management; don’t invest all your money at once. I usually divide my funds into five parts and only take one part to operate each time, so even if I lose, I won’t be overly burdened. Moreover, I set a rule for myself: if I lose 10%, I withdraw immediately, regardless of the market. If I lose 10% five times in a row, I’ve only lost 50%, but if I make a profit, the earnings will be more than that. Even if I find myself stuck, I can maintain my mentality.
Following the market trend is always the most reliable strategy. When the market is falling, don’t think about bottom fishing; that’s simply unrealistic. When it rises, a pullback is the golden opportunity; buying the dip is much safer than trying to catch the bottom.
When it comes to selection, one must have sharp vision. Avoid those coins that surge dramatically, whether mainstream or altcoins. Coins that rise too quickly will also have significant pullbacks next, making it easier to get stuck.
In terms of technical indicators, I use MACD+ the most. When the DIF line+ and DEA line+ cross below the 0 axis and break through it, that is a buy signal. Conversely, if they cross above the 0 axis and move downwards, you need to reduce your position.
Don't try to average down casually! If you lose, don't average down; the more you average down, the more you lose, and in the end, you may have nothing. Remember, cut losses when losing, and only add to your position when making a profit.
Trading volume is also very critical. When the coin price breaks out at a low level, if the trading volume increases, it is usually a big opportunity.
The most critical point is to act according to the trend and seize the trend! Combine the daily line, 30-day line, 84-day line, and 120-day line; when a line starts to turn upward, you will know how to operate.
Trading coins has risks, but also considerable opportunities.
Learn money management, trend analysis, and coin selection to reverse from a small retail investor to a middle-class like me.
After I learned this set of moving average usage, my returns tripled!
Think back to when I first entered the trading market
I tried every possible way to find knowledge about this online
I hope to learn everything as soon as possible
This way, you can quickly start practical combat
Start making money
At this point
Moving averages are usually one of the first technical indicators I learned, and most online teachings are about how to use two moving averages
A fast one
A slow one
When the fast line crosses the slow line from below, you buy; when the fast line crosses the slow line from above, you sell.
This type of golden cross dead cross trading strategy
For beginners
It's simply like a treasure
Because compared to other more complex technical indicators
The matter of golden crosses and dead crosses is for small investors
At least it's feasible
Can be realized immediately
If you really believe it
Immediately enter the operation
The outcome can be imagined
It must have been a terrible loss
And then I was mentally stressed every day
Very angry
Why do people lose money?
Blame heaven, blame the earth
Blaming the moving average for being useless is rubbish
What I said above is 100% my real experience
Mistakes I made when I first started trading
I believe this is also the experience of many new beginners today
And today I hope to share this article with you
All the moving average techniques I have learned over the years
Summarize the mistakes I've made before and the insights I've gained
This way you won't repeat my mistakes
At least your path will be much smoother than mine back then
I summarized it
Most people misunderstand moving averages
Is too superficial
Imagining this matter too simplistically
It's just simply seeing a golden cross and buying, and a dead cross means selling
In fact, what we really need to do
It's about how to think about how to use moving averages
To maximize your profits
How to improve your trading performance
Today, I will focus on two major themes
And discuss with everyone
Does the moving average have a universal parameter setting?
How to use moving averages to help us achieve a threefold return
I hope everyone spends 5 minutes
After reading this article
In the end, there are some insights
Let's get started!
-: The secrets of moving averages
What is a moving average?
The concept is easy to understand
As the name suggests, it is the average price over a certain period
Visualize the presentation with a line chart
There are three common types of moving averages
SMA+ (Simple Moving Average)
WMA+ (Weighted Moving Average)
EMA+(Exponential Moving Average)
SMA is simply dividing all prices directly
To get an average
It reacts slowly to recent prices and market trend changes
The concepts of EMA and WMA are the same
It's just the algorithms that are different
They tend to have more weight
So the speed of response will be faster
It will be more sensitive to recent significant price fluctuations
-: Is there a universal parameter setting for moving averages?
Actually, it's about moving averages
The most common question is whether there is a universal parameter for moving averages
What are the best parameters?
20? 50? 100 or 200?
This question is like going to a coffee shop
Tell the staff:
Please give me a cup of coffee!
The staff asks you:
Sir
What kind of coffee do you want?
I said I don’t understand these
You can just give me a cup of the best coffee
Usually, it comes to this point
Encountering an impatient staff member
Will casually give you a cappuccino
You pay
And then walk away
It's like some online teachings telling you
What are your 144EMA and 68EMA?
When 68 crosses above 144's EMA, just buy or sell
It's completely baffling
On the contrary
Those responsible and patient staff will slowly guide you:
Sir
Do you want iced coffee or hot coffee?
Do you want coffee with milk or without milk?
The milk foam on cappuccino is relatively soft
Mochachinno has chocolate syrup, a bit sweet
Espresso has rich oil and a lingering flavor
If you like black coffee, you will definitely be satisfied
Similarly
As a responsible and patient trading coach
I will ask
What is your purpose for using moving averages?
Do you want an objective indicator to judge long-term trends?
Or do you want to fight for a better entry point?
Or do you want to use moving averages to set a stop-loss point?
The above few things
Actually, everything can be done with moving averages
But here comes the point
I can responsibly tell everyone here
In this world, there is no best moving average parameter setting, only the most suitable parameter setting!
And this parameter should not be determined by you or me
Anyone can decide
What decides this matter is the market itself
According to different market conditions, different trends, and strengths
The most suitable parameter settings will also be different
