Seven Years of Trading Cryptocurrency: Earning Money through Understanding, Surviving on Discipline
The Truth of Survival in Crypto: 90% of Retail Investors Focus on News, 9% Watch the Big Players, 1% Rely on Moving Average Systems to Analyze the Market. My Core Principle: Use Three Moving Averages (5/30/60 Days) to Lock in Trends, and Weld Discipline to the Trading Desk.
1. Moving Averages as Expert Doctors: 5-Day Determines Short-Term, 60-Day Sets Trend
5-Day Line: Sudden Market Signal, Crossing Above 30/60-Day Lines—Bullish Signal; Crossing Below is Risk Warning.
30-Day Line: Mid-Term Trend Indicator; Losing this needs Caution for a Pullback.
60-Day Line: Bull-Bear Divide; Standing Firm Allows Heavy Positioning, Breaking Below Means Exit.
Mnemonic: Five Lines Cross Three Lines, the Market is Ready to Take Off; Five Lines Break Three Lines, Immediately Run Far Away.
2. Only Act When Moving Averages are 'Aligned'
Ineffective Zone: 5-Day and 30-Day Lines Entangled (Twisted Shape), Entering Here = Gambling, Definitely Stand Aside.
Strike Zone: Three Moving Averages in Bullish Order (5>30>60) or Bearish Order (5<30<60), Open Positions in the Direction of the Trend.
Counterintuitive Point: The More Extreme the Crypto Market, the More Effective Simple Moving Averages Are. A Breakthrough in the 5-Day Line is a Signal to Enter, a Turn in the 60-Day Line Must Take Profit/Cut Loss.
3. Discipline is More Important than a Wife
- Iron Rule 1: Write Trading Plans into Notes, Set Automatic Alerts, Must Execute on Breakouts.
- Iron Rule 2: Moving Average Signals Take Priority Over All News, No Holding Positions, No Fantasizing—Cut Positions if 30-Day Line is Broken, Liquidate if 60-Day Line is Breached.
- Iron Rule 3: Take Profit by Splitting Positions (e.g., Sell 1/3 if Up 30%, Sell All if Breaking 60-Day Line), Single Loss Not Exceeding 5% of Capital.
Seven Years of Insights: The Crypto Market is Never Short of Opportunities; What’s Lacking is the Execution Power 'Not Controlled by Emotions'. When You Treat Moving Average Signals as 'Imperial Decrees', the Market Will Treat Profits as 'Red Envelopes'. Remember: Use Discipline to Filter Out Noise, Use Trends to Amplify Returns, This is the Survival Rule of 1% Players
