I am 38 years old this year, entered the secondary market of digital currency at 29, with a principal of only 150,000. Now my assets exceed 8 digits. When I go out, I must spend at the highest level because I know that as long as digital currency does not fail, I will not fail! Today, I will share 8 iron rules that I have summarized in the community.
1. Position Management Rule: Divide the total position into 5 parts, with a single investment of 20% of the position. Set a stop-loss limit of 2% of total funds; if there are five consecutive mistakes, only 10% of the principal is lost. If the direction is correct, set a profit-loss ratio of over 1:1. This strategy can effectively control risk.
2. Trend Judgment Technique: Follow the principle of 'trend is king'. Be cautious of rebounds in a downtrend, and see pullbacks in an uptrend as opportunities. Observing market momentum direction is more practically valuable than guessing turning points.
3. Asset Selection Principle: Avoid assets that experience short-term surges, whether mainstream or non-mainstream currencies. Historical data shows that less than 3% of assets achieve multiple waves of main rising trends, and high-level stagnation phases often accompany mean reversion.
4. Technical Indicator Application: The MACD indicator's golden cross below the zero line can be used as a reference signal, while the dead cross above the zero line should be considered a warning signal. The moving average system should focus on the interplay of four cycles: 3-day, 30-day, 84-day, and 120-day.
5. Position Adjustment Discipline: Avoid loss-recovery strategies; gradually increasing positions during profitable phases aligns better with the principle of positive expectation value. Statistics show that the success rate of loss-recovery strategies is less than 18%.
6. Volume-Price Relationship Judgment: Pay special attention to the volume signals of breakout patterns and the abnormal volume of high-level stagnation. When volume anomalies coincide with price fluctuations, decision-making confidence can increase by over 40%.
7. Trend Cycle Determination: Establish a multi-cycle observation system: the 3-day line judges short-term fluctuations, the 30-day line confirms medium-term trends, the 84-day line captures main rising waves, and the 120-day line identifies long-term directions.
8. Review and Optimization Mechanism: Establish a three-level review system for daily, weekly, and monthly observations, focusing on: the effectiveness of holding logic, the continuity of weekly trends, and the matching degree of strategies with the market. It is recommended to retain 10% of the position to cope with sudden fluctuations.
Note: This article does not constitute investment advice; digital currency trading is highly risky, so please make rational decisions based on your own situation. The strategies mentioned in the text are personal experiences; the market carries risks, and decisions should be made cautiously.