Position management that you must master after entering the cryptocurrency world! Steady gameplay can yield a monthly return of up to 70%.
1. Divide your capital into 5 parts, and only invest one-fifth at a time! Control a stop-loss of 10 points; if you get it wrong once, you only lose 2% of your total. If you get it wrong 5 times, you lose 10% of your total. If you get it right, set a take-profit of over 50 points.
2. How to further improve your win rate? Simply put, it’s about following the trend! In a downtrend, every rebound is a temptation to go long, and in an uptrend, every dip presents an opportunity! Is it easier to make money by bottom fishing or by buying at lower levels? You know it well yourself!
3. Avoid coins that have experienced rapid short-term surges, whether they are mainstream or altcoins; there are very few that can lead to multiple waves of major rises. The logic here is that it is quite difficult for prices to continue rising after a short-term spike. When prices stagnate at high levels, they will naturally decline later on; it’s a simple principle.
4. You can use MACD to determine entry and exit points. If the DIF line and DEA form a golden cross below the zero axis, breaking above the zero axis is a stable entry signal. When MACD forms a death cross above the zero axis and moves downward, 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 stumble and suffer significant losses! Many people keep adding to their positions as they incur losses, which leads to even greater losses. This is a huge taboo in trading cryptocurrencies, putting oneself in a dire situation. Do not add to your position when in loss; add to your position when in profit.
6. Volume and price indicators are crucial; trading volume is the soul of the cryptocurrency market. Pay attention when the price breaks out with increased volume at low consolidation levels, and decisively exit when there is increased volume at high levels and stagnation.
7. Only trade in coins that are in an uptrend; this greatly increases your odds and saves time. When the 3-day moving average turns upwards, it indicates a short-term rise; when the 30-day moving average turns upwards, it indicates a medium-term rise; when the 84-day moving average turns upwards, it indicates a major uptrend; and when the 120-day moving average turns upwards, it indicates a long-term rise!
8. Persist in reviewing your trades after each session, check if there are changes in your held coins, technically analyze whether the weekly K-line trends align with your judgments, and whether the direction has experienced a trend change. Adjust your trading strategy promptly!