A moving average determines everything: My 5 million dumb money rule
Three years ago, I was like a headless fly crashing around in the crypto circle, until I met that old Wall Street trader. He taught me a simple to the point of ridiculous moving average strategy, and unexpectedly this "dumb method" helped me earn my first 5 million in life.
Remember this iron rule:
The 30-day moving average is your lifeline, it attracts prices like a magnet in an uptrend, and it cuts profits like a knife in a downtrend.
My three-layer buying secret
When the price breaks through the 5-day line, it's like the first ray of sunshine in spring, first tentatively buy 1/3 of your position.
When it breaks through the 15-day line, the trend begins to clarify, add another 1/3 position.
When it stands firm on the 30-day lifeline, it’s time to go all in.
Selling requires more ruthlessness than buying.
When it falls below the 5-day line, first sell 1/3 of your position, this is a warning signal.
When it falls below the 15-day line, sell another 1/3, the trend may reverse.
When the 30-day lifeline is lost, clear the position immediately, do not fall in love with the market.
I have seen too many people treat "temporary pullbacks" as "buying opportunities," only to get stuck deeper. Remember: the market will never change direction because of your holding cost.
The essence of this method is not in prediction, but in following. Just like surfing, you don’t need to know where the waves come from, just learn to get on the surfboard at the right wave.
Now every time I open the trading software, I first look at those three simple moving averages. They are like the footprints of an old hunter, guiding me safely through this bloody market. Sometimes, the most profitable methods are often so simple that they are hard to believe.