Learned this position management in the cryptocurrency world over 8 years~ Whoever uses it will benefit! The strategy is solid, and monthly returns can reach 70%.
1. Divide the capital into 5 parts, only invest one-fifth each time! Control a stop-loss of 10 points; if you make a mistake once, you only lose 2% of the total, and if you make 5 mistakes, you lose 10% of the total. If you're right, set a take-profit of over 50 points.
2. How to further improve the win rate? Simply put, it's two words: follow the trend! In a downtrend, every rebound is a temptation to go long, while in an uptrend, every drop presents an opportunity! Is it easier to profit from bottom fishing or from buying low? You all know in your hearts!
3. Do not touch coins that have experienced a rapid surge in the short term, whether mainstream or altcoins; very few can produce several waves of primary uptrends. The logic is that it is quite difficult to continue rising after a short-term surge. When prices stagnate at a high level and cannot rise later, they will naturally fall—it's a simple principle.
4. Use MACD to determine entry and exit points; if the DIF line and DEA form a golden cross below the 0 axis, breaking above the 0 axis is a solid entry signal. When MACD forms a dead cross above the 0 axis and moves downward, it can be regarded as a selling signal.
5. I don’t know who invented the term ‘averaging down,’ but it has caused many retail investors to stumble and suffer great losses! Many people keep pouring in money as they lose more, and the more they add, the more they lose. This is a big taboo in trading cryptocurrency, putting oneself in a dead end. Do not add positions when in loss; add positions when in profit.
6. The volume-price indicator is crucial, and trading volume is the soul of buying in the cryptocurrency world. Pay attention to price breaks with volume at low levels during consolidation and decisively exit when there is high volume stagnation at high levels.
7. Only trade coins in an uptrend; this greatly increases the odds and saves time. When the 3-day moving average turns upwards, it indicates a short-term rise; when the 30-day line turns upwards, it indicates a medium-term rise; when the 84-day line turns upwards, it indicates a primary uptrend; and when the 120-day moving average turns upwards, it indicates a long-term rise!
8. Persist in reviewing each round, check if there are changes in holding positions, technically analyze whether the weekly K-line trends align with your judgments, and whether there are any changes in trend direction. Adjust trading strategies promptly!
