At one in the morning, the blue light of the screen was like a poisoned dagger. When the seventh liquidation brought the account balance to zero, I stared at the cliff-like waterfall on the candlestick chart and suddenly realized that all the "secrets to getting rich quickly" were opium fed to gamblers. It was not until I threw my phone to the ground to vent my anger and rebuilt the trading system in the most clumsy way that I realized: those who survived in the cryptocurrency circle never used their heartbeats to decide their positions.
1. The night market K-line is an hourglass that washes away the noise
The cryptocurrency market during the day is like a fish pond with bait thrown in it: the splashes of the dealers throwing bait to pull the market, the bubbles of the media, and the fish schools of "insider" in the community make the water surface turbid. I was hooked by a false positive line of a platform currency and lost two months' salary in 5 minutes. Until I found that the market after 9 pm was like being filtered by an hourglass - when the market noise settled, the MACD golden cross showed its true appearance. Those moving averages that came out in the middle of the night were closer to the undercurrent under the water plants than any "good news" during the day.
2. Indicators are a compass with a scale, and intuition is a foghorn that makes you lost.
"Feeling that it will rise" was the most expensive leverage in my account. Now my trading screen only locks three coordinates:
▷ MACD golden cross is like a compass pointing north, and dead cross is like a compass turning south.
▷ The RSI overbought zone is a mirage in the desert, and the oversold zone is a signal flare of an oasis
▷ The Bollinger Bands narrow like a trap, and the sound of the trap being activated is when it breaks through
We must wait for the two indicators to collide and create sparks in time and space - just like seeing the lighthouse and the stars at the same time when sailing, before we dare to loosen the anchor chain.
3. Stop loss is the backbone of a trader, and cash withdrawal is the armor that protects the heart
▷ Cut your losses like a surgeon: A floating loss of 3% of the principal will trigger a circuit breaker. I hesitated for 10 minutes and the position shrank from 30% to 15%. The pain made me understand that the stop loss line is not a loss point, but a life-saving rib.
▷ Profits should be shared like "pirates": 30% of profits must be transferred to bank cards every week, just like pirates burying gold coins on different islands. After seeing too many people lose everything in the BTC waterfall, I understand that the numbers in the exchange account are just gold coins in the mirror. Only the numbers frozen in the bank card are the real silver coins that can be chewed.
4. Practice in K-line: Laying dormant is closer to the nature of a hunter than bottom-fishing
▷ Short-term trading is like a prairie wolf patrolling at night: only focus on the volume-price interaction on the 1-hour chart - when two large-volume positive lines tear the previous high resistance like wolf claws, and the volume column pierces the average volume line like a wolf howling, it is the time to kill. On the 1-hour chart of ADA, there were four false breakthroughs with reduced volume, until the fifth positive line broke the neckline with a volume avalanche, that was the moment when the prey exposed its throat.
▷ Waiting for sideways trading is like a desert traveler guarding a well: treat the 4-hour K-line as the texture of sand dunes, and each retracement to the support level is like the edge of a well exposed after a sandstorm. During the 21 days of DOT's sideways trading, I laid out spider-web-like orders at the 18U support line, and short orders were like dehydrated sand lizards crashing into the mesh - real desert hunters never chase the wind to find water, and only open the well cover when the camel thorn shakes for the third time.