Tips for trading cryptocurrencies!!!
I use the simplest method for trading cryptocurrencies, relying on a 50% position to steadily earn a monthly return of 70%. I passed this unique secret to my apprentice, and he doubled his money in three months. Since I'm in a good mood today, I’ll share these valuable methods with you. Remember to save them well.
1. Divide your capital into 5 parts, and only invest one-fifth each time! Control a 10-point stop loss; if you make a mistake once, you only lose 2% of your total capital, and if you make 5 mistakes, you only lose 10% of your total capital. If you get it right, set a take profit of more than 10 points. Do you think you’ll still be stuck?
2. How can you further increase your win rate? Simply put, it’s about going with the trend! In a downtrend, every rebound is a trap to lure buyers, while in an uptrend, every drop creates a golden opportunity! Which do you think is easier to profit from: bottom fishing or buying low?
3. Do not touch cryptocurrencies that have rapidly surged in the short term, whether mainstream or altcoins; very few coins can undergo several major upward waves. The logic is that it’s quite difficult for them to continue rising after a short-term spike. When they stagnate at high levels, they will inevitably drop later on. This is a simple truth, yet many people still want to take that gamble.
4. You can use MACD to determine entry and exit points. If the DIF line and the DEA cross upwards below the zero axis and break the zero axis, it’s a solid entry signal. When MACD forms a downward death cross above the zero axis, it can be seen as a signal to reduce your position.
5. I don’t know who invented the term “averaging down,” but many retail investors have stumbled and suffered huge losses because of it: many people keep adding to their losses, which only leads to more losses. This is the biggest taboo in trading cryptocurrencies, putting yourself in a dire situation. Remember, never average down when you’re in a loss; instead, add to your position when you’re 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 a low consolidation level, and decisively exit when there’s increased volume stagnating at a high level.
7. Only trade cryptocurrencies in an upward trend; this maximizes your chances and saves time. When the 3-day moving average turns upward, it indicates short-term upward movement; when the 30-day moving average turns upward, it indicates medium-term upward movement; when the 84-day moving average turns upward, it indicates a major upward wave; when the 120-day moving average turns upward, it indicates long-term upward movement.
8. Keep reviewing each trade, check if your holding strategy has changed, technically analyze whether the weekly K-line trend aligns with your judgment, and whether there has been a change in trend direction. Timely review and adjust your trading strategy!
