Seven Years of Professional Cryptocurrency Trading Insights: Foolproof Steady Profit Strategy
The cryptocurrency market is ever-changing, and I have achieved stable returns with a practical strategy. I will share this "Foolproof Trading Method" below to help you avoid risks and seize opportunities.
1. Core Trading Strategy
1. Watch and wait during sideways markets: Do not operate blindly during consolidation periods; closely monitor trading volumes and key levels, and trade in the direction of the breakout after price surpasses resistance/support levels.
2. Quick entry and exit on hot topics: Set a profit-taking line of 15%-20%, and decisively exit when the popularity of hot coins fades to avoid being trapped.
3. Secure gains on gap-up surges: When a gap up occurs with increased volume, move the stop-loss level below the gap and follow the trend to profit.
4. Take profits on large bullish candles: Regardless of price levels, after a large bullish candle appears, if a new high is not made in the last 15 minutes of trading, exit immediately to lock in profits.
5. Use moving averages for buy/sell decisions: Refer to the 5-day moving average; buy lightly on a pullback to the average with a bearish close, and sell decisively on a bounce below the average with a bullish close, using volume to assess the authenticity of breakouts.
6. Strictly adhere to trading discipline: Do not take profits before reaching targets, do not bottom fish during panic, and maintain a completely cash position during sideways markets.
7. Build positions in batches with light allocations: Use a pyramid-style approach to position building, with the first entry not exceeding 20%, and plan entry logic, profit-taking, stop-loss, and averaging down strategies in advance.
2. Key Points for Risk Control
- Diversify holdings: No single coin should exceed 30%, balancing mainstream and potential coins.
- Strict stop-loss: Set a stop-loss line of 5%-8% for each trade.
- Emotional management: Avoid chasing prices up or down, and continuously optimize strategies through trading logs.
There is no myth of guaranteed profits in the crypto market, but by adhering to scientific strategies and strict discipline, achieving long-term profits is not difficult. Remember: controlling risk is always the first rule of investing.
