Seven years of trading cryptocurrencies, earning relies on knowledge and discipline. In the first three years, I lost over 100, but in the following years, I earned back several hundred. Every penny is backed by blood and tears lessons! This market always repeats the same secret: 90% of retail investors focus on news to trade cryptocurrencies, 9% of smart people watch the movements of whales, while 1% of aggressive players are dissecting market genes using moving averages.
Step One: Verify the moving averages Treat the daily moving average as three distinctly different experienced doctors— the 5-day line is the head of the emergency department, the 30-day line is the skilled internist, and the 60-day line is like a senior consultant sitting in the expert clinic. When the head of the emergency department suddenly straightens up and rushes to check on the two senior doctors (the 5-day line crosses above the 30/60-day lines), this is the signal that the market is preparing to go into ICU for rescue. Conversely, if you find the head of the emergency department slipping and rolling off the senior consultant's chair (the 5-day line crosses below the 30/60-day lines), don’t hesitate, immediately adjust your position.
Step Two: Establish a trading system to avoid emotional impulses Now please stick a note on your trading interface and write in bold marker: Moving averages in conflict, mere mortals retreat. When the 5-day line and 30-day line are entangled like a twist, jumping into the market at this time is akin to rolling dice and guessing odd or even. A true hunter will only pull the trigger when all three lines are marching in the same direction.
Here’s a counterintuitive piece of trivia: In the cryptocurrency world, where wild fluctuations are commonplace, the strategy using daily moving averages is simpler yet deadlier. Just like a true martial arts master never needs to show fifty stances, a breakthrough of the 5-day line signals drawing the sword, while a turn of the 60-day line indicates the moment to sheath it.
Step Three: Weld discipline to the operations desk I have seen too many people write their trading plans on napkins, only to be scared into tearing them up at midnight by a sudden spike. The most ruthless yet kind aspect of the daily moving average strategy is that it forces you to become an emotionless signal execution machine.
Here’s a dark humor: A certain trader who consistently profited using the daily moving average strategy for three years received a 5-day line breakout alert at a wedding last year and had to hide in the restroom to close the position before coming out to exchange rings.