8 Years of Practical Experience in the Cryptocurrency Market: Position Management Method for Those Who Use It to Profit
With 8 years of experience in the market, from experiencing liquidation over twenty times to achieving consistent profits, I have walked this path step by step, gaining real insights. This position management method is solid and reliable, allowing for monthly returns to soar to 90%. (I recommend liking and saving this to avoid losing it in the future) Here’s the practical advice:
1. Divide your capital into five parts, and only invest one-fifth at a time! Control a 20% stop-loss; if you make a mistake once, you only lose 2% of your total, and if you make a mistake five times, you only lose 10%. If you are right, set a take-profit of 50% or more.
2. How to further improve your winning rate? Simply put, it’s all about going with the trend! In a downtrend, every rebound is a trap to lure buyers, while in an uptrend, every drop presents an opportunity! Is it easier to make money by bottom-fishing or through low buying? You all know the answer in your hearts!
3. Do not engage with cryptocurrencies that have surged rapidly in the short term, whether mainstream or altcoins; very few can sustain multiple waves of main upward trends. The logic is that it is difficult for them to continue rising after a short-term surge. When they stagnate at high levels, they will naturally fall when they can’t push higher, which is a simple principle.
4. You can 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 downwards, it can be regarded as a sell signal.
5. I don’t know who invented the term 'averaging down', but it has caused many retail investors to stumble and suffer massive losses! Many people keep averaging down as they lose more, which is a big taboo in trading cryptocurrencies and puts them in a dead end. Do not add to your positions when in a loss, and add to them when in profit.
6. Volume and price indicators are paramount; trading volume is the soul of cryptocurrency. Pay attention to volume breakouts at low levels during consolidation, and decisively exit when there is high volume stagnation at high levels.
7. Only engage with cryptocurrencies that are in an upward trend; this greatly increases your chances and saves time. A short-term upward trend is indicated by the 3-day moving average turning upwards, a medium-term upward trend by the 30-day moving average turning upwards, a main upward trend by the 84-day moving average turning upwards, and a long-term upward trend by the 120-day moving average turning upwards!
8. Persist in reviewing each trade, check if there have been any changes in your holdings, technically analyze whether the weekly K-line trend aligns with your judgments, and whether the trend direction has changed, making timely adjustments to your trading strategy!