In the cryptocurrency market, some people become rich overnight, while others lose everything. However, with a method tested through practice, I successfully earned over 40 million. I will share this foolproof trading strategy with everyone.
1. Coin Selection
Focus on major mainstream coins. Bitcoin (BTC) and Ethereum (ETH) are the core of stable investments. Stay away from altcoins; they are like high-risk lottery tickets, with nine out of ten players losing, making the investment risk extremely high.
2. Timing and Operation for Short Selling
Timing Judgment: Pay attention to the MA60 moving average (yellow line) in the 4-hour K-line chart. When the price is continually suppressed by it, it’s a good opportunity to short.
Batch Operation: Use a strategy of selling in three batches. For example, sell part of the position when the price rises to 2400, and continue to sell gradually as the price rises further.
Stop Loss Setting: Decisively set stop loss points. If the price rises to 2450 and then falls back, promptly set a stop loss at 2455 to avoid larger losses.
3. Timing and Operation for Going Long
Timing Judgment: Refer to the daily chart, looking for positions where the price decline is slowing down and support is appearing.
Batch Operation: Also buy in three batches. For instance, buy part at the 2300 support level and continue to add positions if the price drops further.
Stop Loss Setting: If the price rebounds after falling to 2280, set the stop loss at 2275 to strictly control risk.
4. Capital Management
Daily Loss Control: Strictly limit daily losses. If losses reach 20% of total capital, immediately stop trading and take a break.
Single Trade Position: Each trade should involve no more than 5% of total capital to diversify risk.
Trading Time Planning: Stop trading after 2 AM, try to rest on weekends, and avoid fatigue trading.
5. Strategy for Pursuing Gains on Major Rises
Coin Selection: Only pursue the top three coins with the highest daily increases.
Risk-Reward Ratio: Follow a 3:1 risk-reward ratio. If you risk 100 yuan, lock in profits when you earn 300 yuan.
Stop Loss Adjustment: Adjust the stop loss level in a timely manner after making a profit. For example, if the profit is 200 yuan, adjust the stop loss to the breakeven point.
6. Strategy for Responding to Crashes
Cash Reserve: Always keep 30% of cash on hand to wait for buying opportunities.
Bottom Fishing Timing: Wait for the price to drop more than 8% before taking action.
Batch Bottom Fishing: Buy in three batches, with a price interval of 3% between each purchase.
7. Profit-Taking Timing
Fixed Profit Taking: Lock in profits when Ethereum is up 20% and Bitcoin is up 350 points.
Dynamic Profit Taking: When profits are substantial, use the 5-minute K-line chart to dynamically protect profits. For example, after making a profit of 500 points, reduce positions gradually with every 50 points of pullback.
Daily Profit Taking: Stop trading when daily profits reach 15% to avoid greed.
Eight Iron Rules
Position Allocation: At least 70% of the position should be in regular investments, with the remaining 30% available for new projects or high-risk high-return projects.
Project Selection: Maintain a cautious attitude towards projects with cost requirements to ensure immediate gains.
Bull and Bear Strategy: Regular investment in the secondary market during a bear market, gradually selling during a bull market.
Risk Avoidance: Stay away from contract leverage and high-risk domestic projects.
Fish Theory: Use community sentiment to judge project phases. When most of the community is shouting to buy, consider taking partial profits.
Short-Term Projects: For short-term projects that surge, first recover costs and some profits, allowing the remaining profits to continue growing.
Buying Timing: When a project is heavily criticized in communities and online, it may have reached a temporary bottom.
Project Selection: Whether for short-term or long-term projects, prioritize leading projects in niche fields, as they are more likely to gain market recognition and speculation.
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