Having been involved in the cryptocurrency world for these years, starting from the initial 3000U, my funds have slowly reached eight digits. Today, I will summarize and share my hard-earned experiences with everyone:
1. Divide your funds into 5 portions, and only invest one-fifth each time! Control a 10% stop loss; if you make a mistake once, you only lose 2% of your total funds, and if you make 5 mistakes, you lose 10% of your total funds. If you are right, set a take profit of over 10%. Do you think you will still get trapped?
2. How to increase the win rate again? In simple terms, it’s just two words: go with the trend! In a downtrend, every rebound is a trap to lure buyers, and in an uptrend, every drop creates a golden opportunity! Which do you think is easier to make money from: bottom fishing or buying on dips?
3. Do not touch cryptocurrencies that have experienced a rapid surge in the short term, whether they are mainstream or altcoins. There are very few coins that can go through several waves of major upward trends. The logic is that it is quite difficult to continue rising after a short-term surge. When they stagnate at high levels and cannot rise further, they will naturally fall. It’s a simple principle, yet many people still want to take a gamble.
4. You can use MACD to determine entry and exit points. If the DIF line and DEA cross above the 0 axis, and then break below the 0 axis, it is a reliable entry signal. When MACD forms a death cross above the 0 axis and moves downward, it can be seen as a signal to reduce positions.
5. I don’t know who invented the term ‘averaging down’, but it has caused many retail investors to stumble and suffer huge losses! Many people keep adding to their losing positions, and the more they add, the more they lose. This is the biggest taboo in trading cryptocurrencies, putting themselves in a dead end. Remember to never average down when in a loss, but to increase your position when in profit.
6. Volume and price indicators are crucial; trading volume is the spirit of buying in the crypto world. Pay attention to breakout volume at low price levels during consolidation, and decisively exit when encountering high price levels with stagnant volume.
7. Only trade cryptocurrencies in an upward trend, as this maximizes your chances and saves time. When the 3-day moving average turns upward, it indicates short-term growth; when the 30-day line turns upward, it indicates mid-term growth; when the 84-day line turns upward, it indicates a major upward trend; and when the 120-day moving average turns upward, it indicates long-term growth!
8. Persist in reviewing each trading session, check if there are any changes in your holdings, technically analyze whether the weekly K-line trend aligns with your judgment, and if there has been a change in trend direction. Timely review and adjust your trading strategy!
I remind everyone to invest cautiously and act within your limits.