I have been trading crypto for 10 years; I entered the market with 68,000 yuan in savings from working, and now my assets exceed 70 million yuan. I resigned from my job to trade crypto full-time, relying solely on crypto to support my family. I only trade spot and occasionally dabble in contracts. Although I haven’t achieved the same goals as some who turned 10,000 into two smaller targets, I am very content and steady!
I have been trading crypto for 10 years; I entered the market with 68,000 yuan in savings from working, and now my assets exceed 70 million yuan. I resigned from my job to trade crypto full-time, relying solely on crypto to support my family. I only trade spot and occasionally dabble in contracts. Although I haven’t achieved the same goals as some who turned 10,000 into two smaller targets, I am very content and stable. I dream of breaking a target by the end of this year and earning more capital next year to make even more money.
If you are determined to make trading crypto your primary profession, this article will be your stepping stone, short yet profound! After 10 years of trading crypto, the core trading secret that has allowed me to achieve stable compound returns.
In the crypto space, many new friends may not know how to read the MACD indicator, and those who understand it do so only a little. Few can see the details and technical patterns. It is said that mastering one technique is enough; learning something you can understand is not difficult, but the challenge lies in the unwillingness to learn. Trading crypto is not for others, but for yourself. If you are willing to put in more effort to learn it well, trading stocks won’t be as hard as you imagine.
Before discussing technical strategies, I strictly adhere to the following 24 iron rules in my trading philosophy.
1. Don’t go all in; divide your capital into 10 portions, and don’t exceed 1 portion in a single trade.
2. Always use stop-loss orders when opening trades; set the stop-loss 3-5 points away from the transaction price.
3. Don’t open trades too frequently; frequent trading can disrupt your capital and trading plan.
4. Move your stop-loss; once you gain more than 3 points, adjust the stop-loss to protect your profits and don’t let them slip away.
5. You must follow the trend; if the trend is unclear, don’t buy; following the trend is the safest approach.
6. Don’t open trades when confused; if you don’t understand the market, don’t force it. Wait for confirmation before entering.
7. Buy mainstream and popular coins; choose actively traded coins, and avoid obscure ones with no activity.
8. Don’t put all your funds into one coin; diversify large funds across 2-3 coins, and keep small funds in one.
9. Trade at market prices; don’t set fixed prices to buy. Following the market is more flexible.
10. Let your profits run; set a trailing stop to protect your profits and avoid closing your positions prematurely.
11. When you make a profit, convert it into cash; save the profits for critical moments.
12. Don’t impulsively trade for staking dividends; the temptation of dividends is great, but don’t let it lead to random purchases.
13. Do not lower your average price; if you lose on a trade, don’t think about averaging down. This is a major taboo.
14. Choose the best entry points; don't trade recklessly due to impatience. Only trade at key positions.
15. Don’t take small risks for small gains; small profits are not worth the risk. Don’t gamble for small money.
16. Stop-loss orders cannot be canceled; if you lose on a trade, stick to the stop-loss and don’t alter it. Maintain discipline.
17. Don't trade all day long; trading too frequently can lead to losses. Leave enough time for reviewing trades.
18. Profit from both rises and falls; go long when prices rise, and short when they fall. Operate according to the trend.
19. Don’t trade based on price levels; a low price isn’t necessarily a good buy, and a high price doesn’t mean you have to sell.
20. Look for opportunities to add or clear positions; add positions after breaking resistance levels and clear them if they break support levels.
21. Choose the right size of coins; small-cap coins are suitable for shorting, while large-cap coins are suitable for going long.
22. Don’t hedge to cover losses; if the coin you bought declines, don’t sell others to compensate; instead, accept the loss and exit.
23. Don’t switch directions without reason; switching between long and short must have a basis, and don’t act without a signal.
24. Don’t get carried away after making significant profits; don’t increase your position after consecutive wins; treat each trade with equal importance.
Trading is a long-term practice; if you want to succeed in trading, you must follow the rules and build your own trading system!
So how can one excel in trading crypto? Once a person enters the financial market, it is hard to turn back. If you are currently losing yet still confused, and plan to treat trading crypto as a second profession, you must understand the 'simplest MACD strategy.' Understanding and mastering it can help you avoid many pitfalls. These are personal experiences and insights; it’s advisable to save and reflect on them repeatedly!
Bitcoin K-line MACD reference material.
1. The MACD calculation is: fast exponential moving average (EMA12) minus slow exponential moving average (EMA26) gives the fast line DIF, and then 2 × (fast line DIF - 9-day weighted moving average DEA) gives the MACD histogram.
2. Basic use of MACD: The MACD indicator is formed by two lines and one histogram; the fast line is DIF, the slow line is DEA, and the histogram is MACD.
(1) MACD golden cross: DIFF breaks above DEA from below, signaling a buy.
(2) MACD death cross: DIFF breaks down through DEA from above, signaling a sell.
(3) MACD green turning red: The MACD value changes from negative to positive, indicating a market shift from bearish to bullish.
(4) MACD red turning green: The MACD value changes from positive to negative, indicating a market shift from bullish to bearish.
(5) When both DIF and DEA are positive, meaning above the zero line, the market is bullish. If DIF breaks up through DEA, it signals a buy.
(6) When both DIF and DEA are negative, meaning below the zero line, the market is in a bearish state. If DIF breaks down through DEA, it signals a sell.
(7) When the DEA line and K-line trend diverge, it is a signal for reversal.
MACD is a very practical technical indicator used by most stock and crypto traders, but very few can use it effectively. In fact, if used well, MACD can successfully capture entry points at relatively low levels. It has significant reference value in practical trading.
The MACD indicator, known in Chinese as the Exponential Moving Average Convergence Divergence, is a trend-following indicator composed of five parts: long-term moving average MACD, short-term line DIF, red energy bars (bearish), green energy bars (bullish), and the zero line (the dividing line between bulls and bears). It uses the crossover of short-term moving average DIF and long-term line MACD as a signal. The crossover signals generated by the MACD indicator are relatively delayed, but when used to formulate corresponding trading strategies, they can be quite effective.