Investing is a complex discipline, a process of skill, technique, mentality, and human nature in a comprehensive game. In this process, those with strong risk awareness, good risk management, and effective execution of risk control measures will be the final winners.
1. Unlimited funds are a prerequisite for making investments.
Funds must be absolutely free and have no time limits. Having free funds without interest pressure is a prerequisite for making investments.
2. Use market traps to win
When you want to go long, short traps are your best opportunity;
When you want to go short, long traps are your paradise.
3. Safety is fundamental to surviving in this market long-term.
Avoid overtrading: (Avoid frequent trading and excessive single-trade margin)
4. The market is the best place to cultivate oneself; human greed, fear, and stupidity are played out every moment in capital markets. Cultivating oneself in this big dye vat is the greatest benefit of the market.
To conquer the market is actually to conquer your own greed, fear, and stupidity.
5. Not every trade will be profitable
Every trade carries a risk of loss. Don’t daydream, earn money seriously, and never let your guard down; focus on money management.
6. Trading psychology is crucial. Stay emotionally stable whether you are making money or losing money.
7. Successful trader mindset:
Do not care about money, accept the risks in trading and investing, equally accept both profitable and losing trades, enjoy the process, never feel deceived by the market, always seek to improve skills, and as skills improve, account profits will also increase.
Be open-minded, treat various viewpoints equally, don’t get angry, summarize each trade, there’s no need to conquer or control the market, have confidence and self-control, only take risks you can afford, trade with your own funds, take responsibility for all trading results, maintain calmness during trading, have the ability to face reality, and trade with the trend without caring about market direction.
A simple and efficient way to trade cryptocurrencies, almost guaranteed to be profitable!
My cryptocurrency trading strategy has only 4 steps, very simple, yet incredibly effective.
Step 1: Choose a cryptocurrency Open the daily chart and only select cryptocurrencies with a MACD golden cross, prioritizing golden crosses above the zero line, which is the condition with the highest success rate!
Step 2: Buy Signal Switch to the daily chart, only focus on one moving average -- the daily moving average. The rules are simple:
Hold online: Buy and hold when the coin price is above the daily moving average.
Sell offline: Sell immediately when the coin price drops below the daily moving average.
Step 3: Position Management After buying, observe the coin price and trading volume:
1. If the coin price breaks above the daily moving average, and the trading volume also stabilizes above the daily moving average, buy with all positions.
2. Selling Strategy: · If the increase exceeds 40%: sell 1/3 of the position. · If the increase exceeds 80%: sell another 1/3 of the position. If it drops below the daily moving average: liquidate all remaining positions.
Step 4: Strict Stop-Loss The daily moving average is our core operation. If the coin price suddenly drops below the daily moving average the next day, for any reason, you must sell all positions; do not harbor any luck!
Although the probability of breaking below the daily moving average through this screening method is low, we must still maintain risk awareness. After selling, simply wait for the coin price to stabilize above the daily moving average again before buying back.
This method is simple and easy to learn, very suitable for investors seeking stable profits. Remember, the key to success is strictly following each step and not being swayed by emotions!
Three 'Do Nots' in Cryptocurrency Trading
1. Do not buy during an uptrend Remember: be greedy when others are fearful, and be fearful when others are greedy. Cultivate the habit of buying during a downturn to avoid chasing highs.
2. Do not place large bets Do not place all your bets on one cryptocurrency; diversifying risks is key to long-term profitability.
3. Do not go all in Going all in makes you very passive; the market is never short of opportunities. Leave some room to seize opportunities when they arise.
Six rules for short-term cryptocurrency trading
1. After a consolidation at a high position, there is often a new high; after a consolidation at a low position, there is often a new low
Wait until the direction of the market change is clear before acting to avoid blind entry.
2. Do not trade during sideways movement
Most people lose money because they can't do this. Observe during sideways movement and wait for the trend to clarify.
3. Buy on bearish candles, sell on bullish candles
Buy when the daily candle closes bearish and sell when it closes bullish; contrarian trading is safer.
4. Slower declines lead to slower rebounds; faster declines lead to faster rebounds.
Judge the rebound strength based on the speed of decline and respond flexibly.
5. Pyramid Positioning The core idea of value investing is to buy in batches, reduce costs, and diversify risks.
6. After continuous rises or falls, there must be sideways movement. After a cryptocurrency has been continuously rising or falling, it will inevitably enter a sideways state. At this time, there is no need to sell all positions at a high or buy all positions at a low; wait for the market change signal before acting.
The core of cryptocurrency trading is stability and patience. Follow the 'Three Do Nots' and 'Six Rules' to avoid emotional trading for long-term survival and profit in the market. Remember, the market is not lacking in opportunities; it lacks the patience to wait for opportunities and the ability to seize them!
