Seven years of trading cryptocurrencies, starting with a loss of over 100 in the first three years, but making back several hundred in the following years; every penny comes with blood and tears lessons!

This market is forever repeating the same secret: 90% of retail investors focus on news for trading, 9% of smart investors watch the movements of the big players, while 1% of the aggressive players are dissecting market trends using moving averages.

Step 1: Verify the moving averages Treat the daily moving average as three distinct old traditional Chinese medicine doctors— the 5-day line is the head of the emergency department, the 30-day line is an internal medicine expert, and the 60-day line sits in a grand chair in the outpatient clinic. When the head of the emergency department suddenly gets serious and rushes to check the pulse of the two senior doctors (the 5-day line crosses above the 30/60-day lines), this signals that the market is preparing for an ICU rescue. Conversely, if the head of the emergency department slips and rolls down from the grand chair (the 5-day line crosses below the 30/60-day lines), don't hesitate, immediately adjust your position.

Step 2: Establish a trading system to prevent impulsiveness

Now please put a sticky note on your trading interface and write in bold marker: When moving averages clash, ordinary people retreat. When the 5-day line and the 30-day line are entangled like a twisted doughnut, jumping into the market is like rolling dice to guess odd or even. True hunters will only pull the trigger when all three lines align in the same direction.

Here's a counterintuitive fact: In the cryptocurrency world, where wild fluctuations are commonplace, the simpler the daily moving average strategy, the more lethal it is. Just like real martial arts experts never need fifty starting moves, a breakout of the 5-day line signals drawing the sword, and a turn of the 60-day line indicates the moment to sheath it.

Step 3: Weld discipline to the trading desk

I've seen too many people write their trading plans on napkins, only to tear them up in a panic during a sudden market spike in the middle of the night. The most brutal yet merciful aspect of the daily moving average strategy is that it forces you to become an emotionless signal-executing machine.

Here's a dark humor: A trader who used the daily moving average strategy to maintain stable profits for three years received a warning about the 5-day line breaking during a wedding ceremony and actually went to the restroom to close positions before coming out to exchange rings. Afterward, the bride scolded him while pulling his ear, but after seeing the account balance, she silently got him a top-of-the-line monitor.