Ten years ago, my account had less than 5000U, now I easily make 50,000U!
Today, I will break down the 3 steps for choosing coins and 5 iron rules for safety.
Step 1: Focus on active coins. Open the trading software's gain leaderboard every day and add coins that have risen in the last half month to your watchlist. For example, last month I noticed a coin called PEPE, which appeared on the gain leaderboard for three consecutive days, so I added it to my observation list. Remember, only coins that have risen indicate that there is capital paying attention; those coins that lie at the bottom without movement are like stagnant water—no matter how cheap they are, don’t touch them.
Step 2: Look for the monthly MACD golden cross. This indicator is particularly simple; when the two lines in the indicator cross from below to above, it is a signal that the trend has started. Last year, Ethereum had a golden cross on the monthly line, and I decisively built a position, making 40% in three months.
Step 3: Find buying points at the 60-day moving average. Pay close attention to whether the price rebounds to the 60-day moving average with increased volume. In April this year, I bought SOL because I saw it pull back to the 60-day moving average, and the trading volume expanded to twice the usual on that day, so I decisively bought in heavily. After discussing coin selection, let me share five iron rules for safety:
Rule 1: Sell immediately if the price breaks a key support level. Last month, the ADA I held broke an important moving average; although I lost 5% at that time, I stopped the loss in time to protect my principal.
Rule 2: Take out half of your position when you make a 30% profit. When the AXS I bought last year reached a 30% profit, I first sold half, and continued to hold the rest, ultimately making a total profit of 80%.
Rule 3: Take out half again when you make a 50% profit. Just like how I operated with DOT, when it reached a 50% profit, I sold half again, letting the remaining profit continue to run.
Rule 4: The 60-day moving average is a lifeline. No matter the situation, as soon as the price breaks this line, stop loss immediately. This rule saved me three times last year, at least avoiding a 20% loss.
Rule 5: Never average down your cost. Many beginners like to buy more as the price drops, but I never do that. When LUNA plummeted last year, I held on without averaging down, and finally stopped loss in time to protect my principal. Some may feel these methods are too simple, but less than 10% of people can truly execute them strictly.
Finally, I remind everyone that the market is very volatile now; you must control your hands. Only take action when you see coins that meet these three conditions; if they don't, just keep waiting.
