Master these six strategies
Teach you to cut losses in time
First, cut losses on bottom-fishing failure. Retail investors like to bottom-fish on the left side, but after a failed bottom-fishing attempt, they do not stop-loss and instead hold on. If the bottom-fishing is buried and the price breaks through the starting point of the stage, even if it’s a wrong sell, you must sell to avoid greater losses.
Second, cut losses at key support levels. In an upward trend, when the price rises to a high level and stops in a densely packed area, once it breaks through the key support level, you must strictly cut losses.
Third, cut losses in an upward trend. Continuously increasing positions is a winner's tactic, but if the coin price breaks below the previous high and the lowest price of the last three K lines, you should consider stopping the increase or cutting losses.
Fourth, fixed stop-loss. In trades that cannot afford to lose or when taking heavy positions, you must have a fixed stop-loss point. If a single trade loses 2% of the total capital, you should consider cutting losses.
Fifth, moving average stop-loss. Use moving average support methods to judge the market. If the price breaks through the key moving average, confirm the break and cut losses decisively.
Sixth, trendline stop-loss. In an upward trend, if the closing price falls below the trendline for two consecutive days, you must decisively reduce positions and cut losses. If you stubbornly hold on, when the coin price returns to the cost price, 80% of retail investors will sell at a loss.
