1. Divide your funds into 5 parts, only invest one-fifth each time! Control a stop loss of 10 points; if you make a mistake once, you only lose 2% of your total funds. If you make 5 mistakes, you lose 10% of your total funds. If you are correct, set a take profit of more than 10 points. Do you think you will still be trapped?
2. How can we improve the win rate again? Simply put, it's just two words: follow the trend! In a downtrend, every rebound lures in buyers; in an uptrend, every decline creates a golden buying opportunity! Which is easier to profit from: bottom-fishing or buying on dips?
3. Do not touch coins that have rapidly surged in the short term, whether they are mainstream or altcoins. There are very few coins that can make several waves of major uptrends. The logic is that it is very difficult to continue rising after a short-term surge. When prices stagnate at high levels and do not rise further, they will naturally fall; it's a simple principle, but many people still want to take a gamble.
4. You can use MACD to determine entry and exit points. If the DIF line and DEA form a golden cross below the 0-axis, and then break above the 0-axis, it is a stable entry signal. When MACD forms a death cross above the 0-axis and moves downwards, it can be seen as a signal to reduce positions.
5. I don’t know who invented the term 'averaging down', but it has caused many retail investors to stumble and suffer significant losses! Many people keep adding more when they lose, and the more they add, the more they lose. This is the biggest taboo in trading coins, putting yourself in a dead end. Remember never to average down when you are in loss, but to add positions when you are in profit.
6. Volume and price indicators are crucial; trading volume is the soul of buying in the crypto world. Pay attention when the price breaks out with increased volume from a consolidation at low levels, and decisively exit when there is increased volume but price stagnates at high levels.
7. Only trade coins in an upward trend, as this maximizes your chances and saves time. When the 3-day moving average turns upwards, it indicates a short-term rise; when the 30-day moving average turns upwards, it indicates a medium-term rise; when the 84-day moving average turns upwards, it indicates a major uptrend; and when the 120-day moving average turns upwards, it indicates a long-term rise!
8. Insist on reviewing each session, check if there are changes in your holdings, technically analyze if the weekly candlestick trends align with your judgment, and whether the direction has changed trends. Adjust your trading strategy in a timely manner!
