Trading cryptocurrencies can be more profitable than trading stocks; this is not a myth.
If you have less than 100,000 in funds, I want to share the most 'foolish' way to trade; as long as you execute it properly, over the long term, you will be surprised at how you can achieve 'never losing' in the cryptocurrency market.
I am not a genius, nor am I a big player. What I can do is simply seize an opportunity that many overlook.
Moreover, once this method integrates into your trading habits, it is common to earn an additional 3%-10% daily in later operations.
Four 'hardcore maxims' for traders.
1. Buy sideways dips, avoid vertical spikes; sell in crowded markets.
The cryptocurrency market is like a turbulent sea, with prices rising and falling like crashing waves. To survive in this environment, you must first judge the general direction. Moving averages are your 'compass'; learning to observe their subtle changes allows you to perceive shifts in buying and selling power, laying a solid foundation for subsequent operations.
2. Small increases that come consecutively are real increases; large increases that come consecutively should be treated with caution.
The best way to capture trends is to focus on trading volume. Volume is the 'heartbeat' of capital; once there is unusual activity, it often indicates that the market is about to move. But don't act impulsively; wait for the price to stabilize after a correction before taking action; don't let temporary surges cloud your judgment.
3. A sudden drop with no volume is scary; a gradual drop with increasing volume means it's time to run.
Take profit and stop loss are your 'moat.' Before each order, think about how much loss you can tolerate; cut losses when it hits that level. Don't be greedy when in profit; set clear profit targets and take them when the time comes. Don't wait for cooked ducks to fly away.
4. A surge will always be followed by a pullback; don’t recklessly bottom fish unless deep pits are dug.
Position size should not be used carelessly. Don't put all your funds into one coin at once; the advanced approach is to enter and exit in batches, so even if the market suddenly changes, you can still retreat safely.
My core belief:
"Dignity only exists above high prices; truth only exists in reliable data."
1. The temptation of high points
When Bitcoin keeps hitting new highs, holders feel a sense of accomplishment. But the question is — how do you know this moment is the peak? Once it reverses, you might not even have a chance to run.
Therefore, when encountering high points, one must be rational:
• Set take profit levels to lock in profits.
• Diversify your investments; don't put all your chips in one basket.
• Expand your perspective and look at the project's long-term potential.
2. The power of data
The truth of the market won't jump out at you automatically; only by relying on the latest, reliable data and analysis can you see opportunities and traps clearly.
• Data must be real-time: outdated information is equivalent to waste paper.
• Technical analysis must be scientific: candlesticks, MACD, RSI, and trading volume are the 'weather forecasts' for judging trends.
• Before placing an order, ask yourself: Is my information complete? Is my analysis thorough?
My 'foolproof method' in three steps
1. First, filter coins.
Filter out coins that have shown an upward trend in the last 10 days, excluding those that have dropped significantly in the last 3-4 days. This way, you can identify potential and lower-risk targets.
2. Use MACD to lock in trends.
As long as the monthly MACD forms a golden cross, it should be given special attention, indicating a possible start of a new upward cycle.
3. Use the 60-day moving average to capture buying points.
When the coin price retraces to around the 60-day moving average and increases in volume, enter with a heavy position.
Holding principles:
• Hold on if it stands above the 60-day moving average; sell 1/3 at a 25% increase, and sell another 1/3 at a 50% increase.
• If it breaks below the 60-day moving average, exit immediately; prioritize survival before making profits.
The 10 'rules of life and death' that I have summarized.
1. If a strong coin falls for 9 consecutive days at high levels, immediately pay attention.
2. If a coin rises for two consecutive days, promptly reduce your position.
3. If there is a surge of over 7%, there may still be an opportunity for further gains the next day.
4. Wait for a correction to end before entering a strong coin.
5. If there has been no movement for three days, give it another three days of observation; if it doesn't work, switch to another coin.
6. If you haven't recouped yesterday's cost by the next day, immediately stop loss.
7. The top gainers list will have 5 out of 7 days in 3 days; the fifth day is a selling point.
8. Trading volume is the soul of the cryptocurrency market; pay attention to breakouts on low volume and run on high volume stagnation.
9. Only trade coins in an upward trend: a 3-day uptrend is a short-term buy, a 30-day uptrend is a medium-term buy, an 80-day uptrend is a primary upward wave, and a 120-day uptrend is a long-term bull.
10. Small funds require more patience; method + discipline is the way to turn the tables.
21 days to build a profitable habit - the six-step method of a trading system.
1. First determine the trading cycle (intraday, swing, long-term)
2. Use moving averages and other indicators to judge the trend.
3. Use MACD, RSI, etc., to confirm the authenticity of trends.
4. Clearly define your risk tolerance (maximum loss per trade)
5. Clearly define entry and exit rules (do not arbitrarily increase or decrease positions)
6. Write down the rules and strictly enforce them.
First backtest with historical data, then test with a simulated account, and finally use small funds for live trading. Those who endure this process are the ones who can stand firm in the market.
Finally, I want to say — those who make money in the cryptocurrency space are never the ones using the flashiest techniques, but rather the most disciplined and patient ones.
Big players profit from news, while retail investors survive on discipline.
In this market, if you want to harvest alongside the big players, you must first learn not to be harvested yourself.
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