A friend from last year lost hundreds of thousands of U and was left with only seven or eight thousand. His wife left him, he sold his house, and he hadn’t even discovered that the child wasn’t his. He almost jumped off a building, but I caught him.
Later, he also gave up and followed my strategies: strictly controlling positions, not chasing highs or blindly averaging down, and focusing on finding opportunities in BTC and ETH.
The result was a turnaround in a year, and he made quite a profit!
The main methods aren’t actually difficult; they rely on these 8 points:
1. Selection of trading targets
Mainstream first: Focus only on BTC and ETH, avoiding the high volatility risks of altcoins.
Sufficient liquidity: Mainstream coins have good depth, allowing for smooth entry and exit, making them more suitable for high selling and low buying.
2. Short-selling strategy
Opening position: Monitor key moving average resistance on the 4-hour chart, such as MA60.
Gradual positioning: When the price is constrained by the moving average, enter short positions gradually nearby.
Stop-loss control: Set above the previous high after a spike. For example, if the resistance level is 2440, and the price spikes to 2450 and then falls back, set the stop-loss above 2450.
3. Long-buying strategy
Opening position: Pay attention to support levels of the same or larger timeframe, entering gradually.
Stop-loss position: Set above the previous low after a spike. For example, if the support level is 2320, and the price drops to 2310 and bounces back, set the stop-loss near 2300.
4. Money management
Daily stop-loss: Daily losses should not exceed 20% of the principal; stop trading when it reaches that point.
Single trade stop-loss: Each trade should not lose more than 10% to prevent one loss from ruining everything.
Balanced position: Maintain consistent position sizes; do not arbitrarily double down.
5. Trading discipline
Set the risk-to-reward ratio at 3:1, with profits significantly greater than losses.
If the daily drawdown exceeds 10%-15%, stop trading immediately.
When the trend is good, one may consider hot coins, but prioritize risk management.
6. Responding to special market conditions
During extreme sell-offs, maintain an empty position; do not rush to catch the bottom.
Wait for clear signals before entering; it’s better to earn less than to act blindly.
7. Take profit and stop-loss techniques
Breakeven stop-loss: If the market moves favorably, promptly move the stop-loss to the opening price to prevent profit erosion.
Trailing stop-loss: Use short-term K-lines to dynamically adjust the take profit. For example, after gaining 35 points in ETH and 500 points in BTC, activate the trailing stop to lock in profits.
8. Trading mentality
Avoid going all in: Always leave room for funds.
Control greed: Discipline leads to long-term gains.
If you don’t want to keep going in circles, then join me in planning, so you can come out of the trough sooner. The current market is a good time to recover losses and flip positions.
