After seven years of trading cryptocurrencies, I lost over 100 in the first three years, but made back several hundred in the following years, with every penny representing blood and tears!
This market is forever repeating the same secret: 90% of retail investors focus on news for trading, 9% of smart people watch the movements of the big players, while 1% of aggressive participants are dissecting market genes using daily moving averages.
Step 1: Verify the identity of the moving averages. Treat the daily moving averages as three distinctly different old Chinese doctors— the 5-day line is the head of emergency, the 30-day line is the internal medicine expert, and the 60-day line is like an authority sitting in the specialist's office. When the emergency head suddenly perks up and rushes to check the pulse of the two old experts (the 5-day line crossing above the 30/60-day lines), that signals the market is preparing to enter ICU for rescue. Conversely, if the emergency head slips and tumbles down from the specialist’s authoritative chair (the 5-day line crossing below the 30/60-day lines), don’t hesitate; immediately adjust your position.
Step 2: Establish a trading system to prevent impulsive decisions.
Now please stick a note on your trading interface, and write in bold marker: When moving averages clash, ordinary people retreat. When the 5-day and 30-day lines twist and tangle like dough, rushing into the market is akin to rolling dice and guessing odds. A true hunter will only pull the trigger when three lines are marching in the same direction.
Here's a counterintuitive cold fact: In the crypto world where volatility is commonplace, the simpler the daily moving average strategy, the more lethal it becomes. Just like a true martial arts master duel, there’s no need for fifty opening moves; a breakthrough of the 5-day line is the signal to draw the sword, and a turn of the 60-day line is the moment to sheath it.
Step 3: Weld discipline onto the trading platform.
I've seen too many people write their trading plans on napkins, only to tear them up in a panic during a midnight spike. The most cruel yet kind aspect of the daily moving average strategy is that it forces you to become an emotionless signal execution machine.
Here’s a dark humor story: A trader who used daily moving averages for stable profits for three years received a 5-day line breach alert at his wedding. He actually ducked into the restroom to close his position before coming out to exchange rings. Afterward, the bride scolded him, but upon seeing the account balance, she silently replaced his monitor with a high-end one.
(Carve this into your pituitary gland: You can doubt your operations, but never doubt the converged moving averages.)
If you want to make money, don't be a lone warrior
