Trading cryptocurrencies for 17 years, turning 250,000 principal into a living by trading, I have tried 80% of the technical methods
If you want to achieve stable profits from cryptocurrency trading, this experience can help you avoid ten years of detours:
1. Enter on Pullbacks: Three Key Fibonacci Levels
Only focus on three points for pullbacks: 38.2%, 50%, and 61.8% of the previous increase (Fibonacci levels). Allocate 1/3 of your position at each level, so you can follow the market regardless of which point the pullback reaches. For example, if BTC rises from 40,000 to 60,000 and then pulls back, enter in batches at 50,000 (50%) and 55,000 (61.8%), which helps avoid missing out while diversifying risk.
2. Execution First, News Second
Set a plan before trading, and strict execution is more important than the method itself. Top methods + poor execution = losses, while poor methods + top execution = profits. 90% of market rumors are traps; chasing positive news can easily lead to being trapped. For example, if a certain coin is rumored to “soon be listed on a major platform,” it may spike and then be debunked, leaving late buyers stranded.
3. Coin Selection Logic: Leaders are Kings
Only choose leading coins in the same sector. Leaders have technological barriers and ecological support (like ETH's smart contracts and SOL's high performance), with deep moats, leading to more stable value growth. Retail investors who research more than five coins will scatter their energy; holding three coins within 200,000 principal and five within 500,000 is sufficient.
4. Ironclad Risk Control Rules
Do not exceed 50% position on the first entry: being fully invested is like gambling your life, and there’s no room for recovery if you're wrong. Use the 20-day moving average to determine life or death: enter only when the K-line is above the 20-day moving average; below it is the accumulation period for major players, where there is frequent washing; above it is the main upward trend. Do not change stop-loss orders: once you set a stop-loss level, even if it’s close to being hit, do not lower it; otherwise, small losses can turn into large losses.
5. Main Upward Trend Strategy
Once the price enters the main upward trend, only look at trading volume: if the volume is stable or decreasing, continue to hold, but if the volume increases, sell. As long as the major players haven't exited, the price will continue to rise; increased volume indicates potential unloading, so it’s safest to exit at this point.
6. Review and Withdraw Profits
Review trading records monthly, summarize successes and failures, and improve mistakes. After making a profit, first withdraw the principal; for instance, if you grow a 250,000 principal to 500,000, first withdraw 250,000. This helps maintain a stable mindset when using profits, avoiding impulsive increases in position size that might lead to a drawdown.
7. Details of Going with the Trend
When approaching a resistance level, first exit 50% of the position, keeping half for observation. If the resistance level is broken, you can buy back the position; if there's a pullback, you can avoid missing out entirely. For example, if BTC rises to 60,000 and encounters a resistance level, first sell 50%; if it breaks 65,000, buy back in, responding flexibly.
