Rules for Survival in the Cryptocurrency World: An Eight-Year Battle Record of a Grassroots Trader
Te Ge is a post-90s individual from Zhangzhou, Fujian, who has now settled in Shantou. In his eight-year journey in the digital currency market, amidst the tumultuous waves of cryptocurrency, how can an ordinary person achieve a leap in wealth? This survival rule, condensed with blood and tears of experience, may light a lamp for you.
First Filter: Friends of Time
Open the K-line chart for nearly 11 trading days and mark all continuously rising assets in the most primitive way. Here’s a key detail: any asset that shows three consecutive days of closing lower should be directly blacklisted. This is not technical analysis, but an intuitive judgment of market sentiment; truly strong assets will not easily offer continuous three-day buying opportunities.
Second Filter: Confirmation of Trend
Switch to the monthly line cycle, keeping only the assets that have just formed a golden cross in the MACD. Pay attention to the precision of this “just,” like the first blooming bud in spring. Premature budding may encounter cold waves, while late blooming may miss the best flowering period. This indicator acts like a scout on the battlefield, helping us filter out 80% of false signals.
Third Verification: The Secret Language of Volume
When the price retraces to the 60-day moving average, closely monitor changes in trading volume. If the volume suddenly expands to more than twice that of the previous day, it silently screams: it’s time to take action! This signal is like a beacon in the dark night, with a practical verification accuracy rate of 78% after three real-world tests.
Belief in Moving Averages: Keep the 60-Day Line on the Altar
When the price is above the moving average, guard your position like it’s a lifeline. But when the price falls below this red line, regardless of profit or loss, you must cut losses immediately. I preserved 80% of my profits during the sharp decline on May 19, 2021, because of this discipline.
The Art of Gradual Withdrawal:
When the increase reaches 30%, first cash out one-third of the profits;
When the increase reaches 50%, sell another one-third of the position;
The remaining position should be like flying a kite, with the reel always held in hand.
For the assets built today, if they close below the 60-day line the next day, regardless of the cost, you must liquidate all positions. This rule allowed me to exit with only a 15% loss of principal during the sharp decline on March 12, 2020.
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