After seven years of trading cryptocurrencies, every penny earned relies on a foundation of understanding and the protection of discipline.

In the first three years, I lost over 100, but in the following years, not only did I earn back what I lost, but I also made several hundred more. Behind every penny is a lesson learned through blood and tears!

This market is always repeating the same secret: 90% of retail investors are chasing news to buy high and sell low, 9% of smart people are trying hard to watch the movements of the big players, while that 1% of aggressive traders have already analyzed the market using moving averages.

Step 1: Verify the legitimacy of the moving averages.

Treat the daily moving average as three distinct old Chinese medicine doctors — the 5-day line is the head of the emergency department, reacting the fastest; the 30-day line is the internal medicine expert, steady and solid; the 60-day line is like sitting in the expert clinic's master's chair, setting the overall direction.

When the head of the emergency department suddenly 'stands up' and jumps over the heads of two old predecessors (the 5-day line crosses above the 30/60-day lines), it is often a signal that the market is about to start; conversely, if the head slips and 'rolls down' from the master's chair (the 5-day line crosses below the 30/60-day lines), don't hesitate, immediately reduce your position to avoid risk.

Step 2: Establish a trading system to prevent impulsive decisions.

It is suggested to stick a note on the trading interface, written in bold with a marker: "When moving averages clash, ordinary people retreat."

When the 5-day line and 30-day line are intertwined like twisted dough, entering the market at this time is no different from rolling dice to guess odds. The true hunter only pulls the trigger when all three lines are 'marching' in the same direction.

Here’s a counterintuitive piece of trivia: In the cryptocurrency market, where wild fluctuations are common, the daily moving average strategy becomes increasingly simple yet deadly. Just like a martial arts master duel, there’s no need to display fifty starting moves — the breakthrough of the 5-day line is the signal to draw the sword, and the turning of the 60-day line is the timing to sheath it.

Step 3: Weld discipline onto the trading desk.

I have seen too many people write their trading plans on napkins, only to tear them up in the middle of the night after being scared by a sudden market movement. The most brutal yet merciful aspect of the daily moving average strategy is that it forces you to become an emotionless signal execution machine.

A true story: A trader who made stable profits using daily moving averages for three years received an alert about the 5-day line breaking during his wedding ceremony, and he actually hid in 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 top-spec one.

(This sentence should be engraved in your mind: You can doubt your own operations, but never doubt the moving averages that have already formed a consensus.)

If you want to make money in this market, don't be a lone hero. Follow me, and together we will use discipline to combat human weaknesses.