Seven years of cryptocurrency trading, lost over 100 in the first 3 years, but made back a few hundred in the following years. Every penny behind it is a lesson learned through blood and tears!
This market is always repeating the same secret: 90% of retail investors are focused on news to trade cryptocurrencies, 9% of smart individuals are watching the movements of the big players, while 1% of aggressive players are dissecting market trends using moving averages.
Step 1: Verify the moving averages Treat the daily moving average as three distinctly different experienced doctors — the 5-day line is the head of the emergency department, the 30-day line is the internal medicine expert, and the 60-day line is sitting like a grandmaster in the specialist clinic. When the head of the emergency department suddenly stands up and rushes to check the pulse of the two old predecessors (the 5-day line crossing above the 30/60-day line), this is a signal that the market is preparing to enter ICU for rescue. Conversely, if you find the head of the emergency department slipping and rolling down from the grandmaster's chair in the specialist clinic (the 5-day line crossing below the 30/60-day line), don't hesitate, immediately adjust your position.
Step 2: Establish a Trading System to Prevent Overtrading
Now please put a sticky note on your trading interface and write in bold marker: Moving Averages Clash, Ordinary People Retreat. When the 5-day line and the 30-day line are entangled like twisted dough, rushing into the market is akin to rolling dice to guess odd or even. A true hunter only pulls the trigger when three lines march in the same direction.
Here is a counterintuitive cold knowledge: in the cryptocurrency market where wild fluctuations are common, the daily moving average strategy becomes more lethal the simpler it is. Just like a real martial arts master duel, there’s no need to display fifty starting moves; a breakout of the 5-day line signals the draw of the sword, and a turn of the 60-day line indicates the moment to sheathe it.
Step 3: Weld Discipline to the Trading Platform
I’ve seen too many people write their trading plans on napkins, only to tear them up in the middle of the night when startled by a sudden spike in the market. The most ruthless yet merciful aspect of the daily moving average strategy is that it forces you to become a signal-executing machine devoid of emotions.
Here’s a dark humor: a trader who used the daily moving average strategy to achieve stable profits for three years received a 5-day line break alert at his wedding last year, and he actually hid in the restroom to close his positions before coming out to exchange rings. Afterwards, the bride scolded him while holding his ear, but after seeing the account balance, she silently replaced his monitor with a top-end model.
(Carve this into your mind: you may doubt your operations, but never doubt the moving averages that have formed a collective force)
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