Family, today I want to chat with everyone about my journey of reversing fortunes in the cryptocurrency world! In the early years, I entered the market with a capital of 5000, and after years of struggle, I now hold 25 million. I want to share my experiences along this journey.
Capital management is crucial for survival; I never dare to invest everything. I divide my funds into five parts and only use one part for trading at a time. Even if one part incurs losses, I still have other funds to recover. I have strict rules: if a single part loses 10%, I immediately cut my losses, no matter how tempting it is. Even if I lose five times in a row, my total loss would only be 50%, but when the opportunity to profit arises, the gains far exceed that. I can also maintain my composure when stuck in a position.
When trading cryptocurrencies, it’s important to follow the trend, that’s reliable. When the market is falling, don’t try to catch the bottom; nobody knows where the bottom is. Wait for the market to rise, and when it pulls back, buy low. This is safer than blindly waiting for the bottom, and the probability of making money is higher.
Choosing coins requires precision; coins that surge sharply in the short term, whether mainstream or altcoins, should be avoided if possible. The more they rise, the larger the pullback will be; once stuck, getting out is much harder than climbing to the sky.
Among technical indicators, I trust MACD the most. When the DIF line and DEA line cross below the 0 axis and then break above it, that’s an excellent buying opportunity, and I can often make a profit when entering. If it crosses above the 0 axis and then goes down, I quickly reduce my position and don’t let profits slip away.
Be cautious when averaging down! Don’t add to losing positions; the more you add, the more you lose, and in the end, you might end up with nothing. Remember, decisively cut losses on losing positions and only consider adding to winning positions to protect profits and let gains snowball.
Also, don’t overlook trading volume. When the price breaks low with a sudden increase in volume, it’s a good opportunity, like a train starting; there may be a big market movement ahead, and following it could lead to great profits.
The key is to go with the flow. By looking at the daily line, 30-day line, 84-day line, and 120-day line, you can see where the trend changes and know how to operate. Following the trend makes earning money as easy as sailing smoothly.