Having learned this simplest trading method from me, you will navigate the cryptocurrency world as if you’re on autopilot, with a green light all the way, simply because you have firmly grasped the following 8 rules.
1. Divide your capital into five parts, and only invest one-fifth at a time! Control a 10% stop loss; if you make one mistake, you only lose 2% of your total capital. If you make five mistakes, you only lose 10% of your total capital. If you are correct, set a take profit of over 10%. Do you think you will still be trapped?
2. How to further improve the winning rate? Simply put, it's two words: go with the trend! In a downtrend, every rebound is a trap for bulls, while in an uptrend, every drop creates a golden opportunity. Which do you think is easier to make money from, bottom fishing or buying on dips?
3. Avoid cryptocurrencies that have surged sharply in the short term, whether mainstream or altcoins; few cryptocurrencies can sustain multiple major upward waves. The logic is that it is relatively difficult for them to continue rising after a sharp increase in the short term. When they stagnate at a high point and cannot be driven upward later, they will naturally decline. This is a simple principle, yet many still want to take a gamble.
4. You can use MACD to judge entry and exit points. If the DIF line and DEA cross above the 0 axis, it is a stable entry signal. When MACD forms a death cross and moves downward above the 0 axis, it can be regarded as a signal to reduce positions.
5. I don't know who invented the term 'averaging down,' but it has caused many retail investors to stumble and suffer huge losses! Many people keep averaging down on their losses, leading to even greater losses. This is the biggest taboo in trading cryptocurrencies; it puts you in a dead-end. Remember, never average down when you're in the red; do it when you're in profit.
6. Volume and price indicators are paramount; trading volume is the soul of the cryptocurrency market. Pay attention when the price breaks out with increased volume at a low point, and decisively exit when the price stagnates at a high point with increased volume.
7. Only trade cryptocurrencies in an uptrend, as this maximizes your chances and saves time. When the 3-day line turns upward, it indicates a short-term rise; when the 30-day line turns upward, it indicates a medium-term rise; when the 84-day line turns upward, it indicates a major upward wave; when the 120-day moving average turns upward, it indicates a long-term rise!
8. Persist in reviewing weekly, checking if the logic behind your holdings has changed, technically assessing whether the weekly K-line trends align with your judgments, and whether there has been a trend change; promptly review and adjust your trading strategies!
Trading is not about getting rich in one go; it is about reasonable profits that can achieve long-term, stable, sustainable, and high-probability returns, allowing one to continuously accumulate wealth.
Professionals create value, and details determine success or failure. If you currently feel helpless or confused while trading in the cryptocurrency world, I hope my sharing can provide you with some inspiration and help!
I am Teacher Lulu, having experienced multiple bull and bear markets, with three years in the industry, five years of understanding, and ten years of reigning supreme. I have abundant market experience in various financial fields, and here, I penetrate the fog of information to discover the true market. To grasp more opportunities for wealth, visit the homepage and discover genuinely valuable opportunities in the community; don’t miss out and regret later!