The Six Golden Rules of Cryptocurrency Trading:
1. Capital allocation should be balanced, dividing the principal into five equal parts, investing only one-fifth each time, and setting a 10% stop-loss line. This way, even if you make one mistake, you only lose 2% of the total capital; even if you make five mistakes in a row, the loss is only 10%.
2. Trend-following is key. When the market is falling, rebounds are often a trap; when the market is rising, pullbacks may present good buying opportunities.
3. Stay away from short-term skyrocketing cryptocurrencies; stagnation at high levels means increased risk of decline.
4. Use the MACD indicator to grasp buy and sell timing. A stable entry signal: the DIF line and DEA line form a golden cross below the zero axis and break above it; a reduction signal: the MACD forms a death cross above the zero axis and moves downward.
5. Never average down when losing; add more when profiting. Pay attention to the volume-price relationship; a breakout on increased volume at a low level is a buying signal, while stagnation on increased volume at a high level should prompt decisive selling. Only choose strong cryptocurrencies that are in an upward trend and have value.
6. Weekly reviews are essential; timely adjustments to trading strategies are necessary to respond to market changes.