Having been in the cryptocurrency space for seven to eight years, my funds have slowly reached eight figures. I have summarized my hard-earned experiences.
1. Divide your funds into five parts, and only invest one-fifth at a time! Control a stop-loss of 10%. If you make a mistake once, you only lose 2% of your total funds; if you make five mistakes, you lose 10% of your total funds. If you make a profit, set a take-profit of more than 10%. Do you think you will get stuck?
2. How can you further increase your win rate? Simply put, follow the trend! In a downtrend, every rebound is a trap to entice buyers, while in an uptrend, every drop creates a buying opportunity! Which do you think is easier to profit from: bottom fishing or buying low?
3. Do not touch cryptocurrencies that have experienced a rapid surge in the short term, whether they are mainstream or altcoins. There are very few coins that can make several waves of major upward movements. The logic is that it is difficult for a coin to continue rising after a short-term surge. When it stagnates at a high level and cannot rise further, it will naturally fall. This is a simple truth, but many still want to take a gamble.
4. You can use MACD to determine entry and exit points. If the DIF line and DEA cross above the zero axis, it is a stable entry signal. When MACD forms a death cross above the zero axis and moves downward, it can be seen 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 when they incur losses, which leads to even greater losses. This is the most taboo in trading cryptocurrencies; it puts you in a dead end. Remember, never average down when you're in the red, but increase your position when you're in the green.
6. The volume-price indicator is the first consideration; trading volume is the soul of cryptocurrency trading. Pay attention to a breakout on increased volume at a low price level during consolidation, and decisively exit when there is a surge in volume at a high level.
7. Only trade cryptocurrencies that are in an upward trend; this maximizes your chances and saves time. If the 3-day moving average turns upward, it indicates a short-term increase; if the 30-day moving average turns upward, it indicates a medium-term increase; if the 84-day moving average turns upward, it indicates a major upward trend; if the 120-day moving average turns upward, it indicates a long-term increase!
8. Persist in reviewing each round, check if the holdings have changed, technically analyze whether the weekly K-line trend aligns with your judgment, and whether there has been a trend change. Timely review and adjust your trading strategy! #SOL走势分析 #FTX赔付 #币安HODLer空投KAITO
