A friend in the crypto world has been in seclusion for three years, sharing a trading method with a win rate of 98%!
In the crypto world, there is a friend in Beijing who was in debt of 60 million due to a contract liquidation three years ago, after which he chose to go into seclusion for self-improvement.
Now, not only has he paid off his debt, but he also possesses a wealth that others envy, with a monthly income reaching seven figures and an annual income exceeding eight figures!
Recently, we were fortunate enough to meet.
He shared with me the trading methods he acquired during his three years of seclusion. I have organized this information and verified it through thousands of trading practices, discovering that its win rate astonishingly reaches 98%! Now, I am willing to share this valuable experience with those destined to receive it.
A common problem among retail investors worldwide is: holding onto losses stubbornly and being eager to sell as soon as there is a slight profit.
They often do not look at trends or trading volumes, only at the limited profits in their accounts. However, the correct approach should be to operate in the opposite way: hold onto profits and let them run;
when at a loss, decisively cut losses to control them. My profit-taking and stop-loss principles are: when profits reach 15%, if the profit falls back to 10%, take profit;
if the loss exceeds 5% of the principal after purchase, then stop loss. With such a strategy, even if your win rate is only 50%, after 100 operations, the return can reach an astonishing 300%!
But the difficulty lies in human greed and fear. Knowing and doing must be unified; remember that trends are king and act in accordance with the trend. Once a trend is established, there is no need for excessive analysis; you must follow.
Follow the money, do not speculate, do not predict, do not assume. If you are unable to judge the trend, just look at the moving averages.
Moving averages divide the market into bullish and bearish: bullish moves up, bearish moves down. For short-term, look at the daily moving average; if there is a breakout with volume, follow it; for medium to long-term, look at the weekly moving average; if there is a breakout with volume, enter the market, and if it breaks down, exit.
Acting in accordance with the trend means not going against it. When the market is bad, firmly stay out of positions; when the trend of the coin is down, do not easily try to catch the bottom. Do not fantasize that you can buy coins that rise against the market, nor should you expect that buying will start a rebound. The probability of such situations is too low. The core of trading is to only engage in high-probability events and abandon low-probability ones.
Daring to admit mistakes and timely controlling losses is fundamental to your survival in the market. Its importance far exceeds the inability to profit today. No matter what method you use, mastering one is enough. You must use this method thoroughly, expertly, and completely.