Brothers, I have been struggling in the cryptocurrency world for seven or eight years and have finally accumulated an eight-figure capital. Today, I want to share the experiences I have summarized over the years in the most straightforward way.
1. Capital allocation and risk control: My approach is to divide the money into five parts, using only one-fifth for operations each time. Remember, never put all your money in one place.
2. There is an iron rule in the cryptocurrency world: the trend is your friend. During a downturn, all rebounds are traps; during an uptrend, every pullback is an opportunity.
3. Stay away from coins that surge dramatically: Whether mainstream coins or altcoins, coins that surge dramatically in the short term are basically traps. After a surge, there is often a dramatic drop.
4. MACD indicator: When the DIF and DEA form a golden cross below the zero line and break through the zero line, it is a good time to enter; when they form a death cross above the zero line and move downward, it is a signal to exit.
5. Averaging down is a trap: The more you average down, the more you lose, and the more you lose, the more you average down. Averaging down is not an antidote, but a poison.
6. Trading volume is the core of the cryptocurrency world. Increased volume at low levels is often a signal for market initiation; high volume with stagnation at high levels is a signal to exit.
7. In the cryptocurrency world, only invest in coins that are in an uptrend to maximize your winning chances. By observing the short-term, medium-term, and long-term moving averages, you can easily determine the direction of the trend.
8. Reviewing your trades is the key to self-improvement. Every day, check if the coins you hold meet your expectations, whether the weekly K-line trend is healthy, and if the trend has changed.
If you also want to avoid detours and achieve financial freedom sooner, then keep up with my rhythm!
If you currently feel helpless and confused in trading and want to learn more about the cryptocurrency world and the latest information, follow me, and don't get lost in this bull market!