The key strategy shared by experts in the cryptocurrency space for guaranteed profits mainly focuses on correct position management and investment strategies. Here are the key points:
Control Positions and Risks
1. Position Sizing Method: Divide capital into several parts, for example into 5 shares [1], and only invest a part each time. This way, even if a specific investment fails, it won't lead to significant losses. For instance, using one-fifth of each part for investment and setting a 10% stop-loss means that each mistake only loses 2% of total capital, and only after five mistakes would there be a 10% loss. If profitable, a take-profit point of at least 10% should be set to prevent profit shrinkage.
2. No Averaging Down Principle: Avoid increasing positions when in loss, known as 'adding margin' behavior. Positions should be gradually increased during profits, not expanded during losses to prevent further deepening of losses.
Technical Analysis and Trend Following
3. Trend Trading: Identify and follow the direction of market trends. In a downtrend, one should not expect a rebound as a buying opportunity, while in an uptrend, even a brief pullback is a good opportunity to buy at a lower price.
4. MACD Application: Use the MACD indicator to assist in judging entry and exit timing. When the DIF line and DEA line form a golden cross below the 0 axis and cross the 0 axis, it is considered a potential buy signal; conversely, if a death cross appears above the 0 axis and starts to decline, it may be a sell signal.
Select Targets
5. Avoid Short-Term Surge Coins: Stay alert to cryptocurrencies that have surged significantly recently, as their likelihood of continuous rise in the future is low, and they are prone to revert after high stagnation.
6. Preference for Major Coins: Prefer to invest in mainstream cryptocurrencies that have proven long-term value, such as Bitcoin and Ethereum, rather than newly emerged high-risk projects.
Trend Analysis
7. Moving Average System: Assess the stability of mid-term to long-term trends based on moving averages of different durations. The turning points of the 3-day, 30-day, 84-day, and 120-day moving averages represent different levels of volatility.
Mindset and Discipline
8. Regular Review: Daily review of positions, confirming the validity of current judgments based on weekly K-line trends, and adjusting plans immediately when trends change.
Practical Example
9. Specific Case Illustration: An investor with ten years of experience mentioned in a discussion that significant growth was achieved through the above methods, emphasizing the importance of patiently waiting for the right entry points and the habit of quickly stopping losses without being attached to unfavorable conditions.
In summary, the true secret to 'guaranteed profits' lies in precise capital allocation, strict stop-loss mechanisms, operations that align with market trends, reasonable application of technical analysis, combined with good psychological quality and ironclad execution. This not only involves technical control but also tests personal emotional management and depth of market understanding.
