After a decade of navigating the cryptocurrency market, my assets have now crossed the nine-figure mark. Through years of experience, I've learned valuable lessons that I'd like to share:
1. Capital Management: Split your funds into five equal portions and risk only one-fifth per trade. Implement a 10-point stop loss, so even with five consecutive losses, your total loss won’t exceed 10% of your capital. When you start seeing profits, aim for a take-profit target above 10 points to avoid getting trapped in a bad trade.
2. Trading with the Trend: It’s essential to understand and follow the market trend. In a downtrend, each rebound could be a trap, while in an uptrend, pullbacks might offer a good opportunity to enter.
3. Avoiding FOMO: When a cryptocurrency experiences a rapid surge, whether it’s well-known or not, remain calm and avoid making impulsive decisions. Historically, few coins maintain multiple sharp rallies—after a strong rise, a correction usually follows. If the price stagnates at a high level with weakening momentum, a drop is likely.
4. Mastering MACD Signals: The MACD indicator is key for identifying entry and exit points. A golden cross below the zero line that crosses upward signals a solid buying opportunity, while a death cross above the zero line followed by downward movement suggests it's time to cut back on your position and manage risk.
5. The Power of Trend Trading: Focus on assets in a strong uptrend for greater trading efficiency and higher success rates. By tracking important moving averages—short-term (3-day), medium-term (30-day), main trend (84-day), and long-term (120-day)—you can better assess market trends and make more informed decisions.