After nine years of cryptocurrency trading, I steadily built my position with fifty percent allocation, achieving monthly returns of up to seventy percent.
Feeling good today, so I'm sharing these precious tips with you all, remember to keep them safe!
1. Divide your funds into 5 parts, only enter one-fifth at a time! Control a 10% stop loss; if you make a mistake once, you only lose 2% of your total funds, and if you make 5 mistakes, you'll lose 10% of your total funds. If you're right, set a take profit of over 10%. Do you think you'll still be stuck?
2. How to further improve your win rate? Simply put, follow the trend! In a downtrend, every rebound is a trap to lure buyers, and in an uptrend, every drop creates a buying opportunity! Do you think it's easier to make money by bottom fishing or by buying on dips?
3. Don't touch cryptocurrencies that have surged rapidly in the short term, whether mainstream or altcoins; very few coins can make several waves of primary upward trends. The logic is that it's quite difficult to continue rising after a short-term surge. When prices stall at a high level and can't be pushed up later, they will naturally fall; it's a simple principle, 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, and once it breaks the zero axis, it's a solid entry signal. When MACD forms a death cross above the zero axis and starts to move 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 incur significant losses! Many people keep averaging down as they lose more, and the more they average down, the more they lose. This is the most taboo in cryptocurrency trading and can lead to ruin. Remember, never average down when you're losing; only add to your position when you're in profit.
6. Volume-price indicators are crucial; trading volume is the soul of the cryptocurrency market. Pay attention when there is a breakout with increased volume at a low price consolidation, and decisively exit when there is increased volume at a high price stall.
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's a short-term uptrend; if the 30-day moving average turns upward, it's a medium-term uptrend; if the 84-day moving average turns upward, it's a primary uptrend; and if the 120-day moving average turns upward, it's a long-term uptrend!
8. Persist in reviewing each trading session, check if there are changes in your holdings and whether the technical analysis of the weekly candlestick chart aligns with your judgments, and whether there has been a trend change. Adjust your trading strategy promptly!