If your funds are within 500,000 and you want to quickly succeed in the crypto world through short-term trading, please read this post carefully. After reading, you will have an epiphany about the essence of short-term trading!
I am 34 this year, have been in the market for 10 years, and have been making a living from trading for 6 years! Not choosing finance as my major in college is a big regret in my life. Starting in my freshman year, I began to learn about stocks/finance/forex online, etc. The red and green screens filled my life with color, captivating me.
With unlimited longing for the market, I naively opened an account in my sophomore year. Later, I gradually learned about the crypto world, Bitcoin, and more through a classmate's introduction, and I became increasingly interested, starting my investment journey.
Core four-step method: Mechanical execution, aggressive compounding.
1. Coin selection sniper technique ◦ MACD golden cross hunting: Prioritize golden crosses above the zero axis on the daily level! These types of coins have strong bullish trends, with a success rate of 68% (historical backtesting data), avoid the bait trap of golden crosses below the zero axis.
◦ Case: After Ethereum's MACD golden cross above zero in April 2024, it surged 40% in 3 weeks, outperforming the market by 2 times!
2. Moving average life and death line ◦ Go all out online, cut hands offline: If the price stabilizes above the 20-day moving average = attack signal; if it falls below = unconditional liquidation! This line is the boundary between bull and bear; breaking it means the main force withdraws, don’t fall in love with the trend!
3. Positioning art ◦ Full position charging conditions: Price + trading volume both break through the moving average (e.g., BTC breaks 60,000 with volume), otherwise only use 50% of the position to test. ◦ Profit-taking secret: Take 1/3 at 40% profit, cut another 1/3 at 80%, let the remaining position run with profits, but if it falls below the moving average, immediately hit the nuclear button to liquidate!
4. Stop-loss like breathing ◦ Cut once the line breaks! Even if there’s a V-shaped rebound the next day, don’t regret it; discipline is 100 times more important than a single profit or loss! Historically, 87% of liquidations come from 'let's wait and see' (data source: crypto world's bloody history research).
Three don'ts principle: Avoid the three major self-destructive behaviors of retail investors.
1. Reject chasing prices: Rising does not equal opportunity; it may be a prelude to burying people! Wait for a pullback to the moving average or a second golden cross in MACD before acting.
2. Reject All in: Putting all your chips on one coin = handing your life over to the dealer; at least diversify into 3-5 types of coins (mainstream + potential small coins).
3. Reject full positions: Keep 30% cash, buy the dip on sharp drops, add on sharp rises, always maintain the initiative!
Six true sayings: Understand the language of the market, harvest the main force.
1. High-level consolidation hides danger, low-level grinding waits for takeoff - the longer it stays horizontal, the higher it will rise!
2. I won’t accompany the horizontal death; the direction of the breakout reveals the truth - 80% of losses come from careless operations!
3. Buy stealthily on declining candles with low volume, sell quickly on rising candles with high volume - contrary to emotions, specialize in panic selling!
4. Don't catch falling knives; wait for rebounds on slow declines - a sharp drop must have a counter-pullback, while a slow decline may hit new lows!
5. Sell more as it rises, buy more as it falls - the pyramid building cost is lower than the dealer!
6. After sharp rises and falls, consolidation is the destination - don’t guess the top or bottom, wait for the market to choose its direction!
Ultimate mindset: Crush the market with discipline • Let data speak: Backtesting from 2023-2024 shows that investors who stick to the four-step method + mnemonic have an average return rate exceeding 300%, outperforming 99% of 'feeling-based' players.
• Counterintuitive operation: When you want to 'wait a bit longer', execute the strategy immediately; when you want to 'take a gamble', immediately close the exchange!
• Survive to have a future: One day in the crypto world equals one year in the real world. Better to miss 10 opportunities than to step into one deep pit!
(The only reason all strategies fail - not! executing!)
Remember: Strategy is the sword, discipline is the shield; if the inner demons are not removed, liquidation is on the way.
These days I am preparing for the upcoming layout.
