Learned this position management in the crypto world for 8 years~ Whoever uses it makes a profit!
The strategy is steady and reliable, with monthly returns reaching up to 70%.
1. Divide the capital into 5 parts, and only invest one-fifth each time! Control a stop-loss of 10 points; if you make one mistake, you only lose 2% of the total, and it takes 5 mistakes to lose a total of 10%. If you're right, set a take-profit of at least 50 points.
2. How to further improve the win rate? Simply put, just two words: follow the trend! In a downtrend, every rebound is a trap to lure buyers, while in an uptrend, every dip presents an opportunity! Is it easier to earn by catching the bottom, or by buying low? You all know the answer in your hearts!
3. Do not touch coins that have rapidly surged in the short term, whether mainstream or altcoins; very few B-types can sustain multiple waves of bullish momentum. The logic is that it is difficult for a coin to continue rising after a short-term surge. When it stagnates at a high position, it will naturally decline later; it's a simple principle.
4. Use MACD to determine entry and exit points. If the DIF line and DEA form a golden cross below the zero axis, breaking above the zero axis is a solid entry signal. When MACD forms a dead cross above the zero axis and moves downward, it can be seen as a sell signal.
5. I don't know who invented the term 'averaging down,' but it has caused many retail investors to stumble and suffer huge losses! Many people keep adding to their losing positions, and the more they add, the more they lose. This is a major taboo in trading; it puts you in a deadlock. Do not increase your position when in a loss; increase your position when in profit.
6. Volume-price indicators are of utmost importance; trading volume is the soul of crypto trading. Pay attention when there is a volume breakout at a low level during consolidation, and decisively exit when there is a volume stagnation at a high level.
7. Only trade coins in an upward trend; this greatly increases your odds and doesn’t waste time. When the 3-day moving average turns upwards, it indicates short-term rises; when the 30-day moving average turns upwards, it indicates medium-term rises; when the 84-day moving average turns upwards, it indicates a major bullish wave; when the 120-day moving average turns upwards, it indicates a long-term rise!
8. Insist on reviewing each trade, check if the holdings have changed, technically analyze if the weekly K-line trend aligns with your judgment, and whether the direction has undergone a trend change. Adjust your trading strategy in a timely manner!