Ten years of trading cryptocurrencies, starting with 300,000, and now having assets worth tens of millions. I rely on a position of 50% to steadily build up, with monthly returns soaring to 70%.
1. Divide your capital into 5 parts, only invest one-fifth each time! Control a 10% stop-loss; if you make a mistake once, you'll only lose 2% of your total capital. If you make 5 mistakes, you'll lose 10% of your total capital. If you're right, set a take-profit of over 10%. Do you think you will still be trapped?
2. How to further increase your win rate? Simply put, it’s about going with the trend! In a downtrend, every rebound is a trap to lure buyers, while in an uptrend, every drop creates a golden opportunity! Which do you think is easier to profit from, bottom-fishing or buying on dips?
3. Avoid cryptocurrencies that have surged rapidly in the short term, whether mainstream or altcoins; very few coins can go through several waves of major rises. The logic is that after a short-term surge, it’s quite difficult for them to continue rising. When a coin stagnates at a high level, it will naturally fall later; it’s a simple principle, but many still want to gamble.
4. You can use MACD to determine entry and exit points. If the DIF line and DEA create a golden cross below the zero axis, breaking above the zero axis is a solid entry signal. When MACD forms a death cross above the zero axis and starts to decline, it can be seen as a signal to reduce holdings.
5. I don’t know who invented the term "averaging down," but it has caused many retail investors to stumble and suffer great losses: many people keep adding to their positions as they lose more, leading to even bigger losses. This is the biggest taboo in cryptocurrency trading, putting oneself in a perilous position. Remember, never average down when you're in a loss; only add to your position when you're in profit.
6. Volume and price indicators are critical; trading volume is the soul of cryptocurrency buying. Pay attention to volume breakouts at low prices during consolidation, and decisively exit when there is a volume stagnation at high prices.
7. Only trade cryptocurrencies that are in an uptrend; this maximizes your chances and saves time. When the 3-day line turns upward, it indicates short-term bullishness; when the 30-day line turns upward, it indicates mid-term bullishness; when the 84-day line turns upward, it indicates a major bullish trend; and when the 120-day moving average turns upward, it indicates long-term bullishness.
8. Maintain a habit of reviewing each session, checking if there are changes in your holdings and whether the weekly K-line trends align with your judgments, and whether the trend direction has changed. Adjust your trading strategies in a timely manner.
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