I used the dumbest method for trading coins, and my win rate has reached 100%! From debt to earning steady compound interest! (A must-read for all traders)

First, position management is key. I generally divide my available funds into five equal parts, using only one part for each trade. The benefit of this approach is that even if one trade fails, the loss is limited to a small portion of the total funds (about 2%).

At the same time, I set a 10% stop-loss point. Once this limit is reached, I sell decisively to avoid larger losses.

Conversely, if the market trend is favorable, I will set a profit target of at least 10% or more.

Second, it is crucial to follow the market trend. When the market is in a downtrend, any rebound may be a temporary bait; while in an uptrend, a pullback often presents a good buying opportunity.

Third, avoid chasing coins that have spiked in price in the short term. Whether mainstream coins or altcoins, after a rapid increase, the likelihood of further rises is low. High-level consolidation often indicates an impending price drop, so don’t easily be tempted by short-term gains.

Fourth, using technical analysis tools such as the MACD indicator can help determine buy and sell timing. For example, when the MACD line (DIF) crosses above the signal line (DEA) below the zero line, it is usually a buy signal; conversely, if a death cross forms above the zero line, one should consider reducing positions or closing out completely.

Fifth, regarding the strategy of averaging down, it is important to understand that adding investment while in a loss state is usually unwise. The correct approach is to increase investment based on existing profits, rather than trying to recoup previous losses by continuously investing more funds.

Sixth, changes in trading volume can provide important market signals. For example, when a coin experiences a significant increase in volume at the bottom, it may indicate that buying strength is increasing; while encountering high volume stagnation at a peak may be a warning of increased selling pressure, at which point one should promptly liquidate positions.

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