I used the dumbest method for trading cryptocurrencies, and my win rate is nearly 100%! (A must-read for all cryptocurrency traders)
After drifting in the crypto world for 10 years, from liquidation to stable profits, I have summarized these practical experiences to help newcomers avoid pitfalls. There is no fluff in the full text, only pure dry goods! (Includes an operation checklist)
1⃣ 【Idle Money Investment Principle|Invest with funds that do not affect your life】
Always use only 10%-20% of your disposable income for trading. For example, if you have 100,000 in savings, only use a maximum of 20,000 for trading. I have seen too many people risk their entire fortune or even borrow money, only to end up breaking down mentally. True winners always operate in a state of 'being able to afford to lose.' For example, with Bitcoin dollar-cost averaging: invest 10% of your monthly salary in batches; even if the bear market drops by 50%, it won’t affect your quality of life.
2⃣ 【Stop Loss is More Important than Profit|5% Mandatory Stop Loss Line】
When the direction is wrong, you must immediately stop loss when down by 5%. I once held onto positions during the LUNA crash, watching my 100,000 turn into 1,000. Now my discipline is: exit if the short-term breaks the 5-day moving average, and clear positions if the medium-term breaks the 20-day moving average. Remember: as long as you're alive, there is a chance to turn things around.
3⃣ 【Position Management Pyramid|Never Fully Invested】
Divide your funds into 3 parts:
❶ 30% in mainstream coins (BTC/ETH) for long-term holding
❷ 50% for swing trading (enter and exit based on the 15-minute KDJ indicator)
❸ 20% reserved as a margin call fund
In case of a sharp drop, add to your position in three stages at -15%, -30%, and -50%.
4⃣ 【Technical Indicator Combination|Three Charts Determine Everything】
❶ 15-minute candlestick chart to observe short-term trends
❷ Daily MACD to judge bullish or bearish direction
❸ Weekly Bollinger Bands to identify support and resistance levels
When all three show a 'golden cross + middle track support + increased volume' resonance, it is the best entry signal.
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