There is a very foolish method for retail investors to trade cryptocurrencies, with a winning rate close to 100%! Using this method, I earned over 10 million!
1⃣ 【Idle Money Investment Principle|Use funds that do not affect your life】
Always only use 10%-20% of disposable funds for trading, for example, if you have 100,000 in savings, at most take 20,000 to enter the market. I have seen too many people bet all their savings or even borrow money, only to see their mentality collapse in the end. True winners always operate in a 'can afford to lose' state. Taking Bitcoin dollar-cost averaging as an example: allocate 10% of your monthly salary to buy in batches, and even in a bear market with a 50% drop, 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, a loss of 5% must be immediately stopped. I once held onto my position during the LUNA crash, watching 100,000 turn into 1,000. Now my discipline is: exit if the short-term breaks the 5-day moving average, and liquidate if the medium-term breaks the 20-day moving average. Remember: staying alive gives you a chance to turn things around.
3⃣ 【Position Management Pyramid|Never Full Position】
Divide your funds into three 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% kept as reserve funds for averaging down
In case of a sharp drop, average down in three phases at -15%, -30%, and -50% levels.
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 Line Support + Increased Volume' resonance, it is the best entry signal.
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