Ten years of trading cryptocurrencies, starting with 300,000 in capital and growing to tens of millions. I've relied on half-position trading, steady as an old dog, with monthly returns peaking at 70%. I taught this method to my apprentice, and they doubled their money in three months. Today, I’m sharing my top secret exception; remember to save it after reading.
1. Divide the funds into 5 parts, and only trade 1/5 at a time! Set a 10% stop-loss; if you make one mistake, you only lose 2% of the total capital, and it takes 5 mistakes to lose 10%. If you’re right, set a minimum profit target of 10%. If you get stuck, come find me!
2. Want to improve your win rate? Remember these two words: go with the trend! Rebounds in a downtrend are traps, while pullbacks in an uptrend are opportunities. Is it easier to catch a falling knife or to buy low? You decide!
3. Never touch coins that have skyrocketed! Whether mainstream or altcoins, only a few can sustain a major upward trend. If it can’t rise anymore, it will naturally fall; it’s such a simple principle, yet some insist on betting they’re not the bag holder.
4. Use MACD like this for maximum stability: a golden cross below the 0 axis breaking above it is a buying signal, and a death cross above the 0 axis heading down is a selling signal. Don’t mess around with fancy stuff.
5. How many retail investors have been ruined by the term 'averaging down'? The more you lose, the more you buy in, until you have nothing left! Remember: never add to a losing position, only consider adding to a profitable one. This is the iron rule for survival!
6. Trading volume is the lifeblood of the cryptocurrency market! Pay close attention to breakouts with increasing volume at low levels, and run quickly when there’s high volume and stagnation at high levels.
7. Only trade coins in an upward trend! A 3-day moving average trending up indicates a short-term opportunity, a 30-day moving average trending up indicates a mid-term look, an 84-day moving average trending up signals a major upward wave, and a 120-day moving average trending up indicates a long-term layout.
8. You must review your trades daily! Check if your holding logic has changed, whether the weekly trend meets expectations, and if the trend has reversed. Adjust your strategy in a timely manner to survive longer.
Remember: the secret to stable profits is — be calm when others are frantic, be greedy when others are desperate. Engrave these eight rules into your mind, and you can transform from a chump into a pro.