After eight years of trading cryptocurrencies, starting from 30,000 to now over 20 million, I rely on a 50% position to steadily increase my holdings, with monthly returns soaring to 70%. I passed this secret recipe to my apprentice, and he doubled his money in three months. Today, in a good mood, I’m sharing these precious nuggets with you all, remember to save them well!
No need to say too much nonsense, let's get to the point. It's actually just a 16-character maxim: as long as you achieve it, you can grow and strengthen, and create brilliance again!
The essence of trading is: stop loss when wrong, hold when right, small losses for big gains, and achieve large risk-reward. Specifically for each core link:
1. Follow the trend: Find a simple moving average to distinguish between long and short; go long above it and short below it.
2. Trial position: Go with the trend, follow the big trend against the small trend, entering should consider a sufficiently large potential risk-reward ratio. Entering at this position, if wrong, the stop loss is small, but if right, the profit is large, generally at the trend bottom or early trend.
3. Trial position stop loss: If the key point is broken, you must stop loss without any luck. If the price comes back, you can look for opportunities to enter again. Don't have a lucky mentality, thinking that holding on might bring it back, and definitely don't average down on losses.
4. Add trend position: Add positions with floating profits; adding positions is the core of making big money. After the price rises as expected and then pulls back, add positions at the support level where the pullback stops or breaks the previous high—go with the big trend against the small trend.
5. Trend position stop loss: For new trend positions added, move the stop loss to the new key point. The base position is already safe, leaving only the stop loss risk of the added position. If it fails, stop loss on the added position and wait for the next opportunity. If it continues to rise, hold firmly, continue to wait for a pullback to add positions, and keep moving the stop loss. Until the last move is stopped or a head signal appears to take profit.
6. Take profit: Never take profit lightly at any time; this is the key to making big money. Exiting can be done in batches or all at once, preferably all at once, because you can force yourself to wait for the highest probability head signal. If it is right-side trading, floating profits will definitely pull back, and you must accept this mentally. Don't think about selling at the highest point, or think that not selling at the highest point means a loss, and feel the need to wait for the highest point to sell.
As long as you can master and practice these principles, maintaining consistent discipline, you will find that making money comes naturally!