In the ever-changing cryptocurrency market, countless investors step in with dreams of getting rich, but often find themselves caught off guard by the fluctuating market conditions, falling into a vicious cycle of 'buying and it drops, selling and it rises'. The uncertainty and high volatility of the market make trading seem like an uncontrollable adventure. However, there is a seemingly 'clumsy' yet extremely effective trading strategy that can help investors find direction in this turbulent market and even achieve steady asset growth.
A friend of mine initially entered the market with less than 100,000 yuan in capital and, using this strategy, managed to increase his assets tenfold in just six months, now successfully joining the ranks of millionaires. The brilliance of this strategy lies in its simplicity and ease of understanding, requiring no constant monitoring of the market; just spending five minutes daily can complete the trading decisions for the day. Next, let us delve into the specifics of this strategy.
Step 1: Accurately select coins and lock in strong coins.
In the vast ocean of cryptocurrencies, not all coins are worth investing in. What we need to do is filter out those with strong upward potential, the 'strong coins'. Opening the daily chart of digital currencies, the MACD indicator is our important screening tool. When the MACD indicator shows a golden cross, especially when it forms above the 0 axis, such coins are often in an upward trend, and the probability of subsequent rises is relatively high. In contrast, those coins that have been in a long-term sideways trend with weak performance, even if they occasionally show slight fluctuations, are unlikely to yield considerable returns and may waste our time and capital costs, so they should be decisively avoided.
Step 2: Grasp the timing of buying and selling, guided by the daily moving average.
In the trading process, the choice of when to buy and sell is crucial. In this strategy, the daily moving average acts like our 'lifeline', providing clear signals for trading decisions. When the coin price successfully stabilizes above the daily moving average, it is an excellent time to enter; once the coin price falls below the daily moving average, regardless of the current market situation, one should quickly sell without hesitation. By strictly following this rule, we can effectively filter out noise and invalid fluctuations in the market, avoiding unnecessary risks.
Step 3: Scientifically manage positions to maximize returns.
Position management is the key factor that determines the success or failure of a trade. When both the coin price and trading volume stabilize above the daily moving average, it indicates a clearer and stronger market trend, at which point one can choose to buy with full margin and seize profit opportunities. During the profit-taking process, using a staggered profit-taking strategy can both lock in some profits and allow the remaining position to continue enjoying the benefits of price increases. Specifically, when the coin price rises by 40%, sell one-third of the position; when the increase reaches 80%, sell another one-third; and once the coin price falls below the daily moving average, one should immediately liquidate the remaining position to ensure settled profits.
Step 4: Strictly execute stop-loss orders to protect capital security.
In the field of investment, capital security is always the top priority. Therefore, a strict stop-loss strategy is indispensable. If the day after buying, the coin price suddenly falls below the daily moving average, regardless of any expectations about market trends at that moment, one must decisively execute a full liquidation. Market changes are often unpredictable, and a sense of luck only leads to greater losses; timely stop-losses can effectively control risk and preserve capital for future trades.
The reason this strategy can help investors continuously profit in the cryptocurrency market lies in a multi-faceted synergy. Focusing on strong coins enhances the probability of investment success from the source; using daily moving averages as a basis for buying and selling effectively filters out a large amount of junk market conditions, reducing the risk of being trapped; the staggered profit-taking strategy balances profit locking and revenue growth; and strict mechanical execution avoids erroneous decisions caused by emotional fluctuations.
However, in actual application, many investors find it difficult to achieve ideal returns even when they have mastered this strategy. This is because various reasons often lead to a distortion of the strategy during execution. For instance, when faced with short-term market fluctuations, they may struggle to firmly execute the buy and sell signals; when taking profits or stopping losses, they may be swayed by greed or fear and fail to operate strictly according to the rules.
So, how can one truly implement this strategy to achieve 'everlasting profits'? There are some practical tips hidden within. For example, during the coin selection phase, in addition to referencing the MACD indicator, one can also combine other technical indicators and the project's fundamentals for a comprehensive assessment; when executing buy and sell signals, it is advisable to set a certain margin for error to avoid frequent trading due to minor price fluctuations; at the same time, regularly review trading records, summarize experiences and lessons, and continuously optimize one’s trading behavior.
If you yearn to delve deeper into these more detailed practical skills and find your own path to profit in the cryptocurrency market, feel free to continue following the subsequent content. We will explore more trading secrets together.