Cryptocurrency Trading Six Steps to Life and Death: The Ultimate Rule of Stop-Loss and Profit Holding
1. Long and Short Division: One Moving Average Determines Everything
EMA26 Military Regulation
Above Daily EMA26 → Only go long / Close shorts (Bull Market Channel)
Below Daily EMA26 → Only go short / Close longs (Bear Market Channel)
Taboo: Counter-trend rebound grabbing
2. Position Testing Art: The Golden Sniper of a 3:1 Profit-Loss Ratio
Opening Position Iron Triangle (must meet all conditions)
Location: Early trend (retesting EMA26 after breaking ≤5%)
Odds: Stop-loss space < Profit space of 1/3
Calculation: Potential Profit / Potential Stop-Loss ≥ 3
First Position Funds = Total Funds × 2% / Stop-Loss Margin
Example: Total Funds $10k, Stop-Loss Space 5% → First Position = $400
3. Stop-Loss Discipline: Three Death Lines with Zero Tolerance
Bitter Lessons: In the 2022 LUNA crash, accounts without stop-loss averaged a loss of 98%, while those with trailing stop-loss had a survival rate of 41%
4. Core of Increasing Position: Floating Profit Pyramid Construction Technique
Three Laws of Increasing Position
Long Position: Retrace EMA8 without breaking / Break previous high with volume
Short Position: Retrace EMA8 is blocked / Break previous low and accelerate
Position: Gradually decreasing (First Position 5% → Increase Position 3% → Increase Position 2%)
Dynamic Stop-Loss Management
After Increasing Position 1: Total Stop-Loss moves to First Position Cost Line (Zero Risk)
After Increasing Position 2: Stop-Loss moves to Increasing Position 1 Cost Line (Lock in Profit)
5. Ultimate Mentality: Three Dimensions of Discipline Execution
1. Stop-Loss Physiological Response
Set phone screensaver: “Break means cut, hesitation = death”
Daily Review: Check whether each trade strictly adhered to the stop-loss
2. Profit Holding Anti-Human Nature Training
When profit exceeds 50%:
✅ Delete trading APP for 24 hours (Prevent itchy fingers from taking profits)
❌ Prohibit checking account (Avoid emotional fluctuations)
3. System Consistency Check List
Check if standards for compliance were executed today, strictly follow long and short directions
Cruel Truth: Why do 90% of people fail?
Illusion Shattered:
“Carrying positions to break even” success rate is only 7.3% (CoinGlass 2024 data), 98% of those carrying positions ultimately expand losses
Mathematical Crushing:
If win rate is 40%, profit-loss ratio 3:1 → Must earn in the long run
If win rate is 60%, profit-loss ratio 0.8:1 → Must lose in the long run
Remember: Surviving in the cryptocurrency space relies on precise predictions, but more importantly, minimizing losses at the wrong time and maximizing profits at the right time
Remember:
In the cryptocurrency space, choice is greater than effort!
Follow the right people, making money becomes effortless!
Like + Follow Longmen = Open the Door to Wealth!