1. Choosing Cryptocurrencies: The Mystery of the MACD Golden Cross
When he sits in his humble abode and opens the daily chart that holds countless wealth secrets, his gaze sharpens like that of a hawk, focusing on the critical indicator of the MACD Golden Cross. MACD, a technical indicator regarded as a compass by investors in the cryptocurrency realm, holds special significance for him. Especially when the Golden Cross appears above the zero line, it resembles a pattern of auspicious star alignment in the universe. This situation signifies that the bullish forces in the market hold the upper hand, with stronger upward momentum and a relatively higher success rate. He is like an experienced treasure hunter, capturing this subtle yet crucial signal to sift through numerous cryptocurrencies for those with potential “gems,” taking a solid first step in his investment journey. This step may seem simple, but it embodies his profound understanding of market trends and precise grasp of technical analysis.
2. Setting Buy and Sell Criteria: The Beacon of the Daily Moving Average
In his eyes, the daily moving average (MA) on the daily chart is the lighthouse in the sea of investment. His buy and sell criteria are simple and straightforward: when the price is above the moving average, it’s like a ship safely sailing under the guidance of the lighthouse, and he chooses to hold firmly; once the price falls below the moving average like a lost bird, it signals danger, and he will decisively sell. This rule resembles ancient maritime laws; though simple, it guides him through the turbulent seas of cryptocurrency. Each trading decision is like following a sacred ritual, unperturbed by the market's short-term fluctuations, always adhering to this clear and intuitive criterion.
3. Buying and Increasing Position Strategy: Grasping Opportunities and Risk Control
The buying phase is a thrilling gamble. When the cryptocurrency price breaks through the daily moving average like a fierce warrior, and the trading volume surges like a roaring tide, he will, like a decisive general, command a full investment. This reflects his absolute trust in market signals and his courage to seize opportunities. The selling strategy, on the other hand, resembles a meticulously choreographed dance, executed in three steps. When the price increase reaches 40%, he will sell 1/3 of his position, akin to harvesting part of the fruit during the harvest season, steadily locking in some profits.
When the increase further expands to 80%, he will sell 1/3 of his position to further solidify his profits, just like reinforcing his granary before the storm hits. Finally, when the cryptocurrency price falls below the daily moving average, he will not hesitate to liquidate his entire position, reflecting his respect for risk and the survival strategy he has summarized through countless market trials. Through such strategies, he not only gains profits but also effectively controls risks, allowing him to walk a steadier path in cryptocurrency investment.
4. Strict Stop Loss, Avoiding Risks: The Lifeline of Investment
Stop loss is the most critical part of his investment philosophy, akin to the last line of defense on a lifeline. If the price suddenly plummets below the daily moving average like a runaway horse the next day, he will decisively sell everything as if guarding his life, without any hesitation or wishful thinking. To him, although instances of prices falling below the daily moving average are relatively rare according to his cryptocurrency selection logic, in the unpredictable world of cryptocurrencies, any slight negligence could lead to total loss.
This reflects his deep understanding of market risks and is the key to his long-term profitability. Meanwhile, if the price subsequently rises again like a phoenix reborn, he will act like an optimistic pioneer, buying in again to continue operating, showcasing his flexible response to market changes.
This ascetic has achieved financial freedom on the brutal battlefield of cryptocurrency by adhering steadfastly to these four steps. His story is like a beacon, illuminating the path for many investors amidst the waves of a bull market.
In the current bullish market, every pullback is an excellent opportunity to get on board, especially for those undervalued potential altcoins, which are like gold buried in the sand, waiting for astute investors to unearth them.
One must have a grand vision. What is a grand vision? Many outstanding investors around me possess a grand vision, not caring about short-term gains and losses; even if temporarily trapped, they remain calm, believing they can recover their losses, hence their mindset is not anxious or hurried. This mindset often leads to more composed actions, making it easier to reap rewards.