Trading is not based on feelings; there must be rules to follow! Candlestick charts are the embodiment of buying and selling transactions. Understanding candlesticks means understanding trading, not just blindly buying!
Looking back at my cryptocurrency trading journey, I also fell into the trap of losses due to staying up late, watching the market, and chasing highs and lows in the early days. It wasn't until I adhered to the iron rule of 'no familiar signals, no trading' that I emerged from the phase of relying on luck.
1. Trading Time Management: Accurately grasp trading windows
Avoid the information bombardment period during the day! The morning session is filled with true and false information, and candlesticks can fluctuate violently, easily triggering chasing highs and lows. It is recommended to set the core trading period after 9 PM, when the market has digested information, and candlestick patterns become clearer, making it easier to capture real trend signals.
2. Profit Locking Strategy: Taking profits is the way to go
Establish an 'instant profit locking mechanism': After making a profit on the day, immediately withdraw 30% of the profits to the bank card. Avoid the 'greed trap'; countless historical cases have proven that fantasizing about exponential growth often leads to profit loss. The core of stable compound interest lies in continuously converting paper wealth into actual gains.
3. Scientific Decision-Making System: Indicators are king
Abandon subjective assumptions and rely on professional tools to build trading logic. It is recommended to use TradingView, focusing on the resonance of three major indicators:
- MACD: Golden cross/death cross confirms trend reversal
- RSI: Overbought/oversold warns of risk signals
- Bollinger Bands: Squeeze/breakout determines trend strength
Only enter trades when at least two indicators show signals in the same direction.
4. Dynamic Stop-Loss Wisdom: Flexibly respond to market fluctuations
1. Watching the market scenario: After making a profit, use a trailing stop loss. For example, if the cost is 1000U and it rises to 1100U, immediately move the stop-loss level up to 1050U to lock in floating profits.
2. Non-watching scenario: Set a 3% hard stop-loss line to prevent black swan events from causing catastrophic losses.
5. Iron Rule of Capital Management: Weekly profit harvesting
Establish a mandatory withdrawal mechanism: every Friday, transfer 30% of profits to the bank card, with the remaining funds rolled over for trading. This strategy not only guarantees actual profit accumulation but also effectively controls account risk exposure.
6. Candlestick Analysis Skills: Flexible switching between multiple time frames
- Short-term trading: Focus on the 1-hour candlestick chart, confirming buy signals with two consecutive bullish candles.
- Volatile market: Switch to the 4-hour chart, laying out entry points at key support levels.
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