I have been trading cryptocurrencies for five or six years with an initial investment of 200,000. Now, I rely on this to support my family because I have put into practice many useful things I've learned and mastered them through repeated use. This process has indeed been difficult; for the sake of life and family, today I will share some knowledge:
1. Divide your funds into 5 parts, and only invest one-fifth at a time! Control a stop-loss of 10 points; if you make a mistake once, you only lose 2% of your total funds, and if you make mistakes 5 times, you'll lose 10% of your total funds. If you're right, set a take-profit of over 10 points. Do you think you will still be stuck?
2. How to further increase the winning rate? Simply put, it’s about following the trend! In a downtrend, every rebound is a trap to attract buyers, and in an uptrend, every drop creates a golden opportunity. Would you say it's easier to make money by bottom-fishing or by buying on the dips?
3. Avoid trading coins that have rapidly surged in the short term, whether they are mainstream or altcoins. There are very few coins that can make several waves of major upward movements. The logic is that after a short-term surge, it’s quite difficult to continue rising. When prices stagnate at high levels, they will naturally drop later; it's a simple principle, but many still want to gamble.
4. You can use MACD to determine entry and exit points. If the DIF line and DEA cross above the 0 axis, and once it breaks the 0 axis, it is a solid entry signal. When MACD forms a dead cross above the 0 axis and starts to move downward, it can be seen as a signal to reduce positions.
5. I don’t know who invented the term 'averaging down,' but it has caused many retail investors to stumble and suffer great losses! Many people keep adding to their losing positions, which only leads to greater losses; this is the biggest taboo in trading cryptocurrencies and can put you in a dire situation. Remember, never average down on a loss, but add to your position when you are in profit.
6. Volume and price indicators are crucial; trading volume is the soul of the cryptocurrency market. Pay attention when the price breaks out with increased volume at low levels during consolidation, and decisively exit when there is increased volume and stagnation at high levels.
7. Only trade coins in an upward trend; this maximizes your chances and saves time. If the 3-day line turns upwards, it indicates short-term upward movement; if the 30-day line turns upwards, it indicates medium-term upward movement; if the 84-day line turns upwards, it indicates a major upward wave, and if the 120-day moving average turns upwards, it indicates long-term upward movement!
8. Persist in reviewing each trade, check if there are changes in the holdings, and technically analyze whether the weekly K-line trend conforms to your judgment.
