Seven years of trading cryptocurrencies, earning relies on awareness and discipline. In the first three years, I lost over a hundred, but in the following years, I made back several hundred. Every penny behind it is a lesson learned through blood and tears! This market is forever repeating the same secret: 90% of retail investors watch the news for trading, 9% of smart people watch the movements of the major players, while 1% of aggressive players are dissecting market trends using moving averages.
Step 1: Verify the identity of the moving averages. Treat the daily moving average as three doctors with distinct personalities — the 5-day line is the head of the emergency department, the 30-day line is the internal medicine expert, and the 60-day line is like a senior consultant sitting in an expert clinic. When the head of the emergency department suddenly perks up and rushes to the two older seniors to check their pulses (5-day line crosses above the 30/60-day line), this is a signal that the market is preparing to enter ICU for rescue. Conversely, if the head of the emergency department is found slipping and rolling down from the consultant's chair (5-day line crosses below the 30/60-day line), don’t hesitate, immediately adjust your position.
Step 2: Establish a trading system to prevent emotional trading. Now please stick a note on your trading interface, written in bold with a marker: When moving averages clash, ordinary people retreat. When the 5-day line and the 30-day line entangle like twisted dough, jumping into the market at this moment is like rolling dice to guess odd or even. A true hunter only pulls the trigger when all three lines are marching in the same direction.
Here’s a counterintuitive cold fact: In the cryptocurrency world, where wild fluctuations are commonplace, the daily moving average strategy is more effective the simpler it is. Just like real martial arts masters never need to show fifty starting moves, a breakout of the 5-day line signals drawing the sword, and a turn of the 60-day line signals sheathing the sword.
Step 3: Weld discipline onto the trading platform. I've seen too many people write trading plans on napkins, only to be scared in the middle of the night by a sudden market spike and tear up the napkin to wipe their cold sweat. The most brutal yet compassionate aspect of the daily moving average strategy is that it forces you to become an emotionless signal execution machine.