Seven years of trading cryptocurrencies, profits are all about knowledge and discipline.

After seven years of trading cryptocurrencies, I lost over 100 in the first three years and made back several hundred in the following years; every cent is a lesson learned through blood and tears!

This market is always repeating the same secret: 90% of retail traders stare at news to trade cryptocurrencies, 9% of smart individuals watch the movements of the market makers, while 1% of aggressive players are dissecting the market's genes using daily moving averages.

Step 1: Verify the identity of the moving averages. Treat the daily moving averages as three old Chinese medicine practitioners 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 grand master sitting in the consultation room. When the head of the emergency department suddenly perks up and rushes to feel the pulse and ask for a diagnosis (the 5-day line crosses above the 30/60-day lines), this is the signal that the market is preparing to enter the ICU for rescue. Conversely, if you find the head of the emergency department slipping, rolling off the grand master's chair in the consultation room (the 5-day line crosses below the 30/60-day lines), don’t hesitate, immediately adjust your position.

Step 2: Establish a trading system to prevent impulsive decisions.

Now please put a sticky note on your trading interface and write in bold marker: When moving averages fight, ordinary people retreat. When the 5-day line and 30-day line are intertwined like twisted dough, rushing into the market is equivalent to gambling on odd or even with dice. A true hunter will only pull the trigger when all three lines march in the same direction.

Here’s a counterintuitive piece of knowledge: In the cryptocurrency market where wild fluctuations are commonplace, the strategy of using daily moving averages is actually deadlier when it's simpler. Just like real martial arts experts duel, they never need to show fifty different starting moves; a breakthrough in the 5-day line is the signal to draw the sword, and a turn in the 60-day line is the moment to sheathe it.

Step 3: Weld discipline to the operating table

I've seen too many people write their trading plans on napkins, only to tear them up at midnight when startled by a sudden market move, wiping cold sweat with the torn napkin. The most ruthless yet kind aspect of using daily moving averages is that it forces you to become an emotionless signal execution machine.

Here’s a dark humor: A trader who made stable profits using daily moving averages for three years received a warning of a 5-day line breakdown at his wedding ceremony and had to sneak into the bathroom to close his position before coming out to exchange rings. Afterward, the bride scolded him while pulling his ear, but after seeing the account balance, she quietly replaced his monitor with a top-tier one.

(Carve this sentence into your pituitary: you can doubt your operations, but never doubt the moving averages that have already formed a synergy)

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