Making money in the cryptocurrency world isn't that hard? If you understand the following methods thoroughly, it's like having your own ATM.
1. Anti-Human Trading
Common issue for retail investors: Holding on during losses and selling immediately during gains. You must operate in reverse: Take profits after a gain of over 15% when it drops by 10%; cut losses immediately after a loss of over 5%. Strictly follow "gain 10% and lose 5%", and with a 50% win rate over 100 trades, you can still earn 800%.
2. Volume Data Capture
A shrinking volume with a new high (volume < 50%) is a signal that the major players are controlling the market, indicating a high probability of rising; during a surge, if the volume is < 1 times the usual level, it is highly likely to continue rising the next day; coins that pull back on reduced volume after breaking the 20-day moving average are golden buy points.
3. Limit Holdings to More Than 3
Common mistake for retail investors: Holding multiple coins with little capital and averaging down on weak positions. If you hold over 5 coins and most are losing, immediately reduce holdings to 2-3 coins, prioritizing the sale of those that fall below the 20-day moving average.
4. Intraday Volatility Patterns
In 24-hour trading, a significant drop during the day doesn't require panic, as rebounds often follow; a sharp rise at the close requires reducing positions, as the probability of a pullback the next day is high. Mnemonic: "Volume up means more up, volume down means more down; high volume stagnation indicates a peak, low volume stop indicates a bottom; a huge volume surge must pull back."
5. Trend is King
For short-term trading, follow the 5-day moving average; enter when there's a significant breakout; for medium to long-term, look at the 20-day moving average, enter on a breakout, and exit on a breakdown. Once a trend is established, there’s no need to predict, just follow the flow of funds.
6. Reversal Strategy
After a strong coin experiences a rapid drop (first red candle), if it meets: sufficient popularity, a fierce first red candle, ample trading volume, and opens flat/high the next day with no more than 2 days of adjustment, the probability of a reversal is extremely high.
7. Stay Out After Big Gains
After consecutive profits, it's easy to become blindly confident, so it's necessary to enforce a break. Don't try to seize every opportunity; otherwise, it may lead to a loss.
8. Resilience in Adversity
When trading isn't going well, it's even more important to stay calm; the market will eventually reward patience. Earning is easy during profitable conditions, while losing is easy during losses; the key is having the courage to take action and the wisdom to pull back in time.
9. Stay True to Your Original Intent
Trading cryptocurrency is about breaking free from the ordinary; pain is a stepping stone, and enduring it is necessary to reach freedom.
10. Monetizing Knowledge
Trading cryptocurrency is simple to the extreme, yet also difficult to the extreme—difficult in continuous learning and aligning knowledge with action. Successful individuals are always the minority, and their profits are built on the failures of the majority.
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