Seven years of trading cryptocurrencies, profits depend on awareness and discipline

After seven years of trading cryptocurrencies, I lost more than 100 in the first three years and made back several hundred in the following years. Every penny comes with blood and tears lessons!

This market always repeats the same secret: 90% of retail investors focus on news to trade cryptocurrencies, 9% of smart people watch the movements of market makers, while 1% of aggressive players are dissecting market trends using moving averages.

Step 1: Verify the moving averages Treat the daily moving average as three distinct old traditional Chinese medicine doctors — the 5-day line is the emergency department director, the 30-day line is the internal medicine expert, and the 60-day line is sitting in a grandmaster's chair in the specialist clinic. When the emergency department director suddenly perks up and rushes to the two senior doctors to check their pulses (the 5-day line crossing above the 30/60-day lines), this is a signal that the market is preparing to enter the ICU for rescue. Conversely, if you notice the emergency department director slipping and rolling off the grandmaster's chair in the specialist clinic (the 5-day line crossing below the 30/60-day lines), do not hesitate, immediately adjust your positions.

Step 2: Establish a trading system to prevent emotional trading

Now please stick a note on your trading screen and write in bold marker: When moving averages fight, ordinary people retreat. When the 5-day line and the 30-day line are tangled like twisted dough, rushing into the market is akin to 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 piece of information: In the cryptocurrency market, where wild fluctuations are common, the strategy of using daily moving averages is often more straightforward and deadly. Just like a true martial arts master never needs to display fifty starting moves, a breakthrough of the 5-day line is the signal to draw the sword, and a turn of the 60-day line is the moment to sheathe it.

Step 3: Weld discipline onto the trading platform

I’ve seen too many people write their trading plans on napkins, only to be scared into tearing them up in the middle of the night by a sudden spike in prices. The most cruel yet merciful aspect of the daily moving average strategy is that it forces you to become an emotionless signal-executing machine.

Here’s a dark humor story: A trader who had steadily profited using the daily moving average strategy for three years received a breaking alert on the 5-day line at a wedding last year, and he literally snuck into the bathroom to close his position before coming out to exchange rings. Afterward, the bride pulled his ear and scolded him, but seeing the account balance, she silently got him a top-tier monitor.

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