After six years of trading cryptocurrencies, I've earned 10 million. Behind every penny is a lesson learned through blood and tears! This market always repeats the same secret: 90% of retail investors follow the news to trade cryptocurrencies, 9% of smart individuals watch the movements of the big players, while 1% of wolf-like players are dissecting market trends using moving averages. Step 1: Verify the legitimacy of moving averages Treat the daily moving average as three distinctly different seasoned doctors — the 5-day line is the head of the emergency department, the 30-day line is a master of internal medicine, and the 60-day line is like an expert comfortably seated in a grand chair. When the head of the emergency department suddenly perks up and rushes to check the pulses of the two seniors (the 5-day line crosses above the 30/60-day lines), this signals that the market is preparing to enter ICU for rescue. Conversely, if the head of the emergency department slips and rolls off the grand chair (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 emotional trading Now please stick a note on your trading interface, writing in bold marker: When moving averages clash, mere mortals retreat. When the 5-day line and the 30-day line entwine like twisted dough, entering the market at this time is equivalent to rolling dice and guessing odd or even. True hunters only pull the trigger when all three lines are marching in the same direction. Here’s a counterintuitive piece of knowledge: In the cryptocurrency world where wild fluctuations are commonplace, the strategy of using daily moving averages becomes deadlier the simpler it is. Just like true martial arts masters don’t need to show fifty starting moves, a breakout of the 5-day line signals drawing the sword, while a turn of the 60-day line indicates 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 tear them up in the middle of the night when a sudden spike scares them into wiping cold sweat off their forehead. The most ruthless yet merciful aspect of the daily moving average strategy is that it forces you to become an emotionless signal execution machine. Here’s a dark humor: A trader who consistently profited using moving averages for three years received a 5-day line breakout alert at his wedding last year. He literally ducked into the restroom to close his position before coming out to exchange rings. Afterward, his bride scolded him while tugging on his ear, but upon seeing the account balance, she silently swapped his monitor for a top-tier model. (Etch this into your mind: You can doubt your own actions, but never doubt the already formed synergy of moving averages) If you want to make money, don't be a lone warrior. Follow me.
Here are a few life-saving tips for beginners, based on my experiences gained from real trading losses:
If it helps even one person, it's worth it! I suggest liking and saving this so you can find it later.
1. Place trades after 9 PM During the day, news is too chaotic, with all kinds of false positives and negatives flying around, causing the market to fluctuate wildly, making it easy to get tricked into entering. I usually wait until after 9 PM to operate, when news has stabilized, and the candlestick patterns are cleaner, making the direction clearer.
2. Secure your profits immediately Don't always think about doubling your money! For instance, if you've made 1000 U today, I suggest you withdraw 300 U to your bank account right away and continue playing with the rest. I've seen too many people who think, "I made three times, so I want to make five times," only to lose everything on a single pullback.
3. Look at indicators, not feelings Don't trade based on feelings; that's just blind. Install TradingView on your phone and check these indicators before trading: • MACD: Is there a golden cross or death cross? • RSI: Is it overbought or oversold? • Bollinger Bands: Is there a squeeze or a breakout? At least two of the three indicators should give consistent signals before considering entering a trade.
4. Stop-loss must be flexible When you have time to monitor the market, if you've made a profit, manually adjust your stop-loss price upwards. For example, if your buying price is 1000 and it rises to 1100, raise your stop-loss to 1050 to secure your profit. However, if you need to go out and can't monitor the market, be sure to set a hard stop-loss at 3% to prevent being wiped out by sudden crashes.
5. Withdraw profits weekly Profits not withdrawn are just a numbers game! Every Friday, without fail, I transfer 30% of my profits to my bank account, and continue to roll over the rest. This way, over time, your account will keep growing.
6. There are tricks to reading candlesticks • For short-term trading, look at the 1-hour chart: if there are two consecutive bullish candles, consider going long. • If the market is stagnant, switch to the 4-hour chart to find support lines: consider entering when it approaches the support level.
7. Avoid these pitfalls! • Don't use leverage over 50x • Avoid Dogecoin, Shitcoin, and other altcoins; they are easy to get wrecked by • Limit yourself to a maximum of 3 trades per day; too many can lead to losing control • Absolutely do not borrow money to trade cryptocurrencies
One last piece of advice for you: Trading cryptocurrencies is not gambling; treat it like a job, clock in and out at set times, and switch off when it's time to eat or sleep. You'll find—your profits may actually become more stable.