After seven years of working in the cryptocurrency circle, I have summarized 7 iron laws. Although the content is not much, it is extremely valuable. Beginners must read it! It will help you avoid detours.

1. Divide your funds into 5 parts and invest only one-fifth each time! Control the stop loss at 10 points. Once you make a mistake, you will only lose 2% of the total funds. Even if you make mistakes 5 times in a row, you will only lose 10% of the total funds. If you make the right judgment and set a stop profit of more than 10 points, do you think you will be deeply trapped?

2. So, how to further improve the winning rate? In short, it is the word "follow the trend"! In a downward trend, each rebound is likely to lure more; in an upward trend, each decline may create a golden pit. Tell me, is it easier to make a profit by buying at the bottom or buying at a low price?

3. Do not touch the currencies that have skyrocketed in the short term, whether they are mainstream currencies or copycat currencies. There are very few currencies that can go through several waves of main rising waves. The logic is that after a short-term surge, it is difficult to continue to rise. When in a state of high stagnation, the subsequent momentum is insufficient and it will naturally fall. This is a simple and easy-to-understand truth, but many people always want to take a chance.

4. MACD can be used to determine the entry and exit points. If the DIF line and the DEA line form a golden cross below the 0 axis and break through the 0 axis, this is a relatively stable entry signal. When MACD forms a dead cross above the 0 axis and runs downward, it can be regarded as a signal to reduce positions.

5. I don’t know who created the term "covering positions", which made many retail investors fall and suffer a big loss! Many people make up for their losses, but the more they make up, the more they lose. This is the most taboo in the process of currency speculation, which will put themselves in a desperate situation. Please remember that you should never cover your position when you are losing money, but you should increase your position when you are profitable.

6. Volume and price indicators are crucial, and trading volume can be called the soul of the currency circle. When the price of a currency breaks through at a low level during consolidation, it needs to be paid attention to; when there is a situation of stagnation at a high level, it is necessary to leave the market decisively.

7. Only choose currencies that are in an upward trend for operation, so that the chances of winning are the greatest and time will not be wasted. The 3-day line turns upward, which is a short-term rise; the 30-day line turns upward, which means a medium-term rise; the 80-day line turns upward, which is the main rising wave; the 120-day moving average turns upward, which is a long-term rise