The best way for small funds to grow large.
1. Principles of Coin Selection
Look for opportunities among popular strong coins. Being with strong coins increases the chance of profit. Abandon trending obscure coins and focus on currently popular concept sectors. Then choose coins with a growth rate below 7%. This is already chosen for you by the main force; see the world from the shoulders of giants. Do not fear the clouds obscuring the horizon; follow the hot funds, and the trend is king.
2. Trading Cycle
For short-term holding, just hold for the day. The essence of short-term trading lies in its brevity; time is the greatest opportunity cost of capital. Be fast, accurate, and decisive like a blitzkrieg; do not be attached to the battle.
3. Trend is King
Do not buy just because the price is high, nor sell just because the price is low. When the trend is upward, do not say the bottom when it is downward. Never decide to buy or sell based on the high or low price; this is a psychological barrier that must be overcome. Those who fear high prices are unfortunate.
4. Position Management
Control the base position at 20% to 30%. If the market direction is consistent in the future, gradually increase the position, with smaller increments each time. Position control should be larger at the bottom and smaller at the top, resembling a pyramid, so that your average holding price will be lower than the market price.
5. Moving Average Indicator
The 10-day moving average is the main force's trading line, which can also be considered the main force's cost line. When the coin price falls but does not break below the 10-day moving average, it is the best time to enter.
6. Persist in Reviewing Trades
Keep a detailed market record. Take out all trading orders and note down all the details of every losing trade, including the trading date, trading code, opening price, closing price, trading reason, precautions, etc. Study and analyze every failed decision and summarize mistakes, such as entering too early, being overly anxious, holding too long, or having too large a position.