In the ever-changing cryptocurrency market, do you always feel at a loss? Today, I will share an ultra-simple 'foolproof' trading strategy that even a complete beginner with no technical background can easily grasp. It is said that the success rate is as high as 80%!
1. Choosing coins is crucial
First of all, before entering the market, you must choose the right coins. Those that are in an upward trend or at least stable are our targets, while those that are falling or have a clear downward trend should be avoided and excluded from our selection.
2. Capital allocation and timing for buying
Divide your funds equally into three parts; this is a key step. When the coin price successfully breaks through the 5-day moving average, bravely buy the first portion, which is one-third of your funds. Then, if the coin price continues to rise and breaks through the 15-day moving average, decisively buy the second portion of one-third funds. If it can further break through the 30-day moving average, without hesitation, invest the remaining one-third of your funds. Remember, each step must be strictly executed; there can be no laziness, as this is the foundation for the strategy's success.
3. Timing for holding and selling
After buying, the situation becomes a bit more complicated, but don't worry; the rules remain simple. If the coin price surpasses the 5-day moving average but fails to continue breaking above the 15-day moving average and instead falls back, as long as it remains above the 5-day moving average, do not act; once it falls below the 5-day moving average, sell immediately.
Similarly, when the coin price breaks through the 15-day moving average but shows insufficient momentum, as long as it hasn't fallen below the 15-day moving average, hold on steadily; if unfortunately it falls below, sell one-third first. At this point, if the 5-day moving average is still stable, continue to hold and observe.
And when the coin price breaks through the 30-day moving average and then falls back, still follow the above rules: sell when you need to, and don't let yourself be overly optimistic.
4. The reverse operation of selling coins
When selling coins, the rules are consistent. If the coin price falls from a high position and drops below the 5-day moving average, sell one-third first. If it does not fall further afterward, the remaining 60% of your position can continue to be held, waiting for a rebound opportunity. However, if the 5-day, 15-day, and 30-day moving averages are all broken, do not hesitate; decisively liquidate your entire position to preserve your capital.
In summary, this 'foolproof' strategy, although simple and easy to understand, is fundamentally about strictly adhering to the rules. From the moment you buy, you must clearly define the conditions for buying and selling. Only by firmly following the rules can you share in the opportunities and risks of the cryptocurrency market and earn your own wealth!
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