I kept losing in the first two years of trading, but after that, I started making profits in the next five years!! Making money from trading is actually that simple, just need 3 steps.
Step!
After countless struggles, I have summarized 8 iron rules. The content is not much but very valuable; if you think there’s no reasoning after reading it, say whatever you want!
1. Divide your funds into 5 portions, and only invest one-fifth each time! Control your stop-loss at 10 points. If you make one mistake, you only lose 2% of your total funds; if you make 5 mistakes, you lose 10% of your total funds. If you are right, set a take profit of more than 10 points. Do you think you’ll still be stuck?
2. How to increase the win rate again? Simply put, it’s two words: go with the trend! In a downtrend, every rebound is a trap to lure buyers, while in an uptrend, every drop creates a golden opportunity! Do you think it's easier to make money by bottom-fishing or by buying on dips?
3. Avoid coins that have surged rapidly in the short term, whether mainstream or altcoins; very few can experience multiple main upward waves. The logic is that it is quite difficult to continue rising after a short-term surge. When it stagnates at a high level, it will naturally fall later on; it’s a simple principle, but many people still want to take a gamble.
4. You can use MACD to determine entry and exit points. If the DIF line and DEA form a golden cross below the 0 axis and break through the 0 axis, it is a stable entry signal. When MACD forms a death cross above the 0 axis and moves downward, it can be seen as a signal to reduce positions.
5. I don't know who invented the term 'averaging down', but it has caused many retail investors to stumble and suffer huge losses! Many people keep averaging down as they lose, and the more they average down, the more they lose. This is the biggest taboo in trading cryptocurrencies, putting oneself in a dire situation. Remember to never average down when at a loss, but to add to your position when in profit.
6. Volume and price indicators come first; trading volume is the soul of the cryptocurrency market. Pay attention when volume breaks out at low price levels, and decisively exit when there is volume stagnation at high price levels.
7. Only invest in coins with an upward trend, as this maximizes your chances and saves time. If the 3-day moving average turns upward, it indicates short-term growth; if the 30-day moving average turns upward, it indicates medium-term growth; if the 84-day moving average turns upward, it indicates a main upward wave; and if the 120-day moving average turns upward, it indicates long-term growth.
8. Insist on reviewing every week, check if the logic of holding coins has changed, technically analyze if the weekly K-line trend aligns with your judgment, whether the direction has changed, and timely adjust your trading strategy!
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