From fifty thousand to twenty million, I've accumulated a lot of insights along the way, and now I'm sharing them with you!
First, you need to divide your money into five parts, using only one-fifth for each trade. If you incur a loss, set a stop-loss point at 10%, so that the maximum loss at one time is only 2% of the total funds. Even if you make five consecutive wrong trades, you would only lose 10%. However, if you make a profit, set a take-profit point at over 10%, so you don’t have to worry about being trapped!
Now, how do you improve your win rate? The key is two words: go with the trend! When the market is falling, rebounds are just bait; when the market is rising, declines are golden opportunities. Do you think it's easier to make money by buying at the bottom or by buying on dips? Clearly, it's by buying on dips!
Also, never touch coins that have skyrocketed in the short term, whether they are mainstream or altcoins. There are really very few coins that can continuously rise. After a short-term surge, it becomes very difficult for the price to rise again; once it reaches a certain level, it will naturally fall back. This reasoning is quite simple, yet many people still want to take a gamble.
The MACD indicator is also very useful; it can help you determine when to buy and when to sell. When the DIF line and DEA cross below the zero axis and then break through the zero axis, that’s a good buying opportunity. Conversely, when the MACD crosses above the zero axis and then moves downward, that’s a signal to reduce your position.
I really don't know which genius invented the term 'averaging down', but it has harmed many retail investors! Many people continue to average down on losses, resulting in even greater losses, which is a big taboo! When you're losing, never average down; if you must, do it when you're in profit, which is known as adding to your position with floating profits.
The trading volume indicator is also very important; it is the soul of the cryptocurrency market. When the price is hovering at a low level and the trading volume suddenly increases and breaks through a certain point, you should pay attention.
Only trade coins that are in an upward trend to maximize your chances of winning and not waste time. Look at the moving averages: if the 3-day moving average is rising, it indicates a short-term increase, and if the 30-day moving average is rising, it indicates a medium-term increase, and so on.
Finally, don’t forget to review your trades; check if your holding logic has changed, if the weekly candlestick patterns align with your judgment, and if the trend has changed. If it has, you need to adjust your trading strategy in a timely manner.
Recently, I plan to ambush a potential coin that is ready for a breakout, expecting a return of over ten times is not a problem. If you want to follow along, like and leave a message for free sharing.