I trade cryptocurrency: In two years, I turned 50,000 into 20 million. Through trials and tribulations, these experiences... Trading insights

1. Divide your funds into 5 parts, and only invest one-fifth each time! Control a 10% stop loss; if you make a mistake once, you only lose 2% of your total funds. If you make 5 mistakes, you only lose 10% of your total funds. If you are right, set a take profit of over 10%. Do you think you will still be stuck?

2. How to further improve the win rate? Simply put, follow the trend! In a downtrend, every rebound is a trap for buyers, and in an uptrend, every drop creates a golden opportunity! Do you think it’s easier to make money buying at the bottom or buying on the dips?

3. Do not touch coins that have surged rapidly in the short term, whether they are mainstream or altcoins. Only a few coins can make several waves of main rises. The logic is that it is difficult to continue rising after a short-term surge. When the price stagnates at a high level and cannot be pushed up later, it will naturally fall. 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 once it breaks above the 0 axis, it is a stable entry signal. When the MACD forms a dead 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 adding to their losing positions, and the more they add, the more they lose. This is the biggest taboo in trading. Remember to never average down when you are in a loss; instead, increase your position when you are in profit.

6. Volume and price indicators are crucial; trading volume is the soul of the crypto market. Pay attention to volume breakout when prices are consolidating at low levels.

7. Only trade coins in an uptrend; this maximizes your odds and saves time. When the 3-day moving average turns upwards, it indicates short-term upward movement; when the 30-day moving average turns upwards, it indicates medium-term upward movement; when the 84-day moving average turns upwards, it indicates main upward movement; when the 120-day moving average turns upwards, it indicates long-term upward movement.

8. Persistently review each trade, check if the holdings have changed, analyze whether the weekly K-line trend aligns with your judgment, and if there has been a trend change, adjust your trading strategy promptly.