I have been involved in cryptocurrency trading for a full eight years. Looking back, I have many feelings. Throughout these eight years of ups and downs, I have relied on my judgment, courage, and keen market insight to earn over 40 million. Now, my family's living expenses depend entirely on the profits from cryptocurrency trading. This journey has been filled with countless ups and downs, with moments of joy and times of panic. In this process, I have summarized six practical experiences. Although they are briefly stated, each one has been tested with real money in the market and is particularly useful! Today, I want to share these valuable experiences with everyone. If you can understand and apply them, it will definitely help you avoid many detours in cryptocurrency trading and prevent a lot of setbacks!
Now, let me elaborate on these six experiences.
The first point is that when trading cryptocurrencies, we must always keep a close eye on those coins with strong trends. If you feel uncertain and indecisive, it's beneficial to look at the 60-day moving average, which is an important reference indicator. If the 60-day moving average is above the price, it indicates an optimistic situation, and you can consider increasing your position or buying in. However, if the 60-day moving average falls below the price, you need to be alert and it’s best to withdraw quickly to avoid unnecessary losses. From my years of experience, this strategy tends to be effective in most cases.
The second point is that if a certain coin suddenly rises by more than 50%, everyone should stay calm and not rush to chase the price, as this often leads to panic and significant volatility afterwards. In fact, it's safer to buy in at lower prices; this approach not only reduces risks significantly, but you might also end up with greater profits, making it a strategy that seeks victory through stability.
The third point is that there are often signs before a significant rise. For example, the price may fluctuate within a relatively small range, with a change of about 10% to 20%, while trading volume shows a decreasing trend. Once you notice this situation, you can seize the opportunity to buy in slowly at lower prices. Based on past experience, this approach is likely to catch the upward trend, leading to considerable gains.
The fourth point is that when a new hot topic emerges in the market, the first few days are sure to be very popular and bustling. At this time, we need to be quick and sharp, seizing this rare opportunity and following the flow of large funds. If you can grasp this rhythm, making money will be relatively easier, so don't miss such a good opportunity!
As for the fifth point, once a bear market arrives, we must hold on tightly to our positions and try not to act rashly for at least six months. After all, during tough market conditions, the more actions we take, the more mistakes we may make. Therefore, understanding when to rest and refrain from action is what truly makes a master. Preserving our strength during a bear market and waiting for the right opportunity to act is a wise move.
The sixth point is that we should set aside time each week to review our previous trading activities. This is not just about checking whether we made a profit or a loss; the key is to evaluate whether our strategies are correct. If the strategy is correct, then continue to stick with it; if you find issues with the strategy, correct it promptly. As long as you persistently review and adjust, after a few months, your trading methods will become more stable and mature, giving you more confidence in the market.
Finally, I want to emphasize that success is never a windfall that falls from the sky; it's always reserved for those who are well-prepared and willing to invest effort in research. I hope everyone can have a smooth journey in cryptocurrency trading and reap abundant rewards!