Avoid getting trapped in trading cryptocurrencies, profit step by step: Please keep the eight major secrets

1. Divide your funds into five 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, and if you make five mistakes, you lose 10% of your total funds. If you are correct, set a take profit of more than 10* points. Do you think you will still get trapped?

2. How to further improve the win rate? Simply put, it's two words: go with the trend! In a downtrend, every rebound is a trap for more buyers, and in an uptrend, every drop creates a golden opportunity*! Which do you think is easier to profit from: bottom fishing or low buying?

3. Avoid touching cryptocurrencies that have rapidly surged in the short term, whether mainstream or altcoins. Very few coins can make several waves of major rallies*. The logic is that it's difficult for them to continue rising after a short-term surge. When prices stagnate at high levels and can't be pushed up later, they will naturally fall. It's a simple principle, but many still want to take a gamble.

4. You can use MACD to determine entry and exit points. If the DIF line* and DEA cross above the O axis, and then break the 0 axis, it is a stable entry signal. When MACD forms a dead cross above the 0 axis and moves downwards, it can be seen as a signal to reduce positions.

5. I don't know who invented the term 'averaging down,' but many have fallen and suffered great losses because of it! Many people keep adding to their losses, and the more they add, the more they lose. This is the biggest taboo in cryptocurrency trading, putting oneself in a dire situation. Remember, never average down when in loss; instead, add to your position when in profit.

6. Volume and price indicators are crucial. Trading volume is the soul of buying in the crypto world. Pay attention when a breakout occurs with increased volume at a low price level, and decisively exit when there's increased volume but stagnation at a high price level.

7. Only trade cryptocurrencies in an upward trend; this maximizes your chances and saves time. A 3-day moving average turning upward indicates a short-term rise, a 30-day moving average turning upward indicates a medium-term rise, an 84-day moving average turning upward indicates a major rally, and a 120-day moving average turning upward indicates a long-term rise!

8. Insist on reviewing each trading session, checking if there are any changes in the cryptocurrency you hold, assess whether the weekly K-line* trend aligns with your judgment, and whether the direction has changed trends. Timely review and adjust your trading strategy!