Thanks to the cryptocurrency world, I have been able to trade coins and support my family for the past six years. I have summarized my hard-earned experiences from these six years.
1:) Divide your capital into 5 parts, and only invest one-fifth each time! Control a stop-loss of 10 points; if you make one mistake, you only lose 2% of your total capital. If you make 5 mistakes, then you lose 10% of your total capital. If you are right, set a take-profit of more than 10 points. Do you think you will still get stuck?
2:) How to improve 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, and in an uptrend, every drop creates a golden opportunity! Which is easier to make money from: buying at the bottom or buying low?
3:) Do not touch coins that have experienced rapid short-term surges, whether mainstream or altcoins; very few coins can produce multiple waves of main upward momentum. The logic is that it is difficult for a coin that has surged in the short term to continue rising. When it stagnates at a high position, it will naturally decline later. It's a simple principle, but many people still want to take a gamble.
4:) You can use MACD to judge entry and exit points. If the DIF line and DEA form a golden cross below the zero axis, once it breaks the zero axis, it is a stable entry signal. When MACD forms a dead cross above the zero 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 fall 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 coins, putting oneself in a dead end. Remember, never average down when you're in a loss; instead, increase your position when you're in profit.
6:) Volume-price indicators are crucial; trading volume is the soul of the crypto market. Pay attention when there is a breakout at low levels during consolidation, and decisively exit when there is a volume stagnation at high levels.
7:) Only trade coins in an upward trend; this maximizes your odds and saves time. The 3-day line turning upwards indicates a short-term rise, a 30-day line turning upwards indicates a medium-term rise, an 84-day line turning upwards indicates a main upward wave, and a 120-day moving average turning upwards indicates a long-term rise!
8:) Insist on reviewing each session, checking if there have been changes in the holdings, analyzing whether the weekly K-line trends align with your judgments, and whether there has been a change in trend direction. Adjust your trading strategy in a timely manner!
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