Today I want to share a super practical tip for trading cryptocurrencies. It's simple and easy to understand. Even if you're a beginner in the crypto space, if you follow my method, you can still make steady profits.
First, you need to set up three moving averages on the K-line chart: 5 days, 15 days, and 30 days. Especially the 30-day moving average, as it is key for us to judge support and resistance.
1. Choosing the right cryptocurrency is crucial:
Look for those cryptocurrencies that are currently on the rise, the ones that are gaining momentum. If the price is consolidating, that’s fine too. But if the cryptocurrency is on a downward trend with all the moving averages pointing down, then it's best to avoid it.
2. How to allocate your funds?
Divide your money into three portions, and don’t invest more than a third at a time. If the price breaks through the 5-day line, first use a third of your funds to test the waters lightly. If it breaks through the 15-day line, then use another third. Once the 30-day line is also breached, then invest the remaining third as well. Remember, it’s important to stick to the rules.
3. The strategy for holding and selling:
If the price surpasses the 5-day line but hasn’t crossed the 15-day line, and then pulls back, as long as it doesn’t drop below the 5-day line, we hold steady. If it drops below, then withdraw quickly. Similarly, if it surpasses the 15-day line but not the 30-day line, if it pulls back and the 15-day line holds, continue to hold. If it doesn’t hold, sell a third; if the 5-day line remains stable, keep holding the rest. If it surpasses the 30-day line and then pulls back, follow the same rules slowly.
4. Selling techniques:
If the price is fluctuating at a high level, and breaks below the 5-day line, first withdraw a third. If it doesn’t continue to drop, keep the remaining. If the 5-day, 15-day, and 30-day lines all break, then don’t hesitate, sell all of it, and don’t hold on to false hopes.
This method sounds simple, right? But the key is to execute it consistently without fail. Once you buy, the path for buying and selling is set. Only by maintaining discipline can you truly keep the profits in your pocket.
Follow me for any questions or if you want to discuss and learn together. Check out the cooking industry introduction to avoid unnecessary complications in the crypto space.
