I Trade Cryptocurrency: In two years, I turned 50,000 into 20 million. Through ups and downs, 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 one mistake, you only lose 2% of your total funds. If you make 5 mistakes, you lose 10% of your total funds. If you are correct, set a take-profit of more than 10%. Do you think you'll get stuck?

2. How to further improve the win rate? Simply put, follow the trend! In a downtrend, each rebound is a trap for buyers. In an uptrend, each drop creates a golden opportunity! Do you think it's easier to make money by buying the dip or by catching the bottom?

3. Avoid cryptocurrencies that have surged rapidly in the short term, whether mainstream or altcoins. There are very few coins that can sustain multiple waves of upward momentum. The logic is that it is difficult to continue rising after a short-term surge. When it stagnates at a high level and cannot be pushed up later, it will naturally fall. This is a simple principle, yet 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 zero axis, and then break the zero axis, it's a solid entry signal. When MACD forms a death cross above the zero axis and starts to move down, 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 great losses! Many people keep adding to their losses, and the more they average down, the more they lose. This is the biggest taboo in cryptocurrency trading, putting oneself in a dangerous position. Remember, never average down when in loss, but rather add to your position when in profit.

6. Volume and price indicators are the most important; trading volume is the soul of the crypto market. Pay attention to significant volume breakthroughs at the low points of price consolidation.

7. Only trade cryptocurrencies that are in an upward trend; this maximizes your odds and saves time. If the 3-day moving average turns upward, it's a short-term rise. If the 30-day moving average turns upward, it's a medium-term rise. If the 84-day moving average turns upward, it's a primary upward trend. If the 120-day moving average turns upward, it's a long-term rise.

8. Persist in reviewing each trading session, checking if there are any changes in the holdings, technically analyzing whether the weekly K-line trend aligns with your judgment, and whether the direction has changed. Timely review and adjust your trading strategy.