#From 50,000 to 20 million, trading insights from experience in the crypto world

In the crypto world, I turned 50,000 in capital into 20 million. I hope these practical trading insights can inspire everyone.

Capital Management: Diversify Risks, Start Steadily

Divide the funds into five equal parts, and invest only one-fifth each time. Strictly control a 10% stop-loss, so a single mistake results in only a 2% loss of total funds, and five mistakes lead to a 10% loss. When in profit, set a take-profit of over 10%. This way, it can effectively avoid being trapped.

Trend is King: Go with the Flow, Higher Odds of Winning

The key to increasing winning rates is to go with the trend. In a downtrend, each rebound might be a trap for buyers; in an uptrend, each drop is often a golden opportunity. Compared to blindly trying to catch the bottom, buying on dips in the trend is more likely to yield profits.

Avoid Sudden Surge Coins: Be Rational, Don't Chase Highs Blindly

Whether it's mainstream coins or altcoins, avoid those that have surged rapidly in the short term. Very few coins can have multiple waves of major upward trends; after a short-term surge, continuing to rise is difficult, and high stagnation is likely to lead to a drop. Don’t gamble with wishful thinking.

Skillfully Use the MACD Indicator: Grasp Buy and Sell Points

The MACD indicator can assist in determining entry and exit points. A golden cross of the DIF line and DEA below the zero line that breaks above it is a strong entry signal; a death cross forming above the zero line that moves downward can serve as a signal to reduce positions.

Refuse to Average Down on Losses: Increase Positions on Profits, Cut Losses on Losses

Averaging down has caused many retail investors to incur significant losses. Never average down when in loss; this is a major taboo in trading cryptocurrencies and can lead to dire situations. Increase your position when in profit to expand gains.

Focus on Volume-Price Relationship: Trading Volume is Key

Trading volume is the soul of the crypto world. A price breakout with increasing volume from a consolidation low is worth paying special attention to, as it often signals the start of a trend.

Only Trade in Uptrends: Efficient Investment, Save Time

Only participate in coins that are in an uptrend, as the odds of winning are high and time is not wasted. A 3-day moving average turning upward is a short-term bullish signal, a 30-day moving average turning upward indicates a mid-term rise, an 84-day moving average turning upward signifies a major uptrend, and a 120-day moving average turning upward reflects a long-term rise.

Stick to Reviewing Trades: Summarize Experiences, Adjust Strategies

Review after each trade. Check if the logic of holding coins is reasonable, whether the weekly candlestick trends align with expectations, and if the trend has changed. Adjust trading strategies promptly based on review results.