In the past three years, I have achieved a leap from 10,000 to 10 million in the cryptocurrency trading market, going through many trials and accumulating rich experience. I would like to share some key insights with everyone, hoping to provide some beneficial enlightenment:
Capital management - the cornerstone of success
Reasonably allocating funds is crucial; funds can be divided into five parts, and only one-fifth should be used for operations at a time. At the same time, it is essential to set strict stop-loss lines, ensuring that each trade does not exceed a 10% loss, thus controlling the total loss of capital within 2%. In this way, even if there are five consecutive mistakes, the total loss will only be 10%. Once a favorable opportunity is captured, the profits obtained can usually easily make up for previous losses.
Follow the trend - never go against it
Do not rush to bottom fish when the market is falling, as in most cases this may be a trap for the unsuspecting. At this time, one should patiently wait for clearer signals to appear. Similarly, during an upward trend, do not be in a hurry to sell; this may very well be a rare 'golden pit,' and adopting a low-buy strategy is often more prudent and reliable than bottom fishing.
Stay away from skyrocketing coins - avoid risks
Whether it's mainstream coins or altcoins, coins that can sustain a skyrocketing trend are rare. The vast majority, after experiencing a short-term surge, often fall into a stagnation or even a correction. Therefore, one must not harbor luck and blindly bet that a high-level surge can continue to create miracles.
Skillfully use technical indicators - assist in decision-making
MACD is a very practical technical indicator. When the DIF line and the DEA line form a golden cross below the 0 axis and break through the 0 axis, one can consider buying at the right time; conversely, if a death cross appears above the 0 axis and moves downward, one should consider reducing positions accordingly. In addition, the replenishment operation must follow certain rules; do not add positions when in a loss state, and only add positions when in a profit state, otherwise, it is very likely to fall into a deeper predicament.
Pay attention to trading volume - grasp the essence
Trading volume is the soul of the cryptocurrency market; closely monitor the situation of low-level volume breakthroughs, as this is usually an important market signal. At the same time, one should always insist on trading only coins that are in an upward trend. By observing the movements of the 3-day, 30-day, 84-day, and 120-day moving averages, when these moving averages turn upward, it often indicates the establishment of an upward trend.
Review and adjust strategies - continuous optimization
After completing a trade, one should promptly review the trade to re-examine whether the logic of holding positions is reasonable. Combine it with the weekly K-line trend to flexibly adjust the operational strategy, ensuring adaptability to market changes and achieving continuous and stable profits.