Yesterday, the crypto market faced one of the biggest liquidity grabs ever, wiping out approximately $1.75 billion. Many altcoins crashed by 25–30%, causing massive losses for traders. Unfortunately, nearly 60% of beginner traders lost their entire funds, with many accounts getting liquidated overnight. 😴
Now, the big question: Why did this happen? The main reason is the lack of risk management. This is something I’ve talked about repeatedly in my guides and lessons. Without a proper plan, trading in crypto is like driving without brakes you’re bound to crash.
But here’s the good news: while most traders were losing money, my team and I managed to make an incredible +15,500% profit. Yes, you read that right. And no, we didn’t short the market we went long! 😁
You might be wondering, “How is that even possible?” The answer lies in experience, technical knowledge, strategy, and discipline. Let me break it down step by step so you can learn and improve your trading approach.
1. Scalping: Quick and Smart Profits
We used a strategy called scalping, which involves taking advantage of small price movements in the market. Instead of waiting for big trends, we focused on quick entries and exits, locking in profits from minor fluctuations.
For example, imagine a coin's price moving between 100 and 105 multiple times in an hour. A scalper would buy at 100, sell at 105, and repeat this process. These small gains can add up to significant profits if done correctly.
Tip: Scalping requires speed and precision, so always have a plan and stick to it.
2. EMA: Spotting Support and Resistance
We used the Exponential Moving Average (EMA) to identify support and resistance levels. EMA helps smooth out price data, making it easier to spot key levels where the price is likely to bounce or break.
For example Check Image:
If the price is above the EMA, it often acts as support.
If the price is below the EMA, it can act as resistance.
This tool is a lifesaver for scalpers because it provides clear entry and exit points.
Tip: Experiment with different EMA periods (e.g., 9, 21, or 50) to find what works best for your strategy.
3. Crossover Strategies: Golden Cross & Dead Cross
Another key strategy we used is the crossover strategy, which involves the Golden Cross and Dead Cross:
RED = 7 EMA, GREEN 21 EMA
Golden Cross: When a short-term EMA crosses above a long-term EMA, indicating a potential upward trend. RED ABOVE GREEN
Dead Cross: When a short-term EMA crosses below a long-term EMA, signaling a downward trend. RED BELOW GREEN
We applied these on the 1-minute timeframe for fast-paced trades.
4. Choosing Strong Projects
During a bull market, every dip in fundamentally strong projects is an opportunity to buy. We carefully selected coins with solid fundamentals, ensuring they could bounce back after the dip.
Example: If you see a project with active development, a strong community, and a clear use case, chances are it’s worth considering for trades.
$ORDI $INJ $ONE
Tip: Always do your research before entering any trade.
Key Takeaways
Here’s what you should remember:
Risk management is non-negotiable. Never trade without setting stop losses and managing position sizes.
Scalping is powerful but requires discipline and focus.
Use tools like EMA and strategies like crossover to find the best entry and exit points.
Stick to fundamentally strong projects, especially during volatile times.
Trading is not about luck it’s about knowledge, preparation, and execution. If you want to succeed, start learning and practicing these strategies.
Let me know if you have any questions or want to learn more about any of these methods. I’ll share detailed explanations of each strategy in upcoming posts. Stay tuned!
