Trade cryptocurrency for 8 years, invested 150,000, now supporting my family with trading, currently my assets exceed 10 million. There were difficult times in the beginning, but slowly persevering is the key. I have summarized my hard-earned experience.
1. Divide your capital into 5 parts, and only invest one-fifth each time! Control a 10% stop-loss; if you make a mistake once, you only lose 2% of your total capital, and it takes 5 mistakes to lose 10% of your total capital. If you're right, set a take-profit of over 10%. Do you think you will still be trapped?
2. How to further improve your win rate? In simple terms, two words: go with the trend! In a downtrend, each rebound is a trap for buyers, and in an uptrend, each drop creates a golden opportunity! Would you say it's easier to make money by bottom fishing or by buying on dips?
3. Avoid trading coins that have surged rapidly in the short term, whether they are mainstream or altcoins. Very few coins can produce several waves of major uptrends. The logic is that it is quite difficult for them to continue rising after a short-term surge. When they stagnate at high levels and cannot rally afterward, they will naturally decline. It's 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 create a golden cross below the zero axis and then break above the zero axis, it is a solid entry signal. When MACD forms a death cross above the zero axis and starts moving downward, it can be seen as a signal to reduce your position.
5. I don't know who invented the term 'averaging down,' but it has caused many retail investors to stumble and suffer huge losses! Many people keep averaging down as they lose more, and the more they average down, the more they lose. This is the biggest taboo in trading cryptocurrencies, putting yourself in a dead end. Remember, never average down when you are in a loss, but add to your position when you are in profit.
6. Volume and price indicators are crucial; trading volume is the soul of crypto trading. Pay attention to volume breakout at low levels during consolidation, and decisively exit when there is volume stagnation at high levels. #CryptoTrading
7. Only trade coins in an uptrend; this maximizes your chances and saves time. If the 3-day moving average is turning upward, it's a sign of a short-term rise; if the 30-day moving average is turning upward, it's a sign of a medium-term rise; if the 84-day moving average is turning upward, it indicates a major uptrend; if the 120-day moving average is turning upward, it signifies a long-term rise!
8. Insist on reviewing each session, check if there have been changes in your holdings, technically analyze if the weekly K-line trend aligns with your judgments, and whether the direction has changed trends. Adjust your trading strategy in a timely manner! #萨尔瓦多增持BTC #比特币战略储备 #美联储放鹰