Several iron rules for cryptocurrency trading
1. Cut your capital into five parts, use only one part for each transaction, and set a 10% stop loss point. In this way, even if you make a mistake in judgment, the single loss will only account for 2% of the total funds, and five consecutive mistakes will only be within the tolerance range of 10%, effectively controlling the risk.
2. Keep up with the pulse of the market. Rebounds in a downward trend are often traps, while pullbacks in an upward trend are good opportunities to buy. Learn to identify and follow the trend.
3. Be vigilant against those currencies that have soared sharply in the short term. They often fall back quickly after hovering at high points. Remember, it is cold at high places, and stagflation at high levels is a warning.
4. Use the MACD indicator for precise navigation. When DIF and DEA form a golden cross below the 0 axis and cross the 0 axis, it is regarded as a steady buy signal; on the contrary, if the two form a dead cross above the 0 axis and go down, it is a clear prompt to reduce positions or leave the market.
5. Adhere to the principle of adding positions when making profits and not adding positions when losing money. At the same time, pay close attention to the relationship between volume and price. A breakthrough in low volume is a good opportunity to enter the market. If the high volume is stagnant, withdraw decisively and focus on strong currencies with rising potential.
6. Review transactions at a fixed time every week, analyze market trends, and adjust strategies in time. The market is changing rapidly, and only by maintaining flexibility can you move forward steadily in the ocean of currencies.
