I have been trading cryptocurrencies for ten years, turning 50,000 into over 5 million by 2024. Through trials and tribulations, these experiences... trading insights.
1. Divide your capital into 5 parts, only invest one-fifth each time! Control a 10% stop-loss; if you make a mistake once, you only lose 2% of total capital, and if you make 5 mistakes, you lose 10% of total capital. If you're right, set a take profit of over 10 points. Do you think you will be stuck?
2. How to improve the win rate again? In simple terms, it’s about going with the trend! In a downtrend, every rebound entices buyers; in an uptrend, every drop creates a golden pit! Which is easier to profit from, bottom fishing or buying at lower prices?
3. Do not touch cryptocurrencies that have rapidly surged in the short term, whether mainstream or altcoins; very few cryptocurrencies can produce several waves of major upward trends. The logic is that it is difficult to continue rising after a short-term surge. When prices stagnate at high levels, they will naturally fall when unable to push further; it’s a simple principle, yet many still want to gamble.
4. You can use MACD to determine entry and exit points. If the DIF and DEA lines form a golden cross below the zero line and break above the zero line, it is a stable entry signal. When MACD forms a dead cross above the zero line and moves downward, it can be seen as a signal to reduce positions.
5. I don't know who invented the term 'averaging down', but many retail investors have stumbled and suffered significant losses because of it! Many people buy more as they lose; the more they average down, the more they lose. This is the most taboo in trading cryptocurrencies, putting oneself in a dead end. Remember, never average down when in loss, but add to your position when in profit.
6. Volume-price indicators are critical; trading volume is the soul of the cryptocurrency market. Pay attention to volume surges at low prices during consolidation.
7. Only trade cryptocurrencies in an upward trend, as this maximizes your chances and saves time. When the 3-day moving average turns upward, it signals a short-term rise; when the 30-day moving average turns upward, it indicates a medium-term rise; when the 84-day moving average turns upward, it signifies a main upward wave; when the 120-day moving average turns upward, it indicates a long-term rise.
8. Insist on reviewing each session, check if there are changes in your holding positions, technically analyze whether the weekly K-line trends align with your judgment, whether the direction has changed, and adjust your trading strategy in a timely manner.
Summary of capital management and trading strategies:
1. Go with the trend and only trade based on the main trend! For example: if the overall market is bullish, then trade long in spot and contracts.
As the main approach, if the overall market is bearish, then focus on shorting in contracts.
2. Buy on dips in an uptrend and sell on rallies in a downtrend.
3. After making a profit, let the profits grow significantly while keeping losses to a minimum.
4. Always set protective stop-loss orders for your positions to limit absolute losses.
5. Do not trade impulsively; have a planned approach to battle.
6. First, formulate a battle plan, then execute it firmly.
7. Always control your regular position at five layers.
8. Diversify investments, but be careful not to over-diversify, which can lead to diminishing returns; thus, it is essential to find a balance.
9. The risk-reward ratio must be at least 3:1 to trade.
10. If you are using a pyramid method to increase your position, you must follow these principles: A) Each subsequent layer must be smaller than the previous one B) You can only add to winning positions C) You cannot increase investment in losing positions D) Set protective stop-loss orders at break-even.
11. When experiencing significant losses, never add margin, and do not gamble your entire fortune on a single trade.
12. To prevent yourself from being unable to stop adding margin, you must cash out 75% of your funds and keep them in your bank account.
13. When closing profitable positions, you must first close your losing positions.
14. For short-term trading, you can watch the market every day; if not, try not to watch all day long. Just take a look once a day or every other day! When making decisions, be sure to think during the period you are not watching the market, then make your decision.
15. When studying trend directions, start from the long-term and then analyze the short-term.
16. If you are going to make a trade, you need to find the most precise entry and exit points on that day.
17. Try not to pay attention to some media so-called news, as much of it is intended to mislead you.
18. The market always allows a minority to earn money from the majority. If you believe you are in the minority and your market judgment is based on comprehensive analysis, then it is very likely that the vast majority disagree with you, but you must believe in yourself.
19. Trading is a matter of continuous learning and practice over time, ultimately leading to experience gained! Therefore, always remain humble.
Maintain a humble attitude, continuously learn and explore, but do not get lost in it every day; spending just half an hour a day is sufficient.
20. To truly learn the techniques, you need to learn comprehensively, but when you finally establish a trading system, it should be very simple.
I am preparing to invest in a project that will surge in the short term, doubling is not a problem. Friends who are interested but lack direction can like and leave a comment 111 for free sharing.
