I trade cryptocurrencies: In two years, I turned 50,000 into a negative 20 million. After a lot of struggles and experiences... trading insights.
1. Divide your funds into 5 parts, and only enter one-fifth each time! Control a 10% stop loss; if you make a mistake once, you only lose 2% of your total funds, and if you make 5 mistakes, you lose 10% of your total funds. If you're right, set a take profit of over 10%. Do you think you will still get stuck? Yes, you will. In a bull market, I short, in a bear market, I go long. When I buy, it drops; when I short, it rises. I can't hold on, and the stop loss is 2%, ten times is 20%.
2. How to improve the win rate again? Simply put, just two words: follow the trend! In a downtrend, every rebound is a trap to lure buyers, and in an uptrend, every drop creates a golden pit! Which is easier to profit from, bottom fishing or buying low? Neither, it’s all up to the mood of the market makers.
3. Avoid touching cryptocurrencies that have rapidly surged in the short term, whether mainstream or altcoins. There are very few coins that can create several waves of major upward trends. The logic is that it’s difficult to continue rising after a short-term surge. When it stagnates at a high level and can't rise further, it will naturally fall. It's a simple principle, but many still want to take a gamble. I also want to avoid it, but I don’t know how far it will rise or fall. Not touching it means not earning money; when it rises, it rises sharply. If you buy this, that will rise; if you buy that, this will rise, creating a misalignment.
4. You can use MACD to judge entry and exit points. If the DIF line and DEA form a golden cross below the zero axis, breaking the zero axis is a stable entry signal. When MACD forms a dead cross above the zero axis and moves downward, it can be seen as a signal to reduce positions. If the signals are accurate, you won’t get stuck; a golden signal turning into a dead cross is a no-go. When reducing positions, the golden cross is a real golden cross.
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, and the more they average down, the more they lose. This is the biggest taboo in cryptocurrency trading, putting oneself in a dead end. Remember, never average down when you're at a loss, but add to your position when you're in profit. The market is volatile, and people are greedy; you keep adding and eventually lose everything.
6. Volume-price indicators are crucial; trading volume is the soul of the cryptocurrency market. Pay attention to breakouts at the low level during consolidation when volume increases. When you see big players building positions, if you enter, the price won’t rise, and if you leave, it will surge.
7. Only trade cryptocurrencies that are in an upward trend, as this maximizes your chances and doesn't waste time. When the 3-day line turns upward, it indicates a short-term rise; when the 30-day line turns upward, it indicates a medium-term rise; when the 84-day line turns upward, it indicates a major upward trend; when the 120-day moving average turns upward, it indicates a long-term rise.
8. Keep reviewing each session, checking if the asset holding invitation has changed, technically observe if the weekly candlestick trend matches the judgment, whether the direction has undergone a trend change, timely review and adjust trading strategies, then find that the losses keep increasing, each time losing differently, this is how I lost from fifty thousand to negative twenty million. This is my little insight, I hope we can encourage each other.
