From 3,000 to 30 million through trading coins!
After going through ups and downs, these experiences... trading insights
1. Divide your capital into 5 parts, and only invest one-fifth each time! Control a stop loss of 10 points. If you make a mistake once, you only lose 2% of your total capital, and if you make 5 mistakes, you lose 10% of your total capital. If you are right, set a take profit of more than 10 points. Do you think you will still be trapped?
The key is to set a good stop loss and take profit. Win at moderation! Lose to greed!
2. How to further increase the win rate? Simply put, it's about going with the trend! In a downtrend, every rebound is a trap to attract buyers, and in an uptrend, every drop creates a golden opportunity! Which do you think is easier to profit from: bottom fishing or buying on dips?
3. Do not touch coins that have surged rapidly in the short term, whether they are mainstream or altcoins. There are very few coins that can make several waves of major upward trends. The logic is that it's difficult to continue rising after a short-term surge. When prices are stagnant at high levels, they will naturally decline later; it's a simple principle, but many people still want to take a gamble.
4. You can use MACD to determine entry and exit points. If the DIF line and DEA form a golden cross below the zero axis, and then break above the zero axis, it's a stable entry signal. When MACD forms a dead cross above the zero axis and runs down, it can be seen as a signal to reduce positions.
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 adding to their positions as they lose, and the more they add, the more they lose. This is the biggest taboo in coin trading, putting oneself in a dead end. Remember, never average down when you're in a loss; instead, add to your position when you're in profit.
6. The volume-price indicator is crucial; trading volume is the soul of the coin market. Pay attention when the coin price breaks out on increased volume at low levels during consolidation.
7. Only trade coins in an upward trend, as this maximizes your chances and saves time. When the 3-day moving average turns upward, it's a short-term rise; when the 30-day moving average turns upward, it's a medium-term rise; when the 84-day moving average turns upward, it's a major upward trend; when the 120-day moving average turns upward, it's a long-term rise.
8. Insist on reviewing each trading session, checking if there are changes in your holdings, and analyzing whether the weekly K-line trends meet your judgments. Is the direction trending to change? Adjust your trading strategy promptly.
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