I Trade Coins: In two years, I turned 50,000 into 20 million. After experiencing ups and downs, these experiences... Trading Insights
1. Divide your funds into 5 parts, and only invest one-fifth each time! Control a 10-point 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 points. Do you think you'll still get trapped?
2. How to further improve the win rate? Simply put, it's about going with the trend! In a downtrend, every rebound is a trap for buyers; in an uptrend, every drop creates a golden opportunity! Which is easier to profit from, bottom fishing or buying on dips?
3. Do not touch coins that have experienced short-term rapid surges, whether mainstream or altcoins; very few coins can have multiple waves of primary upward trends. The logic here is that after a short-term surge, it is challenging to continue rising. When it stagnates at a high level and cannot be pulled higher later, it will naturally fall. This is a straightforward principle, yet many still want to gamble.
4. You can use the MACD to determine entry and exit points. If the DIF line and DEA form a golden cross below the 0 axis, breaking the 0 axis is a solid entry signal. When the MACD forms a death cross above the 0 axis 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 it has caused many retail investors to stumble and suffer significant losses! Many people keep adding to their losses, and the more they add, the more they lose. This is the most taboo in trading coins, putting yourself in a dead-end. Remember, never average down when you're at a loss, but increase your position when you're in profit.
6. Volume-price indicators are crucial; trading volume is the soul of the crypto market. Pay attention to significant breakout volume when prices consolidate at low levels.
7. Only trade coins in an upward trend; this maximizes your chances and saves time. If the 3-day line turns upwards, it's a short-term rise; if the 30-day line turns upwards, it's a medium-term rise; if the 84-day line turns upwards, it's a primary upward trend, and if the 120-day moving average turns upwards, it's a long-term rise.
8. Persist in reviewing each session, check if your holding strategy has changed, technically analyze if the weekly K-line trend aligns with your judgment, and whether the direction has changed trends, timely review and adjust your trading strategy. $BTC $ETH
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