I have worked my way from 50,000 to 20,000,000, sharing some insights!
The first thing is to divide the funds into five equal parts, using only one part for each trade. If there is a loss, set a stop-loss point at 10%; thus, a single loss is only a small portion of the total assets. Even with five consecutive losses, the total loss would only be 10%. However, if there are profits, a take-profit point should be set at over 10% to prevent being trapped.
The key to increasing the probability of profits lies in following the trend! During a downtrend, rebounds are mostly traps; during an uptrend, pullbacks are good buying opportunities. Let me ask, which is easier to profit from: bottom-fishing or buying at a low price? Clearly, it is buying at a low price!
Do not engage in coins that experience short-term surges, whether popular or niche. There are very few coins that continuously experience significant increases. After a short-term surge, the momentum for further increases is insufficient, and maintaining high prices becomes difficult, leading to natural declines. This principle is simple, yet there are always those who wish to seek high returns.
The MACD indicator is also quite useful for determining buy and sell timing. When the DIF and DEA cross below the zero line and then break above it, that is a buy signal; conversely, when they cross above the zero line and then decline, that is a signal to reduce positions.
The term "averaging down" is misleading and causes many investors to fall into a trap! Do not average down when losing; only consider increasing positions when profitable, i.e., averaging up with floating profits.
Trading volume is key in the coin market; when the price is hovering at a low level, if the trading volume suddenly increases and breaks through a certain point, caution is required.
Focus on coins with upward trends to increase win rates and save time. Observe moving averages, where a 3-day moving average indicates short-term rises, and a 30-day moving average indicates mid-term rises, and so on.
Finally, it is essential to regularly review the logic of holding coins and the weekly K-line trends to confirm whether the trend has changed. If there is a change, it is necessary to adjust trading strategies in a timely manner.
In the coin market, if you do not have a good social circle or first-hand information from the market, then I suggest you follow me. Brother Pao is waiting for you in the circle, ready to help you ride the wave to success. Welcome to the team!!!💵🔥
