After 8 years of trading cryptocurrencies and making 6 million, it's not all about luck; rather, it's about learning enough lessons to understand these principles.
People often ask me how to choose coins and how to make trades.
To be honest, my method is particularly simple now, but it is these simple things that are the real keys to making money.
Many people can't help but want to "jump in" at the first sign of market fluctuations, leading to impulsive moves that often end in liquidation.
Did you know? I've made all these mistakes in the past, and looking back now, it seems really foolish.
Today, I will share a few "tricks" that I have been using. If you dare to follow, do it seriously:
First, start selecting coins from the gainers list.
Why? Because coins that have risen have activity and subsequent opportunities. If a coin hasn't moved at all, why would you buy it?
Then, don't always fixate on K-line charts. I pay more attention to the monthly MACD: if a golden cross appears, I enter directly; if there's no golden cross, I stay in cash and wait.
K-line can only tell you about short-term fluctuations; real opportunities lie in long-term trends. Don't gamble on those oversold rebounds; low-probability events can easily lead to losses.
Second, I pay the most attention to the 60-day line.
If the coin price pulls back to around the 70-day moving average while trading volume begins to increase, then I will add to my position.
At this point, you need to have confidence that the market will provide opportunities. Once the signal appears, hold steady; if it hasn't appeared, continue to wait.
Third, after entering the market, never get attached to the battle.
If the price rises, I hold on; as soon as it breaks the line, I sell immediately.
Many people make the mistake of "not wanting to leave" and always hope for a rebound, resulting in profits turning into losses.
Take profits in rhythm; don’t expect to capture the entire price increase in one go.
If you earn 30%, reduce your position by half; if you earn 50%, reduce it again by half. Remember, the market is always changing; if you miss this time, there will be another chance.
The most important rule: if it breaks the 70-day line, get out immediately.
This is my ironclad rule for every trade. No matter how long I've held, as soon as it breaks the 70-day line, I decisively withdraw. I don’t fight against the market or gamble my own capital. This rule is the key reason I have survived until now.
In the cryptocurrency space, the simpler it is, the easier it is to execute.
Don’t always fantasize about a "big turnaround"; the ones who truly make money are those who continuously execute discipline and control their emotions.
What I've talked about today are lessons I have earned through my own blood and tears.
The cryptocurrency space will not mistreat a disciplined person, but it will certainly teach a harsh lesson to those who don't follow the rules.