In the cryptocurrency world, to achieve stable profits, the key is to systematize trading and replace emotions with rules. This set of 'four-step method' validated by practical experience may provide you with a clear idea.
1. Precise screening of coins to exclude risks
The first step is not to rush to find coins that can rise, but to smartly exclude those 'bomb coins' that are highly likely to lose money. A core selection method is to pay attention to those coins that have recently (for example, within 11 days) appeared on the rise list, indicating that there is capital interest. At the same time, it is crucial to avoid those that have been continuously declining (for example, for 3 days or more), as this is often a signal of capital offloading, and blindly intervening can easily lead to taking over. Remember, the first step to protect your capital is to stay away from weak assets.
2. Recognize the major trend and go with the flow.
After deciding on an investment target, do not rush to place an order. First, switch to the monthly chart and observe whether the MACD indicator shows a 'golden cross', especially if the golden cross appears above the zero line, as this is usually a reliable signal for the start of an upward trend of medium-term or higher. Investing should be like sailing with the current, standing in the favorable direction of the major trend. Short-term fluctuations are difficult to predict, but the success probability advantage provided by long-term trends is the cornerstone of stable profits.
3. Seize the critical moment and find the right entry point.
The trend looks promising, but a safe 'entry point' is still needed. At this point, you can switch to the daily chart and focus on the relationship between the price and the 60-day moving average. When the coin price pulls back to near the 60-day moving average and shows signs of stabilization (for example, briefly falling below and then rising back above, or increasing trading volume when close to the moving average), this is usually a better risk-reward entry opportunity. The core of this step is to leverage the support of the moving average, the 'lifeline of the trend', to avoid chasing highs and enhance the safety margin of trading.
4. Strictly adhere to exit discipline; controlling your hands is key.
Establishing and strictly enforcing exit rules is the guarantee for long-term survival. A reference strategy is: when profits exceed 30%, sell part of your position (e.g., 1/3) to lock in profits; when profits exceed 50%, sell another part of your position; once the price falls below the 60-day moving average, decisively liquidate your position. You must overcome the 'wishful thinking' mentality; regardless of profit or loss, once exit conditions are triggered, you must execute firmly. Remember, missing out is not scary; what’s scary is losing control of losses. Protect your principal; the market will always have the next opportunity.
The core of this method lies in its systematic approach and discipline. It may seem a bit 'clumsy', but it can effectively help you filter out market noise and avoid most common mistakes made by retail investors. In the cryptocurrency world, surviving for a long time is more important than making quick profits.
Those who can survive in the market and still make a profit have always been the ones willing to reach out first.
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