Family! Who understands this! Eight years ago, I dove into the crypto market with 20,000 of my hard-earned money. I’ve been cut by the market, faced liquidation, and endured the darkest moments of a bear market. Now, there are a full 6 zeros behind the numbers in my account! My old fans know that I never engage in flashy leveraged bets; I rely on a steady approach with a 50% position, consistently achieving a 70% monthly return!
A while ago, I passed this set of secrets to my newly initiated disciple. This kid isn't very talented, yet he managed to double his principal in just 3 months! Today I'm in a great mood and I'm revealing all my hidden treasures. Every word strikes deep, so I suggest you like and save this to avoid losing it while scrolling!
The one-fifth position rule lets you survive in the market. Stop foolishly going all-in! Listen to me: split all your funds into 5 parts, and only use 1 part at a time! Strictly set a 10% stop-loss line; even if you make a wrong judgment, you only lose 2% of your total funds. Even if you are wrong 5 times in a row, you only lose 10%, which won’t hurt you at all! Conversely, as long as the direction is correct, take profits directly to over 10%; the compound interest of accumulating small amounts can make you smile until the end! How could you possibly get trapped with this strategy?
The core of doubling your win rate: go with the trend! Go with the trend! Still go with the trend! People often ask me how to improve their win rate, and my answer is two words: go with the trend! This isn’t just talk; it’s a bloody lesson! Every rebound in a downtrend is bait set by the main force; you think you’ve caught the bottom, but you’ve actually stepped into a pit. Every pullback in an uptrend is a golden opportunity provided by the heavens; the win rate of entering low is 10 times higher than gambling on the bottom in a downtrend! Which is more profitable, bottom fishing or low buying? You can tell just by thinking with your toes!
Cryptocurrencies that surge in the short term deserve just a glance; ignoring them is disrespectful to money. Whether it's mainstream tracks or emerging assets, I advise you to stay away from those that surge sharply in the short term! Don’t let the myths of "doubling overnight" cloud your judgment; only a few assets can make it through several waves of main uptrends! After a short-term surge, the chips have long been distributed by the main force; when prices stagnate at a high level, it signals a downturn. This principle is as simple as 1+1=2, yet some people gamble with a lucky mindset, ultimately becoming the bag holders!
Using MACD correctly, you can master the entry and exit points without needing many technical indicators; just understand MACD well enough! My own practical experience: when the DIF line and DEA line form a golden cross below the 0 axis and break through the 0 axis, this is a reliable entry signal—blindly entering here is unlikely to be wrong; conversely, when MACD forms a dead cross above the 0 axis and starts to decline, don’t hesitate, decisively reduce your position! I've used this tactic for 8 years and avoided countless crashes!
"Averaging down" is the grave for retail investors! Increasing positions when in profit is the key. I don't know who came up with the phrase "averaging down to reduce costs," but it has ruined countless retail investors! How many people keep averaging down while losing, ending up in a dead end! I establish a hard rule here: never average down when you are in a loss! True experts only increase positions when they are in profit. If the direction is correct, they add more; if the direction is wrong, they cut losses and exit, never getting attached to a losing position!
Volume and price are king; trading volume is the 'magic mirror' of the market—the soul of the market, keep this saying in mind! When the asset has been consolidating at a low level for a long time and suddenly breaks through a key position with increased volume, don’t hesitate, pay close attention; this is likely a signal of the main force entering! But if the asset experiences increased volume at a high level while the price stagnates, run away quickly! The faster you run, the less you lose! When volume and price diverge, it’s a warning signal of risk!
Only trade assets in an uptrend; don’t waste time on trash. Time is money; don’t waste it on assets in a downtrend! I only trade varieties in an uptrend, where the odds are highest and the efficiency is greatest! Here’s a simple method to judge: look at the 3-day moving average for short-term trends; if it turns upward, it’s a short-term opportunity; look at the 30-day moving average for medium-term trends; if it turns upward, it’s a wave market; when the 84-day moving average turns upward, the main uptrend is coming; if the 120-day moving average flattens and trends upward, that’s a signal for a long-term bull market! Follow the trend, and you’ll have everything you need!
Reviewing is the accelerator of profit; 10 minutes daily is worth more than a whole day of mindless hustle. The last point, and the easiest to overlook: stick to reviewing! Spend 10 minutes after market close checking if the logic behind your holdings has changed. Has there been any new fundamental news? From a technical perspective, does the weekly K-line trend conform to your previous judgments? Has the trend reversed? Timely adjustments to your trading strategy are 100 times better than staring at charts every day, chasing highs and cutting losses! The market is changing, and your strategy must change with it; sticking rigidly to old habits will only lead to elimination!
Alright, today’s useful insights stop here! 8 years of practical experience condensed into these 8 hard rules, every word is worth its weight in gold!
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