My four-step operation method: simple and effective, suitable for beginners

A practical guide for currency trading: four-step strategy + three don'ts + six formulas, simple and practical!

After so many years in the currency circle, I found that the most effective strategy is actually very simple, share it with everyone:

Step 1: Pick the right currency

Open the daily chart and look at the MACD indicator first. Only select currencies with golden cross signals (MACD line crosses the signal line from bottom to top), especially those with golden crosses above the 0 axis, which have a higher success rate. In simple terms, this is the "buy signal" given by the market.

Step 2: Buy and sell based on the moving average

Keep an eye on a moving average - the daily moving average (such as the 20-day moving average). There are only two rules:

Hold online: When the currency price is above the moving average, hold it with confidence;

Sell offline immediately: Once it falls below the moving average, clear the position immediately, don't hesitate.

This line is your "safety belt", stop loss when it falls below, simple and crude but effective.

Step 3: Position management

1. Timing of adding positions: If the price of the currency breaks through the moving average, and the trading volume also increases synchronously and stands firm on the moving average, you can consider adding positions.

2. Sell in batches:

- Up 40%: sell 1/3 first;

- Up 80%: sell another 1/3;

- Break the moving average: sell all the rest.

This can lock in profits and avoid being trapped.

Step 4: Stop loss iron rule

The moving average is the core. If it suddenly falls below the moving average the next day, you must clear your position immediately. Even if the currency you selected before is good, breaking the moving average means that the trend has changed. Don't be angry and hold it. Wait until it stands firm on the moving average again before coming back.