Seven years of trading cryptocurrencies, earning relies on perception and discipline
After seven years of trading cryptocurrencies, I lost over 100 in the first three years, but in the following years, I gained back several hundred. Every penny behind it is a lesson learned through blood and tears!
This market is constantly repeating the same secret: 90% of retail investors focus on news to trade cryptocurrencies, 9% of smart people watch the movements of the big players, while 1% of aggressive players are dissecting the market's genetics using moving averages.
Step 1: Verify the moving averages Treat the daily moving average as three distinct old Chinese doctors— the 5-day line is the head of the emergency department, the 30-day line is an internal medicine expert, and the 60-day line sits in a grand master chair in the specialist clinic. When the head of the emergency department suddenly perks up and rushes to check the pulse of the two experienced doctors (the 5-day line crosses above the 30/60-day lines), this is a signal that the market is preparing to enter the ICU for rescue. Conversely, if you find the head of the emergency department slipping and rolling off the grand master chair (the 5-day line crosses below the 30/60-day lines), don’t hesitate, immediately adjust your position.
Step 2: Establish a trading system to avoid impulsive decisions
Now please stick a note on your trading interface and write in bold: When moving averages clash, mere mortals retreat. When the 5-day line and the 30-day line are entangled like twisted dough, jumping into the market at this time is equivalent to rolling dice to guess odd or even. A true hunter only pulls the trigger when the three lines are marching in the same direction.
Here’s a contrarian cold fact: In the cryptocurrency circle where extreme rises and falls are commonplace, the daily moving average strategy becomes simpler and more lethal. Just like a true martial arts master never needs to display fifty starting moves, a breakthrough of the 5-day line is the signal to draw the sword, and a turn of the 60-day line is the moment to sheathe it.
Step 3: Weld discipline to the trading platform
I have seen too many people write their trading plans on napkins, only to be scared by a sudden spike and tear the napkin in a cold sweat at midnight. The most cruel yet merciful aspect of the daily moving average strategy is that it forces you to become an emotionless signal execution machine.
Here’s a dark humor: A trader who has steadily profited using the daily moving average strategy for three years received a warning at a wedding that the 5-day line had broken, and he actually went into the bathroom to close his position before coming out to exchange rings. Later, the bride scolded him while tugging at his ear, but after seeing the account balance, she silently replaced his monitor with a top-of-the-line model.
