Once you enter the cryptocurrency circle, you must master position management!
Play safely and steadily, and monthly returns can soar to 70%.
1. Divide your capital into 5 parts, and only invest one-fifth each time! Control a 10-point stop-loss; if you make one mistake, you only lose 2% of the total, and only lose 10% of the total if you make 5 mistakes. If you are correct, set a profit target of over 50 points.
2. How to further improve the win rate? Simply put, it's two words: follow the trend! In a downtrend, every rebound is a trap for buyers, and in an uptrend, every drop presents an opportunity! Is it easier to make money by buying at the bottom or by low absorption? You all know in your hearts!
3. Do not touch cryptocurrencies that have rapidly surged in the short term, whether mainstream or altcoins. Very few types can create several waves of major upward trends. The logic is that it is difficult to continue rising after a rapid surge. When there is stagnation at high levels, there is naturally going to be a decline later; it's a simple principle.
4. You can use MACD to determine entry and exit points. If the DIF line and DEA form a golden cross below the zero axis, once it breaks above the zero axis, it is a stable entry signal. When MACD forms a death cross above the zero axis and moves downward, it can be considered a sell signal.
5. I don't know who invented the term "averaging down," but it has caused many retail investors to trip and suffer great losses! Many people keep adding to their positions as they lose more, and the more they add, the more they lose. This is a great taboo in cryptocurrency trading, putting oneself in a dead end. Do not add to positions when you are losing; add when you are profitable.
6. Volume and price indicators are critical; trading volume is the soul of cryptocurrency. Pay attention to volume breakthroughs at low price levels during consolidation and decisively exit when there is volume stagnation at high levels.
7. Only trade cryptocurrencies in an upward trend; this greatly increases your chances of success and does not waste time. A 3-day moving average turning upwards indicates a short-term rise; a 30-day moving average turning upwards indicates a medium-term rise; an 84-day moving average turning upwards indicates a major upward trend; a 120-day moving average turning upwards indicates a long-term rise!
8. Stick to reviewing each session, check if there are changes in your cryptocurrency holdings, evaluate whether the weekly candlestick chart aligns with your judgments, if the direction has changed trends, and adjust your trading strategy in a timely manner!
