Must-read for retail investors: This cryptocurrency trading model has a win rate of 98.8%, helping you
Don't blindly follow the trend! This verified cryptocurrency trading model has a win rate of up to 98.8%. Once mastered, it can help you avoid most traps, making the progression from 100,000 to 10,000,000 more stable.
1. Diversify funds, strictly control risks
Divide your funds into 5 portions, using only 1/5 of your position each time. Set a 10-point stop loss, so even if a single judgment is wrong, you only lose 2% of your total funds; you would need to be wrong 5 times in a row to lose 10%. If your judgment is correct, set a take profit of more than 10 points to fundamentally reduce the risk of being trapped.
2. Go with the trend, increase your win rate
To further improve the winning rate, the core is the word 'follow the trend'. In a downtrend, every rebound is mostly a trap for bulls; in an uptrend, every drop is often a golden opportunity for buying at a low. Compared to the extremely high risk of bottom fishing, following the trend for low buying has a much higher probability of making money.
3. Avoid cryptocurrencies that surge in the short term
Whether mainstream coins or altcoins, very few can experience multiple waves of major upward trends. After a short-term surge, it is extremely difficult for the coin price to continue to rise. When there is stagnation at a high position, the subsequent inability to rise will inevitably lead to a drop. This simple principle is often ignored by those who enter the market with a 'gamble' mentality, ultimately getting trapped.
4. Use MACD to judge entry and exit signals
Use MACD to assist in decision-making: When the DIF line and DEA form a golden cross below the 0 axis and break through the 0 axis, it is a stable entry signal; when MACD forms a death cross above the 0 axis and moves downward, it is necessary to decisively reduce positions to avoid profit reversal.
5. Refuse to average down losses, only increase positions when profitable
'Averaging down' has trapped countless retail investors—losing more leads to more averaging down, and the more they average down, the more they lose, ultimately pushing themselves into a desperate situation. Remember the iron rule: never average down when at a loss, only increase positions when profitable, allowing profits to roll rather than letting losses expand.
6. Volume and price are the soul, closely follow the flow of funds
Trading volume is the 'weather vane' of funds in the cryptocurrency market, more reliable than simply looking at K-lines. When the price breaks out with increased volume at a low consolidation level, it should be given special attention; when there is increased volume at a high level but stagnation, it indicates that the funds are weak, and a decisive exit is necessary.
7. Persist in reviewing trades, adjust strategies in a timely manner
A review must be conducted after each day's trading: check whether the logic of holding coins has changed, verify whether the trend matches expectations through weekly K-lines, and judge if the trend direction has shifted. Adjust trading strategies based on the review results to continuously optimize operations and avoid repeated pitfalls.
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