Last year, a friend came to me with 2700U, saying he wanted to make a comeback through trading. I directly gave him three hard rules that I learned from painful experiences. He followed them for three months, and his account shot up to 50,000U without ever blowing up.
First rule: Split the principal into three parts; preserving capital is the top priority.
· Use 900U for short-term trades, trading at most twice a day, and close the software right after. Don’t keep staring at it.
· Keep 900U on the sidelines waiting for the trend; if the weekly chart hasn’t formed a bullish sequence, stay put, steady as a rock.
· Finally, the last 900U is emergency money, used to average down in case of a sudden market crash, leaving yourself a way to turn things around.
Second rule: Only take the fattest part of the trend.
· Has the moving average not formed a bullish sequence? Stay in cash and watch, don’t rush to enter.
· Did the trading volume suddenly spike and break the previous high? Try a small position first, don’t go all in right away.
· Profits exceeding 30%? Withdraw half of the profits to secure gains.
Third rule: Turn yourself into a trading machine without emotions.
· Set a stop-loss at 3%, cut losses when it hits, don’t hesitate.
· If profits exceed 10%, move the stop-loss to the cost price to ensure at least no loss on this trade.
· Shut down and go to sleep at midnight; we don’t touch those coins that suddenly skyrocket or plummet in the middle of the night.
Remember: blowing up an account equals losing fingers, losing all the capital equals losing your head. As long as the principal is still there, you will always have a chance to turn things around.
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