After eight years of trading cryptocurrencies, I have grown from 20,000 to 50 million, adhering to these eight trading principles.
Many people believe that making money in the crypto world relies on luck; however, those who truly achieve long-term profits rely on rules and discipline.
Starting with an initial capital of 20,000, I have managed to reach over 50 million, and the core of my strategy is not complicated—it's simply about strictly following a set of trading logic.
The first principle is to diversify your capital.
It's best to divide your capital into five parts and only use one part to enter each time, while setting a 10% stop-loss; even if your judgment is wrong, you can keep your overall losses to a minimum.
The second principle is that trading with the trend has a higher win rate.
Rebounds in a downtrend are mostly traps for retail investors, while pullbacks in an uptrend often present buying opportunities. Following the trend is far safer than trying to catch the bottom against it.
The third principle is to avoid coins that have surged in the short term.
The probability of continuing to rise significantly after a sharp increase in a short period is actually low; many retail investors like to chase after rising prices and often end up trapped at high levels.
The fourth principle is to use MACD to assist in judging the rhythm.
When the DIF and DEA form a golden cross below the zero axis and break through the zero axis, it often signals a stable entry point. If a death cross appears at high levels, consider reducing your position or exiting.
The fifth principle is to never average down when losing.
Many people end up deepening their losses by adding more when they are already in the red; the correct approach is to cut losses when losing and add to positions when in profit.
The sixth principle is that trading volume is very crucial.
A significant increase in volume at low levels indicates that capital is entering, while high volume without a price increase often signals that capital is starting to leave.
The seventh principle is to only trade with upward trending coins.
Look at the 3-day moving average in the short term and the 30-day moving average in the medium term; if the overall moving averages are trending upward, it’s easier for the market to follow the trend.
The eighth principle is to develop a habit of reviewing trades.
Review the market every day to check if the logic has changed, and adjust strategies in a timely manner to avoid making the same mistakes repeatedly.
There are many opportunities in the crypto world, but what truly sets apart successful traders is risk control, patience, and execution. As long as you have a stable trading system, the results will naturally be good over the long term. Follow Yuan Ge for insights on trends, to gain more firsthand information and knowledge about the crypto world, and become your guide in the crypto market. Learning is your greatest wealth! #金价连续第十天下跌 #CZ称比特币是硬资产 $ETH
