After eight years of trading cryptocurrencies, from twenty thousand to fifty million, I have always adhered to these eight trading principles.
Many people think that making money in the crypto world relies on luck, but in reality, those who profit in the long term rely on rules and discipline.
I started with an initial capital of twenty thousand and have reached over fifty million; the core is not complicated, it's just about strictly following a set of trading logic.
The first principle is to divide your capital.
It's best to split the capital into five parts and only use one part to enter the market each time, while setting a 10% stop-loss to keep overall losses in a small range even if the judgment is wrong.
The second principle is that trend trading has a higher success rate.
Most rebounds in a downtrend are traps for more buyers, while pullbacks in an uptrend often present buying opportunities. Going with the trend is much 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 is actually low, and many retail investors who chase the highs often end up trapped at elevated levels.
The fourth principle is to use MACD to assist in judging the rhythm.
When the DIF and DEA cross above the zero axis, it often indicates a stable entry signal. If a death cross appears at a high point, it’s time to consider reducing positions or exiting.
The fifth principle is to never average down when in a loss.
Many people end up deeper in losses by averaging down; the correct approach is to cut losses and add to positions when profitable.
The sixth principle is that trading volume is very crucial.
A breakout at a low level indicates that capital is entering, while high volume without price increases at high levels often means capital is beginning to exit.
The seventh principle is to only trade coins that are trending upwards.
Look at the three-day moving average in the short term and the thirty-day moving average in the mid-term; if the overall moving averages are trending upwards, it’s easier for the market to follow the trend.
The eighth principle is to develop a habit of reviewing trades.
Review the market daily to check if the logic has changed and adjust strategies promptly to avoid repeating mistakes.
There are many opportunities in the crypto world, but what truly makes a difference is risk control, patience, and execution. As long as there is a stable trading system, the results will naturally not be poor @铭哥说币