I talked for a long time with an old friend who has been in the cryptocurrency circle for ten years; his account has reached tens of millions $BTC
What he said is not complex, but very practical. I have organized a version that is easier to understand:
The market environment is crucial
When the market drops significantly, but the coins in your hand hardly drop, it indicates that someone is supporting the market, so you should be a bit more patient.
If it drops quickly, you need to consider whether the funds are pessimistic.
Keep operations as simple as possible:
For short-term, look at the 5-day moving average; hold if it stabilizes, and leave if it breaks.
For medium-term, look at the 20-day moving average; the logic is the same.
When the market enters the main rising phase, you can hold if it rises with volume; if it retreats with low volume but the structure hasn’t broken, there’s no need to panic.
Once there’s a significant drop that breaks the trend line, you must decisively reduce your position.
If you buy in and there’s no movement for a few days, it indicates that the funds are not optimistic; it’s better to leave early.
If losses reach a certain percentage, you must stop loss; this step is the easiest to overlook but the most important.
When selecting coins, try to choose the strongest leaders in the sector, as they are resilient and have sustainability.
The market will not reward "picking up bargains"; following the trend is more important than blindly bottom-fishing or trying to top out.
Making a profit once is not difficult; the challenge is to keep making profits.
After every trade, you must review whether it was luck or logic? Gradually form your own system to go far.
Finally, there’s a method I have used a few times; if you understand it, you can grasp the trend a step ahead of most people.
Want to know? Message me, and I’ll explain it to you slowly.