Cryptocurrency Trading Speculation

1️⃣ Fund management is the foundation of success
• Divide the principal into five equal parts, and only invest one-fifth each time, strictly implement the stop-loss mechanism.
• Single stop loss: losses will not exceed 10%.
• Total capital stop loss: Control the loss within 2% per round. Even if there are five consecutive mistakes, the total loss will not exceed 10%. However, when the market is captured, profits can usually make up for or even exceed the losses.
2️⃣ Go with the trend and avoid counter-trend operations
• Don't rush to buy the dip: rebounds during a bearish market are often traps for longs, so wait for clear reversal signals.
• Don't exit easily: during the upward trend, don't rush to take profit, sometimes patiently waiting for a higher point is the wise choice.
3️⃣ Stay away from coins that skyrocket in the short term
Whether mainstream coins or altcoins, coins that have experienced a sharp rise often lack follow-up strength and may even undergo a significant correction.
4️⃣ Technical indicators are effective tools
• MACD: When the DIF and DEA lines cross above the 0 axis, it can be regarded as a buying signal; conversely, when they cross below the 0 axis above, it is a good opportunity to reduce positions or sell.
• Replenishment strategy: Only add positions when profitable, never add positions when losing, to avoid falling deeper into losses.
5️⃣ Trading volume is the barometer of the market
• Low-volume breakthrough at a low level is an important signal that the market is about to start.
• Persist in trading cryptocurrencies with upward trends, observe key moving averages (such as 3-day, 30-day, 84-day, 120-day), and the upward turn of moving averages is usually a sign of trend confirmation.
6️⃣ Review and Strategy Optimization
• After each transaction, review, analyze the advantages and disadvantages of the operation, and revise the strategy.
• Based on the weekly K-line trend, flexibly adjust positions and operation plans.