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Many people engage in Cryptocurrency Trading by buying and selling blindly, resulting in a significant reduction in their account. In fact, trading isn't as complicated as it seems; at its core, it involves grasping a few key signals, and the rest is about disciplined execution.
**The core logic is straightforward: use the MACD golden cross to find buying points, use the daily moving average to determine the holding direction, and use the percentage of increase to decide the reduction rhythm.**
Looking at the daily chart, when the MACD forms a golden cross above the zero line, it is a relatively clear entry signal. Not all golden crosses are reliable, but the success rate of golden crosses above the zero line is significantly higher - this has been tested over time. The logic of selecting coins is that simple.
What to do after entering the market? Just keep an eye on the daily moving average. If the coin price is above the daily moving average, hold on; once it drops below the daily moving average, clear your position immediately. It sounds easy, but executing it tests one's mindset the most. Many people always think "just wait a bit longer", "it might rebound", and end up getting trapped.
Regarding position allocation, when both the coin price and trading volume break through the daily moving average, you can consider increasing your position. Selling is more critical — when the increase reaches 40%, reduce one-third of your position to secure profits; if it rises to 80% or more, reduce another one-third; if it falls below the daily moving average, liquidate the remaining position. The benefit of this logic is to reduce positions gradually while walking, which avoids early liquidation and also prevents greed from leading to a complete loss of profits.
There is no room for negotiation when it comes to stop losses. The daily moving average is the lifeline; if it is broken, you must cut your losses. Some people always want to gamble on a rebound, which usually results in even greater losses. Instead of waiting for a rebound, it's better to step back and observe. Wait for the coin price to stabilize above the daily moving average before gradually re-entering. This approach is actually more stable.
In practical cases, during a certain contract market, strictly following this logic to enter long positions, with a profit-loss ratio set to 10:1. A certain coin surged quickly from 0.26 to 0.39, with an increase of nearly 50% in less than a few hours. This is not luck; it is because of entering at the right position and then letting the profits run.
The biggest fear in trading is not losing money, but rather not following the rules. No matter how perfect the method is, it becomes useless once emotions take over. Sticking to these four steps—choosing coins based on golden crosses, holding positions based on moving averages, reducing positions based on price increases, and having no exceptions for stop losses—is the way to survive in the long run.