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Over the years in the crypto world, I’ve stepped into many pits and have developed a relatively stable approach. Today, I’ll summarize this experience. I can’t say it’s foolproof, but the win rate is quite good, and it’s not very difficult to get started.
**Tip 1: Choose Coins with Vision**
The daily chart is my main reference. Pay close attention to the MACD indicator, especially those coins showing a golden cross signal—that is, when the MACD line crosses above the signal line from below. If this golden cross occurs above the zero line, it’s even more worth watching. Such signals often represent the true intention of the market, not a false alarm.
**Tip 2: Use Moving Averages as Your "Safety Guard"**
Select a moving average as your operational benchmark, such as the 20-day moving average. The logic is simple: if the price is above the moving average, hold steady; once it breaks below, exit immediately. Don’t be soft-hearted or hopeful. This moving average is like a safety rope when mountain climbing—if the rope snaps, you must retreat; delaying only leads to a worse fall.
**Tip 3: Don’t Be Greedy with Position Management**
When the price breaks through the moving average, volume also increases, and it successfully stabilizes above this line, consider adding positions. As for selling, a staggered strategy is the safest: if it rises 40%, sell one-third to lock in profits; if it reaches 80%, sell another third; if it falls below the moving average, sell all remaining holdings. This way, you can enjoy the gains without being too greedy.
**Tip 4: Stop-Loss Is an Iron Law, No Negotiation**
If the price drops below the moving average the next day, there’s nothing to discuss—liquidate immediately. How much you earned before or how good the trend looked doesn’t matter anymore; the trend has shifted. Wait until it stabilizes above the moving average again, then look for a new entry signal.
**Remember the "Three No's":**
**No chasing highs.** When everyone is frantically buying, stay calm. It’s during market panic or when technicals look good that you should quietly position yourself.
**No reckless bets.** Spread your bullets across several different coins; don’t put all your chips into one. Don’t put all your eggs in one basket—that’s the oldest and most effective investment principle.
**No full position.** Always reserve some bullets. The market will always have surprises, and having backup funds allows you to respond calmly.
Ultimately, the crypto world is a test of mentality. Emotional trading will lead to the worst pitfalls. Steady, calm, and disciplined execution—sounds boring, but it’s this boredom that accumulates wealth. Over time, profits will naturally come.