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Anyone who has been in the crypto space for a long time understands that making money isn't about hitting the right move once or twice, but about establishing a reusable trading system. Today, let's break down several core trading strategies.
**Step 1: Allocate Positions Rationally, Even Mistakes Won't Hurt**
Divide your funds into 5 parts, and only use one-fifth each time to enter a position. The obvious benefit of this approach is that a single loss is strictly limited to within 2% of your total capital. Even if you make 5 consecutive wrong moves, the total loss would be about 10%, which is well within an acceptable range. Conversely, as long as your take-profit is set at more than 10 points, your chances of making a profit will significantly increase.
**Step 2: Follow the Trend, Don't Try to Bottom-Fish**
Every rebound in a downtrend is a trap for longs, and every pullback in an uptrend could turn into a golden opportunity. Many retail traders like to bottom-fish, but in reality, buying on dips is the correct approach. Going with the trend naturally increases your win rate.
**Step 3: Avoid Coins with Short-Term Explosive Gains**
Whether it's mainstream coins or altcoins, the probability that a coin can sustain a rapid rise in the short term is actually very low. After a sharp increase, it’s easy to get stuck in a high-level stagnation, lacking momentum, and naturally falling back. This is basic logic, but some still want to gamble, only to end up getting trapped.
**Step 4: Application of the MACD Indicator**
When the DIF line and DEA form a golden cross below the zero line and break above zero, it’s a relatively stable entry signal. Conversely, if MACD shows a death cross above zero and moves downward, it’s time to consider reducing your position. Indicators don’t lie; the key is to understand the signals.
**Step 5: Add Positions Without Increasing Losses, Remember This**
The concept of averaging down has caused many to lose money. The more they lose, the more they buy, and the more they buy, the more they lose—this is the biggest trap in the crypto world. The correct approach is to add only when in profit and decisively refrain from adding when in loss. Keep this rule in mind to avoid many detours.
**Step 6: Volume is Key**
Pay close attention to volume breakthroughs at low levels, as this often indicates new upward momentum. But when volume surges at high levels and the price stagnates, it’s best to exit decisively. Volume reflects the true buying and selling power in the market—it doesn’t deceive.
**Step 7: Moving Average Combinations to Judge Trends**
A 3-day moving average turning upward is a short-term bullish signal. An upward turn of the 30-day moving average indicates medium-term momentum. When the 84-day moving average turns upward, it often signals the start of a major upward wave. An upward turn of the 120-day moving average suggests a long-term bullish trend. Using different period MA combinations provides a more comprehensive understanding of market rhythm.
**Step 8: Persist in Review and Continuous Adjustment**
After every trade, review your decision. Check whether your holding logic still holds, whether the weekly technical chart still aligns with your previous judgment, and whether the trend has changed. The market is always changing, so your strategy must adapt dynamically.
The market is always there; the key is to find a system that suits you and execute it with a stable mindset. Many people lose money not because of bad luck, but because they haven't established a complete trading framework. Truly understand these key points, apply them flexibly in different market environments, and you’ll be able to navigate through periods of confusion in investing.