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Hello everyone, I'm Yuejie🌹
Six Golden Rules for Cryptocurrency Trading, a Must-Read for Beginners!
(Hope this is helpful for everyone)
1. Fund management: Divide the principal into five equal parts, and only use one-fifth of it for each investment, while setting a 10% stop-loss line. In this way, the loss from a single mistake is only 2%, even if there are five consecutive mistakes, the total loss can be controlled within 10%, avoiding a complete loss of capital.
2. Go with the trend: In a downtrend, rebounds are often traps; in an uptrend, pullbacks are usually good entry points. Follow the overall market direction and avoid going against the trend.
3. Risk avoidance: Stay away from short-term frenzy coins. When the high position cannot continue to rise, the risk of decline soars. Don't be greedy for temporary profits. Steady and steady is the only way to go.
4. Technical assistance: Refer to the MACD indicator. When the DIF line and the DEA line have a golden cross below the 0 axis and break through the 0 axis, it is a stable entry. When the MACD has a death cross above the 0 axis and moves downward, it is a warning to reduce positions.
5. Flexible position adding: Do not add positions when losing, add positions when making profits. Combined with volume and price, buy when there is a breakthrough with high volume at a low position, sell when there is a stagnation with high volume at a high position, and choose strong currencies with potential in the rising channel.
6. Regular Review: Review trades weekly, optimize strategies timely based on market changes, adapt to the ever-changing cryptocurrency market, and increase profits step by step.