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Many people ask, why do some people consistently make money in cryptocurrency trading while others frequently get liquidated? Actually, the difference isn't luck, but whether you grasp the underlying market logic.
I have summarized 8 practical experiences, and this method has a nearly 99% success rate. It’s not some mystical secret—it's a set of rules validated through countless trades.
**Always diversify your funds, never bet everything on one shot**
Divide your capital into 5 parts, using only 1/5 for each trade. Set a 10% stop-loss; even if you make 5 consecutive wrong trades, your total loss is only 10%. When the market moves in your favor, the take-profit space is often more than 3 times the stop-loss. This is risk control + asymmetric reward.
**Follow the trend, refuse to fight against it**
When the market declines, rebounds are often trap moves; during an uptrend, pullbacks are genuine entry opportunities. Successful traders never oppose the market.
**Avoid chasing coins that surge, chasing high is easiest to get trapped**
Coins that spike rapidly in the short term usually lack sustainability. Funds rush in quickly and withdraw just as fast, making retail investors most likely to be left behind. Wait for a pullback to re-enter; the risk will be much lower.
**MACD is a good helper; using it correctly doubles your efficiency**
A golden cross below the zero line signals a stable entry; a death cross above the zero line suggests reducing your position. But don’t make decisions based on a single candlestick; combining technical tools is the right approach.
**Adding to losing positions is a trap; increasing on profits is the way**
The mentality of constantly adding to losing trades can trap you in a vicious cycle. The correct approach is: admit losses honestly when you’re wrong, and expand your position when you’re winning.
**Volume never lies**
A volume breakout from a low level indicates big funds are entering; high volume but stagnant prices suggest funds are quietly withdrawing. Candlesticks can deceive, but volume cannot.
**Focus on trend confirmation, stay away from sideways and junk coins**
A 3-day moving average turning indicates a short-term signal; only when the 30-day, 84-day, and 120-day moving averages turn in sequence can the medium- and long-term trend be confirmed. Avoid coins without a clear trend that frequently sideways; they waste your time and won’t make you money.
**Review daily, keep refining yourself**
Trading isn’t a one-shot gamble. At the end of each trading day, review: Is the trend deviating from expectations? Is your operation logic still valid? Does your prediction match the actual movement? Continuous optimization ensures you won’t be eliminated by the market.
In short, true winners don’t rely on one big correct call to make a fortune, but on steady, disciplined execution to survive long-term. Turning 100,000 into 1 million is not a dream—by sticking to these 8 principles, it’s entirely achievable.