After 6 years, from 1000U to 3 million, I only rely on one iron rule: always only enter with 50% of my capital, yet my monthly average return can steadily exceed 70%. After teaching this method to my apprentice, he doubled his capital in just three months. Today, I am publicly sharing this trading philosophy that has been tested through bull and bear markets. If you understand it, you too can seize your own opportunities amidst volatility.
1. Five-part allocation, lose less and win more
Divide your funds into five equal parts, and only enter with one-fifth each time. Set a 10% stop-loss; if you make one mistake, you only lose 2% of the total capital, and you would only lose 10% after five mistakes; once the direction is correct, set your take-profit at over 10%. This way, will you still worry about being trapped?
2. Always follow the trend, never guess the bottom or escape the top
The key to improving win rate is simply two words: follow the trend. Rebounds in a downtrend are often traps, while pullbacks in an uptrend are golden opportunities. Never try to catch a bottom in a downtrend, only buy on dips in an uptrend.
3. Stay away from short-term explosive coins
Whether mainstream or altcoins, try not to touch coins that have rapidly surged in a short period. Continuous main upward waves are low-probability events, and high positions with stagnation often indicate exhausted momentum. Don't challenge probabilities with a lucky mindset.
4. Use MACD 0-axis for buying and selling
When the DIF and DEA cross upwards below the 0-axis and break through it, it's a stable entry signal; when MACD crosses downwards above the 0-axis, it's a time to reduce positions. By utilizing this one indicator well, buying and selling points will no longer be confusing.
5. Never average down on losses, only add to profits
Averaging down is a trap for many retail investors; the more you lose, the more you average down, leading to greater losses. Remember: never average down when in loss; only consider adding to your position in batches when you are in profit and have floating profit protection. $SENT
6. Volume leads price, trading volume is the soul
After a period of consolidation at low levels, a breakout with increased volume—focus on this; high volume at high levels but stagnant—exit decisively. Trading volume will tell you the direction in advance.
7. Only trade coins with upward trends
Use the 3-day line for short-term outlook, the 30-day line for medium-term, the 84-day line often indicates entry into a main upward wave, and the 120-day line indicates long-term opportunities. Don't waste time in a downward trend.
8. Daily reviews, weekly logic checks
Check daily whether your holding logic has changed, and verify weekly whether the trend continues with K-line analysis. Adjust in a timely manner, and don't let incorrect positions linger overnight.
Follow the right people and make the right trades to survive in the crypto space for the long term. Hesitating now means missing the next wave of market; follow decisively, and let Great Yan lead you to success.
