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In today's booming privacy coin ecosystem, I want to share the trading logic I have developed over the years. There's no secret—it's simply dividing the principal into three parts and only moving one-third each time, a seemingly clumsy approach.
Why do this? Risk control. Set an 8% hard stop-loss; a single loss at most accounts for 2.7% of the total funds. Even if you get it wrong three times in a row, the loss is only 8%. Conversely, aiming for a profit of over 15% allows winning trades to double their profits. Playing this way long-term makes it very difficult to get deeply trapped.
Timing is the second key. Don't mess around in choppy markets—that's just inviting frustration. The upper boundary of a sideways market is a trap for retail investors; the lower boundary is the real opportunity to pick up bargains. Many people fall into this trap here.
As for those coins that double in the short term, whether they are mainstream or altcoins, avoid them altogether. Very few can sustain a continuous upward wave; most will stagnate at high levels with insufficient volume, and a decline is inevitable.
Focus on technical analysis with moving averages. When the price rises above the 20-day moving average and turns upward, it's a buy signal; if it falls below the 20-day moving average and turns downward, quickly exit. Simple and straightforward, but effective. Combine this with the 5-day, 60-day, 120-day, and 250-day moving averages for judgment— the 5-day indicates short-term, the 60-day mid-term bullishness, the 120-day suggests an upcoming main upward wave, and the 250-day confirms a long-term trend.
Volume-price relationship is vital. When a low-position consolidation suddenly breaks through key levels with increased volume, follow; if volume surges but price doesn't rise, exit quickly—don't hesitate.
The most dangerous tactic is "diluting costs." Buying more as you lose more only results in greater losses. Remember—never add to losing positions; only scale into winning trades. This is the iron law. I started with 100,000 yuan and, over 7 years, grew it to over 30 million, consistently earning around 60% monthly, all thanks to this approach.
The final habit: after each trade, always review. Check whether your holding logic still holds, identify support and resistance levels, and see if the trend has changed. Adjust your strategy dynamically—don't be stubborn.
The strategy of diluting costs is indeed a killer for retail investors; I've seen too many people get deeper and deeper into losses.
The combination of the 20-day moving average plus stop-loss and take-profit is truly hardcore.
Reviewing and analyzing past trades is really underrated; many people don't do it at all.
The segment about short-term doubling coins hit the mark; every time, someone takes the bait, and then... you know.