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In the world of Digital Money investment, finding a reliable strategy is crucial. After repeated validation, the following concise and effective method is worth a try, and its success rate is quite considerable.
First, choosing the right coin is key. Analyze the MACD indicator on the daily chart, prioritizing coins that show a golden cross signal, especially those that form a golden cross above the zero line, as this often indicates a higher probability of success. This can be seen as a buying opportunity given by the market.
Secondly, use moving averages to guide buying and selling decisions. Taking the 20-day moving average as an example, when the coin price is above the moving average, you can hold with confidence; once it falls below the moving average, you should decisively liquidate your position. Treat the moving average as your safety line, which helps in timely loss-cutting.
Thirdly, manage positions reasonably. When the coin price breaks through the moving average and the trading volume increases simultaneously while stabilizing above the moving average, you can consider increasing your position. When making a profit, it is recommended to sell in batches: sell one-third when the increase reaches 40%, sell another one-third when the increase reaches 80%, and sell all once it falls below the moving average. This strategy can lock in profits while reducing risks.
In the end, stick to the stop-loss principle. Even if you believe the selected coin has a great outlook, once it falls below the moving average, you must decisively liquidate your position. This indicates that the market trend has changed, and you should consider entering again only after it stabilizes above the moving average.
In addition, be sure to avoid some common traps. Do not blindly chase the price increase; instead, you should remain calm during market panic and observe whether the indicators begin to improve, as this may be a good time to enter.
Remember, successful investing requires patience and discipline. By following these principles, you can increase your chances of success in the volatile Digital Money market and achieve more robust investment returns.