Gate App Options Now Live! Test and Win Big
📅 Event Period: September 30, 2025 – October 17, 2025
- Submit valid feedback to receive 10–100 USDT.
- Complete at least 10,000 USDT in cumulative options trading volume to participate.
👉 Register now :https://www.gate.com/campaigns/2063
Details: https://www.gate.com/zh-tw/announcements/article/47455
As a participant who has been navigating the Digital Money market for many years, I have deeply realized the importance of several key principles. These principles not only help me survive in this high-risk market but also allow me to achieve considerable returns.
Firstly, a reasonable capital management strategy is crucial. The method I adopt is to divide the capital into five equal parts and only use one part for trading at a time. This way, even in the event of consecutive losses, the maximum loss is limited to within 10% of the total capital, effectively controlling the risk.
Secondly, going with the trend is the key to victory. In a downtrend, do not be easily swayed by temporary rebounds; while in an uptrend, pullbacks are often rare entry opportunities. Accurately grasping market trends is essential to remain invincible in a volatile market.
Third, be wary of coins that experience a sharp rise in the short term. Whether mainstream coins or niche coins, it is extremely rare for them to sustain high growth over a long period. Usually, after a surge, these coins often fall into a state of insufficient momentum, and may subsequently face a price decline.
Fourth, technical analysis tools such as the MACD indicator can provide important references for trading decisions. When the DIF and DEA lines cross and break through the zero axis below, it may indicate a buying opportunity; conversely, if these two lines cross above the zero axis and move downward, it may signal a selling opportunity.
Fifth, it is important to be cautious with the strategy of "averaging down." Blindly increasing investment during losses can lead to greater losses, which is a common mistake made by many investors.
Sixth, changes in trading volume are an important indicator of market direction. If trading volume suddenly increases at low price levels, it may indicate an opportunity for an upward trend; while at high price levels, an increase in trading volume but stagnant prices may be a sign of a downward trend.
Finally, focusing on coins that are in an upward trend can increase the success rate and save time. By observing the short, medium, and long-term moving averages, one can more accurately determine the trend of the coin.
By following these principles, along with continuous learning and experience accumulation, it helps to achieve better performance in this market full of opportunities and challenges. However, the digital money market carries high risks, and investors must act cautiously and manage risks well.