How can you quickly turn 5000 yuan into 100,000 by trading cryptocurrencies?
Here’s my advice:
In the early stages of trading, do not fantasize about getting rich quickly. Instead, focus on learning, while using small funds to experiment and improve yourself. The most important thing is to gradually form your own trading system!
The essence of trading is: stop loss when wrong, hold on when right, small losses and big gains, making big profit and loss. Specifically for each core aspect:
1. Follow the trend: Find a simple moving average to divide bullish and bearish; only go long above it, and only go short below it.
2. Test position: Go with the trend, follow the big trend and go against the small trend. When entering the market, consider a sufficiently large potential profit-loss ratio. This means if you enter at this position, the stop loss is small if you are wrong, but if you are right, the profit is large, typically at the bottom or early stage of the trend.
3. Test position stop loss: If a key point is broken, you must stop loss; do not take chances. If the price comes back, you can look for another opportunity to enter. Do not have a gambling mentality, thinking you can hold on and it might come back; you should not average down your losses.
4. Increase trend position: Add to the position when there are floating profits. Adding to the position is the key to making big money. After the price rises as expected, if it retraces, add to the position at the support level or after breaking the previous high—go with the big trend and against the small trend.
5. Set stop loss for trend position: For the newly added trend positions, move the stop loss to the new key point. The base position is already safe, leaving only the stop loss risk for the added positions. If it fails, stop loss on the added positions, and wait for the next opportunity. If it continues to rise, firmly hold the position and continue to wait for a retracement to add, and keep moving the stop loss. Until the last move is stopped out or a head signal for profit taking appears.
6. Take profit: Never easily take profit at any time, this is the key to making big money. Exiting can be done in batches or all at once; it’s best done all at once, as you can wait for the highest probability head signal. If trading on the right side, floating profits will definitely retrace, and you must accept that mentally; do not think about selling at the highest point or think that since you didn’t sell at the highest point, you feel like you lost and have to wait for the highest point to sell.
As long as you can master and follow these principles in practice and maintain consistent discipline, you will find that making money is a natural outcome!
If you are currently confused and directionless in trading, leave a comment 1, and this bull market will help you get rich.