I have been trading cryptocurrencies for 10 years, starting with an investment of 700,000 and earning 58 million, using only a 5-layer position management strategy. Relying solely on this method, the monthly return can reach 70%. I shared the essence of this with my apprentice, who has mastered it in practice, using this method for short-term trading, achieving double profits in 3 months. Today, I have specially organized this valuable information to share with those destined to find it; please keep it well.
Everyone comes to the cryptocurrency space with the same initial intention, there is no doubt about it. If you come here just to pass the time, then this place is not suitable for you. We come to the cryptocurrency space to generate more income, making life a little better for our families. If technical skills are the premise for profit in the market, then the strict adherence to rules is the key to long-term profitability.
If you want to treat trading cryptocurrencies as a second source of income, want to share a piece of the cryptocurrency pie, and are willing to spend time learning and growing, then you shouldn't miss this article. Read it carefully; every point is the essence of the stock market. It can be said that whether in a bull market or a bear market, these 10 iron rules will help you! I will also share my ten years of trading experience later!!
Using a super simple method for trading cryptocurrencies, repeated operations can turn 200,000 into tens of millions. Doesn't that sound a bit unbelievable?
In fact, those who lose money often haven't found the right approach. To make money, the key is to find a method that suits you, practice it, and maybe one day the numbers in your account will soar. This is what my predecessor told me, and I always remember it. The method I used before, compared to other methods on the market, is truly both simple and practical.
When the market is sideways, let’s wait and see, because there is often a big move after consolidation. Once the situation becomes clear, we act, ensuring profit without loss.
Also, do not get too attached to popular positions; they need to be changed frequently, or in the end, you may end up with nothing. Those short-term favorites are all speculative; once the heat fades, the funds will flee. If you are half a beat slow, you'll just be left feeling confused in the wind.
Speaking of when prices are rising, if you see the candlestick slowly climbing with a good start and increasing trading volume, it means the market is about to accelerate. At this time, we need to stay calm, hold onto our tickets tightly, as there will definitely be significant profits ahead.
However, if you see a particularly large bullish candlestick, regardless of whether it is at a high or low point, you must quickly withdraw, even if it is at the limit up. Why? Because we need to guard against profits falling back.
There is also a small trick: buy on the line of bearish candlesticks and sell on the line of bullish candlesticks, and acknowledge your mistakes. Here, the line refers to moving averages or important support and resistance levels. For short-term trading, generally, just observe daily candlesticks and daily attacking lines. I don’t like to procrastinate; positions typically do not exceed three days, at most a week. After that, even if it gets better, I won't linger.
In the cryptocurrency space, there is a basic principle: do not sell when the price rises, and do not buy when the price drops; stabilize during sideways markets.
Finally, before buying, be prepared. It’s better to buy a little than to dump everything in at once. After all, in the cryptocurrency space, the only constant is change.
How do successful traders survive in the cryptocurrency market?
Success is a habit, and successful trading is also a habit! Many traders mistakenly believe that participating in market trading requires hard work; in fact, this is a misunderstanding. The so-called hard work refers to the process of forming methods, not the process of participating in trading practice. In fact, successful trading is simply the simple and repeated use of the correct model! Successful trading is just turning correct trading into a habit!
Tolstoy once said, 'Everyone in the world wants to change others, but no one wants to change themselves.' Rodin also said something similar: 'Someone asked me why I can carve a stone to life; I told them that beauty has long been in life; I just chiseled away the excess parts.'
Everyone has their own personality traits, which are the important characteristics that distinguish us from others. Each trader also has their own personality traits, and due to these differences, traders exhibit obvious distinctions during trading. We collectively refer to these distinctions as 'trading styles.'
There are many principles of successful trading; here are some principles that traders can refer to:
1. Plan your trades, trade your plans. Carefully choose the timing of entering the market, and follow the trend without going against it; grasp the opportunity to lose less and win more without entering unclear markets: control your emotions, think independently, analyze calmly, and strictly follow the plan in trading, decisively taking action without hesitation.
2. Only use money that you can afford to lose, starting with small low-risk trades, learning to swim while swimming, and doing as much as you can afford to lose. A gentleman does not stand under a dangerous wall; retreat wisely, and learn to accept failure.
3. Stick to your limits and leave some room. Making money requires timely realization of profits. Once you become a winner in the cryptocurrency space, keeping your profits is an art, avoiding losses after making gains, and knowing when to stop when there are huge profits.
4. Trade in active commodities; avoid excessive dispersion on the battlefield. Do not trade during slow months; contracts should be timely renewed, while paying attention to buying and selling.
Look for products with large price differences among similar products.
5. Avoid predictive trading; patiently wait for the perfect trading opportunity. Being in cash is also a form of combat.
6. Pyramid-style scaling: The technique of scaling is an art of operation in the cryptocurrency space and a significant subject that cannot be fully explained here. But there is a big principle: scaling primarily aims to amplify the profits of the entire segment of the market. However, at the beginning of market development, no one knows whether this is a trend or a consolidation; therefore, it is best to scale when in a profitable state to reduce psychological pressure. When scaling, do not increase all at once but rather gradually add more positions.
Furthermore, successful traders often possess three characteristics:
First, I can better seize major trends, linking significant events with charts to find trading opportunities.
First, have strong logical thinking and analytical ability, and make trade decisions rigorously.
Third, adhere to principles, execute according to plans, and have decisiveness.
Achieving success in the cryptocurrency market doesn't only have one path to take. Every investor in the market can weigh their own abilities, personality, strengths, and available resources, and carefully consider which path is most suitable for them.
No one supports my lofty ambitions; I will tread snow to the mountain peak.
If fate does not allow it, one can still climb Kunlun alone.
It is difficult to seize the lofty ambitions; as long as one does not die, there will always be a day to shine.
If there is a chance for a comeback, even bitter herbs can taste sweet.
After many years of exploring the cryptocurrency space, I have summarized 8 iron rules. Although the content is not extensive, its value is extremely high. If you find it unreasonable after reading, feel free to evaluate me however you like.
1. Divide your funds into 5 parts, investing only one-fifth each time! Control stop losses within 10 points; if you make a mistake, only lose 2% of your total funds. Even if you make 5 consecutive mistakes, you will only lose 10% of your total funds. If you make the correct judgment, set a take profit of more than 10 points. Do you think you will still be deeply trapped?
2. So, how do we further improve the win rate? In short, it's the word 'follow the trend'! In a downtrend, each rebound is likely a trap; in an uptrend, each decline may create a golden buying opportunity. Tell me, is it easier to profit by bottom fishing or by buying on dips?
3. Do not touch cryptocurrencies that have rapidly surged in the short term, whether they are mainstream coins or altcoins. Only a few can emerge from several waves of major upward trends. The logic is that after a short-term surge, it is challenging to continue to rise. When in a high position and stagnating, the subsequent momentum is insufficient, and naturally, it will decline. This is a simple and understandable principle, yet many people always want to take a gamble.
4. You can use MACD to identify entry and exit points. If the DIF line and DEA line form a golden cross below the 0 axis and break through the 0 axis, this is a relatively stable entry signal. When MACD forms a death cross above the 0 axis and runs downward, it can be seen as a signal to reduce positions.
5. It is unknown who coined the term 'averaging down,' causing many retail investors to stumble and suffer huge losses! Many people keep averaging down as they lose, resulting in deeper losses, which is the most taboo in trading cryptocurrencies and can put oneself in dire straits. Please remember, never average down in a losing state; instead, do so when in profit. When the price of a coin breaks through on low during consolidation, it needs to be added.
6. Volume and price indicators are crucial; trading volume is the soul of the market. Note: If there is a situation of high volume and stagnation at high positions, decisively exit.
7. Only choose cryptocurrencies that are on the rise to operate, as this maximizes the odds and does not waste time. The 3-day line turning upward indicates a short-term rise; the 30-day line turning upward means a medium-term rise; the 84-day line turning upward indicates a main upward trend; the 120-day moving average turning upward signifies a long-term rise!
8. Insist on reviewing weekly, checking if the logic of positions has changed, reviewing technical aspects to see if the weekly K-line trend aligns with judgments, and adjusting trading strategies in a timely manner.
15 rules for making money in the bull market of the cryptocurrency space:
There are many laws for making money in the cryptocurrency bull market. Here are 15 key rules summarized to help investors achieve steady returns in a bull market:
1. Book profits are not real: Book profits are just imaginary values; actual profits are only counted when sold. Therefore, investors should remain calm and not be blindly optimistic or make impulsive decisions due to book profits.
2. Be cautious when selecting altcoins: The altcoin market is highly volatile, but not all altcoins can bring substantial returns. Investors should carefully screen and choose potential and strong altcoins for investment.
3. Avoid greed: Greed is the enemy of investment. Investors should set reasonable profit targets and exit promptly upon reaching them, avoiding missed opportunities or losses due to greed.
4. Do not invest with borrowed money: Borrowing money for investment increases risks, and once the market fluctuates, investors may face tremendous repayment pressure. Therefore, it is advisable for investors to use their own funds for investment.
5. Plan your exit strategy in advance: No one can perfectly grasp the market top, but investors can plan to exit within the top third of the cycle. This ensures profit while reducing the risks brought by market declines.
6. Consider downside risks: While pursuing upside potential, investors should also fully consider downside risks. Optimize investment strategies to ensure they can withstand the worst-case scenarios.
7. Maintain a long-term perspective: Do not get lost in short-term speculation; take a step back and consider the long-term situation. Is the long-term trend more likely to continue or reverse? This helps investors make more informed decisions.
8. Focus on niche markets: The cryptocurrency field is extensive; investors should focus on the niche markets they are familiar with, mastering market dynamics and trends.
9. Develop good wallet usage habits: Diversify assets across multiple wallets or centralized exchanges to reduce the risk of a single wallet being hacked or an exchange collapsing.
10. Avoid chasing 'the chasing game': Retail investors often eagerly chase popular coins, but in the long run, this is always a failed strategy. Investors should stick to their investment strategies and not be influenced by short-term market fluctuations.
11. Analyze ALT/BTC trading pairs: If your active portfolio does not outperform BTC, please reassess your strategy. This helps investors understand their relative position in the market and make appropriate adjustments.
12. Follow the trend: In a strong trend, it is best to follow the trend for investment. Only during macro turning points does contrarian investment make sense. Otherwise, investors may face significant market risks and losses.
13. Seize opportunities: The market does not care about your gains or losses, but investors should learn to seize opportunities, entering and exiting timely. This requires investors to have keen market insight and judgment.
14. Accept losses: Investment carries risks, and losses are an inevitable part of the investment process. Investors should learn to accept losses and learn from them, continuously improving their investment level and ability.
15. Build a network: Stay connected with other astute investors and crypto enthusiasts, sharing market dynamics and investment opportunities. This helps investors broaden their horizons and obtain more valuable information and resources.
If you also want to profit in this bull market, you can comment 168 in the comments section.
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