If you plan to invest in the crypto world, please take a few minutes to read my answer word for word, as it may save your life and your family.
Thousands of originally happy families end up broken, stemming from the pursuit of the unreachable dream of making a fortune in the crypto world.
I believe that if I truly want to continue on the trading path, I need to dedicate myself to learning, not only understanding the basics, analyzing news, but also studying technical indicators.
If you do not conduct in-depth research and reasonably plan your finances, your funds will eventually be depleted. In the end, as a rootless retail investor, you will only joyfully enter and sadly exit.
There is a reason why some well-known technical indicators have endured over time. For example, MACD divergence signals, KDJ overbought and oversold signals, support and resistance signals, etc. Although these cannot guarantee profits, they allow for quantitative analysis in a relatively mature framework, providing investors with a basic direction.
In the crypto world, the only way to turn a few thousand U into 100,000 U is by rolling positions.
Once you have 1 million in capital, you will find that your whole life seems different. Even if you don't use leverage, a 20% increase in spot will give you 200,000, which is already the income ceiling for most people in a year.
Don’t always talk about millions or billions; start from your actual situation. Trading requires the ability to recognize the size of opportunities. You cannot always hold light positions or heavy positions; casually play with small positions, and when a big opportunity arises, then bring out the big guns.
For example, rolling position A is an opportunity that can only be acted upon when it's a big chance to take; you can't keep rolling. Missing out is fine because you only need to roll successfully three to four times in your lifetime!
First, we need to know under what circumstances rolling positions are suitable:
Currently, only the following three situations are suitable for rolling positions:
1- The direction of choosing after 'new lows' in long-term sideways volatility
2- Buying the dip after a significant drop in a bull market
3- Breaking through significant weekly resistance and support levels
In summary, only the above three situations have a relatively high chance of success; all other opportunities should be abandoned.
Here are the methods for rolling positions:
Adding positions with floating profits: After gaining floating profits, you can consider increasing your position. However, you must ensure that the cost of your position has been reduced to minimize the risk of loss. This does not mean blindly adding positions after making a profit, but rather doing so at the right time.
Base position + T-trading rolling operation: Divide funds into multiple parts, leaving a portion of the base position unchanged, while using another portion for high sell-low buy operations. The specific ratio can be chosen based on personal risk preferences and capital scale. For example, you can choose half a position for rolling T-trading, 30% base position for rolling T-trading, or 70% base position for rolling T-trading, etc. This operation can lower the holding cost and increase returns.
The martial arts secret manual has been given to you all; whether you can become famous in the world depends on yourself.
Playing around in the crypto world is essentially a contest between retail investors and institutional investors. If you do not have cutting-edge information or first-hand data, you can only be cut! Those who want to layout strategies together and reap rewards from institutions can join!