In a bull market, altcoins can indeed show a surge, bringing substantial returns to investors. However, this feast is not for everyone to laugh until the end. Only through rational analysis and cautious operation can one sit steadily on the fishing platform amidst the altcoin frenzy and reap their own wealth. Remember, no matter when or where, the essence of investment is always: 'Bull markets are common, but rationality is not.'
After eight years of ups and downs in the cryptocurrency circle, I have personally experienced three transitions between bull and bear markets. From an initial capital of 60,000 yuan to now achieving financial freedom. Along this journey, I have almost tripped over all the pitfalls, but it is precisely these experiences that have allowed me to develop my own stable profit system.
The nine rules: Understand them to avoid three years of detours:
Low-priced chips should not be easily sold: Firm belief, be cautious of operators manipulating the market through trading, and hold on to your low-cost chips.
Chasing rises and selling on dips is a big taboo: Avoid full-position operations; when the overall trend is favorable, building positions in batches is less risky than chasing highs, resulting in lower costs and greater profits.
Reasonably allocate profits: Utilize funds wisely to maximize profit release, rather than blindly increasing positions, rushing to recover from rises, or defending coins during falls: Maintain a good mindset, avoid speculation, restlessness, greed, and fear, and prevent unprepared battles.
Grasp market rhythm: Early positioning in low-priced coins or private placements relies on experience and bets on the project's future, while subsequent secondary market speculation relies on technology and news; do not reverse the basics, leading to chaotic outcomes.
Segmented building and segmented selling: Gradually widen the price range, reasonably control risk and profit ratios.
Understand the linkage effect: Pay attention to the cryptocurrency market trends during trading, and keep an eye on other trends; the market linkage is complex, and using tools for in-depth analysis helps better grasp market opportunities.
Reasonable position allocation: The positions of hot coins and value coins need to be reasonably matched to maintain balance. Being overly conservative may lead to missed opportunities, while being overly aggressive poses high risks. Value coins should prioritize stability, while hot coins exhibit significant volatility, potentially doubling overnight or going to zero.
Investing with spare money ensures safety: Maintain spare money for investment, reasonable positions, and sufficient account funds to ensure a stable investment mindset, risk control, and funds.
Proper allocation is the key to success.
Three years to enter the industry, five years to understand it, ten years to dominate. Trading is not about becoming rich overnight but about reasonable profits that can sustain long-term, stable, and high-probability wealth generation.
Today, I want to share this set of 'smart money' strategies in the cryptocurrency circle, which has been tested in my years of practical experience, achieving an average win rate of 80%; this is quite a rare achievement in cryptocurrency trading.
First, I want to emphasize that no trading strategy can guarantee a 100% win rate, and a high win rate does not mean high returns. Risk and reward coexist. However, if you can reasonably control risk and strictly follow trading rules, this strategy can undoubtedly become a powerful tool in your trading toolbox.
Price action is a very simple yet practical technical analysis skill; it searches for the current dominant force in the market by reviewing the exchange of long and short chips behind the price. In recent years, some Western traders have improved price action with the concept of 'smart money,' making it a milestone innovation in the price action analysis system.
The so-called 'smart money' refers to some institutional investors or large retail investors; these investors often conduct more thorough research before making decisions and may even have access to certain insider information, making them influential, hence the term 'smart money.' In the smart money strategy, the concept of fair value gap (FVG) is a core concept, which plays a very important role in confirming breakthroughs, pullbacks, etc., in price action. In today's article, I will introduce the logic behind FVG and its practical application.
Lastly, one more thing! How to set stop-loss and take-profit in trading!
1. Define investment goals: Before entering any trade, clarify your investment goals and risk tolerance, which will help you determine reasonable stop-loss and take-profit points.
2. Technical analysis: Use technical analysis tools, such as support and resistance levels, moving averages, chart patterns, etc., to assist in setting stop-loss and take-profit points.
3. Capital management: Decide the amount of capital for each trade based on your financial status; it is generally recommended that each trade not exceed 1-2% of your total capital.
4. Dynamic adjustment: Market conditions are constantly changing, so stop-loss and take-profit points should also be dynamically adjusted according to market changes.
5. Psychological preparation: Be mentally prepared to accept stop-losses and take-profits; do not let momentary emotions affect your trading decisions.
Professional strategy advice
1. Proportional stop-loss method: Set a loss percentage based on your investment goals and risk tolerance, such as 2% or 5%; when losses reach this percentage, trigger the stop-loss automatically.
2. Time take-profit method: Set a reasonable time limit, such as one week or one month; if the expected profit is not reached within this time frame, consider closing the position.
3. Target price take-profit method: Set a reasonable target price based on market analysis; when the price reaches or exceeds this target price, trigger the take-profit.
