To trade well, you must understand a few points; practice is the only standard. Anything without practice is just empty talk and will ultimately be defeated by reality.
Trading and doing things are the same; practice makes perfect, luck and talent each account for half. There's an old saying, 'Gold will shine wherever it is 🌟.' Whether you are gold or dirt is another matter entirely; true knowledge is gained through practice.
Many friends say, 'I have a few hundred dollars today, I want to turn things around, I must reflect on my gains and losses in every trade,' and some even naively say, 'I want to turn $100 or even $1,000 into $10,000 or even $1 million.' Such people will likely not last a week because of insufficient understanding; they are unaware of their own limitations, and with no skills or knowledge, they lack depth.
Tears wet the pig's trotter rice; swearing to earn a million means you will just be delivering takeout, turning screws. Is swearing important? A million is clearly out of reach. If you want to turn things around and succeed, then study well; read for two hours every day 📚, enrich yourself, and cultivate yourself; this is better than bragging.
If you don't strive to learn and improve yourself, tears only wet the pig's trotter rice; there are only endless screws to turn. Swearing to earn a million is just swearing; your name is not 'swear.'
Core One:
Market cap determines quality; high market cap means high quality, low market cap means garbage; it's easy to distinguish, almost without thinking. Just look at the market cap.
We won't mention Ethereum; let's focus on altcoins.
The top 10 by market cap are AAA+.
The top 30 by market cap are BBB+.
The top 50 by market cap are CCC+.
The top 100 by market cap are CC+.
The top 200 by market cap are C+.
Core Two:
High market cap, good depth, large capital can be accommodated, and easy to operate.
Low market cap, poor depth; large capital is easily targeted and becomes the target.
Altcoins with a market cap of under $100 million are considered low market cap, poor depth, and insufficient liquidity.
Altcoins with a market cap of over $100 million are considered average market cap, average depth, and average liquidity.
Altcoins with a market cap of over one billion dollars are considered high market cap, good depth, and good liquidity.
In small-cap altcoins, if you invest large amounts of capital, you will inevitably be targeted; once you enter, you will be trapped. If you don't cut your losses, the market won't rise; if you cut your losses, the market will rise immediately. Don't complain about why what you bought doesn't rise, while what you sold rises immediately. It’s because you were targeted; perhaps your capital is small, but at the same time, people of the same level and with the same ideas are entering, and you will be implicated.
The market makers have data on how much capital comes in and goes out, all of it is tracked. Do you think the market makers are doing charity?
Core Three:
When you understand what market cap corresponds to what size position.
When you discover where the heat is, you will go to the corresponding altcoins.
When you understand how market cap and position match, you have made progress.
When you know how to operate the corresponding altcoins with the corresponding methods.
When you realize that making money in this circle is not based on luck.
When you deeply understand whose money you are making and who is losing.
When you know, you really know; if you don't understand, just watch a few more times.
Core Four:
What kind of market, what kind of position, what kind of position corresponds to what kind of altcoin; these are just empty words, think deeply about the meaning.
Heat guides capital flow, capital flow guides heat; strong heat allows for heavy positions, moderate heat means you get a dog 🐶.
The key point of altcoins is heat; the key point of altcoins is heat; the key point of altcoins is heat.
Altcoins without heat and a small market cap; if you invest large amounts, try it and see. You will undoubtedly die.
BAN's market cap is about $50 million, which is very low. We have a few big players in our community, but they are not real big shots; they are at most just retail investors with relatively large positions. One has about $700,000 in contracts, roughly $5 million in positions. The others are similar, opening around $1.5 million. If you say you are not being targeted, then that's nonsense 👻.
Core Five:
Decide how to play based on market capitalization, heat, and sectors.
Determine the target, determine the position, determine the heat, determine the risk-reward ratio.
High market cap with no heat; even dogs won't play.
Low market cap with heat can be played casually.
For example, the heat is in AI these days; the coins I recommend are all inclined towards the AI sector. Why don't I recommend other sectors? Because sector heat is choice; incorrect choice renders effort futile.
Choice is greater than effort; choice is greater than luck; choice determines the risk-reward ratio.
If you can detect heat, your timing and information will be ahead of others; even retail investors can push you up. Retail investors are professionals at lifting others.
If the sector has no heat and you still rush in with large capital, who will lift you? If the market makers don't harvest you and don't target you, even if you are skilled, retail investors certainly won't.
Chasing, chasing, chasing; chasing the rise and cutting losses; chasing heat is the specialty of retail investors. Your opportunity lies in your understanding, in your timing and information gaps, and your insight!
Chapter Six ends here for now; I will supplement it later. If you can understand the above content, you are quite impressive. In fact, reading diligently isn't hard to understand.
If this post gets 100 likes, I will continue to update. If it gets less than 100, I will stop updating.
If you have learned, if you truly understand what I am saying, and if it is useful to you, then please reward me; knowledge is like gold coins.