Are you in your twenties or thirties closely watching the cryptocurrency market, full of expectations but also a little uneasy? Don’t worry, let me give you some advice.
I know a lot of people are panicking right now when they see the market drop, as if the end of the world is coming. Most people are always used to chasing the market when it rises and panic selling when the market falls. But is this really wise?
Investing is not a game, but a decision that requires professional knowledge and experience. Therefore, I suggest that you carefully read the core ideas of this article, which will better help you go further and more steadily on the road to the currency circle. Of course, my views only represent my personal views, and you can refer to them based on your actual situation.
Ways to turn around by accumulating small amounts of money
Through communicating with fans who came to me, I learned that there are many ordinary people in the currency circle, even students, and ladies who want to invest and make profits. But I found that many people don’t really understand how to invest in the currency circle.
First of all, the currency circle is actually a kind of financial investment. Our goal should be to achieve sustained profits and double our assets within a certain period of time. If you always expect to get rich with one contract and only pay attention to the rise and fall of prices every day, just like betting on the size, then maybe buying a scratch ticket will be more suitable for you.
In addition to waiting for opportunities, we also need to have the ability to identify the size of opportunities. We cannot always be light on the position, nor can we always be on the heavy position. Normally we can play around with Ogura, but when a big opportunity comes, we must not hesitate to take out our "Italian guns" and go all out.
Taking position rolling as an example, this operation is only suitable for when big opportunities come. We can't try to roll positions too often, and it doesn't matter if we miss. Because as long as you can successfully roll over your position three or four times in your life, it will be enough for you to jump from zero assets to a millionaire or even a multi-millionaire. This achievement is enough for an ordinary person to join the ranks of the rich.
1.Roll position
Let’s first explain the rolling strategy in detail. Many people have doubts about it and think it is risky. But I want to tell you that in fact, the risk of rolling positions is far less high than you think, and it is even much lower than the risk when you open futures orders.
Imagine you have 50,000 dollars of capital and want to start a business with it. First of all, this 5W must be your profit. If you are still losing money, you may need to adjust your strategy first.
If the price of Bitcoin is 1W, you decide to open a position, set a leverage of 10 times, but choose the isolated position mode, and only open a 10% position. This means that you only use 5K as margin, which is actually equivalent to 1x leverage and setting a stop loss of 2 points. If you stop the loss, you will only lose 2%, which is 1,000 yuan. Those legendary people who were liquidated, how did they get to this point? Even if your position is really liquidated, the loss will only be 5K. How can you lose everything?
And when your judgment is correct and Bitcoin rises to 1.1W, you can continue to use 10% of the total funds to increase the position and also set a 2% stop loss. If the loss is stopped, you can still make 8%. Look, are the risks really that big?
If Bitcoin soars all the way to 1.5W and you increase your position smoothly, then in this 50% market wave, it is entirely possible for you to earn about 20W. You only need to catch two such market trends, and your assets will reach about 1 million.
There is actually no concept of compound interest involved here. Real profits are accumulated gradually by 10 times for 2 times, 5 times for 3 times, and 3 times for 4 times, rather than by compound interest growth of 10% or 20% every day or every month. That statement is actually not practical.
The concept of rolling positions is not terrible in itself. It can even be said to be one of the most correct ideas in futures trading. What is really risky is the use of leverage. And as long as you master the core internal skills of position management, it is impossible to lose all your funds.
Therefore, rolling positions is not scary, it requires wisdom, patience and courage. When you truly understand it, you will find that it is actually a powerful tool on your way to financial freedom.
2.Leverage
1x leverage is relatively stable. I personally prefer to use two or three times leverage. After all, as long as we can seize two opportunities, aren't dozens of times of returns just around the corner? Even if you choose a leverage of 0 pips or multiple times, it is only your personal choice and has no direct connection with the rollover strategy. I'm not suggesting you use high leverage to take risks.
I have always emphasized that when investing in the currency circle, only invest one-fifth of your total assets, and of this one-fifth, only use one-tenth to play futures. In this way, futures funds only account for 2% of your total funds, and the risk is greatly reduced. Moreover, when you operate in the futures market, use two or three times leverage and focus on Bitcoin, so that the risk is almost controlled to the extreme. Imagine that with 1W of funds, even if you lose 200, would you feel distressed?
In general, you must endure loneliness and wait for opportunities to appear. At the same time, it is very important to learn position management. As long as you are not a lucky star, opportunities will always favor you. Remember, opportunities always come to those who are willing to use their brains. If you just rely on luck, then no matter how much you earn, you may eventually pay it back and return to the starting point.
Many people have many misunderstandings about trading. For example, they believe that small funds should be short-term in order to grow quickly. This is actually a big misunderstanding. This kind of thinking is actually about trading time for space, hoping to get rich overnight. But in fact, small funds should be used in the medium and long term and gradually accumulated through doubling compound interest. Don't just focus on short-term small profits, that will only make you exhausted. On the contrary, we should hoard coins honestly, firmly hold the spot, and wait for the gift of time. As long as we choose the right target and hold it for a long time, rich days are waiting for us ahead. In the currency circle, everyone knows the best target, so there is no need to choose too much.
When you have a certain amount of funds, I advise you to encounter fewer contracts, because I'm afraid you can't help but have the idea of earning 100 million from one million. The idea is good, but it is very dangerous. Remember that we only use the money we earn to make money, and pursue stability. Stability is not absolutely 100%, but relative to our overall profit over a period of time. At this time, the charm of spot trading is demonstrated.
3. Fund management
Trading seems to be full of risks, but risks can be resolved through capital management. Just like me, I have 200,000 in the futures account, and the spot account has steadily grown from 300,000 to 1 million $+. If I encounter a good opportunity, I will invest more; if I feel that the opportunity is not great, I will add less funds. This way I neither miss out on big profit opportunities nor lose money when the risks are higher.
If you are lucky, you can earn more than 10 million RMB a year. But even if I'm unlucky and my futures account is liquidated, I won't care too much. Because the spot profit is enough to make up for the futures loss. After making up for it, I will invest again. After all, how can I not make money in spot for a year? With my level of capital, it’s not like I can’t even make this little profit.
My principle is that you can not make money, but you can never lose money. So I haven't had a liquidation for a long time. And every time futures make a profit, I will withdraw a quarter or a fifth and keep it separately. Even if the position is really liquidated, I still have the profit retained as a guarantee.
As an ordinary person, I suggest you take one-tenth of the spot position to play futures. For example, if you have 300,000 in spot money, use 30,000 to play futures. If the position is liquidated, the profit from the spot will be used to make up for it. But after you have exploded ten or eight times, you will always find some tricks. If you haven't figured it out yet, then maybe this industry is really not suitable for you, so stop it early.
4.Core idea
If you are new to the currency circle, you may have been attracted by the K-line analysis of those bloggers. They talked endlessly about various technical forms such as rising engulfing and Qiming Star in the live broadcast. But what I want to tell you is that for individual investors, although disk technology is worth understanding, it is not the key to determining the rise and fall. After all, no matter how good the technology is, can it beat those financial talents hired by Gouzhuang with a monthly salary of hundreds of thousands?
The real technology lies in position management, market information and market sentiment. You may be wondering why we are unique among many communities that charge fees and choose not to charge fees. The original intention is very simple. Several old friends in the currency circle and I formed it to jointly prepare for the bull market. The bull market is cyclical and requires patience. Good opportunities often come through waiting.
When we capture good news from the news, we will conduct a comprehensive analysis to determine whether the news is available. For example, we have recently screened out potential coins in a popular sector and are preparing to ambush. It is expected that during the halving of the pie, the probability of it being more than ten times higher will not be a problem. This does require the accumulation of time and experience, and it is difficult for novices to do it quickly. But when you decide to invest in a certain currency, how do you determine the buying point and manage the position?
The answer is actually very simple. When a certain news comes out, if a large number of people start asking if BTC can be bought, this is a signal. And when these people start asking if they want to sell, and at the same time another group of people ask if they can buy, fear and greed are already spreading in the market. This is a signal of market sentiment, and it cannot be understood just by looking at the wires or the news. By the time you realize this, you've often missed the opportunity. So we considered it mutually beneficial. When each other's wealth was free, we all went on vacation separately.
If you want to delve deeper into the currency circle, or you are always chasing the rise and the fall, often get trapped, have no latest news in the currency circle, have no direction and can’t find a clue, and want to get started quickly, you can check out my homepage and pin it to the top. I will not be a runner in the bull market. , only be the winner of the bull market.
