If you plan to invest in the cryptocurrency world, please take a few minutes to read my answer word for word, as it may save your life and your family.
The thousands of originally happy families that ultimately fell apart are all due to the pursuit of an unattainable dream of making a fortune in the cryptocurrency world.
I believe that if I really want to continue on this trading path, I must focus on learning. In addition to understanding the fundamentals, I should also analyze news and study technical indicators.
If you do not conduct in-depth research and reasonably plan how to manage your finances, your funds will eventually be depleted. Ultimately, as a retail investor without a solid foundation, you will only joyfully enter the market and leave in disappointment.
Some well-known technical indicators have endured over time for a reason. For example, MACD divergence signals, KDJ overbought and oversold signals, support and resistance signals, etc. While they do not guarantee profits, they allow you to conduct quantitative analysis within a relatively mature framework, providing investors with a basic direction.
In the cryptocurrency world, making 100,000 from a few thousand US dollars has only one path, and that is through rolling positions.
Once you have a principal of 1 million, you will find that your entire life seems different. Even if you do not use leverage, a 20% increase in spot trading will yield 200,000, which is already the income ceiling for most people in a year.
Don’t always think in terms of millions or billions. You need to start from your actual situation. Trading requires the ability to identify the size of opportunities; you cannot always be in a light position or a heavy position. Generally, play with a small position, and when a big opportunity comes, then bring out the big guns.
For example, rolling positions can only be executed when a big opportunity arises; you cannot keep rolling. Missing out is okay because you only need to roll successfully three to four times in your life!
First, we need to know under what circumstances rolling positions is appropriate:
Currently, only the following three situations are suitable for rolling positions:
1- Direction choice after a long period of sideways volatility at 'new lows'.
2- Buying the dip after a significant drop in a bull market.
3- Breaking through major resistance and support levels on the weekly chart.
In general, there are only these three situations where the odds are relatively large; all other opportunities should be abandoned.
The following are methods for manipulating rolling positions:
Adding to positions with floating profits: After gaining floating profits, consider adding to your position. However, before adding, ensure that the cost of holding has already decreased to reduce the risk of loss. This does not mean blindly adding when there are profits; it must be done at the right time.
Base position + T trading rolling position: divide funds into multiple parts, keeping a portion of the base position untouched while using another portion for high selling and low buying. The specific ratio can be chosen based on personal risk preference and fund size. For example, you could choose to roll with half a position, or three-tenths for the base position, or seven-tenths for the base position, etc. This operation can reduce holding costs and increase profits.
(If you are blindly guessing trends in the market alone, you will always end up wrong!
If you lack technical and news support and only look at the top losers and hot stocks to make trades, then you will not last long!
You can follow my profile and pinned posts to discuss and analyze the current market together, so we can go further and last longer in this market!
