One. Short-term vs long-term, heavy vs light positions, the difference in position management!
Two. Trend, reversal, fundamental judgment!
Three, if you don't understand, just follow Doug's orders.
On November 1st, this crash after the surge is a great example to illustrate this article.
This unexpected event, you mentioned the news, Israel attacked Lebanon, this was expected, how long has the Middle East war lasted?
You said Mentougou regretted and would sell again, this time the volume isn't large. Sell after the drop!
The main reason is: Trump's selection encountered issues, (you can see my last post, I won't elaborate here)
So followers of Doug know that since June 10th, starting from the lowest price of 58946, I have been following the main trend to go long.
I have always believed that in November, Bitcoin has a great chance to surge to 80,000.
Fans following my trades have some with an average price of 60,000, some at 66,600, some at 70,000, and for Floki, we bought at 0.13, while some got it at 0.142.
Entry points vary, profits vary, but all are profits. After making a profit, should you exit? If you don't exit, will you lose what you gained?
I am Doug
This is a major issue, and many newcomers never handle position management well; sometimes, despite a high win rate, the final position ends up losing!
First, let's talk about this major crash; Ethereum plummeted directly from 2640 to 2486, and no support level was effective.
So newcomers need to remember one thing: to grow from 100u to 200u, you need a 100% increase, while dropping from 200u back to 100u only requires a 50% drop.
In the current market where drops are more common than rises, we must remember two concepts: understanding the trend, and support and resistance!
First: Is this position planned for short-term or medium to long-term?
Second: Is this coin currently suitable for a heavy or light position?
I am Doug
Focus on two concepts.
If you are trading short-term: if you think this coin is about to rebound at a certain support or resistance, you can go in heavily, and when it reaches the target, exit decisively.
Like BTC from October 30 to October 31, short-term fluctuations, exit when touching the upper or lower band.
If a strong breakout through the lower band is limited, a trend reversal may occur, and at this time, it may be better to refrain from trading.
Note: The point where you are likely to lose is that you initially wanted to trade short-term, but in the end, you couldn't resist greed thinking it could still rise or fall, resulting in a complete failure!
Avoidance method: always remind yourself that this is a heavy position; if you lose, it will be a big loss, which you cannot afford!
If you are in a long position and have made a profit:
There isn't much to say about the method; once you make a profit, set a breakeven stop-loss, continue to ride the wave, and move your take-profit level up as it rises, so that even if a black swan event occurs, your profit portion is preserved.
There is another situation: if you are bullish, then go long, but just made a profit, set a stop-loss at breakeven, and are afraid of giving back your profits, then reduce your position to take some profit!
So the key comes if a trend reversal occurs: how do we judge what position to escape the top and short?
First, the trend:
Take yesterday's Ethereum as an example. Yesterday's wave showed a death cross on the moving averages, and the Fibonacci 61 line coincided with the main trend line, indicating that the token might further decline. It can be converted from long to short!
At the same time, trends can help you judge whether you should take a long or short position; if it's fluctuating, then it's short-term, and if the trend breaks, go long!
Second, if the market shows a major negative signal, run quickly.
Third: If the market is pushed up and several attempts to break through fail, it may lead to a market adjustment.
From 70,000 to 80,000, the market cap still faces significant challenges, requiring more liquidity to flow into the crypto space, it's not possible to have a daily 5% increase.
Complete it in a few days, unless a major positive news suddenly appears!
Pay attention and share useful information. If you have any questions about the details, you can ask, and they will generally be answered!
