In the vast universe of cryptocurrency, countless investors harbor the dream of starting with a small capital and ultimately achieving financial freedom. The madman will delve into two possible strategies to realize this dream: high-leverage trading and capturing hundredfold coin opportunities. Through detailed strategy analysis and practical skill sharing, we help you navigate the waves in the cryptocurrency world steadily.
1. The wise use of leverage trading
(1) Basics of leverage trading
Leverage trading, this financial tool that allows for 'small bets on big outcomes', is particularly eye-catching in the cryptocurrency world. It allows investors to control larger-scale trades with a small amount of capital, thus amplifying gains (or losses) amid market fluctuations. Understanding leverage trading hinges on mastering core concepts such as leverage ratio, margin ratio, forced liquidation line, liquidation line, and trading fees.
(2) Practical strategies and techniques
1. Strict risk control: In leverage trading, risk control is the primary principle. Set reasonable stop-loss points to avoid unlimited losses; at the same time, allocate positions reasonably to avoid excessive concentration of investment.
2. Go with the flow: Use technical analysis tools to identify market trends, go with the flow, and avoid the high risks of leveraging against the trend.
3. Mindset management: Stay calm and rational, do not be influenced by short-term fluctuations, and adhere to established strategies; this is key to success in leverage trading.
(3) Reflections on leverage trading
Leverage trading is tempting, but it is not suitable for everyone. Investors need to carefully assess whether it is appropriate to participate based on their risk tolerance, financial situation, and trading experience. At the same time, continuous learning and improving trading skills are the best ways to cope with market changes. 2. Unique secret to capturing hundredfold coins
(1) Framework for selecting hundredfold coins
1. Low market cap selection: Circulating market cap and total market cap are important indicators for evaluating project potential. A low market cap means greater upside potential, but it is also important to consider the total market cap to avoid early profit-taking by project parties.
2. High potential tracks: Choose fields with high ceilings, such as public chains, dapp protocols, etc., and refer to the valuations of successful projects as a benchmark.
3. New narratives and value: Prefer projects with new narratives that solve real problems; long-term value discovery is better than short-term speculation. Focus on hot areas like AIGPU computing power and secure public chains.
4. Concealment and liquidity: Hundredfold dark horse coins often hide in areas that have not received public attention and have poor early liquidity. Crossing these thresholds is the essential path to discovering value.
5. Launch time and circulation rate: It is best for tokens to launch at the end of a bull market or the beginning of a bear market, with a launch and washout period of 6-12 months being ideal. A high circulation rate also indicates greater potential. This puzzled me greatly, but I gradually understood. This was mainly due to my unintentional adherence to a set of clear trading rules: hundredfold contracts, which at first glance seemed risky, but in fact were my most profitable and highest winning rate investment category. Initially, I was unsure about
1. Total position setting: The funds I use for contract trading are always fixed, for example, the funds of one account are always 300 U. This means my maximum loss is 300 U, and once the market trend is favorable, I have the opportunity to gain tens of thousands of U in profits. This setting allows me to keep risk under control while seizing profit opportunities brought by major market movements.
2. Initial amount: The amount I start trading with is always very low, based on the philosophy of stock speculator Livermore. He believed that if the start is correct, then it is best to start making money right away. Therefore, the amount I start trading with is always small, often just a single or double-digit U even if the total position is 300 U, ensuring that I am in a profitable position at the beginning of trading.
3. Increasing position strategy: I only increase my position using profits when there are profits and the trend is clear. This strategy allows me to further amplify profits when the market trend is favorable while avoiding increasing risk in an unfavorable market environment. 4. Stop-loss setting: I will adjust the stop-loss position in a timely manner based on market conditions to ensure that I do not lose my principal. This is a key principle I adhere to in trading, which helps me remain calm amid market fluctuations and avoid emotional trading decisions. These four rules have invisibly enforced strict trading discipline on me, and the logic behind them applies equally to ordinary low-leverage contracts, as the reasoning is the same. Of course, before starting, I still want to remind new players: contract trading is not child's play, especially for those who believe there are certain contract skills or contract masters who can predict prices. Do not blindly believe that simply following them will lead to big profits; this kind of thinking should not exist. I certainly do not have any secrets that will make you rich just by listening.
