If your capital is within 500,000, and you want to succeed quickly in the cryptocurrency market through short-term trading, then please read this post carefully; I believe you will have a sudden realization about the essence of short-term trading.
Not choosing a finance major in college is one of my biggest regrets in life. Starting from my freshman year, I began to learn about stocks/finance/forex online, and the red and green screens filled my life with color, captivating me. With boundless curiosity about the market, I opened an account in my sophomore year, gradually learned about Bitcoin through a classmate's introduction, and became increasingly interested, thus starting my investment career.
Like most friends who have just entered the market, I was initially obsessed with technical indicators, constantly backtesting various cryptocurrencies to find patterns; I was eager to enter low-priced cryptocurrencies or those that had greatly retraced, believing they were safer. In fact, this understanding of the market is completely wrong.
Later I understood that if you want to quickly achieve returns in the market, you must focus on short-term trading. Combine medium to long-term compounding together!
The conclusion is: do not let the blood of profits cloud your judgment; you must understand that the hardest thing in the world is how to sustain profits. You must seriously review whether it is luck or skill; a stable trading system suitable for yourself is the key to sustained profits.
There is a saying that left a deep impression on me: Ideology is something you must occupy; if you don’t, others will.
Today I would like to share with everyone the principles of cryptocurrency trading, which is the essence that has allowed me to thrive in the market for a long time. If you study seriously, you will definitely gain a lot and experience a tremendous change in your understanding of cryptocurrency trading!
K-line patterns that every cryptocurrency player must know!
1. T-shaped line (dragonfly)
· Application Rule:
A trend reversal line that indicates bullishness at the bottom and bearishness at the top.
2. V-shaped reversal.
· Application Rule:
The bottom sees bottom, reversing upward.
3. Long upper shadow.
Application Rule: 1. A long upper shadow appears at the high point of an upward trend; if the trading volume increases, it indicates that bulls are actively chasing higher prices, but there is heavy selling pressure at high levels, making it difficult for the stock price to climb; the market is likely to turn back or reverse. 2. A long upper shadow appears at the low point of a downward trend; if the trading volume increases, it indicates that bulls are entering the market to catch the bottom, but they cannot effectively curb the selling pressure, and the forces of both bulls and bears are gradually turning into a standoff.
4. Long candlestick.
Application Rule: A candlestick cross may constitute an important warning signal. The original trend may pause or reverse. A candlestick cross only has significant meaning under conditions where it does not frequently occur in a market. 3. If there is a long upper shadow or a long lower shadow, it further indicates indecision in the market, making it more indicative of a potential pause or reversal of the original trend. The bottom sees bottom, reversing upward.
5. Long lower shadow.
Application Rule:
1. A long lower shadow appears at the high point of an upward trend; if the trading volume increases, it indicates that selling pressure is heavier, with eager support, but there is a feeling of exhaustion among the bulls.
2. A long lower shadow appears at the low point of a downward trend; if the trading volume increases, it indicates that there is panic selling, but eager buying at low levels with a large number of bulls entering the market.
6. Water lily emerging from the water.
· Application Rule:
A large bullish candlestick crosses three moving averages, changing the moving averages to a bullish arrangement, indicating a bullish outlook.
7. Large bullish candlestick.
Application Rule:
1. A large bullish candlestick appears in an upward market, indicating that the market is sharply rising. 2. A large bullish candlestick appears in a downward market, indicating that the market is sharply rebounding.
8. Large bearish candlestick.
Having traded for many years, I have both earned and lost. First, let’s summarize the main reasons for losses; I have made some of these mistakes myself.
Leverage is a double-edged sword; if used well, you will run faster than others; of course, conversely, if used poorly, you will die faster than others.
After spending a long time on contracts, you will find that trading spot becomes very simple. Many beginners hope that one trade can yield huge profits, going from 10,000 to 1 million, then from 1 million to 500,000, losing 50%, and returning to 1 million, needing to double again, returning to zero, just a cycle.
Therefore, beginners are most prone to self-indulgence, thinking that after making several profits they are exceptionally talented, and in excitement, they go all in, only to return to square one. Traders who truly want to survive in the cryptocurrency market will never put themselves in a desperate situation; from the moment they are fully invested or heavily invested, they are destined to be losers. I hope cryptocurrency friends remain vigilant in leveraged trading!
Experienced players choose to observe with absolute cash when the market is uncertain about rising or falling, and will not rush to operate; when the trend is clear, they enter quickly. They also enter with small positions, while many ordinary retail investors frequently trade with large positions under unclear market conditions, resulting in continuous losses, and when faced with aggressive institutions, the losses become even larger.
Fighting against the medium to long-term trend, holding positions against the trend leads to death.
Many people think their futures losses are due to trading cycles being too long, and that trading short-term will solve it. However, when losses become evident and the market is moving against them, they face a mental struggle: should they stop loss or not? Sometimes there is a fluke mentality, thinking the price will come back, and enduring for a long time against the trend leads to death. Even worse, inexperienced traders who do not understand the trend may add positions to lower their average cost, but later, as the market trend moves further away from their holding direction, they end up with heavier positions and die faster. This leads to the first path of death.
Neither heavily invested nor making single trades, frequently trading and chasing highs and lows.
After several twists and turns, the meat that can be cut becomes smaller and smaller, and finally there is no meat left to cut; this leads to death. Most reasons for losses and liquidations can be summarized into the above three types, such as being too greedy, which is essentially heavy positions. Look at the ten major blind spots in futures trading below.
Full position trading ---- full position must lose.
Frequent trading ---- lacking technical guidance.
Counter-trend trading ---- low probability, high risk.
Locking position trading ---- not accepting the fact of loss.
Lowering and raising the average position price ---- one mistake on top of another.
Guessing tops and bottoms without setting stop-losses ---- finding excuses for mistakes.
Go long when it's short, go short when it's long ---- overly pursuing perfection leads to aimlessness.
Believing in rumors and blindly following trends ---- lacking an understanding of the market.
Not good at self-reflection, doubting the market ---- generating fear about market trends.
Establish a long-term trading plan ---- the future is uncontrollable.
Often, trading in the cryptocurrency market feels like driving on the road.
First, learn how to drive at a driving school. Once you can drive, if you don't follow traffic regulations, an accident will happen sooner or later. Even if you drive according to traffic rules, if you don’t hit someone, someone may hit you; there are pitfalls everywhere, so to drive safely, you must learn to avoid these pitfalls.
What are the trading rules in the market?
Look at the eight rights and eight wrongs of cryptocurrency trading below:
Act in accordance with the trend, against the trend is wrong. (Once a trend is formed, it is difficult to change in the short term.)
Using light positions is right, using heavy positions is wrong --- position affects attitude, attitude affects decision-making.
Be content is right, be greedy is wrong ---- greed is the enemy, being content is the solution.
Using stop-loss to protect profits is right, allowing things to drift is wrong ---- preserving capital comes first, making money second.
Objective operation is right, subjective analysis is wrong; operate objectively, follow the rules.
Waiting and being patient is right, impulsiveness is wrong; cultivate patience, act at the right moment.
Adding to profits is right, adding to losing positions is wrong; profit is the correct direction, being stuck is the wrong direction.
Being calm and composed is right, being worried about gains and losses is wrong; the essence of trading is the clash of human nature and mentality.
Understanding trading in cryptocurrencies is a similar process, going from seven losses to two breakevens to one profit, which is simply about being focused and not greedy for various profit models; firmly establishing this trading system will eventually turn it into your ATM over time.
Where there are high mountains, there are paths for travelers; where the waters are deep, there are ferrymen.
#bnb创历史新高 #Layer1公链普涨 #RWA板块普涨
$BNB $RSR $TRX
