If you plan to invest in the cryptocurrency market, please take a few minutes to read my response word for word, as it might save your life and your family.
Thousands of once-happy families end up broken and devastated, stemming from the pursuit of an unattainable dream of making a fortune in the cryptocurrency market.
I believe that if I really want to continue on the trading path, I need to study diligently, not only understanding the fundamentals but also analyzing news and studying technical indicators.
If you do not conduct in-depth research and reasonably plan your financial management, your funds will only be depleted over time. In the end, as a retail investor without any foundation, you will only joyfully enter the market and leave in despair.
Some well-known technical indicators have endured over time for a reason. For example, the divergence signals of MACD, the overbought and oversold signals of KDJ, and support and resistance signals, etc., although they cannot guarantee profits, can allow you to quantitatively analyze in a relatively mature model, thereby providing investors with a basic direction.
In the cryptocurrency market, making a profit of 100,000 U from several thousand U only has one path, which is rolling positions.
Once you have a capital of 1 million, you'll find that your whole life seems different. Even if you don’t use leverage, a 20% rise in spot trading would 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; start from your actual situation. Trading requires the ability to identify the size of opportunities; you cannot always keep light positions or heavy positions. Generally, play with small positions, and when a big opportunity comes, pull out your big guns.
For example, rolling position A can only be executed when a major opportunity arises; you can't keep rolling, and missing out is fine because you only need to successfully roll three or four times in your lifetime!
First, we need to know under what circumstances rolling positions is suitable:
Currently, only the following three situations are suitable for rolling positions:
1- Directional choice after the long-term horizontal volatility reaches a 'new low'
2- Major drop after a significant rise in a bull market for buying the dip
3- Breakthrough of major resistance and support at the weekly level
In general, there are only three situations where the odds are relatively favorable; all other opportunities should be abandoned.
Below are the methods for rolling positions:
Adding positions with floating profits: After obtaining floating profits, you can consider adding positions. However, before adding positions, ensure that the holding cost has been reduced to minimize the risk of losses. This does not mean blindly adding positions after making a profit but rather doing so at the right time.
Base position + T-trading rolling operation: Divide the funds into multiple parts, keeping a portion of the base position unchanged, while the other part is used for high-selling and low-buying operations. The specific ratio can be chosen based on personal risk preference and fund size. For example, you can choose half a position for rolling T-trading, 30% base position for rolling T-trading, or 70% base position for rolling T-trading, etc. This operation can reduce holding costs and increase profits.
The secret techniques have been provided to you; whether you can become famous in the market depends on yourself.
In the cryptocurrency world, it's essentially a contest between retail investors and market makers. If you lack cutting-edge news and first-hand information, you can only be taken advantage of! If you want to collaborate on strategies and harvest from the market makers, feel free to join!