In my 8 years of investing in digital currencies, I have genuinely earned 26.5 million. Every penny of this money was hard-earned, hidden behind the lessons and experiences I learned while navigating the market. Today, I want to share these practical insights with you in the most straightforward manner.
Do you often see people playing particularly well in the cryptocurrency space?
In fact, many of their methods may look clumsy, but they are really effective. However, this requires us to spend time studying and practicing in real scenarios. The following practical tips should be remembered:
First, never follow the crowd and chase highs. When the market heats up and everyone is excited, you need to stay calm. When others panic, it might be your opportunity. When prices drop, that’s a good time for you to quietly position yourself and buy at low prices.
Secondly, when investing in digital currencies, be flexible. Don't throw all your money in at once; adjust according to market changes. The market changes quickly, and you must keep pace without letting a single position bind you.
Thirdly, trading with a full position is just asking for trouble. A full position means too much risk, and you have no room for maneuver. Opportunities abound in the market; a full position means you give up all other possible profitable opportunities.
In Bitcoin trading, large and small cycles determine entry points; the importance of selecting entry points has been discussed in the trading system.
Those with practical trading experience know that false breakouts can occur, or entry points may not be good with excessive stop losses, which can only be mitigated by reducing entry funds; often in a large market, the profits are relatively small.
Everyone needs to summarize their own entry methods; don't mention those who enter randomly based on feelings.
A commonly used method for me is to combine large and small cycles to look for entry opportunities.
Since we are engaged in trend trading, the method must include trend judgment, and then choose the trading level based on one's trading style.
So, I recommend using large, medium, and small cycles for analysis.
1. Large cycle: determine direction and analyze trends, whether in a consolidation or trending phase, only trade during the launch and continuation phases of trends, and wait during consolidations...
2. Medium cycle: operational level, holding level.
3. Small cycle: entry level, stop-loss level.
Choose according to your trading habits among large, medium, and small cycles.
How to turn 10,000 into 10 million - the technical analysis guide series you don't know.
The 'core technology' in any field will not be publicly disclosed in a large setting; it cannot be searched for in the online world. It is only circulated among a very small group of people, held in the hands of the core circle, and is considered a 'secret not to be passed on' in this field.
The 'key' that has been shattered and dismantled within the core circle is hidden within the content of this series of articles. Some things cannot be stated too clearly; they need to be 'understood.' Look closely, and the hidden truth will surface. Seeing this article indicates that you have a connection with the core circle, a connection that is invaluable.
Finance is the leader of all industries. To make money in finance, you need absolute strength, but losing money can happen in the blink of an eye. Only those who possess the 'secret not to be passed on' from top experts can complete the transformation from novice to expert in this field. In this zero-sum game of finance, only a minority makes money, while the vast majority lose money.
Do you know what the fundamental reason for losing money in the financial field is? This reason is very simple, just two words: 'making mistakes.' 'Making mistakes' sounds simple, but explaining this category in detail is vast. Usually, novices in the cryptocurrency space commonly fall into the following ten traps, and each trap is enough to lead them to take risks and incur irretrievable financial losses.
The first trap: trading coins based on news without spending time researching the coins you invest in.
The second trap: being emotional, allowing emotions to fluctuate with market volatility, leading to irrational decisions in buying or selling.
The third trap: chasing after new and counterfeit coins.
The fourth trap: blind buying out of fear of missing opportunities.
The fifth trap: blindly investing everything into a coin you fancy, leaving no room for maneuver.
The sixth trap: blindly believing various messages or opinions from self-media.
The seventh trap: having a mysterious belief in a particular coin while ignoring systemic risks.
The eighth trap: rash investments, buying unresearched coins based on feelings.
The ninth trap: trading on small exchanges, resulting in the exchange running away, being attacked, or withdrawals being impossible.
The tenth trap: being overly eager for quick profits and dreaming of getting rich overnight.
The above ten traps are commonly encountered by novices. To avoid these traps and thrive in the cryptocurrency space, the only way is to have an effective trading system that can withstand bull and bear markets while continuously growing. This is the 'top secret skill' of those at the pinnacle of the financial field.
One of the three core parts of the trading system is the topic of technical analysis that this series will mainly explore.
At this point, you might ask, what exactly is technical analysis?
Technical analysis, in a strict sense, is an art rather than a science. There is a misconception that understanding this art is meant to predict the market; technical analysis is merely to identify the current market state and categorize it. This leads us to mention another layer of meaning in technical analysis.
Technical analysis is essentially a statistical discipline.
Statistically analyzing the changes in the trends of the financial market over the past few hundred years to infer the direction of future trends. Once you identify the current market state and categorize it, you will discover common 'top' patterns and common 'bottom' patterns. After categorizing, you will know which common 'top' or 'bottom' patterns the current market is in.
So, how can the knowledge of statistics help you? Its greatest value lies in summarizing the rules.
For example, when the 'Three Peaks' pattern appears, in all past financial markets, whenever this pattern occurred, seven or eight times out of ten, it resulted in a decline. After this pattern appears, the market trend is highly likely to decline; note that the wording is 'highly likely.' Seven or eight times out of ten is sufficient. Some may argue that it isn't 100%, but inherently, there are no certainties in the financial market. Getting it right seven or eight times out of ten is enough to allow you to profit from technical analysis in the financial market.
At this point, you should have a general understanding of what technical analysis does. In the long history of the financial market, which has undergone hundreds of years of experience and practical testing, do you know the five major technical analysis systems that still exist today? How did they come into being? What are their advantages and disadvantages? Which combinations of techniques can complement each other to achieve a higher profit rate?
You will find detailed explanations of all this content in my guide series. After reading all the articles in this series, your understanding of the field of technical analysis will surpass 99.9% of both new and old investors, taking a big step closer to establishing a high win-rate trading system of your own. Now you have received the first hidden password: 'Three'. In the field of technical analysis, the current mainstream consists of five major analytical theories; these five systems stand tall, each observing the market from different angles, and each theory, when studied in depth, can accurately control and analyze market trends.
One of the core mysteries of technical analysis is that after identifying the current market state, one always stands on the side of high probability. Once you understand technical analysis and correctly apply its methods, you will always stand on the side of high probability, and over time, victory will belong to you. Understanding technical analysis allows you to see how the market dances, and the entire market will come alive in your eyes.
Understanding technical analysis is like having a golden key to unlock the treasure trove of the financial market. Whenever you want to access the treasures, you just need to turn the key to open the door.
The behavior of truly exceptional investors should be personalized, and they invest according to their own investment philosophy. The Dow Theory has brought about tremendous changes in human production and life, just like the invention of the steam engine, thus opening a new chapter in human investment and earning it the title of the pioneer among the five major technical analysis systems.
Speaking of which, you might also wonder, 'Who founded Dow Theory? Who is Dow?' Charles Dow was the founder of the Dow Jones Financial News Agency and the Wall Street Journal, as well as its first editor. He worked in the securities exchange for several years. His personality was cautious, restrained, calm, conservative, and he possessed strong understanding and self-discipline, along with profound financial knowledge and exceptional judgment. Exceptional individuals are always objective and calm; Dow rarely showed anger, which is an inherent factor that established him as the originator of pioneering theories.
The articles published by Dow were organized into various chapters of the Dow Theory by his assistants and heirs at the Wall Street Journal. The Dow Theory objectively describes the unchanging changes in the financial market, and this change has universal scientific reference applicability across all financial markets.
Have you ever noticed a very interesting phenomenon? There are actually two cryptocurrency circles in this world. One is the real cryptocurrency circle, gradually revealing a clear image amidst confusion and disorder. The other is the fictional cryptocurrency circle, which exists in the media that likes to mislead people; it is the circle of authorities who chase fame and profit, filled with misconceptions and dramatic comments. The characters living in various rumors are not any more real than protagonists in outdated plots. The distorted images that are manipulated in various sensational rumors are as vivid as your neighbor, but unfortunately, you have never truly seen what this neighbor looks like.
Here I want to tell you a hidden truth, which is the essence revealed by Dow Theory, that is, 'No one can manipulate the main trend; the major fluctuations of the market are regular.' We can only objectively recognize and follow the market's trajectory, rather than imagining that the trend aligns with our own thoughts. Although some claim that the market is manipulated, it remains an illusion.
Here you receive the second hidden password 'Wealth'. Often, things in the world only require grasping their rules to find the key to unlock the treasure. The Western Dow Theory suggests that a price is formed by the transactions between buyers and sellers, and the market's development occurs amidst support and resistance, keeping the market in a continuous cycle of bull and bear markets. Both bull and bear markets are divided into three phases, and index movements are a result of three types of movements overlaying each other. This triple movement creates a myriad of price changes in the three phases of bull and bear markets.
By adhering to the aforementioned principles and operating steadily, your trading journey will be smoother, and financial freedom will no longer be a dream. If you are still stuck and losing money in such a market, comment 333 below!
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