If your capital is within 500,000, and you want to achieve quick success in the cryptocurrency market through short-term trading, then please read this post carefully; after reading, you will have a sudden realization about the essence of short-term trading.
Not choosing finance as my major in college is a major regret in my life. Since my freshman year, I started learning about stocks/finance/forex online, and the screen filled with red and green has filled my life with color, making me fascinated. Inspired by the infinite possibilities of the market, I opened an account in my sophomore year, and later slowly learned about the cryptocurrency space, particularly Bitcoin, and through a classmate's introduction, I learned more and more, feeling very interested and thus began my investment journey.
Like most friends who have just entered the market, at first, everyone is fascinated by technical indicators, constantly using cryptocurrencies for backtesting to find patterns; eager to enter low-priced coins or coins that have significantly retraced, believing they are safer, but in fact, this understanding of the market is completely wrong.
Only later did I understand that if you want to quickly achieve returns in the market, you must engage in short-term trading. Combine medium and long-term compounding together!
The conclusion is: do not let the blood of profit cloud your judgment; you must know that the hardest thing in the world is how to sustain profit. You must earnestly review, is it luck or skill? A stable trading system suitable for you is the way to sustained profit.
There is a saying that impressed me: ideology is something you must occupy, or others will occupy it.
Today, I share with everyone the essence of trading cryptocurrencies, which has allowed me to thrive in the market for a long time. If you study diligently, you will definitely reap great rewards and have a drastic change in your understanding of cryptocurrency trading!
K-line patterns that cryptocurrency players must know!
1. T-line (dragonfly)
· Application Rules:
Bullish signals at the bottom, bearish signals at the top indicate potential trend changes.
2. V-shaped reversal
· Application Rules:
Bottom sees bottom, reversal upwards.
3. Long upper shadow
Application Rules: 1. A long upper shadow appears at a high point in an uptrend, and if the trading volume expands, it means that bulls are actively chasing high, but the selling pressure is heavy at high levels, making it difficult for the stock price to climb upwards. The market is likely to turn back or reverse. 2. A long upper shadow appears at a low point in a downtrend, and if the trading volume expands, it means that bulls are entering the bottom, but cannot effectively curb the selling pressure, and both sides have gradually turned to a state of balance.
4. Long cross line
Application Rules: The cross line may constitute an important warning signal. The original trend pauses or reverses. The cross line only holds significant meaning under conditions where it does not frequently appear in a market. 3. If there are long upper shadows or long lower shadows, it further indicates the market's indecision, making it more indicative of the original trend's pause or reversal than an ordinary cross line. Bottom sees bottom, reversal upwards.
5. Long lower shadow
Application Rules:
1. A long lower shadow appears at a high point in an uptrend, and if the trading volume expands, it means that selling pressure is increasing, and there is eager support, but there is a sense of exhaustion among the bulls.
2. A long lower shadow appears at a low point in a downtrend, and if the trading volume expands, it means that there is panic selling of chips, but eager buying at low levels, with a large amount of bulls entering the bottom.
6. Emerging lotus from the water.
· Application Rules:
A big bullish line crossing three moving averages changes the moving averages to a bullish arrangement, indicating bullish prospects.
7. Big bullish line
Application Rules:
1. A big bullish line appears in an uptrend, indicating a strong upward movement; 2. A big bullish line appears in a downtrend, indicating a strong upward rebound.
8. Big bearish line
Having traded for so many years, I have both earned and lost. First, let’s summarize the main reasons for losses, some of which I have also committed.
Leverage is a double-edged sword; if used well, you will run faster than others; conversely, if used poorly, you will die faster than others.
After playing contracts for a long time, you will find that trading spot becomes very simple. Many newcomers hope that a single trade can yield huge profits, turning 10,000 into 1,000,000, and then from 1,000,000 to 500,000, losing 50%, and returning to 1,000,000, needing to double back to zero, just a matter of multiples.
Therefore, newcomers are most easily self-satisfied, and after earning a few times in the market, they feel they are exceptionally gifted, and in their excitement, they go all-in only to end up back at zero. Traders who truly want to survive in the cryptocurrency market never put themselves in a desperate situation; from the moment they go all-in or over-leverage, they are destined to be losers. I hope cryptocurrency friends pay enough attention to leverage trading!
Experienced players choose to remain absolutely in cash during uncertain market trends, and will not rush to operate. They will quickly enter when the trend becomes clear. Moreover, they also enter with small positions, while many ordinary retail investors frequently operate with heavy positions when the market is unclear, leading to continuous losses. When encountering fierce market makers, the losses become even greater.
Against medium to long-term trends, holding positions against the market leads to death.
Many people think that their futures losses are due to the trading period being too long, and that playing short-term will be fine. However, when losses have clearly reached a point that requires stop-loss, there is always a mental struggle about whether to stop-loss or not. Sometimes there is always a fluke mentality that prices will come back, leading to death from holding on against the trend for too long. Even worse, inexperienced newcomers who do not understand the trend will hope to increase their position to lower their cost; later, as the market trend moves further away from their holding direction, their positions get heavier, leading to faster losses. They walk on the path to death.
Neither over-leveraging nor trading frequently, chasing highs and cutting losses.
After many struggles, the meat that can be cut becomes smaller and smaller until there is nothing left to cut, leading to death. Most reasons for losses and liquidations can be summarized into these three types; those who are too greedy are basically over-leveraged. For a detailed look at the top ten blind spots in futures trading,
Full position trading ---- full position must lose.
Frequent trading ---- lacking technical guidance.
Operating against the trend ---- low probability with high risk.
Locking position trading ---- does not accept the fact of loss.
Lowering and raising the average position price ---- adds mistakes to mistakes.
Guessing tops and bottoms, without setting stop-losses ---- looking for excuses for mistakes.
Longing for perfection endlessly, being empty and then longing to be complete ---- overly pursuing perfection is aimless.
Believing in news and blindly following trends ---- lacking understanding of the market.
Lack of self-reflection, doubting the market ---- generating fear towards the market.
Establish a long-term trading plan ---- the future is uncontrollable.
Often, trading in the cryptocurrency market feels like driving on the road.
First, go to driving school to learn how to drive; once you can drive, if you don’t follow traffic regulations, it’s only a matter of time before you have an accident. Even if you drive according to traffic rules, if you don’t hit someone, someone will hit you; there are pitfalls everywhere, so to drive safely, you have to learn to avoid them.
So what are the trading rules in the market?
Look at the eight correct and eight wrong trading approaches below:
Operate in accordance with the trend, and it is wrong to go against the market. (Once a trend is formed, it is difficult to change in the short term)
Using light positions is right, while using heavy positions is wrong --- position affects attitude, and attitude affects decision-making.
Being content is right, being greedy is wrong ---- greed is the enemy, contentment brings happiness.
Using stop-loss to protect profits is right, while letting it flow uncontrolled is wrong ---- preserving capital first, making profits second.
Objective operation is right, while subjective analysis is wrong. Objective operation, following the rules.
Waiting and being patient is right, while being restless and impulsive is wrong. Cultivating patience, action only at the right moment.
Using profit to add positions is right, while increasing positions while being trapped is wrong. Profit is the right direction, being trapped is the wrong direction.
Being calm and composed is right, while being anxious about gains and losses is wrong. The essence of trading is the clash of human nature and mentality.
Understanding trading in cryptocurrency is the same process, from seven losses to two breakevens and then to one gain, it's just about being focused and not greedy for various profit models; firmly adopting this trading system, over time, this system will become your cash machine.
Where there are high mountains, there are paths for travelers; where the water is deep, there are ferry men.
#bnb创历史新高 #Layer1公链普涨 #RWA板块普涨
$BNB $RSR $TRX