In eight years of investing in digital currencies, I have genuinely earned 26.5 million. Every penny of this came with great difficulty, hiding lessons and experiences I learned in the market. Today, I want to share these practical insights with you in the most straightforward manner.
Do you often see people excelling in the digital currency space?
In fact, many of the methods they use may seem clumsy, but they are genuinely effective. It just requires time to study and practice in real scenarios. Remember the practical insights below:
First, never follow the crowd and chase high prices. When the market heats up, everyone is excited; you need to remain calm. When others panic, it might be your opportunity. When prices drop, that is the perfect 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 based on market changes. The market changes rapidly, and you need to keep up with the rhythm, without letting a single position bind you.
Third, trading with full positions is just looking for trouble. Full positions mean excessive risk, leaving you no room for maneuver. There are plenty of opportunities in the market; trading with full positions means you abandon all other potential profitable opportunities.
In Bitcoin trading, large and small cycles determine entry points, and the choice of entry points is very important for trading.
Those with practical trading experience know that market false breakouts or poor entry points lead to excessive stop losses; at this point, one can only reduce the entry capital, as a large market movement often yields minimal profits.
Everyone needs to summarize their own entry methods; don’t mention those who enter the market randomly based on feelings.
A commonly used method for me is to combine large and small cycles to find entry opportunities.
Since we are engaged in trend trading, the method must include trend judgment, and then choose the trading level according to your own trading style.
Therefore, here I recommend using large, medium, and small cycles for judgment.
1. Large cycle: Determining direction and analyzing trends, whether it is in a consolidation or trend phase, only engaging in the initiation and continuation stages of trends, and halting in consolidation...
2. Medium cycle: Trading level, holding level.
3. Small cycle: Entry level, stop-loss level.
Choose according to your trading habits for large, medium, and small cycles.
How to turn 10,000 into 10 million - the technical analysis guide series you don’t know about.
The 'core technology' in any field will not be publicly disclosed in a broad setting; in the online world, it is also hard to find. It is only circulated among a very small number of people, held within core circles. This belongs to the 'not-to-be-spoken secret' of this field.
The 'key' that has been shattered and scattered in the core circles is hidden in the content of this series of articles. Some things cannot be said too clearly; they need to be 'understood.' Look closely, and the hidden truth will surface. Seeing this article means you are destined to connect with the core circle, a connection that is priceless.
Finance is the foremost of all industries; to make money in finance, you need absolute strength, but losing money can happen in an instant. Only by possessing the top experts' successful 'not-to-be-spoken secrets' can you transform from a novice to a master in this field. In this zero-sum game of finance, profits are forever made by a minority, while the vast majority are losing money.
Do you know the fundamental reason for losing money in the financial field? This reason is very simple, just two words: 'Making mistakes.' 'Making mistakes' sounds simple, but explaining this category in detail can be extensive. Usually, novices in the cryptocurrency world face the following ten traps, each of which is enough to lead a novice to take risks, resulting in irreparable economic losses.
First trap: Trading based on news without spending time researching the coins you invest in.
Second trap: Making decisions based on emotions, with emotions fluctuating with the market's rise and fall, leading to irrational buying or selling actions.
Third trap: Chasing high prices of newly listed altcoins.
Fourth trap: Blindly buying due to fear of missing opportunities.
Fifth trap: Blindly investing heavily in a certain coin without leaving room for error.
Sixth trap: Blindly believing in various news or self-media opinions.
Seventh trap: Blindly believing in a certain coin while ignoring systemic risks.
Eighth trap: Impulsive investment, buying unresearched coins based on feelings.
Ninth trap: Trading on small exchanges, resulting in the exchange running away, being attacked, or unable to withdraw funds.
Tenth trap: Impatience for quick success, seeking to get rich overnight.
The ten traps mentioned above are often 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 navigate through bull and bear markets and continuously grow. This is also the 'top-secret skill' of those elite in the financial field.
One of the core components of the trading system is the technical analysis topic that this series will primarily explore.
At this point, you might ask, what exactly is technical analysis?
Technical analysis, in a strict sense, is an art, not a science. There is a misconception that understanding this art is used for predicting the market; technical analysis is merely about identifying the current market state and then categorizing it. At this point, we must mention another layer of meaning in technical analysis.
Technical analysis is actually a study of statistics.
By analyzing the changes in the financial market trends over the past few hundred years, we can infer the direction of future movements. Now that you have identified the current market state and completed the categorization, you will find that 'tops' will have common 'top' patterns, while 'bottoms' will have common 'bottom' patterns. After categorizing, you will know which common 'top' or 'bottom' pattern the current market is in.
So what help does the study of statistics provide you? Its greatest value lies in summarizing the laws.
For example, if a 'three mountain top' pattern appears, then in all past financial markets, each time this pattern appeared, seven or eight times out of ten, it was followed by a decline. After this pattern appears, the subsequent market trend is likely to decline; note the wording 'likely.' Seven or eight times out of ten being a decline is enough. Some might say it's not 100%, but the financial market inherently has no certainties; being correct seven or eight times out of ten is sufficient to allow you to make money in the financial market through the art of technical analysis.
At this point, you should have a general understanding of what technical analysis is for. In the long history of the financial market, which has undergone hundreds of years of baptism and practical verification, do you know what the five major technical analysis systems that have survived until now are? How did they each come into being? What are their strengths and weaknesses? Which techniques can be combined to complement each other for greater profitability?
All these contents will be explained in detail in my guide series articles. After reading this entire series of articles, your understanding of the field of technical analysis will surpass 99.9% of both new and old participants, bringing you one step closer to establishing your own high-win-rate trading system.
One of the core mysteries of technical analysis is that after identifying the current market state, one always stands on the side of greater probability. Once you understand technical analysis and correctly apply its methods, you will always position yourself on the side of greater probability, and in the long run, victory will belong to you. Understanding technical analysis allows you to see how the market moves, and the entire market will come alive in your eyes.
Understanding technical analysis is like having a golden key to unlock the treasure chest of the financial market. Whenever you want to access the treasure, you just need to turn the key to open the door.
The behavior of truly outstanding investors should be personalized, based on their own investment philosophy. The Dow Theory has brought enormous changes to human production and life, just like the invention of the steam engine. It has opened a new chapter in human investment, which is why it is known as the ancestor of the five major technical analysis systems.
Speaking of which, you might wonder 'Who founded the Dow Theory? Who is Dow?' Charles Dow was the founder of the Dow Jones Financial News Agency and the first editor of The Wall Street Journal. He worked on the trading floor of the stock exchange for several years, and his personality was cautious, restrained, calm, conservative, with a strong understanding and self-control. His financial knowledge was profound, and he had exceptional judgment; outstanding individuals are always objective and calm. Dow's life was almost devoid of anger, which is an inherent factor in establishing his pioneering theory.
The articles published by Dow were organized into various chapters of the Dow Theory by his assistants and successors at The Wall Street Journal. The Dow Theory objectively describes the unchanging changes in the financial market, which, regardless of the financial market, equally possesses scientific reference.
Have you ever noticed a very interesting phenomenon? There exist two cryptocurrency circles in this world. One is the real cryptocurrency circle, gradually revealing a clear picture amidst confusion and disorder; the other is a fictional cryptocurrency circle, represented by media that likes to mislead, by authorities who seek fame and profit, filled with errors and dramatic commentary. The characters living in various rumors are not more real than any clichés. Those distorted images come alive in various colorful rumors like your neighbor, yet you have never truly seen what this neighbor looks like.
Here I want to tell you a secret truth, which is also the essence revealed in Dow Theory: 'No one can manipulate the main trend; the major fluctuations of the market follow patterns.' We can only objectively identify and follow the market's development trajectory, rather than impose our imagination on it. Although some claim that the market is manipulated, this remains an illusion.
Here you receive the second set of hidden passwords: 'Wealth.' In the world, often, as long as we grasp its laws, we find the key to open the treasure chest. The Western Dow Theory believes that a price is formed by the transactions between buyers and sellers, and the market develops amidst support and resistance, causing it to constantly cycle between bull and bear markets. Both bull and bear markets are further divided into three phases, and index movements consist of three overlapping movements, resulting in the ever-changing prices within the three phases of bull and bear markets.
By following the aforementioned iron rules and operating steadily, your cryptocurrency trading journey will be smoother, and financial freedom will no longer be a dream. If you are still getting caught and losing money in this market, comment 333 below for no reason!
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