Opening remarks: Why do we come to the cryptocurrency circle? Why do we input funds? Am I still the same person as I was at the beginning? From full of confidence to self-doubt to learning to indicators to thinking to unity of knowledge and action, to trading systems, etc. ~ In fact, we should manage our own funds and positions so that we can survive in the cryptocurrency circle and quietly make a fortune in the cryptocurrency circle.
My investment advice to all cryptocurrency friends is 10% 20% 20% 50%
10% of the funds are used for spot financial management. You can place 100 orders for 100 currencies at the current price of the currency*0.6~0.85. The currencies successfully exchanged will be placed in the financial management current account. No one knows when you really need to use the money in a few years, you may redeem a huge fortune.
Any cryptocurrency can be held. Flash exchange orders should continuously be placed. Once a position is entered, put it into financial management to let it compound.
20% of funds are used for spot trading, buying low and selling high. While multiple steps may be cumbersome, isn't the most stable strategy just buying low and selling high? Initially, you could withstand a week in spot trading, but can you withstand half a day in contract trading now? It cannot be denied that the profits from spot trading are too low, but it is more stable than any other method. Suppose we use 20% of our funds to conduct low buying and high selling of four types of coins daily, placing buy orders at current price * 0.85 and selling when it rises by 10%. In one month, with 10 rounds, that’s a doubling. By using a fixed 20% to earn another 20%, the principal doubles in a year. If your 20% allocation reaches 1000 USDT, that’s 2000 USDT+ in profit in a year.
Finally, let's talk about 20% + 50% = 70% investment in trading contracts (grid contracts 20%, self-made contracts 50%). Any novice entering the market starts with X5, X10, X20, and later moves to X30, X50, X75, X100, X125. Gradually, you find your principal decreasing and you disdain low-leverage contracts, repeatedly adding positions. Slowly, you start borrowing money to cash out using credit, watching others make 200% or 500% in a day, hoping to be the next lucky one. My dear friends, can you handle high-leverage contract trades?
Let’s return to the starting point. Learn various indicators and trends, from naked K-lines to institutional thinking. The people competing with you are countless gamblers, and you are one of them. So how can you ensure stability?
My suggestion is: large fluctuations X5, medium fluctuations X10, small fluctuations X20. Remember the platform's suggestion of X20; this is a suggestion from the Binance platform confirmed repeatedly, which is more beneficial than harmful. We must understand and recognize this point to seek wealth steadily and grow wealth steadily.
Contracts are also called contracts and grid contracts. Those high-yield grids also face high loss risks. If you don't understand grids or the volatility of coins, you can be in the negative in no time, which is not our goal. If you obtain grid leverage from a blogger you trust, set it lower than your confidence in the blogger. Remember, it can be low, but not high! I like using X50 and X75, which I have tested repeatedly to yield profits greater than losses for myself. Using X25 and X30 is the most stable because it requires professional monitoring; I monitor the market for more than 10 hours a day and adjust the contract intervals even while I sleep. You simply trust the blogger and directly follow their trades, right?
For grid contracts, directly look at the highest and lowest points of the cryptocurrency you want to trade within 12 hours. Take their midpoint. After obtaining the midpoint, check the 30-minute K-line; if 50% of it is fluctuating around this midpoint, then you can trade in that direction. Neutrality at the midpoint applies to both long and short positions. If the deviation is too large, we switch to another coin or wait for the market to stabilize before entering. It’s advisable to trade only 2 types of coins with each investing 10% and setting profit and loss stops. I suggest stopping operations once profits reach 15-30%, and then starting over with the midpoint. How to set high and low points? Use midpoint * 0.8 as the lowest point and * 1.2 as the highest point for the grid range. It’s best to have a stable large grid. We control profits at each grid to be between 0.38% and 1%. In case of large fluctuations, we reduce the number of grids; in smaller fluctuations, we can increase it. After hitting profit, observe the pattern before deciding on the grid count again. Generally, I set a stop loss at 30% and I rarely get hit on the grids. In my grids, I encounter a 30% stop loss only once for every 6 times I take a 25% profit. Of course, I always control my principal at 100 USDT or 300 USDT, lazy but not over-leveraging. After all, grid contracts are just a tool, and seeking stability is the main goal.
Finally, let's talk about trading contracts. Most of the traders we see are bloggers using X20 or X50. The direction may be right, but if the market fluctuates, there’s no food on the table. You can hold on a bit, and in the end, most of the time it’s profitable. Who loses? It’s the ones with high leverage. Without a 70% win rate + 70% trend analysis + 70% institutional mindset, we shouldn't enter high-leverage trades.
Otherwise, what’s the result? Continuously lowering stop losses, desperately adding positions, hoping for a reversal, but why would it reverse? Once it drops, the short sellers will hammer it down, and when it rises, the longs will chase the highs. Is that really you? Support levels, resistance levels, indicators sometimes encounter large players' moves = invisible, ineffective, and useless.
Therefore, in trading contracts, position management is the first point. Grasping high openings and high leverage with 2%-3% of funds can also involve two entries. First open a position; if it loses 60%, we buy in the other half. This is the most stable approach. Set the stop loss at 110%. Why 110%? Because large players rarely invest more funds for that 10%. They will give you chances to earn a little fee to exit. Once you throw out your chips, the large players will lift it again. At that point, we choose to reduce our position by half. If the direction is right, we hold on. If the large players' funds are not in place, they will push it down again and again. What do we choose to do? Sell half and wait for new lows to buy in. Large players also use this method to adjust their average price. We must follow suit to eventually eat up 1x reduction and get 2x reduction, leaving a base position to aim for 10x on that 5%.
If we don't have much confidence, we choose low leverage X5, X10, X20, X30, with funds allocated 3%-8% and the initial stop loss set at 30%. Exit opportunities arise three times. If the direction is wrong, exit with a 20% loss and don’t get entangled. If the direction is right but the volume hasn’t fully released, we set it at 110%. Reducing positions, adding positions, or splitting positions are all fine. In a big market move, this low leverage can recover double the profits. Our goal is to earn profits, and we must ensure stability.
If it's unstable, choosing not to enter the market is also a form of wisdom. Not losing is earning. From financial management to grid spot trading, our fixed returns exist. Contracts can be done or not done; remember, it can be done but also not done. Relaxing yourself regularly allows for growth through learning. Everyone starts from zero, every trader has their own style. In the end, the experience is bought with money.
The blogger initially entered with 1000 USDT, added positions, and faced liquidation 7 times. Who understands? This is a lesson I bought for 8000 USDT, along with my current self-management. Many cryptocurrency friends, casually opening a trade are often in the hundreds or thousands. How many old friends actually make money?
Please let me get to know you. Leave your footprints in the comments section and share your experiences to provide nourishment for new cryptocurrency friends.
Top traders, please check in. If you've read this far and feel you've learned something useful, a like or share would be the greatest support for me.
I will also share my own trades when I have time.
