1. Market Analysis:
In the cryptocurrency market, there are directional trends and oscillating trends. Generally, directional trends only occur for a period of time with unilateral price increases or decreases. This kind of trend is relatively easier to trade; traders just need to look for buying opportunities at lows or selling opportunities at highs. In directional trends, a trailing stop-loss method can be used to capture greater profits. However, in non-directional oscillating markets, it is not suitable to trade medium to long-term; only short-term trading is advisable, buying low and selling high, and taking profits quickly. If you are greedy, profits may be lost at any time.
2. Price Level Analysis
Even after identifying a favorable trend, one should not rush into the market. It is also important to choose the right entry points; otherwise, it is easy to get stuck in a losing position. Getting stuck can affect your mindset, and what was initially a well-analyzed trend may lead to behavioral non-compliance. Therefore, the entry point is crucial. You can look for support or resistance levels based on the analysis of larger time frames and use them as entry points.
3. Position Control
Only by reasonably controlling your position can you have a chance for stable profits; otherwise, your account will only decrease little by little. For those trading with 100x leverage, I generally recommend risking 1% to 5% of your total position at a time. If your account balance is only $10,000, then each trade would be $100 to $500, whether long or short. In favorable market conditions, if you enter a trade and it is profitable, you can first reduce your position to take profits, then set a break-even stop-loss. No matter how confident you are in the market, do not take on too much risk; if a trade begins to incur losses, do not frequently increase your position size; only add to your position once at most. If losses continue, strictly enforce your stop-loss.
Trading Advice: First: Manage your position well; do not over-leverage or go all-in.
Second: Each trade needs to have take-profit and stop-loss orders; do not hold on to losing trades or try to catch the bottom (or top).
Third: Adjust your mindset; do not act impulsively; a good mindset is key.
Summary: True investment is not just about accumulating money, but also about expanding networks, broadening perspectives, constantly upgrading life experiences, improving emotional intelligence in various aspects of life, and iterating and adjusting values to truly become the master of wealth.
