Wave Theory Trading Logic

Wave theory consists of 8 waves, including 5 impulsive waves and 3 corrective waves. The main waves are 1, 3, and 5, while the corrective waves are a, b, and c. The current market is basically in a bull market, so the trading logic is to go long at low points. The ideal long positions are generally during the 2nd wave correction and the 4th wave correction, or at the beginning of the 3rd wave and the beginning of the 5th wave, as well as at the end of the a wave correction. The short positions are mainly at the end of the 5th wave and the b wave.

The stop-loss position is generally calculated by combining the top and bottom of the waves to set Fibonacci retracement levels for stop-loss and take-profit. Generally speaking, a Fibonacci retracement of 0.5-0.618 is considered effective, and for smaller wave shapes, around 0.38 is also an effective retracement. Of course, this is a technical aspect.

As for actual news events, such as newly minted USDT and new highs in US stocks, these significant trends adhere to a low multiple fixed stop-loss strategy. If the stop-loss is hit, the mindset is to remain in cash.

Overall, trading spot is very simple. I could recommend a spot that dropped 90%, then let you hold it, and when it doubles, I would share a screenshot from months ago saying, 'Look, I made a profit!' But why not buy when it dropped 90%? Instead, people buy before it drops. For coins that are recommended to be delisted after a drop, the recommendation records are quietly deleted. The winning rate for spot trading is over 100%—it's so easy, we're all masters of eternal profit in spot trading.

Trading contracts is much more complicated. Specific trends, the impact of news, the flow of funds, and various factors can all affect prices, making it relatively difficult to guarantee a winning rate. One can look at bloggers who have had returns of dozens of times; in the past few months, they've dropped 90% and experienced liquidation, only to reopen positions and ride a one-sided trend, claiming to have excellent skills. However, those who follow them continue to lose. High leverage with no stop-loss leads only to liquidation. Following the same blogger, some make profits while others incur losses, but as long as you strictly adhere to stop-losses, you won't lose too much. The difference among everyone lies in the amount of capital and experience. Gradually learn and improve, and there will eventually be a day of stable profits. If you want to learn and exchange ideas, feel free to leave a message and follow.