I have been trading stocks for over 8 years now. In the first three years, I entered the market with 1 million in capital and lost down to 120,000. Relatives and friends all advised me to give up, thinking that my way of trading cryptocurrencies was the most foolish method, disregarding family and lacking ambition, etc.! I have heard the worst words! At that time, I almost gave up and lost confidence in myself!
But I was not willing to give up. I swore to my family to give myself one more chance with the last 120,000! Then I continued to calm down and explore. Later, with the remaining 120,000 in capital, I earned over 27.5 million in three years! No bragging! Once you truly summarize a method that belongs to you and strictly follow it, you will definitely be able to turn your situation around!
Day Trading Techniques and Points to Note
1. Market Sentiment and Emotion: The strength of bullish and bearish sentiment can be analyzed from changes in trading volume and open interest. If the volume increases but the price does not fall, it may stop falling; if the volume increases but the price does not rise, it may peak in the short term. The volume requirements during the upward and downward processes are different. Upward Process: Continuous and uniform volume is needed; if there is uniform volume in the 3-minute candlestick chart, it indicates that the upward trend will continue. If there is a significant decrease in volume or a very large volume appears, the upward trend may pause. Downward Process: As long as there is an increase in volume when breaking below some key levels, the downtrend will continue. When the price rises to a certain point and stops rising while open interest continues to increase, and sell orders are placed at progressively lower prices, it indicates that the price may fall. Increasing open interest with stagnant price action is a very good opportunity to short, or if the open interest increases while the price is stagnant, it is likely to rebound.
2. Key Levels: Draw pressure, support, and trend lines on the chart. When the price reaches or breaks through these key levels, take swift action. I personally use Fibonacci retracement to predict pressure and support.
3. Trading Rules: Only one type of asset can be traded within a specific time period. Continuously track the traded asset until it no longer has speculative value, then abandon it.
4. Market Analysis Window: One-Minute Window -- This is prepared for grasping entry and exit timing; Three-Minute Window -- This is used to monitor the swing situation after entering; Thirty-Minute or Sixty-Minute Window -- Used to monitor changes in daily trends at any time. Here’s a reminder: Opportunities for operation are abundant, but if you hit a stop loss, do not rush to recover immediately. Once stopped out, that trade is done; the next trade is a new trade, and how much profit to make is up to the next trade, do not set the next trade's target based on previous operations, as that will lead to losses every time. Finally, I share this trick, with a win rate of up to 99%, suitable for everyone. The method I share today is actually very simple, even if you are a novice in the trading circle, as long as you strictly follow this method, you can easily make money. First, we need to set three moving averages on the candlestick chart: the 5-day moving average, the 15-day moving average, and the 30-day moving average. The 30-day moving average serves as a lifeline, a strong support or resistance level. Then you can use these three moving averages to buy and sell.
1. The selected assets must be in an upward trend; it is acceptable if they are in consolidation, but those in a downward trend or with moving averages opening downward must not be chosen.
2. Divide the funds into three equal parts. When the price breaks above the 5-day moving average, lightly buy 30% of the position. Wait for the coin price to break the 15-day moving average before buying another 30%. Similarly, buy the final 30% when breaking the 30-day moving average. This requirement must be strictly executed.
3. If the coin price does not break above the 15-day moving average after breaking the 5-day moving average, and instead retraces, as long as the retracement does not break the 5-day line, maintain the original position. If it breaks below, sell.
4. Similarly, if the coin price breaks above the 15-day moving average but does not continue to break upwards, hold on as it retraces without breaking the 15-day moving average; if it breaks below, first sell 30%, and if it does not break below the 5-day moving average, hold 30% of your position at the 5-day moving average.
5. When the coin price continues to break above the 30-day moving average and then retraces, sell according to the previous method.
6. Selling is the opposite; when the coin price is at a high level and breaks below the 5-day line, first sell 30%. If it does not continue to drop, hold the remaining 60% of the position. If the 5-day, 15-day, and 30-day lines are all broken, sell everything. Do not hold onto hope. This 'foolproof' trading method may be simple, but the most important thing is to have execution power. Once you enter a trade, the trading system is established, and only by strictly adhering to trading discipline can you earn profits.
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