The legendary figure in the crypto world, 7u War God Bit Langlang completed a ten-thousand-fold exit on October 29 this year. A model for our generation! Learning from excellent predecessors, Gege summarized some of Lang's trading logic and shares it with everyone for mutual encouragement!
1. Look at the market cycle
It is to look at the market temperature, which is the level of popularity and activity. Driven by human nature, the market will continue to cycle through spring, summer, autumn, and winter.
Spring: All flowers bloom, follow Bitcoin's resonance, all coins are moving, and it's hard to distinguish strength and weakness.
Summer: Resonance separates out, at the peak of altcoins, there will be some exceptionally outstanding coins leading the way.
Autumn: Bitcoin begins to fluctuate, and some coins that have been dormant for a long time start to rise.
Winter: Everything is shut down and cool~
All market movements in the crypto world revolve around Bitcoin's cycle.
Missing spring, the strategy for summer is to find the major leaders. The previous inscription sector rose in autumn.
Look at the historical small cycles of Bitcoin in spring, summer, autumn, and winter, and identify any unusual movements in the market to find some development patterns.
Overall, spring and summer should be aggressive, while autumn and winter should be defensive.
The market cycle is divided into:
Fluctuation, main upward trend, main downward trend (initial, mid, late)
There is also a coin cycle: needs to be combined with technical analysis.
Understanding the laws of cycle operation allows for strategic layout: when to trade, when to wait, when to hold light positions, and when to hold heavy positions.
2. How to choose entry and exit points, take profit and stop loss
Entry point: Analyze the daily and 4-hour charts for direction, and find entry points on the 15-minute or 5-minute charts.
Stop loss: High and low points around small-level turning points.
Take profit: Look for support and resistance levels on a larger time frame.
3. Mindset: Depends on your position management.
For example, if you take out 30,000 USDT to trade contracts, my suggestion is to divide it into three parts, each part being 10,000 USDT.
Each time you open a position, use one of those parts to open a position, a fixed 10,000 USDT, with Bitcoin no more than 10 times leverage, and altcoins no more than 5 times. If you lose money, for example, lose 1,000 USDT, you can add 1,000 USDT from outside; if you make 1,000 USDT, you can withdraw that 1,000 USDT.
Ensure that in the recent period, every time you open a position, you can maintain a fixed position of 10,000 USDT. Until you have made 60,000 USDT from 30,000 USDT using this method, increase each position to 20,000 USDT and trade like this.
The benefits are:
1. Split positions + low leverage to avoid being caught by sudden spikes in the exchange, which could lead to losing all your funds.
2. Avoid situations where you are overexposed. One day, if you are overexposed and lose everything, at most you will lose 1/3, leaving the rest as a buffer.
3. Maintain a fixed position, whether you are losing or making profits, you can keep a relatively calm mindset, which can help stabilize your emotions.
The trading habit is to fully open positions. For example, one part of 10,000 USDT, one trade per coin, is to open fully. Full opening is 1/3 of the split funds, with altcoins 5 times and Bitcoin 10 times. This way, entering is based on a more refined and accurate grasp of the opening points.
If you are using stop losses and low leverage, it is impossible to get liquidated.
If your funds are tight, or you are currently losing a lot or in debt, do not deposit too much money. Just deposit 1,000 or 2,000, split it into 3 parts, and take it slow. Don't underestimate it, 1,000 per part is only 300, and in this market, every amount counts.
4. Three suggestions on how to reduce losses:
First point, do not use high leverage. Altcoins over 5 times and Bitcoin over 10 times are considered high leverage. Using high leverage is always a dead end.
Second point, do not trade against the trend. If it has gone up and you want to short, although there are shorts available, you must tell yourself that you cannot trade this trend. It is better to miss a whole round than to try to touch the top or catch a falling knife.
The third point, trading must have logic, don't just look at the charts.
The above is part of my personal summary, which may not be comprehensive. Brothers can refer to it, take the essence, and remember that the way is always the most important.
Greed and fear without understanding will ultimately cause you to lose more. In trading, only when you treat it with a calm mindset can you stay alert at all times and avoid falling into traps.#加密市场回调 #加密市场回调 $BTC $ETH 