If you plan to invest in the cryptocurrency space, please take a few minutes to read my answer word for word, as it may save your life and a family.
Thousands of originally happy families end up broken due to the pursuit of an unattainable dream of striking it rich in the cryptocurrency space.
I think if I really want to continue on the trading path, I still need to study diligently. In addition to understanding the basic knowledge, analyzing news, and there should also be research on technical indicators.
If you do not conduct in-depth research and reasonably plan your finances, your funds will only be exhausted over time. In the end, as a rootless retail investor, you will only joyfully enter the market and leave in disappointment.
There is a reason why some famous technical indicators have been passed down through the ages. For example, the divergence signals of MACD, the overbought and oversold signals of KDJ, support and resistance signals, etc. While they cannot guarantee profit, they can allow you to conduct quantitative analysis on a relatively mature model, thereby giving investors a basic direction.
In the cryptocurrency space, to make 1 million from a few thousand U, there is only one way, and that is rolling positions.
When you have a principal of 1 million, you will find that your whole life seems different. Even if you don't use leverage, if the spot rises by 20%, that's 200,000. 200,000 is already the income ceiling for most people in a year.
Don't always think about millions or billions. Start from your actual situation; trading requires the ability to identify the size of opportunities. You cannot always be lightly invested or heavily invested. Usually, play with small positions, and when a big opportunity arises, bring out your heavy artillery.
For example, rolling positions 'A' can only be operated when there is a big opportunity; you can't keep rolling. Missing out is okay because you only need to successfully roll three or four times in your lifetime!
First, we need to know under what circumstances rolling positions are suitable:
Currently, only the following three situations are suitable for rolling positions:
1- Choosing a direction after long-term consolidation at a 'new low' volatility
2- Bottom fishing after a major drop in a bull market
3- Breaking through major resistance and support levels on a weekly chart
In general, only the above three situations have a higher probability of success; all other opportunities should be abandoned.
The following are the manipulation methods for rolling positions:
Adding to a position with unrealized gains: After achieving unrealized gains, you can consider adding to your position. However, you need to ensure that the cost of the position has been lowered to reduce the risk of loss. This does not mean blindly adding to your position after making a profit, but rather doing so at the right moment.
Base position + T+ operation for rolling positions: Divide the funds into multiple parts, keeping a portion of the base position intact while conducting high sell-low buy operations with another portion. The specific ratio can be chosen according to personal risk preferences and capital size. For example, one can choose half-position rolling T, 30% base position rolling T, or 70% base position rolling T, etc. This operation can lower holding costs and increase returns.
The secret skills have been given to you; whether you can become famous in the martial world depends on yourself.
Playing around in the cryptocurrency space is essentially a contest between retail investors and large players. If you don't have cutting-edge news or first-hand information, you can only be cut off! If you want to join forces to layout and harvest the big players, you can come!
