Compared to other paths, it is relatively easy to make a fortune in the cryptocurrency world.
The stupidest thing in the world is that some people can endure decades of unhappiness but are unwilling to spend a year to change themselves. Similar words, I guess when we were taking the college entrance examination, someone also told us: work hard in the next two years, and the next few decades won’t be too hard.
The same is true in the cryptocurrency world. Even if you work a little harder for two years, you may not have to work hard for decades.
If you want to earn millions by working, even if you are a working emperor and your monthly salary is more than 10,000, it will take decades to earn millions.
In trading, what you earn is pure cash, but when you work, you still have to deduct a bunch of miscellaneous fees.
Those who can turn their fortunes around by speculating in cryptocurrency are not ordinary people. Character determines destiny, and investment character determines investment destiny.
Under normal circumstances, if you are not a second-generation rich or official, and do not have many ways to make a lot of money, you can still choose to do business. But apart from the low success rate, the most important thing is: the bigger you do as an entity, the less freedom you have. When you open your eyes every day, there are a bunch of employees waiting for you to be responsible for them.
For ordinary people, trading is the best way to go.
Why do I say this? Because trading can be started with just a mobile phone and a computer. Compared with other ways to make big money, trading really has the lowest threshold, and is the easiest and most relaxing way to succeed.
Let me tell you something heartbreaking. Regardless of whether you are a man or a woman, it is very difficult to find a job when you enter society at the age of 35 or 40. However, only money can give you enough sense of security.
I write about these real things just to hope that everyone can work harder, learn and make more money. The currency circle is the easiest way for an ordinary person to make 10 million.
No matter what you do in other industries, the personal requirements are quite high.
Read more, experience more, and then think. If you persist, there will be a moment when you will have an epiphany, and after the epiphany, the road will be much easier.
Many people cannot make a lot of money in the cryptocurrency circle because they are very courageous at the beginning, and then start to lose money, and the more they lose, the more timid they become.
This is basically hopeless. It is hard to make money, let alone a lot of money. You can’t be afraid when trading. If you are afraid, you will basically be ruined.
I want to open an order, but I am afraid of losing money, so I don't open it. How can I make money if I don't open it? It's just like chasing a girl. You have to be bold and thick-skinned and dare to try. What if you are rejected? Summarize your experience and try another one to chase her.
The same principle applies to trading. If you think there is an opportunity, open an order and try it out! If you are wrong, stop loss. If you are right, hold on. It is that simple.
Think about how many opportunities in life you have missed because of fear.
Many people are learning various technical drawing indicators or news, but in fact, these are not the core of trading. The core of trading is two points:
1. A good attitude means not being upset about losing money, nor being happy about making money. To put it bluntly, it means not treating money as money.
2. Make big profits and small losses. When you lose, you lose small money. When you make money, you make big money.
Just these two points, as long as you can do these two points, you can make money.
If you want to make more money, you need a little more courage.
The opportunity only exists in the past few years. Now the total market value of the entire circle has reached trillions of dollars, and it can no longer be considered a small shrimp.
And as more and more institutions enter the market, the formalization process will accelerate, and it will also become a landmark investment circle, and it will eventually become a mature market like the US stock market.
The so-called bull market means that prices first rise to a level that makes some people feel it is very expensive, and then rise again to a level that makes them think it is very cheap.
The so-called bear market means that the price first falls to a level that makes some people feel it is very cheap, and then falls again to a level that makes them think it can be even cheaper.
In the end, everything is missed and missed, and only those who have been in the car all the time have a chance.
So back to the original question, ordinary people can't turn things around! Only if you are extraordinary and different, you can turn things around.
It is really easy to make a comeback in the cryptocurrency circle. If you have some money, don’t spend it, don’t consume it, or spend some money to pick up girls and get to know this circle. Maybe the gears of your destiny will start to turn, and your extraordinary life will begin.
A big shot who has earned 40 million yuan in the cryptocurrency circle in ten years tells you what to pay attention to in the cryptocurrency circle!
In fact, once you get the hang of cryptocurrency trading, life will be like enlightenment!
Ten years ago, when I first entered the cryptocurrency circle, like most retail investors, my losses and profits seemed to depend entirely on luck, and I couldn’t find any patterns.
But after a few years in the cryptocurrency world, through constant learning and absorption, and with the constant sharing and guidance from my mentors and seniors, I finally
Take your time to learn and form your own investment system!
Today I will share my trading strategies and experiences with my friends in the cryptocurrency circle.
The core four-step method:
Mechanical execution, violent compounding
1. Coin Selection Sniper Technique ◦ MACD Golden Cross Hunting: Golden cross on the daily level 0 axis is preferred! This type of currency has a strong bullish trend, with a success rate of 68% (historical backtest data), avoiding the trap of golden cross below the 0 axis. ◦ Case: After the MACD water golden cross of Ethereum in April 2024, it soared 40% in 3 weeks, outperforming the market by 2 times!
2. Moving average life and death line ◦ Go hard online, cut hands offline: Price stands firm on the 20-day moving average = attack signal, break below = unconditional liquidation! This line is the dividing line between bull and bear, breaking means the main force retreats, don’t fall in love with the trend!
3. Position Art ◦ Full-position charge condition: price + volume both break through the moving average (such as BTC breaking through $60,000), otherwise only use 50% of the position to test. ◦ Profit-taking secret: 40% profit harvest 1/3, 80% cut another 1/3, the remaining position allows the profit to run, but if it falls below the moving average, immediately press the nuclear button to clear the position!
4. Stop loss is like breathing. Cut as soon as the line is broken! Don’t regret it even if there is a V-shaped rebound the next day. Discipline is 100 times more important than a single profit or loss! 87% of the liquidations in history are due to “wait and see” (data source: a study of the blood and tears history of the cryptocurrency circle).
The Three Don’ts Principle: Avoid the Three Suicidal Behaviors of Leeks
1. Refuse to chase the rise: Rise ≠ opportunity, it may be foreplay! Wait for the price to fall back to the moving average or the second golden cross of MACD before taking action.
2. Refuse to go all in: Going all in on one coin means leaving your life to the dealer. Diversify into at least 3-5 currencies (mainstream + potential small coins).
3. Refuse to hold a full position: keep 30% in cash, buy at the bottom when the price plummets and buy more when the price soars, and always take the initiative!
Six mantras: Understand the language of the market and harvest the main force
1. Sideways trading at high levels hides danger, while bottoming out at low levels awaits takeoff - the longer the sideways trading, the higher the vertical trading!
2. I won’t accompany you if the market goes sideways and pretends to be dead, the truth will be revealed when it breaks out - 80% of the losses come from rash operations!
3. Buy secretly when the negative line shrinks in volume, and sell quickly when the positive line expands in volume - go against the emotions, and specialize in panic selling!
4. Don’t rush into a sharp drop like a knife, and wait for a rebound after a slow drop - a sharp drop will inevitably lead to a rebound, and a slow drop will even lead to a new low!
5. The more it goes up, the more you sell; the more it goes down, the more you buy - the cost of building a pyramid position is lower than that of the banker!
6. After a sharp rise and fall, sideways trading is the final outcome - don't guess the top or bottom, wait for the market to choose its own direction!
The ultimate strategy: crush the market with discipline • Data speaks: Backtesting in 2023-2024 shows that
Investors who stick to the four-step method + formula have an average return of over 300%, outperforming 99% of "feel-based" players.
• Anti-human operation: when you want to “wait a little longer”, execute the strategy immediately; when you want to “take a gamble”, close the exchange immediately!
• Only by surviving can you have a future: One day in the cryptocurrency world is like one year in the real world. I would rather miss 10 opportunities than step into a deep pit!
(Warning: The only reason why all strategies fail is - not! Executing!) Remember: strategy is the sword, discipline is the shield. If you don’t get rid of your inner demons, you will be doomed to a margin call!
A must-read for cryptocurrency investment and trading: eleven market trends and mentality rules to help you navigate the cryptocurrency market with ease!
1. Trend reversal signal: If there are more than 3 consecutive positive lines in a downward trend, and the negative lines in an upward trend do not pull back more than 3 consecutive negative lines, it is
Early warning signs of a trend reversal.
2. Guide to shock breakthrough: In a shock market, the volume rise and price flattening are usually accompanied by a big breakthrough in the later period. Buy low and wait for two positive volumes to exceed the previous period.
Negative volume can be intervened in advance.
3. Coin holding tool: Strong coin holding strategy, simple and crude, as long as the daily line does not break the rising moving average, hold on, ignore technical indicators, and avoid being
High passivation state influence.
4. K-line combination interpretation: A medium-sized positive line with two cross star patterns usually marks an upward relay, which is a typical upward trend of strong coins.
state.
5. Market unconventionality: The market often proves that the majority of people are wrong. The smoke screen released by the main force and the market top often appear when people unanimously believe that the market is wrong.
Good times.
6. KDJ indicator signal: When encountering continuous large negative lines, when the J line of KDJ is less than -12, it means that a short-term rebound is coming. It is recommended
Wait for a rebound before making a judgment.
7. Characteristics of the breakthrough positive line: When breaking upward, the positive line turnover rate is around 8%, which is a healthy attack volume. Too large or too small may trigger a callback.
8. Tenacious mentality: When trading is not going well, you must stay calm and withstand the pain of nirvana to welcome the beauty of rebirth.
9. Risk control: Avoid fully investing, leave some room. The market is risky, act cautiously and leave yourself room to correct mistakes.
10. Emotional regulation: adjust your mindset, treat market fluctuations calmly and rationally, and avoid letting emotions influence decision-making.
11. Learning and communication: Don’t isolate yourself, communicate and share with others. Even wrong opinions are part of growth and we can make progress together.
Giving roses to others will leave a lingering fragrance on your hands. Thank you for your likes, attention, and reposts! I wish you financial freedom in 2025!
Technology is the foundation of survival. It is better to teach people how to fish than to give them fish. The real charm of investment is to make a small investment for a big gain. Holding on to the guaranteed profits is the foundation of financial management! Remember to click on the collection and follow, follow the official account (Yuanyuan Jucai), continue to share the dry goods of the currency circle, and appreciate the mystery of the currency circle together!
We will discuss four different ways to enter a breakout trade, each with its own pros and cons. Remember, choose the method that best suits your trading style to increase your chances of success!
How to enter a breakout trade?
Determining Breakout Levels
Traders first need to identify a key price level or technical indicator to break through. This could be a trendline, moving average, or resistance level.
Option 1: Buy before the breakout
It is entirely possible to buy before a breakout actually occurs, also known as "pre-testing the breakout." However, this approach is undoubtedly riskier than the other options discussed below.
If you decide to go with this approach, make sure to only select stocks or symbols that are showing strong momentum and have increased volume before the breakout.
The main advantage of this approach is that if a breakout does occur, you will profit quickly because you anticipated the breakout in advance. However, the breakout may not ultimately occur, or the breakout may fail.
Traders using this strategy will often test the market with a small position and then buy again during or after the breakout to establish multiple positions.
Entry and Stop Loss
Buy while the price is still in a sideways phase. The initial stop loss is usually set below the sideways trading channel.
Option 2: Buy on the breakout
Buying on a breakout ensures that a valid breakout has actually occurred. For this option, it is also important to keep a close eye on momentum and volume. Stronger momentum and higher volume are early signs of increased buyer interest. This has a much higher probability of success than predicting a breakout.
Similar to option 1, buying on a strong breakout offers the opportunity for quick profits.
However, there is still the possibility of a false breakout. On a daily chart, a false breakout usually occurs when price breaks out during the trading session but ends up closing below the breakout level.
In this situation, the trader needs to decide whether to continue holding (assuming the breakout will eventually occur) or exit the position immediately and wait for price to attempt another breakout.
Entry and Stop Loss
Buy as soon as the price breaks out of the identified breakout level. The stop loss can be set below the last candlestick (aggressive) or below the sideways range (conservative).
Option 3: Buy after the breakout
Option 3 is a more conservative strategy, but has the advantage of providing a higher level of certainty. Not only has the breakout occurred, but it has been confirmed by a close above the breakout level at the end of the trading day. This therefore eliminates the possibility of an intraday false breakout.
A major disadvantage of waiting for a confirmed breakout is that you could miss out on a portion of a large price move. Breakouts of 10%, 15% or even higher occur quite often. Not all traders are willing to enter a trade after the price has already moved significantly higher.
Furthermore, there is still a chance that the price will fall back below the breakout level again in the next trading day. Therefore, the possibility of a breakout failure still exists, just not on the day of the breakout.
Entry and Stop Loss
Buy once the price closes above the identified resistance level. The closing price depends on the selected time frame. In this case, the stop loss can be set directly below the breakout candlestick (aggressive), or slightly lower to give the price more room to move and avoid being stopped out too early (conservative).
Option 4: Buy the backtest after the breakout
The last method is the most conservative. First, as with option 3, you need to wait for a confirmed breakout to occur. Then, wait for the price to retrace the breakout level before entering the trade.
A successful backtest is an additional confirmation signal after a breakout. This trading style requires traders to have great patience and must be able to resist the temptation to enter the market prematurely. People who use this method need to accept that many breakout opportunities will be missed if a backtest does not occur after a breakout and the price immediately continues to rise.
Some traders use the backtesting method to expand their initial (light testing) position to a full position. In this case, the way of backtesting is very important. The decline that leads to the price returning to the initial breakout level again should be controlled, and the selling volume should be lower than the previous buying volume.
Entry and Stop Loss
Buy after the price retests the initial breakout level. Buy when the price retests the initial breakout level and a reversal signal appears. The stop loss is usually set just below the breakout level. However, you can choose to be more conservative and use the previous swing low as the stop loss.
How to exit a successful breakout trade?
Properly managing the long positions opened after a successful breakout is extremely important to achieving structural profits in the long term. There are several ways to achieve this, depending on your trading style.
1. Set a price target
Price targets are set simultaneously with entries and stop losses. Make sure your target is at least 1.5 times your initial stop loss.
For example, if you buy a stock at $12.92 and set your stop loss at $12.49, your risk per share is $0.43. Therefore, if we want our price target to be at least 1.5 times our risk, we need to realize a profit of at least $0.65 ($0.43 * 1.5). In this case, the minimum price target should be set at $13.56.
Assuming half of your trades are stopped out and the other half reach your take-profit targets, this exit strategy can still result in a profit.
2. Use a trailing stop
This type of stop loss ensures that part of the accumulated profits are protected if the price falls. However, as long as the price rises, the trailing stop loss will also rise, thus protecting a larger proportion of the profits.
3. Use technical indicators
Many technical indicators can provide insight into price action and help you determine whether an existing trend is gaining or losing momentum. Below we discuss several common indicators that can help in this regard.
RS indicator
This is a momentum oscillator that measures the speed and change of price movements. The default upper limit value of this indicator is 70. Above this value is considered an overbought condition.
Traders should be aware of possible trend changes (short-term or long-term). In particular, divergences between the RSI indicator and price should be closely watched in order to spot price changes at an early stage.
◎ MACD indicator
This is a trend-following momentum indicator that consists of a MACD line and a signal line. A cross below the signal line by the MACD line can be used as an exit signal for existing long positions.
Bollinger Bands
Bollinger Bands are used to monitor the volatility or degree of fluctuation in prices. The upper and lower limits where prices usually fluctuate are defined by the standard deviation of the moving average. If the price exceeds the upper limit (upper Bollinger Band), this may indicate that the price is overreacting and may trigger a price drop. Based on this, the existing long position can be closed.
Be careful when using technical indicators as exit signals. During a strong trending movement, they can generate many false signals, leading to further price increases, causing you to miss out on large profits over the long term.
It is better to use the indicator as a warning signal. Instead of closing the position immediately, you can use the exit signal to manually place the stop loss slightly closer to the current price.
If the exit signal is correct, you will eventually be stopped out (while keeping most of your profits). However, if the price continues to rise, you will continue to profit from the uptrend.
How to exit a failed breakout trade?
Just like with profitable positions, it is also important to properly manage losing positions. The only quick and effective way to do this is to use a hard stop loss.
When using a breakout strategy, traders expect the trend to continue after the breakout. If the breakout fails to continue and the price falls again, the stop loss will ensure that the losses are limited.
Earlier we mentioned the approximate placement of the initial stop loss in each option. In this regard, we would like to emphasize two points:
1. Keep an eye on important support levels and place your stop loss strategically below these support levels. If the previous support level fails to pull the price back up, it is a strong sign that the price may fall further. The stop loss will protect you from a bigger price drop.
2. Don’t set your stop loss too close to the current price. In this case, your stop loss may be triggered too early. In many cases, you will notice that the price moves in the expected direction after a short while. This can lead to a lot of frustration!
To determine the minimum distance for a stop loss, you can use, for example, the ATR indicator. For more information, see: (90% of retail investors use the "magic tool" for intraday trading, you must know the ATR indicator).
Summarize
Key Takeaways
1. Trading based on price breakouts is an excellent way to take advantage of new market trends.
2. After identifying a breakout, you should always keep an eye on momentum and volume before deciding to open a position.
3. The four entry methods for breakout trading include "buy before breakout", "buy on breakout", "buy after breakout" and "buy on retracement of breakout level". Each method has its advantages and disadvantages.
4. Choose the method that best suits your personal trading style and gives you the greatest chance of success.
5. Risk management also plays an important role in long-term success. A sound exit strategy to protect profits or limit losses is crucial in this regard.
Frequently asked questions
1. Can you make money trading breakouts?
Typically, breakout trading can be very profitable. Successfully identifying a breakout and entering at the right time can result in significant profits, but there is always the possibility of a false breakout or price not moving in the expected direction. Remember, there is no strategy that will only generate profits and never experience losses.
Therefore, achieving consistent profitability with a breakout strategy is closely tied to sound risk and position management. To this end, ensuring an exit strategy (for both profitable and losing positions) that maximizes profits and reduces risk is essential.
2. What is the ideal time frame for breakout trading?
Breakout trading can be done on different time frames. A breakout pattern can also appear on a 5-minute chart or a monthly chart.
The ideal time frame for breakout trading depends on several factors:
● Your trading style and strategy
● Current market sentiment and overall market trends
● The volatility of the financial products you trade
Short-term breakouts (entry and follow-up within a few hours to a few days) are mainly used by day traders and swing traders. They mainly use intraday charts (5 minutes, 15 minutes, 1 hour, etc.) to identify areas of price breakout.
Long-term breakouts (where the main goal is to participate early in a long-term trend that lasts for weeks or months) are the preferred area for position traders. They mainly focus on the daily and weekly charts to determine when and where to enter the market.
3. How to avoid false breakouts in trading?
To avoid false breakouts as much as possible, you can take the following measures:
● Wait for the breakout to be confirmed by a price close above the resistance level. This will miss the actual breakout, but it will also avoid many false breakouts.
● Watch for additional confirmation factors supporting a breakout. A significant increase in volume before and after the breakout is the most important parameter. Breakouts on only moderate volume should be avoided.
● Observe the long-term trend. Focus on the upward breakthrough of the varieties that have shown a clear long-term upward trend.
● Consider overall market trends and sentiment. Breakouts work best when the overall market is bullish.
The market never lacks opportunities. The question is whether you can seize them. Only by following the right people with experience can you make more!
Keep up the speed!
Focus of the day: OM SUI SOL FUN BTC
