I know an elder who entered the cryptocurrency world with 100,000 yuan and now has a market value of 42 million. He told me a sentence that enlightened me: 'This market is filled with a rabble; as long as you control your emotions, this market is an ATM!'
In the cryptocurrency realm, your trading strategy is your 'secret weapon'. The following mnemonics are the crystallization of practical experience, so be sure to save them!
Entry section: Test the waters in the cryptocurrency world; prepare to enter; step in steadily, refuse to rush in.
Sideways section: Buy heavily at lows during low-level sideways trading; sell decisively at highs during high-level sideways trading without hesitation.
Volatility section: Sell at highs, buy quickly at lows; watch and reduce trades during sideways movement. Sideways movement means holding tight; the rise may come in the next second; beware of crashes during rapid rises, be ready to cash out; a slow decline is a good time to gradually add positions.
Trading timing section: Do not buy at highs; do not sell at lows; do not trade during sideways movement. Buy on down days and sell on up days; do not chase prices on big up days; do not panic sell on big down days; if there’s no movement, take a break; if stuck, add positions to seek breakeven; excessive greed is not advisable.
Risk awareness section: A calm lake can hide high waves; there may be big waves ahead. After a big rise, a pullback is inevitable, and the K-line will show a triangle for several days. In an uptrend, look for support, and in a downtrend, look for resistance. Going all in is a big taboo; stubbornness is not feasible. Know when to stop in the face of uncertainty and seize the opportunity to enter and exit.
Trading cryptocurrencies is essentially about trading mentality; greed and fear are the greatest enemies. Be cautious when chasing highs and cutting losses; calmness brings freedom.
In addition to the mnemonics, I have also organized several extremely practical trading methods that can benefit both novices and experienced players.
Oscillation trading method: Most markets are in oscillation patterns. Using high selling and low buying within ranges is the basis for stable profits. Utilize the BOLL indicator.
Combine box theory with technical indicators and charts to find resistance and support accurately. Follow short-term trading principles and avoid greed.
Breakout trading method*: After a long period of consolidation, the market will choose a direction. Entering after the breakout can yield quick profits. However, it requires precise breakout detection.
One-sided trend trading method*: After the market breaks through the range, it will form a one-sided trend. Trading with the trend is key to profit. Enter during pullbacks or rebounds, reference K-lines, moving averages, BOLL, trend lines, etc. Mastery of these indicators is essential for smooth trading.
Resistance and support trading method*: When the market encounters key resistance and support levels, it will often be resisted or supported. Entering at this time is a common strategy.
Use trend lines, moving averages, Bollinger Bands, Parabolic indicators, etc., to accurately judge resistance and support levels.
Pullback and rebound trading method: After a significant rise or fall, a brief pullback or rebound will occur. Seize the opportunity to profit easily. Mainly judge based on K-line patterns, and good market sense can help you accurately grasp high and low points.
Time period trading method: Morning and afternoon sessions have small fluctuations, suitable for conservative investors. Although the time to profit is long, it is easy to grasp the trend. Evening and late-night sessions have large fluctuations, suitable for aggressive investors; they can profit quickly but have higher difficulty and strict requirements for skills and judgment.
Trading cryptocurrencies is not as simple as you think; it's not just buying low and selling high for countless profits. A qualified trader must follow news trends, pay attention to international situations, study the fundamentals and technicals of cryptocurrencies, and have a strong heart to withstand the ups and downs, from nothing to something, from something to nothing, and withstand temptation. Those who survive in the cryptocurrency world are generally resilient and unyielding.
Three principles for making money:
Principle 1: Strictly control your position at 50% when building a position; retreat to defend, advance to attack. Never go all in; if you are all in and the market crashes, not even a deity can save you.
Principle 2: Once the price has risen 2-3 times, make sure to sell half first. After recovering the cost, we can slowly play with the profits alongside the market makers. When we reach our target price, we can slowly sell. We retain 10% of our base position to avoid missing out on potential gains from strong market makers' rapid price increases.
Principle 3: When the market is crazy and everyone is chasing prices, you must gradually sell your chips in phases. Do not blindly trust the numbers in your account; only the money in your pocket is yours; the numbers in the platform account are just a string of figures.
Cryptocurrency trading secrets!
Secret 1: Small websites for cryptocurrency trading are not legitimate; do not invest large amounts of money randomly. If you want to play, go to reputable large websites like Binance.
Secret 2: Recently, there have been many cryptocurrencies for crowdfunding. Please be vigilant; not all can be invested in, but there are many traps. Be cautious, don't rely on luck, and understand it clearly. Just because it comes from crowdfunding doesn't mean it should be invested in; that would be like gambling.
Secret 3: Recently, the cryptocurrency market has been relatively sluggish, and the big trend is cooling down. Short-term operations should prioritize observation and wait for the right moment to act. For long-term investments, you can choose high-quality coins ranked in the top 20 globally and build positions in batches at low prices. (Remember, do not go all in; that is, don't buy a lot of coins at once or invest too much money. You can first enter half a position, control risk and funds well, and then when prices rise or fall, you can timely add to your positions or cut losses. This way, you will be more conducive to making money. If you don't add positions in time, you can minimize losses. Trading cryptocurrencies is all about making money, so preparation is essential to avoid unnecessary losses.)
Finally: One crucial point, do not follow the crowd.
Ordinary people have the possibility of turning their fortunes around through trading cryptocurrencies, but there are also high risks involved. Successful cryptocurrency trading requires deep market knowledge, technical analysis skills, and fund management techniques.
Step 1: Select coins from the gainers list.
First, look at the coins on the gainers list and select those that are performing well to add to your watchlist. However, if a coin has fallen for more than three days consecutively, try to avoid it, as the funds have likely left, and there isn't much opportunity left for such coins.
Step 2: Observe the MACD golden cross.
Then, open the K-line chart and focus on the MACD golden cross at the monthly level. Such coins are relatively stable and conform to the upward trend.
Step 3: Look at the daily line and the 60-day moving average.
Then look at the daily K-line chart, especially focus on the 60-day moving average. When the price of the coin is near the 60-day moving average and shows a strong K-line, it's the best time to buy heavily.
Step 4: Hold and Sell
Once you buy in, remember to use the 60-day moving average as a benchmark. If the price is above the line, continue to hold; if it falls below, sell.
Three small details to pay attention to:
When the price rises more than 30%, sell one-third of your position.
When the price rises more than 50%, sell one-third of your position.
The most critical point: If the price falls below the 60-day moving average the next day, sell everything without hesitation. Don't think the price will rebound; the market is not that simple.
Although the probability of this situation occurring is low, one must have a risk awareness. In the cryptocurrency world, preserving your capital is the most important thing. If it meets the buying conditions again after selling, wait for the opportunity to re-enter the market.
The most important thing is to persist in executing the method. Especially 'sell everything if it falls below the 60-day moving average'; not many can do this, but it is key to whether you can profit.
Remember, we come to the cryptocurrency world to make money, so we can't just play around; we must take it seriously to truly earn money.
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