After 10 years of trading, I started with 700,000 and made 58 million, using only a five-layer position operation. Just relying on this one method, monthly returns can reach 70%. I shared the essence of this with my disciple, who applied it skillfully in trading, achieving double returns in just three months. Today, I deliberately compiled the "6 Steps to Accurately Find Support and Resistance Levels!" to share with those who are destined to find it. Make sure to keep it well.
Everyone’s original intention to enter the cryptocurrency world is the same, and there is no doubt about that. If you are just here to play around and pass the time, then this place is not suitable for you. We come to the cryptocurrency market to gain more returns and improve our family's living conditions. If technology is the prerequisite for profit in this space, then the strict rule to adhere to is the key to long-term profitability.
If you want to treat cryptocurrency trading as a second source of income and are willing to spend time learning and growing, then don’t miss this article. Read it carefully; every point is the essence of the stock market. It can be said that whether in a bull market or a bear market, these 10 iron rules can apply.
You have been helped! Later, I will share my ten years of trading experience!!
#Beginner Cryptocurrency Trading# First, remember this phrase:
In trading, mindset is more important than technique. Make money in bull markets, accumulate coins in bear markets, don’t cut losses in bull markets, and hoard coins in bear markets!
1. Coin Hoarding Method: Suitable for both bull and bear markets. The coin hoarding method is the simplest yet the most difficult strategy. It is simple because it involves buying a certain coin or a few coins and holding them for more than six months or a year without making any moves. Generally, the minimum return is ten times. However, beginners can easily see high profits or encounter a halving of coin prices and decide to switch or exit, making it hard for many to hold for even a month, let alone a year. Hence, this is also the most challenging part.
Note: You can hoard EOS or ADA, or take some money out every month without affecting your life, and persist with dollar-cost averaging.
2. Bull Market Dip Chasing Method: Suitable only for bull markets. Use a portion of idle money, preferably not more than one-fifth of your funds. This strategy is suitable for coins with a market cap between 20-100, as it won’t be trapped for too long. For instance, if you buy the first altcoin and it rises by 50% or more, you can exchange it for the next coin that has dropped significantly, and continue this cycle. If your first altcoin gets stuck, just wait; the bull market will definitely help you break free. The prerequisite is that the chosen coin should not be a total disaster. This method is also difficult to control, so newcomers need to be cautious.
Note: When buying, be sure to ask an expert and see if it’s at the bottom. If you buy at a high position, it’s generally hard to make a profit, and beginners often cut losses. Pay attention to a market cap of 20-100, and don’t invest more than one-fifth of your funds.
3. Hourglass Switching Method: Suitable for bull markets. In a bull market, basically any coin purchased will rise. Funds act like a giant hourglass, slowly seeping into each coin, starting from the large coins. There is a clear pattern in price increases: leading coins rise first, such as BTC, ETH, DASH, ETC, followed by mainstream coins like LTC, XMR, EOS, NEO, QTUM, etc. Then, coins that haven’t increased will see a general rise, like RDN, XRP, ZEC, etc., followed by small coins taking turns to rise. But if Bitcoin rises, look for the next tier of coins that have not yet risen, and start building your position.
4. Pyramid Bottom Fishing Method: Suitable for predicting major crashes. Bottom fishing method: Place an order to buy one-tenth of your position at 80% of the coin price, another order at 70% for one-fifth of your position, at 60% for one-third of your position, and at 50% for one-fourth of your position.
Note: This type of bottom fishing requires a very rational mindset and a precise judgment of the price level you want to bottom out.
5. Moving Average Method: You need to understand some basic K-line concepts. Set indicator parameters to MA5, MA10, MA20, MA30, MA60, and select the daily line. If the current price is above MA5 and MA10, hold it steady. If MA5 drops below MA10, sell the coin; if MA5 rises above MA10, buy to build your position.
Note: Beginners should consider joining a team, and operate under the team's guidance. Those who are completely clueless participating in ICOs are like throwing money into water.
6. Aggressive Coin Hoarding Method: Focus on coins you are familiar with, suitable for long-term quality coins. If you have some liquid funds, and a coin is currently priced at $8, place an order to buy at $7. Once the purchase is successful, place an order to sell at $8.8. Profit will be used to hoard coins. Withdraw the liquid funds and wait for the next opportunity. Adjust dynamically based on the current price. If there are three such opportunities in a month, you can hoard quite a bit of coins. The formula is: entry price = current price * 90%, sell price = current price * 110%.
Note: Both surges and drops happen in an instant, so this method focuses on placing orders.
7. ICO Aggressive Compound Interest Method: Continuously participate in ICOs, and when a new coin increases by 3-5 times, withdraw your principal and invest in the next ICO, keeping the profits and continuing the cycle.
Note: Newcomers should consider joining a team and operating under the team's advice. Those who are completely clueless participating in ICOs are like throwing money into water.
8. Cyclical Band Method: Look for coins like ETC that are in a downtrend, increase your position as the price continues to drop, and sell when you make a profit, continuously cycling through this process.
The above methods are suitable for beginners, and it’s recommended to study them slowly! Choose the method that suits you. After establishing your position, continue to hold steadily. If you’re not making profits, don’t sell; if you get stuck, you need to hold even more firmly, don’t cut losses.
Workflow for Trend Judging
We organize theoretical knowledge for practical use in trading, so we need a workflow (which white-collar workers understand). From the above points, we can see that the most important method for trend judgment in the market is the traditional trend flow, while trend lines, moving averages, and reversal patterns are all auxiliary methods of the traditional trend flow. The greatness of traditional trend flow (Dow Theory) lies not only in its convenient operation but also in its stability of use; no matter how the market changes, there will always be peaks and valleys. Financial markets are constantly changing, and our methods should minimize uncertainty. (Some systematic rules may intensify reliance on specific market conditions; once certain conditions are absent, the rules will also fail, but traditional trend flow does not have such concerns.) Below is a reference trend judgment workflow (main trend definition): Step 1: Visual judgment. Step 2: Divide the screen in half and analyze the price trends above the right half for peaks and troughs. Step 3: Draw trend lines to see if the price trend breaks through previous long-term trend lines. Step 4: Observe the direction of moving averages. Step 5: Observe if the price breaks through reversal patterns or consolidation zones. The entire price trend judgment process is based on Step 2; if the traditional trend flow judgment method is not met, other methods are useless. If the traditional trend flow judgment method is met, the other four steps serve as an enhancement condition for your judgment, strengthening the confirmation of the trend.
Playing around in the cryptocurrency market is essentially a contest between retail investors and whales. If you lack cutting-edge information and first-hand data, you can only get cut!
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