Within a year, starting from scattered funds of 10,000, achieving a glorious accomplishment of 1 million in the crypto market can be attributed to one secret: accurately grasping the rolling capital strategy and being well-versed in accumulating major altcoins!
I have personally experienced and verified this strategy. In just 11 months in 2023, I turned an initial capital of 10,000 into an astonishing wealth leap, accumulating profits exceeding 900,000, with a return rate of over 90 times!
If you dream of getting a piece of the pie in the digital currency field, please take a few minutes to patiently read the following content. Perhaps this will be the final piece of the puzzle on your path to becoming a millionaire!
Adhere to these ten principles for trading cryptocurrencies; in the end, you will certainly reap great rewards.
First, do not let low-priced chips be easily taken away. Stay firm in your beliefs and prevent manipulation by market makers.
Second, chasing rises and killing falls, entering and exiting with a full position is always a major taboo. If the overall trend is favorable, gradually building a position during declines is lower risk than chasing rises, with lower costs and higher profits.
Third, allocate profits reasonably to maximize the release of funds, rather than continually increasing the position.
Fourth, rapidly increase capital, quickly defend assets during declines; maintain a positive mindset at all times: do not speculate, do not act hastily, do not be greedy, do not be fearful, and do not engage in unprepared battles.
Fifth, positioning for low-priced coins in advance or private placements relies on experience and speculation on the future of the coin, while the subsequent secondary market games depend on technique and information following the lead. Do not reverse the order of operations, or it will end in chaos.
Sixth, when building positions and unloading, make sure to layer and segment, gradually widening the price levels to effectively control the ratio of risk to profit.
Seventh, familiarize yourself with the interlinkage effect. Watch the market while paying attention to other coins' movements. Each coin in the overall trading is not isolated; although they seem unrelated, they are intricately connected. There are many tools available now to check coin information and consult about them.
Eighth, portfolio allocation must be reasonable; the allocation of hot coins and value coins should be balanced. Pay attention to the ratio of stress resistance and profit intake; being too conservative can lead to missed opportunities, while being too aggressive can pose high risks! The greatest characteristic of value coins is stability, while hot coins are characterized by extreme volatility, which can lead to soaring or plummeting.
Ninth, having coins in the market, money in the account, and cash in the pocket is the safest and most reassuring standard configuration. Do not be reckless; recklessness leads to ruin. Mastering risk control and rational allocation of funds is key to determining your mindset and success or failure; having spare money for investment is fundamental.
Tenth, master basic operations, learn to draw inferences from one instance, grasp basic ideas in trading, observation is a prerequisite, remember each peak and trough as reference data, learn to record, summarize materials independently, cultivate a reading habit, and develop the ability to select and filter information.
Lastly, remember, although we are also speculating and trading cryptocurrencies, we are definitely not gambling on coins. In the midst of information chaos, refine the essence, and adhering to your own principles will certainly lead to abundant rewards.
Summary: Trading cryptocurrencies is not easy and requires comprehensive consideration of multiple factors. From selecting capacity trends, paying attention to policies and trading volumes, to strictly executing stop-loss and take-profit strategies, and diversifying investments, every point is crucial. Investors should continuously learn and practice, integrating these secrets into their own investment system, while maintaining a good mindset to steadily progress through the fluctuations in the crypto world, thereby increasing the probability of making profits and achieving stable asset growth.
Key points for retail investors trading in the crypto market, sharing with everyone!
1. Keep a close eye on Bitcoin's trend. In the crypto market, Bitcoin often leads the rise and fall. Although Ethereum can sometimes show strength and perform independently, most altcoins are influenced by it.
2. Pay attention to the relationship between Bitcoin and USDT. Bitcoin and USDT often move inversely; when USDT rises, be cautious of Bitcoin's decline, and when Bitcoin rises, it is an opportunity to buy USDT.
3. Seize trading opportunities in the early morning. From midnight to 1 AM, there is a tendency for spike phenomena. Domestic traders can place low-price buy orders for preferred coins before sleep and set high-price sell orders, or they may be pleasantly surprised by successful transactions and easily make profits.
4. Observe the morning rise and fall trends. From 6 to 8 AM each day is a key period for judging when to buy or sell. If there is a continuous decline from midnight to 6 AM, and it continues to decline, it is advisable to buy or add to positions, as the price will likely rise throughout the day; if it has been continuously rising, it is advisable to sell, as it is likely to decline that day.
5. Pay special attention to fluctuations in the late afternoon, particularly at 5 PM, as friends in the U.S. begin their operations, which may trigger price fluctuations. Many significant rises and falls occur at this time.
6. Beware of 'Black Friday' in the crypto world, as there is a saying about 'Black Friday.' While there may be significant declines on Fridays, there can also be major rises or sideways movements; stay alert to the news.
7. Pay attention to external influencing factors. The crypto market is turbulent and influenced by multiple factors, such as various countries' attitudes towards cryptocurrencies, negative attitudes leading to declines; U.S. financial policies; and influential figures' views on cryptocurrencies, such as comments from Musk. Stay tuned to financial news.
8. Maintain a good trading mindset. A proper trading mindset is crucial: do not panic during major declines, do not be complacent during major rises, and secure profits.
In the trading system:
Core three parts
One of the main topics this series will explore is technical analysis.
At this point, you may be wondering, what exactly is technical analysis?
Technical analysis, in strict terms, is an art, not a science. There is a misconception that understanding this art is used to predict the market; technical analysis is merely about recognizing the current market state and then classifying it. This brings us to another layer of meaning: technical analysis is actually a statistical discipline.
By analyzing the changes in financial market trends over the past few hundred years, you can infer the direction of future trends. Once you identify the current market state and complete the classification, you will find that 'tops' will have common 'top' patterns, and 'bottoms' will have common 'bottom' patterns. After classifying, you will know which common 'top' or 'bottom' pattern the current market is in.
So what help does the discipline of statistics provide you? Its greatest value lies in summarizing the rules.
For example, if a 'triple top' pattern appears, historically in all financial markets, every time this pattern appears, seven or eight out of ten times it is followed by a decline. Once this pattern appears, the market trend is likely to decline; note the phrase 'likely.' Seven or eight out of ten times is enough. Some may argue that it isn't 100%, but finance inherently does not guarantee 100% certainty; being correct seven or eight times out of ten is sufficient to profit from this art of technical analysis in the financial market.
By now, you should have a general understanding of what technical analysis is. In the long history of the financial market, which has been tested by hundreds of years of experience and practice, do you know what the five major technical analysis systems are that have survived to this day? How were they developed? What are their advantages and disadvantages? Which techniques can be combined to complement each other for greater profitability?
All of this content will be detailed in my series of guide articles. After reading all the articles in this series, your understanding of technical analysis will surpass that of 99.9% of both new and experienced investors.
From now on, you are one big step closer to establishing your own high-win-rate trading system. Now you have received the first set of hidden codes: in the field of technical analysis, the current mainstream consists of five major analysis theories. These five major analysis systems stand tall, each offering a unique perspective on the market. When each theory is studied deeply, they can provide precise control and analysis of market trends. One core secret of technical analysis is to always stand on the side of high probability after recognizing the current market state. Once you understand technical analysis and correctly apply its methods, continually positioning yourself on the side of high probability, victory will ultimately belong to you over time. Understanding technical analysis allows you to comprehend how the market moves, bringing the market to life before your eyes. Mastering technical analysis is like possessing a golden key to unlock the treasure of the financial market; whenever you wish to access the treasure, you only need to turn the key to open the door.
The behavior of truly exceptional investors should be personalized and conducted according to their own investment philosophy. Just as the invention of the automobile brought significant changes to human production and life, the Dow Theory has opened a new chapter in human investment, earning it the title of the pioneer among the five major technical analysis systems.
Speaking of which, you may wonder, 'Who established the Dow Theory? Who is Dow?' Charles Dow was the founder of the Dow Jones Financial News Agency and the Wall Street Journal, as well as its first editor. He worked on the trading floor of the stock exchange for several years. His personality was honest, restrained, calm, and conservative, with strong understanding and self-control. He had profound financial knowledge and exceptionally high judgment. True excellence is always objective and calm; Dow rarely displayed anger, which was an intrinsic factor in his establishment of pioneering theories.
Articles published by Dow were organized into various chapters of the Dow Theory by his assistant and successor, William Peter Hamilton. The Dow Theory objectively describes the immutable changes in financial markets, which possess scientific reference regardless of the specific financial market.
Have you ever noticed a very interesting phenomenon? There are two crypto worlds. One is the real crypto world, which gradually reveals a clear image amidst chaotic misunderstandings; the other is the fictional crypto world, shaped by media that likes to manipulate perceptions, and the world of authorities pursuing fame and profit, filled with errors and dramatic commentary. Those figures living amidst various rumors are no more real than any cliché protagonist in a tale. The distorted images in all kinds of vibrant rumors are as vivid as your neighbor, yet sadly, you have never truly seen what this neighbor looks like.
Here, I want to share with you a hidden truth, which is also the essence revealed in the Dow Theory: 'No one can manipulate the main trend; the main fluctuations of the market follow certain rules.' We can only objectively recognize and follow the market's development trajectory, rather than wishfully thinking that the trend aligns with our imagination. Although some claim to control the market, this is still an illusion.
Here you get the second set of hidden codes. Often in the world, as long as you grasp the rules, you will find the key to unlock the treasure chest. According to Western Dow Theory, a price is formed by transactions between buyers and sellers, and market development occurs within support and resistance, causing the market to always cycle between bull and bear markets, which are each divided into three phases. The index movement is formed by three types of movements superimposed, creating a myriad of fluctuating prices during the three phases of bull and bear markets.
I have been active in the market for many years, deeply understanding the opportunities and traps within it. If your investments have not gone smoothly and you are dissatisfied with the losses, leave a 999 in the comments! I will share insights.
