I have been working in the field of digital currency for more than ten years. In the first six years, I was stuck in the quagmire and in debt, with the amount reaching 8 million. But the turning point happened in the last four years. With my unremitting efforts and accurate vision, I realized the gorgeous transformation from financial difficulties to financial freedom. As a senior participant in the currency circle, I have experienced countless market changes. Those eye-popping traps and challenges have all tested my wisdom and courage.
During this journey, I have lost my way and tasted the bitterness of failure. I have also been ecstatic because of occasional victories, but in a flash I fell into deep loss. The emotions in my heart are like surging waves, mixed with all kinds of feelings, and difficult to describe. But time flies, and all the storms will eventually pass. Now I can look at the currency situation with a peaceful and calm attitude, and continue to move forward firmly on this road full of unknowns and possibilities.
A few super simple and easy-to-use Bitcoin + trading methods, remember to save them
The first trick: Volume + is a guiding light for price trends
Basic factors such as supply and demand, technology, policy, and money supply are undoubtedly the main factors affecting the price of digital currencies. But the final factor that determines the rise and fall of the day is the trading activities of the market itself. No matter how big the negative or positive factors are, they are not as good as the trading activities of funds. The role of trading volume as a weather vane is particularly obvious in real transactions. Here I share with you a very accurate formula: if the trading volume increases, it will rise; if the trading volume decreases, it will fall; if the stock price at the high peak suddenly increases, beware of a sharp drop; if the stock price at the low position suddenly increases, there is a high probability of a sharp rise in the later period.
Price trend is direction and volume is momentum. Since volume is the sum of buy and sell contracts, large volume does not mean that there are many buyers or sellers. An upward trend only means that buyers are willing to trade at a high price, and a downward trend only means that sellers are willing to trade at a low price. Momentum and direction are two different things and cannot be confused. Only in this way can volume-price analysis serve as a guiding light for our prediction of the future market.
The second move: Where there is a lot of accumulation, there must be explosive power
What does this mean? It means that if a price fluctuates back and forth in a narrow box for many consecutive days, the longer the oscillation time, the more solid the box K-line +, and the greater the force when it breaks through. When we trade digital currencies in daily trading, we must pay attention to such opportunities.
In fact, the reason is very simple. It is just like the magma in a volcano. Before the volcano erupts, the magma has to compete with the hard crust for strength. The longer it is suppressed, the greater the explosive force will be. This is the so-called either erupting in silence or dying in silence.
The meaning of the market is also easy to understand. For an index that is in a narrow range of fluctuations, whether it is long or short, it is basically unprofitable to go up and down in this area. The only profit is paid for the transaction fee, and there is no meaning in closing the position. Therefore, the number of open contracts will inevitably increase. At this time, the big dealers will either actively collect chips and wait for a counterattack, or take the opportunity to distribute chips during the fluctuation to leave room for the opponent. As time goes by, the chips will slowly change hands. When the equilibrium in the dense area is finally broken, the upward rush or downward plunge will naturally appear. At the same time, there are three forces that fuel this unbridled market:
Large investors are either actively collecting or waiting for opportunities to distribute. The market develops horizontally in a narrow range of fluctuations. Storms are brewing on the clear horizon, and undercurrents are churning under the calm sea. The longer the chip concentration area is along the time coordinate, the greater the upward or downward explosive force.
When the balance in the chip-dense area is finally broken, three forces will push the market to change more drastically. One type is small retail investors who are in a dominant position and will not let off any more players. They will increase their bets and pursue their victory. The other type is those who were deeply trapped in the early stage and are forced to cut their losses now. They will usually stop losses and accept losses, which will add fuel to the market. Another type of people who hold coins and wait and see, when they see the trend becomes clear, they immediately become followers and go with the flow.
Because it takes time to brew in a chip-dense area, you need patience to wait for a breakthrough. If you don't know whether it will go up or down in a chip-dense area, the risk is greater than the benefit if you rush in, and you will get impatient if you drag it on. When you become numb to self-observation, the market suddenly develops in the opposite direction and you are trapped. It is better to sit on the mountain and watch the tigers fight, wait for the opportunity, place a limit order, and chase after the market after it breaks through.
Tip 3: Pay attention to turning signals during trading
There is no bull market that only rises and never falls, and there is no energy market that only falls and never rises. Alternating rises and falls is the basic law of the trend of digital currencies. However, there are two types of evolutions of different natures in the reversal of rises and falls: one is a change in the general direction, a big rise turns into a big fall or a big fall turns into a big rise.
This kind of turn, usually with a double top or double bottom, also called W or M type, three times to the top or three times to the bottom, head and shoulders top or inverted head and shoulders bottom, are all big moves and usually take about three weeks to one and a half months to develop.
The other is a technical adjustment, that is, a small drop in a big rise or a small rise in a big fall. This kind of turn is usually marked by a K-line that opens high and closes low, often with an upper shadow; or a K-line that opens low and closes high, often with a lower shadow. It is a small move. If all these situations are completed within one trading day, we will call it a turn signal. A large rise or fall is often composed of several small rises or falls. After a rise or fall, it will be spit out, and after digestion, the next wave of rises and falls will come. At this time, we must learn to follow the operation closely, short in the fall, and go long immediately when the turn signal appears.
The fourth measure: countermeasures when the market fluctuates
The surge in digital currencies is not a one-sided trend every day. They are always operating in the middle of an uptrend and a downtrend, or between two uptrends, or between two downtrends. There is often a period of repeated ups and downs. The so-called repeated ups and downs refer to the price hovering in a narrow area, falling back when approaching the upper limit, and rising again when it hits the lower limit. We call this market consolidation, also known as the "box" trend.
The reason for repeated ups and downs is that there is no obvious bullish or bearish news in the market, and the market has lost its unilateral development momentum. At this time, only short-term speculation is done, and the long and short sides are in a tug-of-war state. Many people are often beaten dizzy by "a punch on the left and a stick on the right" at this time. Because the distance between the upper and lower limits is not large, and once it reaches the upper limit, it turns down, and once it touches the lower limit, it turns back to rise. The profit opportunity is fleeting, and you will be trapped if you are greedy.
Countermeasures:
1. When the direction of the upper and lower vertices is not particularly clear, if the profit turns red and you feel that the rising apex has been reached, you should stop while you are ahead and reduce your position by 30%. If it continues to rise and you feel that there is a state of stagnation, you should continue to reduce your position by 20%. If it falls and turns green, you should increase your position by 20%. If it continues to fall and you feel that it can no longer fall and is in a consolidation state, you should increase your position by 30%. By doing this back and forth, you will find that no matter how long the box consolidates, your cost will become lower and lower, and you will not even know whether you have made a profit in the end.
2. After judging that it is a repetitive market, buy long when it is close to the lower limit, close the position and sell when it rises to the upper limit, and then short. If it falls to the lower limit again, close the position again and reverse to long. Such a tactic emphasizes mobility and flexibility. Once it reaches the upper or lower limit, the transaction must be reversed immediately. In fact, the best way is to just watch and do nothing. Just observe the repetitive market and wait for an upward or downward breakthrough before entering the market. But the key question is, do we really have this patience?
Tip 5: Make money by adjusting technical analysis in short-term trading
In the digital currency market, no matter how strong the upward trend is, it is impossible to reach the top in one go, and no matter how weak the market is, it will not reach the bottom in a vertical line. There must be consolidation in the middle. Only after the consolidation can a new wave of rise or fall be brewed. This consolidation is called technical adjustment in operational terms. So what causes this adjustment?
Some of the profit-makers are selling out, and this selling puts the market under pressure in the opposite direction;
Second, some of the losers are adding positions to equalize the price, and this buying has changed the direction of market changes;
Third, some big investors feel that the adjustment or rise has reached their expectations, and they implement short-term operations. Such transactions will definitely have a greater impact on the price. This adjustment provides us with a short-term opportunity. If you seize this opportunity, the profit will be considerable. For example, in an upward trend, there are three consecutive days of rising red K lines, but each one is shorter than the other, and the increase is decreasing day by day. This indicates that the strong rise will be adjusted in the opposite direction.
Conversely, the same is true during a weak decline. Go short when the upward trend adjusts, or go long when the downward trend rebounds. This is the best time to make money.
Summary: There are many technical methods to understand the specific market situation, and many people have learned a lot of technical indicators, but ended up getting confused. This is really unnecessary. As long as the trading techniques and methods are appropriate, you can sum up a set of trading methods that suit you to be invincible in the currency market.
Can cryptocurrency trading achieve your dream of wealth? It is crucial to master these points!
The 28th Rule + A True Portrait in the Cryptocurrency Circle: How to Make a Comeback from Being a Non-Native?
In this world, nothing can escape the Pareto Principle - "80% loss, 1 draw, 1 win". In the financial market, especially in the cryptocurrency world, only 20% of people hold 80% of the wealth. Only a few people can make a profit from cryptocurrency speculation, while the vast majority of participants are useless. If you are currently facing losses and are confused and unwilling, you might as well reflect on it first: find the root cause of the loss and clarify a few key issues. This is the first step to crack the rules of the cryptocurrency world.
Before starting the article, let me ask you a few questions for you to think about.
First ask yourself:
1.Am I one of the 20% or the 80%?
2. What qualifications do I have to make money in this industry?
3.Who is making money in this industry?
4. Have I studied hard? Can my knowledge surpass that of most investors?
5. Do I have the ability to think independently?
6. Is my investment strategy just to follow the orders of group friends, bloggers, and KOLs?
7. Can I remain calm in the face of the market makers’ manipulation?
The market is just a trading channel. The market itself does not generate profits. For example, in the process of buying and selling Bitcoin, Bitcoin itself does not generate profits.
The so-called making money by speculating in cryptocurrencies is the price difference generated during the transaction. To put it bluntly, if you can make money, it means that someone else has taken your order at a high price. If you make money, someone must lose money.
Suppose there are ten participants in the currency circle, and each of them has 10 yuan. If only a few people make money, and one of them earns 2 yuan from the other nine, this person will have 28 yuan, and the other nine will have 8 yuan, and the game can continue. If most people make money, and nine of them earn 2 yuan from one person, the nine people will have 11 yuan, and one person will not only lose all the money, but also owe 8 yuan, and the game can no longer be played.
If a few people make money, the market will be sustainable; if the majority of people make money, the market will collapse
It’s the same as lottery. If most people win, the lottery company can’t continue to operate. Only when most people lose and a few people win, can the lottery company continue to operate.
Therefore, the cryptocurrency market will use every possible means to make most people lose money.
How to become a winner in the cryptocurrency world: 4 rules for making money
So, how can you be among the few who make money? There are many reasons for losing money in cryptocurrency trading. The following six points summarize the key strategies. As long as you avoid going against them, you will stand out:
1. Hoarding Coins +: Applicable to bull and energy markets. This is a seemingly simple but extremely challenging strategy, which means that you buy a few or a few coins and hold them for at least half a year or a year. Although the long-term return can reach ten times, many novices frequently operate due to volatility and find it difficult to stick to it. Therefore, this is also the most difficult.
2. Bull Market Pursuit +: Only suitable for bull markets. In this strategy, use no more than one-fifth of your spare money to buy coins with a market value of $2-10 billion. If the first Shansai coin rises by more than 50%, swap it for the next depressed coin. If you are trapped, wait patiently for the bull market to untie the trap, but be careful in choosing the coin.
Violent national currency method +: suitable for long-term high-quality coins. Use liquid funds to set the buying price 10% lower than the current price, and set the selling price 10% higher than the current price to make profits. Continuously adjust dynamically and seize more opportunities according to market changes to diversify investments: avoid investing all funds in a single currency. Through diversified investments in different currencies and asset classes, reduce risks and increase profit opportunities to ensure that you don't lose everything.
A single tree cannot make a boat, and a single sail cannot sail far! In Erquan, if you don’t have a good circle and first-hand information in Erquan, then I suggest you follow me and I will take you to the shore for free. You are welcome to join the team!!!