When I first entered the circle, I lost the 160,000 I earned from my job in just a month. At first, I thought I could be considered a big shot in the cryptocurrency circle, resolutely quitting my job to focus on trading, even borrowing money to trade. However, reality gave me a harsh slap; the financial crisis not only made me lose all my profits but also left me with a mountain of debt, forcing me to sell my house, and my wife and children almost left me.
That period was my darkest moment; in just a few months, I experienced a fall from the peak to the bottom. But it also made me realize that the previous smooth sailing was not without luck. Therefore, I feel that if I really want to continue on the trading path, I still need to study diligently. In addition to understanding the basics, I should also analyze news and study technical indicators.
If you do not conduct in-depth research and reasonably plan to manage your money, you will find your funds consumed over time.
In the end, as an ungrounded retail investor, one can only joyfully enter and sadly leave.
In these five years in the cryptocurrency circle, I have summarized several core trading strategies for stable compound interest.
1. Buy Early When Falling, Sell Early When Rising: When you see a significant drop in coin price, there is no need to panic; this may be a good opportunity to enter. When the coin price rises significantly, be cautious of possible retracements and timely reduce positions. Grasping market fluctuations can achieve stable profits.
2. Capital Allocation: Capital allocation is a key factor in determining profits. Funds should be allocated reasonably based on your risk tolerance and market conditions. Pursue higher returns while ensuring safety.
3. Afternoon Strategy: If the coin price continues to rise in the afternoon, do not blindly chase the high; try to avoid high positions. If there is a sharp drop, first observe the market reaction and do not rush to bottom fish; wait for the market to stabilize before making a decision.
4. Stay Calm: The market is highly volatile, and emotional management is crucial. Do not panic during morning declines, take appropriate breaks during sideways movement, and stay calm without being swayed by emotions.
5. Follow the Trend: Do not rush to take action when the trend is unclear. Do not sell when the coin price has not reached a new high, do not buy when it has not retraced, and wait patiently during sideways movement. Do not enter the market easily.
6. Yin-Yang Line Strategy: When buying, choose a Yin line for more security; when selling, wait for a Yang line to appear before acting to achieve higher returns.
7. Counter-Trend Thinking: Following the trend is a conventional strategy, but at certain times, going against the trend may also bring opportunities. Only by daring to challenge market rules can one achieve greater profits. 8. Be Patient for Opportunities: When the coin price hovers in a high-low range, do not rush to achieve results. Wait patiently for the market to show a clear trend before taking action to be more secure.
9. Risks After High-Level Sideways Movement: If the coin price suddenly rises after hovering at a high level, be cautious of the risk of retracement. At this time, reducing positions or decisively exiting is an effective way to avoid being trapped.
10. Hammer and Doji Star Warning: The hammer and doji star pattern indicates a turning point in the market. When encountering this pattern, remain alert, avoid full positions, and controlling risk is the way to be prudent.
11. Summarize and Review: Continuously optimize trading strategies. After each trade, summarize and review to analyze the successes and failures during the trading process. By continuously optimizing trading strategies, improve profitability.
