In the cryptocurrency space, if you want to earn 12 million from 10,000, there is only one path: you continue to lose money and want to quickly adjust, which is rolling contracts.
Once you have a capital of 1 million, you'll find that your whole life seems different. Even if you don't use leverage, a 20% increase on a spot trade results in 200,000, which is already the income ceiling for most people in a year.
Moreover, when you can grow from tens of thousands to 1 million, you will grasp some ideas and logic for making big money. At this point, your mindset will also be much calmer, and then it will just be a matter of copying and pasting.
Don't always think about tens of millions or a billion; start from your actual situation. Bragging can only make you feel good. Trading requires the ability to identify the size of opportunities; you can't always play small positions nor always take heavy positions. Usually, play around with small amounts, and when a big opportunity arises, bring out the big guns.
For example, rolling over contracts is only operable when a big opportunity arises. You can't always roll over; it's okay to miss out, as you only need to succeed once in your life.
With just three or four successful trades, you can turn from zero to tens of millions; tens of millions are enough for an ordinary person to join the ranks of the wealthy.
How to easily catch contract buy and sell points.
Although technical indicators originate from traditional markets, they can also be applied in fully competitive investment markets, such as the cryptocurrency industry.
I will use the most commonly used MACD indicator in the cryptocurrency space to analyze the logic behind it: When it comes to this indicator, many cryptocurrency friends' first reaction is to buy on a golden cross and sell on a death cross; this is the simplest way to use MACD.
1. Golden Cross:
Golden Cross 1: When both the yellow line and white line are below the zero line, and the white line crosses above the yellow line, it indicates that the market is about to strengthen, and the coin price is recovering and moving upward. You can buy or hold; this is the form of the MACD indicator known as the 'Golden Cross.'
Golden Cross 2: When both the white line and yellow line are below the zero line, and the white line crosses above the zero axis, it indicates that the market has entered a bullish phase, and you can increase your position.
Golden Cross 3: When both the white line and yellow line are above the zero line, and the white line crosses above the yellow line, it indicates that the market is in a strong area, and the coin price will rise again. You can increase your position or hold on for further gains. This is the form of the MACD indicator known as the 'Golden Cross.'
2. Death Cross:
Death Cross 1: When both the white line and yellow line are above the zero line, and the white line crosses below the yellow line, it indicates that the market may enter a weak phase, and the coin price may enter a period of adjustment, serving as a sell signal, suggesting a short-term minor adjustment or major drop.
Death Cross 2: When both the white line and yellow line are above the zero line, and both cross below the zero axis, it indicates that the market has entered a bearish phase, and you should hold your positions and wait.
Death Cross 3: When both the white line and yellow line are below the zero line, and the white line crosses below the yellow line, it indicates that the market is weak, and the coin price is still falling; you should clear your positions in time to mitigate risks.
Next, let's analyze the usage of divergences.
Let's start with the top divergence.
When the price chart shows a series of peaks that are higher than the last, while the MACD indicator shows a series of red bars that are lower than the last peak, this indicates that the price is rising.
When the high point of the MACD indicator is lower than the previous high point, this is called the phenomenon of top divergence. Top divergence usually signals that the coin price is about to reverse from a high point, indicating that the price is likely to decline in the short term, which is a signal to short.
Next is the usage of bottom divergence.
Bottom divergence usually appears in the low price area of a coin. When the price chart shows that the price is still falling, but the MACD indicator shows a pattern made up of green bars with each bottom higher than the last, this is called the phenomenon of bottom divergence.
Bottom divergence usually signals that the coin price may reverse upwards from a low point, indicating that the price may rebound in the short term, which is a signal for short-term buying.
Any main and auxiliary indicators are based on naked candlestick analysis, of course, directly analyzing naked candlesticks requires a high level of personal experience and trading skills. To improve your winning rate, you definitely need assistance from main indicators. Secondly, theories like Chan Theory, Elliott Wave, and Gann are currently the most popular and practical; as long as you can grasp them, you can definitely beat the market. Take Chan Theory as an example; it's the most complete investment philosophy theory, with very complex theories. To this day, very few people can fully understand it, and it requires a lot of time and energy to study. Moreover, those who learn it and make big money are also rare.
In the cryptocurrency space, pursuing the first million in wealth is particularly critical in terms of strategy, especially for investors with limited initial capital. If you only have a small amount of capital, such as $50 to $100, an aggressive yet highly cautious strategy is to roll over contracts.
First, clarify your goals: Choose highly volatile and high-potential popular currencies, such as recently active ones like turbo, not, and people. These currencies may bring high returns in a short period.
Secondly, control risks: Given the high risks brought by high leverage, it is recommended for beginners to start with a lower leverage ratio, such as 10x instead of 20x. This way, even if the market fluctuates, you can maintain a higher margin for error and avoid severe losses due to a single pullback. By conducting precise market analysis and using technical indicators, you can grasp the timing to enter the market and go long with leverage at low points.
Furthermore, rolling profits: When your position is in profit, you can moderately roll over contracts, meaning using part of your profits to open new positions for greater returns. However, remember to strictly set stop-loss points to prevent profit loss or even turning into a loss.
Finally, maintain calm and discipline: The cryptocurrency market is unpredictable, and managing emotions is particularly important. Regardless of profits or losses, you should stick to your established strategy and avoid impulsive trading. Meanwhile, continuously learn about market dynamics, technical analysis, and risk management to enhance your investment capabilities.
In short, pursuing a million in wealth in the cryptocurrency space with small capital is not impossible, but it requires the right strategy, strict risk control, and continuous learning and trial and error. Remember, successful investing often comes from careful consideration rather than blind following.
A few points to note when rolling over contracts:
1. Sufficient patience: The profits from rolling over contracts can be enormous. As long as you can succeed a few times, you can earn at least a million. Therefore, you should not roll over easily; look for high-certainty opportunities.
2. High-certainty opportunities refer to a sideways consolidation after a sharp decline, followed by an upward breakout. At this point, the probability of following the trend is very high; you need to identify the point of trend reversal and get in from the start.
3. Only roll long positions, do not take short positions.
Continuing to fight alone and relying on luck to make money will ultimately lead to losing due to skill and being swept away by the market tide!
The market never lacks opportunities; the question is whether you can seize them. Following the right people is essential to survive in the market long-term and earn more!
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