If your account is below 1 million and you want to profit in the short term, in the cryptocurrency world, there is indeed a timeless trading strategy, which is also a repeatedly successful 'foolproof technique', easily utilized by retail investors—purely practical!
You don't have to worry about whether you can learn; I can seize this opportunity, and so can you. I am not a god, just an ordinary person. The difference between others and me is that others overlook this method. If you can learn this method and pay attention to it in the subsequent trading process, it can help you earn an extra 3 to 10 points of profit every day.
Making money in the cryptocurrency world is not based on luck:
The essence of making money in the cryptocurrency world boils down to four gaps:
First, information gap
—— I understand, but you do not yet;
Second, cognitive gap
—— I understand, but you haven't grasped it yet;
Third, execution gap
—— We both understand, but I dare to act, and you are still hesitating;
Fourth, competitive gap
—— We are both doing it, but I do it faster and better.
In the cryptocurrency world, winners are often not the smartest.
but those who can see the direction clearly amidst chaos, stabilize their mindset, and act decisively
Real opportunities belong to those who can continuously learn, adapt to the market, and dare to take action.
Therefore, recognize the gap, improve yourself, and ultimately, those who outperform the market will always be the ones with compound cognition and execution.
One day in the cryptocurrency world is like ten years in the human world, showcasing its ever-changing dynamics.
I have been in the cryptocurrency world for nearly ten years; when I first entered, I suffered significant losses, but along the way, I have both lost and gained, and now I support my family through this.
Summarize ten points of experience for everyone to reference; if achieved, it is hard to incur losses.
Market maker-supported coins:
When the market crashes, if the coins in hand do not fall, it is highly likely that market makers are supporting the price. Such coins may either have solid fundamentals or potential good news; hold them steadily, as there is great potential for subsequent profits.
Beginner's moving average guide:
Beginners should pay more attention to macro information when buying and selling. For short-term, watch the 5-day line, hold on when above the line, sell when breaking the line; for medium-term, watch the 20-day line and operate similarly. Stick to simple moving average strategies.
, act decisively.
Short-term adaptation strategy:
For short-term coin purchases, if there is no movement for three days, immediately switch. If bought and it drops with a 5% loss, decisively cut losses, efficiently utilize capital, and avoid losses.
Oversold rebound
Timing:
When the coin is cut in half from a high position and has fallen for nine consecutive days, it may have nowhere to fall, and a rebound is imminent; decisively buy in to catch the rebound.
Leading coins
Investment logic:
When entering the cryptocurrency world, pursue leading coins, which have strong upward momentum and resilience against declines. Do not hesitate due to high prices or significant drops; buy when the upward trend is established and sell when a reversal occurs.
Balancing bottom fishing and trends:
Do not stubbornly bottom fish; falling coins may have no bottom. Investments should follow trends, accurately grasp entry timing; entering during an upward trend increases the probability of profit.
Build trading strategies:
Do not be complacent in the cryptocurrency world because of a single profit; continuous profits are difficult. After each profit, review whether the strategy was effective or based on luck, and build a strategy that suits you.
Empty position strategy application:
When uncertain about the market, maintain an empty position; fund safety comes first. Entering the cryptocurrency world is for stable asset appreciation, not gambling-style investments; trading is about success rates and profit-loss ratios.
Key points for investing in new coins:
In the early stages of new coins, due to favorable market sentiment, funds surge and prices rise, but may lack fundamental support. A shift in market sentiment or withdrawal of funds can lead to a price crash; investments must be carefully evaluated.
Consensus and wealth in the cryptocurrency world:
Digital currency develops based on consensus mechanisms; participants gain wealth through belief and effort, demonstrating the power of consensus and the potential for wealth creation in the cryptocurrency world.
If someone is confused due to market fluctuations and does not know how to deal with being trapped, or feels misled during operations, remember to keep learning.
Trading coins can turn great losses into great wealth!
One, about returns
Assuming you have 1 million, when returns reach 100%, your assets will reach 2 million. If you then lose 50%, it means your assets will return to 1 million. Clearly, losing 50% is much easier than earning 100%.
Two, about price fluctuations
If you have 1 million, after a 10% increase on the first day, your assets reach 1.1 million; then after a 10% drop on the second day, your assets remain at 990,000. Conversely, if on the first day there is a 10% drop followed by a 10% increase on the second day, your assets are still 990,000.
Three, about volatility
If you have 1 million, earn 40% in the first year, lose 20% in the second year, earn 40% in the third year, lose 20% in the fourth year, earn 40% in the fifth year, and lose 20% in the sixth year, your assets will remain at 1.405 million, with a six-year annual yield of only 5.83%, even lower than the interest rate of a five-year treasury bond.
Four, about 1% per day
If you have 1 million, and you can earn 1% daily and exit, then after 250 days, your assets can reach 12.032 million, and after 500 days, your assets will reach 145 million.
Five, about 200% per year
If you have 1 million, and achieve a 200% return for five consecutive years, your assets will reach 243 million in five years; however, such high returns are hard to sustain.
Six, about ten years and ten times
If you have 1 million, hoping to reach 10 million in ten years, 1 billion in twenty years, and 10 billion in thirty years, then you need to achieve an annualized return of 25.89%.
Seven, about averaging down
Assuming you buy a coin at 10 yuan with 10,000 yuan, and now it has dropped to 5 yuan; if you buy another 10,000 yuan, your average cost can be reduced to 6.67 yuan, not the 7.5 yuan you imagined.
Eight, about holding costs
If you have 1 million and invest in a certain coin with a 10% profit, when you decide to sell, you can retain 100,000 yuan worth of chips, making your holding cost zero. You can then hold long-term without pressure. If you are extremely optimistic about this coin and retain 200,000 yuan worth of chips, you will find your profit increases from 10% to 100%. However, do not be complacent, as if this coin drops 50% later, you may still incur losses.
Nine, about asset allocation
There are risk-free asset A (annual yield 5%) and risky asset B (yield -20% to 40%); if you have 1 million, you can invest 800,000 in risk-free asset A and 200,000 in risky asset B. Then your worst annual return is zero, while the best return could be 12%. This is the prototype of the CPPI technique applied to capital preservation funds.
Will the cryptocurrency world be the only way out for ordinary people?
I've been in the cryptocurrency world for nearly ten years; I want to tell everyone that if you want to change your destiny, you must try the cryptocurrency world. If you cannot make money in this circle, ordinary people may really not have many opportunities in their lifetime.
Qualities of excellent traders
First, excellent traders must be patient people to endure prosperity!
Market cycle theory
'Every year is like this; according to cycle theory, there are actually not many good times for trading coins in a year.' 'May is poor, June is tough, and July may not necessarily turn around,' I usually remain out of the market during May, June, July, and August.
So, when is a good time to enter?
1. Enter the market at the end of September and clear out by the end of November.
2. Enter the market before the Spring Festival, clear out in April.
3. Execute these two iron rules; of course, individual small-cap stocks' short-term operations are not included.
4. Next, learn how to find hundred-fold coins and achieve wealth in a bull market.
Stick to these ten principles in trading coins, and in the end, you will surely reap great rewards.
Market trading principles:
1. Do not easily be deceived by low-priced chips: Stay firm in your belief to prevent market makers from manipulating the market.
2. Chasing highs and cutting lows, going all in and out is always a big taboo: In the context of a favorable trend, building positions in batches during declines is less risky, costs less, and yields more profit than chasing highs.
3. Allocate profits reasonably: maximize the release of funds rather than blindly adding to positions.
4. Rapid rises to exit, rapid falls to hold coins: Always maintain a good mindset, do not speculate, do not be impatient, do not be greedy, do not fear, and do not do anything unprepared.
5. Ambush or private placement low-priced coins rely on experience and judgment: trading in the secondary market requires technology and information; do not get the main and the secondary confused, otherwise it can easily become chaotic.
6. Position building and unloading should be layered: Gradually widening price ranges effectively control the ratio of risk to profit.
7. Familiarize yourself with the interconnected effects: Each coin does not exist in isolation; many tools can help view coin information and consult, understanding these interconnected effects is very important.
8. Allocation must be reasonable: The allocation between hot coins and value coins must be balanced; one cannot be too conservative and miss opportunities, nor too aggressive and face high risks. Value coins should focus on stability, while hot coins are highly volatile, potentially skyrocketing or crashing to zero.
9. Coins in the market, money in the account, cash in the pocket: This is the safest and most reassuring configuration; one cannot go all in, going all in will lead to death. The understanding of risk control and the reasonable allocation of funds are the keys to your mindset and success or failure; idle money investment is fundamental.
10. Master basic operations: Learn to apply what you've learned, grasp the basic thinking of trading. Observation is a prerequisite; remember each high and low point for reference data, learn to record, summarize materials, develop a reading habit, and cultivate the ability to filter and select information.
Summary
By following these principles, combined with market cyclicality and reasonable fund management, I believe you will gain something in the cryptocurrency world. Remember, opportunities and risks coexist in the cryptocurrency world; only by mastering the correct methods and mindset can one remain undefeated in this turbulent market. I hope these experiences will be helpful to you.
