Starting from 50,000 to 100,000, then to 302,000, in the third year it reached 590,000, in August of the fourth year it reached 3.78 million, and by November it surpassed 7 million.
Until a few years ago, I could easily withdraw 30 million in the crypto space.
During this time, I fell to the bottom. At that time, I was at around 4 million; at that moment, I thought I could be considered a big player in the crypto space. I resolutely quit my job and focused on trading cryptocurrencies, even borrowing money to trade. However, reality slapped me hard. The financial crisis caused me to not only lose everything but also incur a mountain of debt, leading me to sell my house, and my husband almost left me too.
With profits being returned, I was still left with a mountain of debt, and in the end, I had to sell my house, while my husband almost left me.
That period was my darkest moment. In just a few months, I fell from the peak to the bottom. But it also made me realize that the previous smooth sailing was not without an element of luck.
Thus, I feel that if I really want to pursue trading, I need to study diligently. In addition to understanding the fundamentals, analyzing news, and researching technical indicators is essential. Without deep research and reasonable planning to manage one's finances, funds will only be exhausted. Finally, as an investor with no foundation, one can only joyfully enter and sadly leave the market.
For the next three years, I cut off all contact with classmates and friends, stayed at home day and night for review, and when tired, I would sleep on the keyboard. After all the hard work, I finally achieved financial freedom through cryptocurrency trading.
Survival Guide in the Crypto Space: Revealing Super Practical Trading Techniques (Purely Practical)
In the crypto space, your trading strategy is your 'secret weapon.' The following rules are the crystallization of practical experience; make sure to save them!
- Entry section: Test the waters in the crypto space, prepare before acting; enter steadily, refuse to act rashly.
- Consolidation section: When trading in a low range, it’s the right time to buy heavily at the bottom; when trading at a high range, decisively sell without hesitation.
- Fluctuation section: Sell at highs, enter quickly at drops; observe during consolidation, reduce trading. Consolidation means replacing drops; hold onto your positions, and a rise may come at any moment; during a rapid rise, beware of a crash, and always be ready to secure profits; a slow dip is a good time to gradually add to positions.
- Timing for buying and selling: Don’t sell at highs; don’t buy at drops; during consolidation, don’t trade. Buy on bearish candles, sell on bullish candles, and operate counter-intuitively to stand out. Buy during morning drops, sell during morning rallies; don’t chase highs in the afternoon rallies, buy during afternoon drops the next day; don’t panic-sell during morning drops, if there’s no movement, take a break; average down to seek breakeven, excessive greed is not advisable.
- Risk awareness: A calm lake may rise to high waves; there may be great turbulence ahead; after a big rise, there must be a pullback; K-lines may show a triangle for many days. In an upward trend, look for support; in a downward trend, look for resistance. Full positions are a big taboo; stubbornness is not feasible; in the face of uncertainty, know when to stop and grasp the timing for entry and exit. Trading cryptocurrencies is essentially about trading mindset; greed and fear are the enemies; chasing highs and cutting losses must be done cautiously, keeping a calm mind is key.
In addition to the rules, I have also organized several super practical methods for trading. Whether you are a beginner or a seasoned player, you can benefit from them.
Oscillation trading method: Most market conditions are oscillating patterns, using high selling and low buying within a range is the foundation for stable profits. Utilize the BOLL indicator and box theory, combined with technical indicators and patterns to accurately find resistance and support. Follow short-term buying and selling principles, and avoid greed.
Breakout trading method: After long periods of consolidation, the market will choose a direction. Entering after the breakout can lead to quick profits. However, it requires precise judgment on breakouts and maintaining a stable mindset, avoiding greed and fear.
Unidirectional trend trading method: After the market breaks out of consolidation, it will form a unidirectional trend. Trading in the direction of the trend is key to profitability. Enter positions during pullbacks or rebounds, and refer to K-lines, moving averages, BOLL, trend lines, etc. Mastering these indicators will allow for smooth trading.
Resistance and support trading method: When the market encounters key resistance or support levels, it often faces obstacles or gains support; entering at this time is a common strategy. Utilize trend lines, moving averages, Bollinger Bands, parabolic indicators, etc., to accurately determine resistance and support levels.
Pullback trading method: After significant rises or falls, there will be brief pullbacks or rebounds, seizing opportunities can lead to easy profits. Mainly rely on candlestick patterns for judgment; good market sense can help you accurately grasp highs and lows.
Time frame trading method: Morning and afternoon trading sees small fluctuations, suitable for conservative investors; although the time to profit is long, it’s easier to grasp market conditions. Evening and late-night trading sees greater fluctuations, suitable for aggressive investors; profits can be made quickly, but it’s more challenging and requires strict technical and judgment skills.
There is a 'foolproof' trading method that makes it very simple to trade alongside institutional players! I share this with anyone who reads this article.
I previously introduced day trading, which has methods and techniques that have gained popularity among many short-term trading enthusiasts; however, some traders feel that day trading requires frequent chart monitoring, which is exhausting and taxing.
They wish to hold a trading position for a long time without constantly checking the charts; they hope to set higher profit targets while keeping losses within a smaller range.
So, is there such a trading method?
The answer is yes, and that is swing trading.
Swing trading is a very popular trading type that brings relatively low stress to traders, yet the returns are substantial, especially for part-time traders, making it the perfect trading type.
However, before introducing swing trading, I need to emphasize one point:
Regardless of the trading style, in the trading market, traders are fighting alone, responsible for their own account funds, and cannot blame others for losses. It cannot be said which is better; it only depends on which style you prefer and which is more suitable for you.
Take the forex swing trading expert I want to share with you today. He has been in the industry for over a decade, tried various trading types and strategies, yet he still frequently faced liquidation.
Until he discovered through swing trading that for him, swing trading was the best type of trading, and daily charts could provide him with the most accurate trading signals.
Therefore, to achieve stable profits in forex trading, the first step is to find a trading style that suits you, then refine your trading strategy, rather than blindly following others.
01. Advantages and disadvantages of short-term and swing trading
Since you want to find a trading style that suits you, you need to understand the advantages and disadvantages of each style. Let’s first look at the pros and cons of short-term trading and swing trading:
Advantages and disadvantages of short-term trading
Advantages:
The market has many short-term fluctuations; there are numerous trading opportunities at entry points of 1 minute, 5 minutes, and 15 minutes.
The day trading model can effectively lock in short-term trading targets, making trading have clear pursuits and assessment indicators.
Day trading can lock in risks. By forcibly setting intra-day stop losses according to capital and points, and allocating operational proportions, the implementation of risk control is stronger.
Disadvantages:
Frequent trading carries a higher risk probability.
Staring at the screen for a long time drains energy, creates significant pressure, and is not good for health.
Advantages and disadvantages of swing trading
Advantages:
Will choose trades with a higher probability of profit;
Less pressure than day trading, does not require all-day chart monitoring;
Trading costs are lower than day trading.
Disadvantages:
Long holding times lead to overnight risks;
Requires more patience and stronger principles.
Intra-day trading has more potential for profit, while swing trading offers more freedom and less pressure. In terms of profitability, any trading method can allow traders to profit, but the emphasis is on personal character, skills, and knowledge.
Next, I will share this swing trading expert's understanding of swing trading and detail the six steps he follows in swing trading.
02. What is swing trading?
I introduced short-term trading in last week's article, so I won’t repeat it today. For those who missed it, you can check the previous articles at the end. Today we will mainly understand swing trading.
Swing trading (also known as swing trading) is a trading strategy that attempts to capture large waves of upward or downward movements, with holding periods ranging from a few days to a few weeks.
While swing traders utilize technical analysis to find trading opportunities, they also rely on fundamental analysis to analyze price trends and patterns.
Swing trading consists of two main parts—the swing and the fluctuation points. As shown in the figure below:
03. How to conduct swing trading?
Next, I will introduce the six steps of swing trading.
1. Pay attention to daily charts
Observe the daily charts more, as daily charts provide the most comprehensive price trends and more reliable price signals.
But be aware:Not all daily charts are worth paying attention to.
I mainly use the New York closing price daily chart. This is because the trading session closes every 24 hours at 5 PM Eastern Standard Time, which is also referred to as the 'closing time' of the forex market.
Therefore, I suggest that swing traders best use daily charts. If you have already profited from daily charts, you can try starting with 4-hour charts.
In general, a higher time frame indicates more reliable price action signals.
2. Draw key support and resistance levels
Draw key support and resistance levels, which is the most important part of the entire process. For swing traders, if key support and resistance levels are not identified, profitability is not possible.
Now, let me introduce two important horizontal lines:
1. Support and resistance lines
Support and resistance are the points on the chart that withstand continuous upward or downward pressure. Support levels are typically the lowest points in all chart patterns, while resistance is the highest point (peak) in the chart.
Moreover, support and resistance levels are usually not an 'exact' level; it’s best to treat them as a range.
2. Trend lines
Although trend lines are one of the most common methods in technical analysis, not all traders use trend lines. The reason may be that most traders cannot draw the correct trend lines.
Generally, an upward trend line connects the lows of each swing, while a downward trend line connects the highs of each swing.
3. Judging oscillations
If you have learned to mark support and resistance zones on the daily chart, the next step is to use swing highs and swing lows to determine oscillations.
Oscillations mainly have three types: upward trends, downward trends, and range trends.
1. [Upward trend]
Higher highs and higher lows; the figure below is a typical upward trend:
In the above figure, each swing high is higher than the previous one, in this bullish trend, you can buy.
2. [Downward trend]
Lower highs and lower lows; the figure below is a typical downward trend:
In the above figure, each swing high is lower than the previous one, at which point you can sell.
3. Range trends
Horizontal movement, also known as consolidation, as shown in the figure below:
Range trends are the most common type of trend. Although there are no clear bullish or bearish trends in the above figure, swing traders can still profit within this range, possibly even more easily than in the other two oscillating trends.
What should be done?
Utilize support and resistance levels. As shown in the figure below, pay attention to the two pin bars on the chart:
4. Look for price action signals
By following the three steps above, you have identified the current oscillation on the daily chart.
1. If the market is in an upward trend, then you should start paying attention to buy signals at key support levels, as shown in the figure below, where a bullish pin bar appears at the key support level.
The bullish pin bar in the above image is a buy signal, indicating that we can profit in the ongoing upward trend.
2. If the market is in a downtrend, then pay attention to sell signals at resistance levels, as shown in the figure below:
We can take the bearish pin bar in the chart as a sell signal.
In fact, for swing traders, capturing the entire swing is very difficult. What we can do is to focus on swing changes as much as possible and patiently wait until the price trend is confirmed before entering a trade.
5. Determine exit points
Determining the exit point has an important prerequisite: set your take profit and stop loss before entering. This is because once you enter, your emotions will be influenced by market changes.
So, how do you determine the exit point?
It's simple, still relying on support and resistance levels, as shown in the figure below:
The above figure is a daily chart of GBPUSD: it is clearly an upward trend, and the price has exceeded our set profit target.
When this happens, there’s no need to feel regretful; we have captured most of the upward trend. Remember, in trading, you shouldn’t be too greedy.
In summary, support and resistance zones and trend lines are the foundation of all trading setups. Once these are determined, entry and exit points become clear.
6. Calculate and manage risks
Currently, risk is usually calculated using the R multiple. For example, a stop loss of 100 points and a take profit of 300 points set is 3R. If your capital is $100 and you earn $500, then the risk-reward ratio is 5R.
Risk management essentially boils down to stop loss and take profit:
Stop loss: The best stop loss level is at the top or bottom of the pin bar.
If a bullish or bearish engulfing pattern appears, it’s best to set the stop loss 10 to 20 points above or below the candlestick.
Take profit: The take profit is still related to key support and resistance levels. For swing traders, the key to profitability is capturing the oscillations between support and resistance levels.
If there is an upward trend in the market and a bullish pin bar forms at the support level, then set the take profit at the next key resistance level.
In the cryptocurrency world, it’s essentially a battle between retail investors and institutional players. If you don’t have cutting-edge information or first-hand data, you can only be exploited! If you want to collaborate and harvest the gains from the institutional players, feel free to reach out to me (WeChat: YuanYuanJucai). Like-minded individuals in the crypto space are welcome to discuss together~
There is a saying I strongly agree with: the boundary of knowledge determines the boundary of wealth; a person can only earn wealth within the boundaries of their knowledge.
Having a good mindset in trading is crucial; don’t let your blood pressure spike during a downturn, and don’t get carried away during a rally. Securing profits is important. For those with limited resources, being grounded is the best survival strategy.