Volatile Market: Buy high and sell low, profit from the price fluctuations
In the ever-changing battlefield of cryptocurrencies, volatile markets are the norm. Just like BTC and ETH, prices often hover between support and resistance levels, which presents an excellent opportunity for us to buy high and sell low. When BTC touches the strong support level of 98,000U, it’s like a spring that is compressed to its limit, ready to rebound; at this point, decisively open long positions and wait for the price to rise. Conversely, when the price rises to the resistance level of 102,000U, with heavy selling pressure above, it’s like hitting an invisible wall—at this moment, open short positions to capture profits from the price drop, easily achieving a 3% profit from one operation.
Key operation points for Lao Jiu:
1. Leverage Risk Control: While leverage is beneficial, it is a double-edged sword. For safety, leverage must be controlled at ≤5x. This is like fastening your seatbelt while driving; even when encountering bumps (price reversals), you can respond steadily without incurring serious damage.
2. Position Management: Never put all your eggs in one basket. Each time you open a position, the size should not be too heavy, based on your own capital and risk tolerance. Generally, keep the position controlled within 20% of your total capital. For example, if you have 100,000U, limit your investment to 20,000U per trade to avoid catastrophic losses from going all in.
3. Stop-Loss and Take-Profit: Strictly set stop-loss and take-profit levels; this is the lifeline of trading. When opening a long position, set the stop-loss just below the support level. For instance, if opening long at 98,000U for BTC, the stop-loss can be set at 97,000U. If the price falls below this, decisively cut losses and exit to prevent further losses; set take-profit at the resistance level to accurately lock in profits. The same applies to short positions: stop-loss above the resistance level, take-profit at the support level. Execute firmly without being swayed by greed or fear.
Trend Following: Go with the trend, ride the bull market express
Judging trends is key to making profits in the cryptocurrency market. When the daily moving averages of cryptocurrencies show a bullish arrangement, with the 5-day moving average standing above the 10-day moving average, and the 10-day moving average above the 20-day moving average, this is a strong signal that the market is entering an upward channel. At this point, going long is like sailing with the current, achieving more with less effort. For example, when the price strongly breaks through the key resistance level of 2600U for ETH, and the MACD indicator shows a golden cross, both resonate, signaling the charge for an offensive—decisively entering at this point to ride the upward wave.
Key operation points for Lao Jiu:
1. Trend Confirmation: Confirming a trend cannot rely on a single indicator. In addition to the bullish arrangement of moving averages and MACD golden cross, one should also observe trading volume. An increase in volume during a price rise indicates strong bullish momentum; referencing the Bollinger Bands indicator, if the price runs along the upper band, it also indicates a strong upward trend. Multiple confirmations ensure that the trend is real and effective.
2. Stop-Loss Settings: To prevent the risk of trend reversals, the stop-loss levels should be cleverly set. Place the stop-loss just below recent lows, for example, if entering ETH at 2600U, set the stop-loss at 2550U. This effectively controls losses while allowing space for normal price fluctuations, preventing being easily shaken out by minor pullbacks.
3. Take-Profit Targets: Based on previous resistance levels, Fibonacci retracement lines, and other technical analyses, set reasonable take-profit targets in advance. For instance, during this wave of ETH's rise, if the resistance level is around 2800U, once the target is reached, do not be greedy for higher profits; decisively take profit to turn floating gains into real profits.
Event-Driven: Lightning strikes, seizing opportunities before market reactions
The cryptocurrency market is extremely sensitive to major news, such as interest rate hikes by the Federal Reserve and policy changes in various countries, which can trigger severe market fluctuations. By leveraging this characteristic and positioning before news is released, one can seize the initiative. The market expects that the Federal Reserve's interest rate hike will be bearish for the cryptocurrency market, so it's advisable to open long positions in advance, as market expectations are often digested ahead of time. When the real news is released, there may be a counter-trend. Using 3x leverage, quickly close positions within 15 minutes after the news is announced, executing a well-timed lightning strike.
Key operation points for Lao Jiu:
1. News Analysis: Always keep an eye on market hotspots and important events, and deeply analyze the impact of news on cryptocurrencies. It's not only important to judge whether the news is positive or negative but also to understand the potential reactions of the market. For instance, analyze the minutes of the Federal Reserve's monetary policy meetings to interpret the implied signals of interest rate hikes or cuts, as well as the potential impact on capital flows in the cryptocurrency market.
2. Position Control: The news environment is full of uncertainties, much like walking in a minefield. To reduce risks, the leverage should not be too high; 3x is appropriate, and positions should be strictly controlled at a low level to avoid significant losses due to discrepancies between news and expectations.
3. Timely Position Closure: The moment news is released, market sentiment can erupt, causing price fluctuations akin to a runaway horse. It is crucial to decisively close positions within 15 minutes based on the actual market reaction. Missing the best timing can lead to sudden market shifts, causing profits to vanish instantly or even turning into losses.
In the high-risk, high-reward field of cryptocurrency, mastering these three low-risk profit strategies, combined with strict discipline and continuously accumulated experience, will enable steady progress in a tumultuous market, gradually realizing asset appreciation.
I am Lao Jiu from the cryptocurrency circle, follow me@加密玖 to both give fish and teach fishing—leading you to multiply small investments in a bull market and become the sharpest knife in the market!
