When I first entered the cryptocurrency circle, I was still a student and started my journey with 2000u. The reason for 2000u is that usdt Yubibao has an annualized interest rate of 10%, but each account can only invest 2000u at most, which should be called simple coin earning at that time. At that time, I hoped to make some money, so my friend suggested that I change the money into u and deposit it in Yubibao.
My friend is a second-generation rich man who started to speculate in cryptocurrencies very early. He always boasted to us how much he earned yesterday and today, and showed us his profit charts, which were often several times the profit. In fact, I knew what virtual currency+ was very early, and decided to trust him and give it a try. At that time, I thought the interest rate was three or four times higher than Yu'ebao.
It happened that at that time, I had saved up 2,000 U in living expenses by living frugally, leaving 1,000 yuan for food. So I registered an Ouyi account, converted all the money in the card into U and deposited it into Yubibao. At that time, the currency circle was a bear market. I saw that almost all the coins on the software were falling every day. My friend shouted short all day long and made a lot of money. Although Yubibao had a high interest rate, because the principal was only more than 10,000, my daily income was only enough to buy a bottle of drink.
Seeing my friend making a lot of money by short selling, I asked him to teach me how to play Contract+. In fact, the contract is very simple, just like gambling. I was also a gambler at that time. After learning, the first operation was to use full leverage. The first order I opened was to short a low-quality copycat coin. After opening the order at night, I went to bed. When I woke up and saw that the account was profitable, I immediately closed the position. This order brought me more than 200 U of income, which is more than the interest of Yubibao in a year.
I thought the money came as easy as pie in the sky, so I immediately transferred all the money in Yubibao to the contract account, and started my contract trading career. At that time, I studied K-line +, technical indicators +, browsed various news, joined various contract groups, and listened to the nonsense of those who led the orders. Except for sleeping, attending classes, and eating, I spent the rest of my time watching the market.
My position management is to operate with a 25% position and 10x leverage. In addition to opening positions according to the K-line, I also have a special way to open positions. I follow my friend's account on Ouyi, and I can receive information when he opens a position. My friend is actually a half-baked trader. He brags to me when he makes money, and keeps silent when he loses money. In general, he didn't make any money at all, but mostly lost money.
If you follow him in trading, you will basically lose more than you win, but I will not do the opposite of him. Instead, I like to enter the market when he is losing money. I have to say that the winning rate of this strategy is really good. It can be said that I have been using reverse indicators for a long time. I am no different from ordinary people. I am not suitable for trading. I not only like to carry orders, but also prefer to increase positions when there is a floating loss, and rarely stop loss.
However, maybe it was because I was in the novice protection period, my luck was really good, every time I took orders, I could successfully make back my investment, and my winning rate remained above 90% (I paid special attention to the winning rate at that time), and I even thought about making money by taking orders. In about a month, my 2000u increased 30 times to 60000u.
I went from being a novice to a level where my friend, who is not a novice at all, has to learn a few tricks from me. But my friend is the type who doesn't learn good things but learns bad things. He doesn't learn technical indicators and the like, but he opens orders based on his feelings every day. He does learn to follow my orders very well! Soon, yours?
In fact, I also know how the contract will end. My initial goal was to reach 100,000 U so that I would stop playing contracts and only buy spot. After successfully reaching 100,000 U, my second goal was to reach 300,000 U and stop playing contracts and only buy spot. My third goal was to reach 500,000 U and then buy spot. The fourth goal was even higher.
One night, my friend suddenly sent me a message saying that all the U in his account had been liquidated, and he didn't even have time to add margin before the position was liquidated. I could only comfort him with a few words, took a look at the altcoin he opened an order for, and immediately opened a short order 20 times above the liquidation price. Not long after, the coin fell sharply, and I kept shorting it. A week later, my assets almost doubled 10 times to 600,000 U.
I thought it was risky to short sell any more, so I closed my position and withdrew the 2000u principal I had invested in the cryptocurrency market. I ate and drank a lot for a few days and bought an iPhone. The principal had already been withdrawn, so at least there was no loss. It was just a waste of several months of hard work. But at that time, I was like a gambler who lost a lot of money. I immediately put my new phone and the laptop I bought before on Xianyu for sale and raised some money.
I listened to a friend in the group and rushed to get a 10-dog score, but the result was naturally zero. I was completely confused for a while at that time. It happened to be the final exam of college. When the test paper was handed out, my mind went blank. When it was time to hand in the paper early, I made random guesses about the multiple-choice questions and handed it in directly. I even forgot to fill in the admission ticket number. Basically, I failed all the subjects that I should have failed. I lost the direction of my life in an instant. Fortunately, I have never liked to borrow money from others. I have never touched online loans. This is also a key reason why I can rise again.
After surviving a disaster, I started looking for other opportunities. By chance, I met a group of people who specialized in USDT and running errands in an airdrop group, which made me understand the industry of acceptance merchants. Through gradual learning, I gained a lot.
I prepared several thousand U, and I bought some spot goods and saved some money by buying USDT every day. I bought 200,000 U just by buying USDT.
Until now, I have never touched the contract again, and I feel that everything is moving in the right direction.
I want to share this experience to say that failure is not terrible. There are many opportunities in the cryptocurrency circle, not just contracts. If one fails, change the track, and never give up. Airdrops, NFTs, hoarding coins, defi, quantitative, various arbitrage, brick-moving, acceptor running errands, etc. In comparison, local dogs and contracts are really the worst strategy.
1. The first step to getting started: Understand three "life-saving common sense"
1. The cryptocurrency world is not a casino. First, understand the classification of “coins”
Real gold and silver coins (low risk):
Stablecoins: USDT+, USDC+ (1 USDT = 1 USD, the first choice for capital preservation, suitable for beginners to practice).
Mainstream currencies: BTC+ (Bitcoin), ETH+ (Ethereum), with large market capitalization and relatively small volatility, are equivalent to “large-cap stocks” in the currency circle.
Venture capital coins (high risk):
Altcoins: SOL+, ADA+, etc., have large fluctuations but high potential (may increase 10 times or may return to zero).
Air coins: New coins with "X" or "Z" in their names (such as XXT and ZZB) are 99% scams, so don't touch them!
Practical advice: first use 1,000 yuan to buy USDT and BTC, and experience the process of "buying coins-holding-selling coins". Remember: learn to walk first, then learn to run!
2. Choosing the right exchange is more important than choosing a coin
Three must-haves for beginners:
Binance: The world's largest exchange, with a full range of currencies and low transaction fees (0.1%), suitable for buying mainstream currencies.
OKX*: Strong contract functionality (but newbies should avoid it!), good spot trading experience.
Huobi: The Chinese service is considerate and suitable for beginners.
Blacklist warning:
Small exchanges (such as a certain "international exchange"): The rate of running away with money is as high as 60%, and your 1,000 yuan may become air in an instant.
High rebate platforms: Those that promise “80% rebate on transaction fees” are all phishing websites!
3. Always remember: invest with your “spare money”!
Definition of spare money: money that would not affect your life if lost (such as 10% of monthly salary).
Counterexample warning: A colleague used a down payment of 200,000 yuan on a mortgage to trade cryptocurrencies, but he almost got divorced after his position went bankrupt - the cryptocurrency circle does not believe in tears, it only recognizes cash flow!
The secret formula is: "Don't touch money for food, don't touch money for love, and don't touch money for retirement" - invest money that you can say goodbye to with a smile if you lose it.
2. Low-risk money-making methods: 3 ways to make money while lying down
1. Arbitrage: Earn the “price difference” of the exchange
What is arbitrage? The same coin has different prices in different exchanges. Buy at low prices and sell at high prices to make a profit!
Practical examples:
Binance USDT sells for 7.0 yuan, Huobi USDT sells for 7.2 yuan. Buy 1,000 yuan of USDT on Binance and sell it on Huobi, making a net profit of about
20 yuan (excluding handling fee).
Tool recommendation: Use the "Fei Xiaohao" APP to view the prices of each platform in real time, spend 10 minutes a day on the operation, and earn 300-500 yuan in pocket money per month.
2. Exchange Financial Management +: Deposit coins in the bank to earn interest
Binance Current Account Investment: Deposit USDT at 4% annualized rate, deposit BTC at 2% annualized rate, minimum deposit is 100 yuan, and interest will be automatically credited to your account every day.
Calculation example: Deposit 10,000 USDT, earn 1 yuan per day (10,000 × 4% - 365), and earn 30 yuan per month, which is equivalent to "getting a cup of milk tea for free."
Advanced gameplay: Deposit mainstream currencies + turn on "automatic reinvestment" to let the interest roll over the principal, and earn 15% more in one year!
3. Free airdrop: Earn "potential coins" at zero cost
What is an airdrop? In order to promote a new project, it gives free coins to early users (similar to giving coupons when registering for an APP).
Practical steps:
Follow the “Binance Announcements” Twitter hashtag to find new coin airdrops (e.g. a DeFi project airdropping 100 tokens).
Complete the tasks as required (such as forwarding a tweet, depositing 1000 USDT in your wallet), and wait for the token to be issued.
Profit case: In 2024, an NFT project airdropped, and each participating user received 50 tokens. Later, the price of the token increased 10 times, making a profit of 5,000 yuan!
Without further ado!
Share my trading strategies and experience with friends. There is a saying that standing on the shoulders of giants means you will have to work ten years less. Friends who are lucky enough to see this and want to improve their cryptocurrency trading skills must read more and study carefully. I recommend you to collect it!
If you look at the cryptocurrency market with a developmental perspective, you will reach the state of Wuji.
How to understand this sentence? In layman's terms, whenever you have time, you can open your computer to see if you can make a deal and earn some money.
As a trader focused on price action analysis, you have a strong understanding of the concept of price action trading and you focus on identifying and trading Pinbar and Engulfing patterns at key support and resistance areas. However, you may also agree that sometimes the price pullback you were expecting does not occur and the market continues to climb to higher levels without your participation, or perhaps you are presented with fewer trading opportunities, which makes you question whether you are really trading.
In this guide, I will reveal to you the four main problems you face with price action trading and explore how you can effectively and immediately address them.
2. Problem 1: Small number of transactions
Traders must be patient when engaging in price action trading, because the strategy requires traders to wait for confirmation of support and resistance levels, which is usually completed through the appearance of Pinbar or Engulfing patterns. However, while waiting for this confirmation, traders may miss trading opportunities where prices are about to change significantly, especially when the market is on the verge of a breakout. Watching the price rebound from the set trading level without participating is undoubtedly a painful experience for traders. In this case, what coping strategies can traders adopt? As shown in the figure below.
One way to solve this problem of missing trading opportunities due to waiting for confirmation is to give up waiting for confirmation signals. Indeed, you can take action without waiting for confirmation. Traders can set trading levels under normal circumstances and execute trades without price action confirming these levels. It is recommended to try this strategy in a simulated environment and compare it with your actual trading performance to observe whether the trading frequency and profitability have changed. You may be surprised by the experimental results. In addition, you can consider expanding your trading scope and getting involved in more markets, such as foreign exchange currency pairs, stocks and futures.
3. Question 2: Waiting for your level
Price action traders usually tend to wait for the market price to reach their preset levels, which may include support and resistance levels, or resistance levels that have been converted into support levels. However, in a trending market, due to the underlying strong momentum, prices often do not retrace to retest these levels. This phenomenon makes price action traders wait and see when the market moves in a directional manner. How to solve this problem? The figure below is an example of the price trend in the foreign exchange market.
USD/JPY daily chart analysis – Failed retest
What traders can do is delve deeper into the lower timeframes to look for trading opportunities. If USD/JPY is moving parabola-like on the daily chart, traders should move down to the 1-hour timeframe to look for potential trade setups. On the shorter timeframes, traders will observe that there are support and resistance levels of their own, from which traders can consider trading these levels using market biases on higher timeframes. The chart below shows three potential trading opportunities that are not apparent on the daily chart.
USD/JPY 1-hour chart analysis – Trading opportunities on lower time frames
4. Problem 3: Improper stop loss position
If you read trading books or take trading courses extensively, you may be instructed to set the stop loss outside the high or low of the candlestick chart. Therefore, traders generally tend to set the stop loss at obvious price levels. For example, the stop loss may be set a few points outside the shadow of the candlestick chart, just above a resistance level, or just below a support level, or a key round price. However, counterparties in the market are not ignorant, and they are often able to reasonably infer the trader's stop loss position without directly viewing the order book. Because of this, traders may experience unnecessary stop loss triggers and then watch the price return to a trend in their favor. The figure below is an example of price action analysis in the foreign exchange market.
Adjust your stop loss on trades below support levels. A strategy to address this is to set your stop loss far away from support and resistance levels. One possible approach is to use the Average True Range (ATR) indicator to determine how far your stop loss should be set. In this way, if a trade does trigger your stop loss, it can be a strong signal that support and resistance levels have not held effectively. Next, it is critical to quantify the high-probability trading patterns.
5. Question 4: The size of the reversal candlestick
Candlestick reversal patterns confirm if a level holds, and candlestick patterns such as Pinbars and Engulfing patterns come in many shapes and sizes. However, are they all created equal? The answer is no, the size of a Pinbar or Engulfing pattern is proportional to its price rejection power, if a small Pinbar appears that seems to lack confidence, would you consider trading it? How do you quantify the size of the Pinbar that determines the trade?
One way to address this is to use the Average True Range (ATR) indicator to measure the volatility of the market and compare it to the range of the Pinbar. You can look for the range of the Pinbar to be at least twice the ATR. The larger the range compared to the ATR, the stronger the conviction of the trader in the underlying move. Refer to the chart below. The ATR for this period is 45 pips. Notice that Pinbar 1 has a range of 45 pips, so I will skip this Pinbar because it is not twice the ATR. Next, Pinbar 2 has a range of 95 pips, which is more than twice the ATR, indicating a strong conviction behind it. Therefore, I will choose this Pinbar to trade. This method will help you identify Pinbars or Engulfing patterns that are more likely to succeed.
It is obvious that a trade can be taken only if the range of the second Pinbar is at least twice the ATR.
6. Frequently Asked Questions
(1) If you enter a short position at a resistance level without confirmation, and the candlestick closes above the resistance level but before your stop loss is hit, will you close the position early?
To be clear, I am not inclined to blindly short at resistance levels, as part of my price action trading strategy, I will usually wait for price action patterns such as shooting stars or engulfing patterns to appear before deciding whether to enter the market. When trading without confirmation, the key is to assess whether your resistance area is still valid. A candlestick may close above the resistance level, but this does not mean that the resistance area has been invalidated. Since resistance is an area on the chart and not a line, if the area is still intact, then you should not close the position prematurely. However, if the candlestick breaks out and closes above your resistance area, thus invalidating the area, then you should exit the trade.
(2) Do you prefer to use a stop loss order or a "psychological" stop loss order? I suspect that if a "psychological" stop loss order is used, the market will eventually rise according to my original intention, thus avoiding many of the previous losses.
I prefer using stop orders over "psychological" stop orders, and if you find that using "psychological" stop orders improves your trading results, then you may choose to try this method. However, one disadvantage of "psychological" stop orders is that traders often fail to act decisively when they should exit a trade. Instead, they may continue to hold positions, resulting in more losses than expected in the end. If you can follow the discipline of "psychological" stop orders, then it is worth a try to see if it has a positive impact on your trading results.
The cryptocurrency trading skills you must know in the cryptocurrency circle:
1. Go with the trend: follow the general trend, buy at low prices, and avoid chasing high prices.
2. Strictly stop loss: stop loss in time, protect the principal, and don’t rely on luck.
3. Focus on the leaders: Don’t touch the junk copies, pay attention to the mainstream leaders.
4. Chip analysis: judge the main force's chip absorption and the price trend of the currency through on-chain data, volume and distribution of chip-dense areas.
To put it bluntly, playing in the cryptocurrency circle is a battle between retail investors and bankers. If you don’t have cutting-edge news and first-hand information, you will only be cut!
There is a saying that I strongly agree with: the boundaries of knowledge determine the boundaries of wealth, and people can only earn wealth within the boundaries of their knowledge.
You must have a good mentality when trading cryptocurrencies. Don't let your blood pressure soar when the market plummets, and don't get carried away when the market soars. It is more important to secure your profits. For people who don't have too many resources, being down-to-earth is the irrefutable way of survival. $SOLV $IOTX #以色列伊朗冲突 #加密市场回调
