In a volatile market: buy high and sell low to profit from price fluctuations.
In the ever-changing battlefield of cryptocurrency, volatile markets are the norm. Just like BTC and ETH, prices often hover between support and resistance levels, which is an excellent opportunity for us to buy high and sell low. When BTC reaches the strong support level of $98,000, it is like a spring being compressed to its limit, ready to rebound; at this moment, decisively open a long position and wait for the price to rise. Conversely, when it rises to the resistance level of $102,000, where selling pressure is heavy, it’s like hitting an invisible wall. At this time, flip to open a short position and profit from the price drop, easily achieving a 3% return in a single operation.
Key Points for Jiu's Operations:
1. Leverage Risk Control: While leverage is beneficial, it is like a double-edged sword. For safety's sake, leverage must be kept at ≤5 times. This is like fastening your seatbelt while driving; even when encountering bumps (price reversals), you can respond steadily without injury.
2. Position Management: Never put all your eggs in one basket. Each time you open a position, it shouldn't be too heavy. Based on your own capital and risk tolerance, generally keep your position within 20% of your total capital. For example, if you have $100,000, do not invest more than $20,000 in a single trade to avoid disaster from putting all your stakes on one bet.
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 near the support level. For example, if opening a long on BTC at $98,000, the stop-loss can be set at $97,000. Once the price drops below this, decisively cut losses to prevent further loss; take-profit should be set at resistance levels to accurately lock in profits. For short positions, likewise, set stop-loss above resistance and take-profit at support, executing resolutely without being swayed by greed or fear.
Trend Following: Go with the trend and ride the bull market fast track.
Judging trends is key to making profits in the cryptocurrency market. When the daily moving averages of digital currencies show a bullish arrangement, with the 5-day moving average standing firmly 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 time, going long with the trend is like sailing with the current, achieving twice the result with half the effort. Taking ETH as an example, when the price strongly breaks through the key resistance level of $2600 and the MACD indicator shows a golden cross, the two resonate like a battle horn being sounded. At this moment, decisively enter the market and catch the upward momentum.
Key Points for Jiu's Operations:
1. Trend Confirmation: Confirming trends cannot rely solely on a single indicator. In addition to the bullish arrangement of moving averages and the MACD golden cross, volume observation must also be incorporated. An increase in volume indicates strong bullish force; using the Bollinger Bands indicator, if the price moves along the upper band, it also indicates a strong upward trend. Multiple confirmations ensure that the trend is real and effective.
2. Stop-Loss Setting: To guard against trend reversal risks, stop-loss levels should be cleverly set. Place the stop-loss below recent lows; for instance, if entering ETH at $2600, set the stop-loss at $2550, effectively controlling losses while allowing for normal price fluctuations, so that minor pullbacks do not easily knock you out of the market.
3. Take Profit Target: Based on previous resistance levels, Fibonacci retracement lines, and other technical analyses, set reasonable take profit targets in advance. For example, during this surge in ETH, the resistance level is around $2800. Once the target is reached, don't be greedy for higher returns; decisively take profit and turn floating gains into real profits.
Event-Driven: Lightning strikes, seizing opportunities before the market reacts.
The cryptocurrency market is extremely sensitive to major news. Interest rate hikes from the Federal Reserve and policy changes in various countries can trigger severe market fluctuations. Utilizing this characteristic, position yourself before news is released to seize the initiative. The market expects that the Federal Reserve's interest rate hike will negatively impact the cryptocurrency market, so it may be wise to open long positions in advance, as market expectations are often digested beforehand. When the actual news is released, a reverse trend may occur. Using 3x leverage, quickly close positions within 15 minutes after the news is announced to execute a swift lightning strike.
Key Points for Jiu's Operations:
1. News Analysis: Always keep a close eye on market hot spots and important events, deeply analyzing the impact of news on digital currencies. Not only should you judge whether the news is favorable or unfavorable, but also gain insight into the potential reactions of the market. For instance, analyze the Federal Reserve's monetary policy meeting minutes, interpreting implicit signals of interest rate hikes or cuts, as well as the potential impact on the flow of funds in the cryptocurrency market.
2. Position Control: The news landscape is filled with uncertainty, like walking in a minefield. To reduce risk, leverage should not be too high; 3x is advisable, and positions should be strictly controlled at a lower level to avoid significant account drawdown due to news not matching expectations.
3. Timely Position Closure: The moment news is announced, market sentiment explodes, and price fluctuations can be like a runaway horse. It is crucial to decisively close positions within 15 minutes based on the market's actual response. Missing the best opportunity can lead to a sudden change in market direction, and profits may vanish in an instant, even turning into losses.
In the high-risk, high-reward field of cryptocurrency, mastering these three major low-risk profit strategies, combined with strict discipline and continuously accumulating experience, is essential for navigating the turbulent market and gradually realizing asset appreciation.
I am Jiu, an old hand in the cryptocurrency market. Follow @CryptoJiu, not only providing fish but also teaching fishing—helping you achieve double returns with small investments in a bull market and becoming the sharpest knife in the market!