In the cryptocurrency space, true experts may not have exceptional technical skills; I have always strictly followed the market's iron rules:
1. No claims of tops in uptrends or bottoms in downtrends. Many people do not believe Bitcoin can reach $150,000 because the bull market has not arrived yet. Just because you think $68,000 is the bottom, would you believe it if it drops to $62,000? In the end, it spiked down to $56,000.
2. Each trade should ideally not exceed 5%. The smaller the capital, the harder it is; true experts build positions in batches of five percent. Just think about how many trial and error opportunities they have! How low their costs are!
3. Those who are afraid of heights are doomed. You must know that the cost for major players in a cryptocurrency is very high, including promotional expenses, chip costs, development costs, etc. This is not something that can be achieved with 20%-50%, but rather several times, or even dozens of times.
4. A bull market is the only opportunity for a comeback. Buffett had to acknowledge losses during a bear market, so he can only stay in the U.S. stock market, in Omaha!
5. The lagging nature of technical indicators. This means that technical indicators can only be used as references and cannot be the primary basis for buying and selling. During strong uptrends, technical indicators may also look good, but by then, prices may have already risen significantly. Would you chase after that? Take the MACD indicator as an example; a golden cross one day can turn into a death cross the next day. Such occurrences are numerous.
6. Firmly believe that you will ultimately defeat the market. Which big player is not full of confidence? Everyone has lost, but no one has ever been defeated! If you don't even believe you can make money, do you really think you can earn?
Without further ado, let’s get straight to the point: how to quickly earn 1 million RMB in the cryptocurrency space! With just this one trick (the 5-day line trading method), you can easily gain hundreds of times with a win rate as high as 90%. You are only one step away from 1 million, and it's worth saving! Trading cryptocurrencies doesn't have to be complicated; I share the simplest cryptocurrency trading strategy <5-day line trading method >. The simpler the method, the more profitable it often is.
What is the 5-day moving average?
The 5-day moving average is a stock market term that refers to the average transaction price or index of a stock over 5 days, corresponding to the 5-day moving average of stock prices and the 5-day moving average of indices (5MA). It can also be applied as a reference in the cryptocurrency market! The moving average indicator is actually an abbreviation for the moving average line indicator.
What is the moving average indicator?
The moving average indicator reflects the important trend of price movements. Once a trend is formed, it will continue for a period of time. The highs or lows formed by the trend will have blocking or supporting effects, so the location of the moving average indicator often represents a crucial support or resistance level, providing us with favorable timing for buying or selling. The value of the moving average system lies in this.
The meaning of the 5-day moving average trend
When the moving average runs upward and forms a certain trend, it indicates a bullish pattern. If other moving averages, such as the 10-day, 20-day, and 30-day moving averages, are also diverging upwards, this is a strong bullish arrangement, suggesting that the future stock price index still has upward momentum. Conversely, a bearish arrangement increases the likelihood of continued declines. The crosses generated by moving averages upwards are golden crosses, while the opposite indicates death crosses. Here, you should observe the position and trend of stock prices and indices, as it clearly suggests the holding period after a golden cross for holding or buying.
1. Contract - 5-day line trading method
Contracts generally look at short cycles. The following chart shows the 1-hour 5-day line, which is technically a 5-hour moving average. Under normal circumstances, prices should not deviate too far from the 5-day line; any significant deviation will lead to a pullback or rebound for confirmation. The longer the time frame, the more stable the 5-day line. Therefore, when a gap is found, it presents an arbitrage opportunity. In any case, trading contracts emphasizes speed.
Eight key position management techniques for trading cryptocurrencies
1. In every market entry and exit, the loss should not exceed one-tenth of the capital. This means that when the loss reaches 10%, you must exit regardless, because generally speaking, a loss of 10% indicates that the operation was wrong, and you should decisively leave at that point.
2. Always set a stop-loss level. This is a reiteration of the previous rule, emphasizing that the set stop-loss level does not necessarily have to be a 10% loss; it can be set appropriately as needed, such as 5%.
3. Never overtrade. The so-called never overtrade means to trade in moderation, which has two layers of meaning: A. Do not invest too much capital when the direction is unclear. B. Do not operate too frequently.
4. Never let your holdings turn from profit to loss. Simply put, set a take-profit point based on the already realized profits, and the take-profit point should not be lower than the purchase cost. This is a good method to ensure effective profit.
5. If in doubt, close positions and exit. This is an extension of the previous rule. When you cannot determine whether the trend is up or down, it is best to exit and observe, because at this point, you have already lost the ability to follow the trend. Remaining in the market (holding positions) at this time is just blind investing. 6. Only trade in active markets. This active market can be understood as different trading varieties in different trading markets.
7. Never set target price levels for market entry and exit, but only follow market trends. Here again, I emphasize the importance of following the trend and warn against setting target price levels for market entry and exit. It should be noted that this does not mean you should not set stop-loss or take-profit levels, but rather that there are other situations: some people like to say they will buy once the price drops to a certain level, while others say they will never exit until the price rises to a certain level, disregarding the market trend, which is very dangerous and is the essence of this rule.
8. Unless there are appropriate reasons, do not close your positions; you can set take-profit to protect your profits. This refers to the psychological aspect; many people prefer to rely on feelings when trading and close positions without principled reasoning, leading to excessive randomness. Therefore, this rule recommends using pre-set take-profit points. Many novice investors make trades based on temporary preferences, and luck plays a large role, but luck cannot accompany you forever. The two most important points in investing are: one, to understand how to analyze market trends; two, to understand how to control risks. As an investor, you must have a good mindset and the right investment concepts, never envy the results obtained by others, as you have not worked for your own results.
This is the trading experience that the instructor shares with everyone today. Many times, you lose many opportunities to make money because of your doubts. If you do not dare to try boldly, to engage, to understand, how will you know the pros and cons? You only know the next step after taking the first step. A cup of warm tea, a piece of advice; I am both a teacher and your friendly conversationalist.
Knowing someone is fate; knowing them well is a connection. The instructor firmly believes that a destined meeting can occur even over a thousand miles, while a chance encounter without fate is destiny. The journey of investment is long; a momentary gain or loss is just the tip of the iceberg. Remember, even the wisest can make mistakes, and the foolish can have gains. No matter how your emotions fluctuate, time will not stop for you. Pick up your troubled heart, stand up again, and continue moving forward.