I know a friend in New York who likes to play spot trading, occasionally does contracts, and is particularly keen on bottom fishing, increasing his position the more it falls. In just a few years, he has grown from small to large and now lives off trading cryptocurrencies.
He primarily practiced a trading method with a 100% success rate, achieving a win rate of 98.8% in this short-term trading model. Learning it can easily turn 100,000 into 10 million, focusing solely on this model!
I have improved his ('Naked K Trading Strategy') through my own modifications, and this year, after practice, I have turned an initial capital of 500,000 into over 40 million U in less than a year. I am sharing this now, hoping it helps my followers!
First, let's talk about those who make money:
First of all, it is definitely not contract players. The contract players I know.
None of them are making money. Even if they made money at some point, the final result is still a total loss. The essence of contracts is essentially gambling, making money through probability. Of course, this has a slightly higher probability than betting, but it's basically similar. Those who make money from contracts generally do so by leading trades in contract communities. They have long realized that contracts cannot make money, so they go to create contract-leading communities, where old investors harvest new ones.
A piece of advice for those wanting to break even or make money through contracts:
So many people who lose money stay in the crypto world just to break even, but there is a harsh reality: most people cannot break even and cannot make money. Especially those who wish to break even through contracts are even more deluded. Those who make money through contracts are extremely rare. Don't fantasize about why you wouldn't be one of them. Frankly, if you want to break even through contracts, you are simply not cut out for it. No matter how much you lose, it won't change; even if you go bankrupt, you cannot break even through contracts. Therefore, I advise those who want to break even through contracts to quit contracts, or in other words, to quit gambling.
What should spot players who are losing money do?
First of all, if the loss is not much and the capital is still relatively large, meaning the capital and loss are balanced, then breaking even is relatively simple and easy. In other words, it is possible to break even if you need to multiply by less than five times, but the most important point is the buying point.
And selling points. If you are stuck at a high position, it will be difficult. Most people can make money when the bull market starts, or during the main upward wave of the bull market. Losing money comes from not understanding how to unload. After unloading, during the main force's distribution (unloading) phase, repeatedly entering the market at high positions gets you harvested. Therefore, for retail investors, knowing when to sell is very important, but selling is not the most important thing.
Most importantly, after selling, being able to hold a cash position and wait is something that most people cannot do; it is something that 95% of retail players cannot manage. This is fundamentally where most people lose money. If you can sell at a relatively high point, not be influenced by analysts in the market, nor be swayed by various positive news at high prices, and insist on staying in cash, that is truly securing your profits, and that is how you genuinely make money.
To summarize the people who lose money:
1. Losing less than five times is good for breaking even.
2. You need to know how to sell.
3. You need to know how to stay in cash.
Of course, it is the same for spot players as well; fewer than 5% of retail investors make money because the trading market is a struggle against human nature—greed, fear, arrogance. Very few can overcome this.
So who are the people that make money through trading?
Those who truly make money often only learn one trading method, can read the fundamentals, and when the market is in a sideways bottom, they buy in and hold on. When it rises enough, they sell without paying too much attention to the news. They do not blindly buy into coin types they do not understand, but when the bull market comes, all types of coins will rise.
In fact, many novices who play spot trading find it easier to make money.
First, let's talk about two simple ways to make money in the crypto world:
The first type:
Making money through trading is this simple; you just need these three steps! Master them, and you can easily multiply your account by 10 times!
Step One: First, look at the trend.
Step Two: Find key levels again.
Step Three: Find entry signals.
Enter the market, profit, close the position, and leave.
Isn't it very simple?
Now let's discuss this in more detail.
Step One: First, look at the trend.
The state of a market.
The outcomes of major market trends are simply three: up, sideways, down.
What is a major market trend? Look at the charts with a time frame of 4 hours or more.
For example, look at 4 hours, daily, weekly (my personal habit is to look at 4 hours).
In an uptrend, go long; in a downtrend, go short; do not place trades in sideways markets.
Step Two: Look for key levels.
Whether the market is rising or falling, it will jump like a bouncing ball, moving level by level up or down.
What we need to do is enter at its jumping position and exit at the next landing point. How to find precise steps becomes the key.
This is what we refer to as key levels (main support and resistance levels).
(How to precisely find the main support and resistance levels can be found in my previous articles.)
Step Three: Look for signals.
Generally, if you discover a market trend in a larger cycle, you should look for trading signals in a smaller cycle to enter the market.
Everyone's strengths in trading strategies are different; mastering one or two types is enough.
More importantly, quickly formulate a trading strategy.
A complete trading strategy includes
(1) Target - What to trade;
(2) Position - How much is held;
(3) Direction - Long or Short;
(4) Entry Point - At what price to trade;
(5) Stop Loss - When to exit a losing trade;
(6) Take Profit - When to exit a profitable trade;
(7) Countermeasures - How to respond to sudden situations;
(8) Follow-up - Operations after the trade ends.
The famous TLS technical analysis method: trend + key positions + signals = successful trading.
Before each trade, develop a strategy according to the process, and I believe you will not lose too badly.
Develop good habits, and over time, you will notice your shortcomings in the trading process. Work hard to change them, and you will succeed!
The second type:
First, the first step: add coins that have risen in the past 11 days to your watchlist, but be careful to exclude those that have fallen for more than three days to avoid capital escaping after profits.
Step Two: Open the candlestick chart and only look at the coins with a monthly MACD golden cross.
Step Three: Open the daily candlestick chart, here only look at a single 60-day moving average. As long as the coin price pulls back to near the 60-day moving average and shows a significant volume candlestick, then enter the market heavily.
Step Four: After entering the market, use the 60-day moving average as a standard. If it is above, continue holding; if it is below, exit and sell. This is divided into three details.
1: When the wave rises more than 30%, sell one-third.
2: When the wave rises more than 50%, sell another one-third.
3: This is the most important and is the core that determines whether you can be profitable. If you buy in today and tomorrow there is some unexpected situation where the coin price directly breaks below the 60-day moving average, then you must exit entirely without any false hopes. Although the probability of breaking the 60-day moving average is very low through this monthly and daily selection method, we still need to have risk awareness. In the crypto world, preserving your capital is the most important thing. However, even if you have already sold, you can wait until it meets the buying conditions again to buy back.
Ultimately, the difficulty in making money lies not in the method but in execution. 'When the coin price breaks below the 60-day moving average, you must exit entirely and not hold onto any false hopes.' Just this one sentence has eliminated 90% of people.
Everyone's original intention for coming to the crypto world is the same, this is beyond doubt. If you come just to play around and pass the time, then this is not the right place for you.
Here is a compiled list of all blockchain sectors and leading coins that you need to know before entering the crypto world, including mainstream and altcoins, to save you time in organizing. You can double-click to save this!
That’s all for today. During the bull market phase in the crypto world, you really can’t manage on your own, don’t force yourself. Come find me as your mentor, understand the latest information, layout, embrace the bull market, improve win rates, and say goodbye to being stuck at high prices.
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