Brothers, the old retail investors are spilling their hearts! I heard someone wants to turn 10,000 into 1 million? Fine! There’s a way, but first, you need to learn to 'stay alive'! I've seen too many people rush in wanting to get rich, and what happens? They’re almost left with nothing. Remember, your capital is your lifeline! Don’t go all-in right away; that’s not investing, that’s gifting the exchange and the big players with a new year’s present!
How to play short-term trades?
Focus on the major players! Don’t spend every day digging into obscure coins you’ve never heard of! Just stick to the top ten (like BTC, ETH). Why? Because they have more news, better liquidity, and are less likely to be instantly smashed! Look at what's hottest right now (like is there something like Layer2, AI, or Meme trending?), then check the technical indicators (has MACD crossed? Is the Bollinger band narrowing indicating a trend change?), combine that, and pick one with high volatility. Small coins? That’s the big players' private territory; retail investors entering are just fodder!
Diversify! Diversify! Diversify! Got 10,000? Don’t put it all in one go! Split it into 5 parts (20% each), and only use one part to open a position each time! Full position? That's looking for trouble! At most use half (50%), keep the other 50% tightly in hand! That’s your bullet for a comeback, your lifeline! There are always opportunities, if you run out of bullets, you can only stare blankly and hit your thigh! Think of the waterfalls on 519 and 312, without bullets to buy the dip, you’ll be regretful!
Control your hands, be a monk! Don’t operate more than 3 times a day! The more you go long, the more mistakes you make! You think you’re a high-frequency trading robot? Frequent operations can drain your funds with fees and easily make you lose control! Remember, act less and observe more; opportunities are waited for, not chased!
Lost? Accept it! Don’t average down! If you enter a position and it immediately drops 30%, don’t hesitate, run quickly! This means your entry point is garbage! Don’t think about averaging down to lower your cost; that often leads to deeper traps, and in the end, you’ll be buried alive! Averaging down is an abyss, holding a position is hell! If your stop-loss line (like 30%) is broken, cut it unconditionally! 'Holding will bring it back'? Brother, how many people have held on and ended up at zero! A bloody lesson!
Get in and out quickly, don’t get attached! There’s no forever in the crypto world! Are you dating the K-line? It can turn green in seconds and make you panic! If you make a profit, run; if you lose, run even faster! Don’t fantasize, don’t hesitate, execution is your lifeline!
The trend is your father! If the big trend is downward, do you really want to catch the bottom? If the big trend is upward, do you really want to short? Going against the trend is a near-death experience! Only trade when the trend is clear, only play mainstream coins! The 'trend' of altcoins is just bait set by the big players to lure you in!
A lifesaving mantra for the crypto world:
Don't panic when there's a crash in the morning! Waking up to see your account shrinking and wanting to cut losses? Hold on! There’s a high probability it will bounce back a bit in the afternoon. How many times have I cut losses in the morning just to see it rise in the afternoon and hit my thigh!
When there's a big rise in the afternoon, reduce your position! If it’s rising a bit in the afternoon, don’t get too excited! At night, when foreigners start working and profit-takers hit hard, it could easily fall back! Taking some profits to secure is the only way to sleep well!
Volume decreases and rises? Keep dancing! Volume decreases and falls? It’s still going to fall! Trading volume doesn’t lie. Slow and steady rises with no volume indicate it’s not over; slow declines with no volume indicate it hasn’t fully fallen yet, don’t rush to catch a falling knife!
Positive news often leads to negative outcomes! Major upgrades and partnership announcements are usually followed by a rise (speculation). But when they are finally published? Haha, it’s often the time to dump!
Big drops during the day in the domestic market? Prepare to buy! Especially when it drops to the point of panic, at 9:30 PM when foreigners start working, it’s likely to rally! How many times has this scenario played out?
Pin bar! A key signal! Whether it’s a spike or a drop, whenever you see that momentary deep V or inverted V (pin bar), the deeper it goes, the stronger the directional signal! A pin bar upwards (tip pointing up) is often a short-term top, while a pin bar downwards (tip pointing down) is often a short-term bottom.
Heavy positions = preparation for liquidation! Do you dare to heavily invest in a coin? Congratulations, you’re likely on the exchange's 'liquidation watch list'! If the big players don’t knock you out precisely, they’d be letting their big data down!
As soon as you stop-loss, it reverses! Just finished stop-loss on a short position, and the price immediately waterfalls? Just cut a long position, and it rockets? TRB is a classic case! If they don’t wash you out or blow you up, how can the big players comfortably drive?
Quickly break even? No chance! The trapped positions are struggling, and just 1% away from breaking even? Don’t worry, it’ll stop right there! How could they let you escape easily? They’ll continue to torment you!
As soon as you take profits, it takes off! After finally making some money, just sold and want to secure profits? Goodness, it directly flies up with a big green candle! Feels like the big players are watching your little chips: 'If you don’t sell, how can I pull it up?' The car is too heavy!
The more excited you are, the closer the waterfall is! When you feel like you've 'enlightened' or 'are about to get rich' and can't help but want to increase your position, a crash often arrives as expected! Your excitement may just be a carefully laid trap by the big players!
You have no money left, and everything is rising! When you're out of cash or just cut losses and left the market, damn, why is every coin rising? That's the market! Being manipulated is a high probability event!
So, brothers, have you understood? This market is manipulated over 80% of the time! What we retail investors can do is: control our positions, remain patient, and wait for the right moment!
Don't be a foolish rookie rushing in first! The harder you charge, the more likely you are to become the fish on the chopping board, while the exchange and the big players are grinning with knives waiting for dinner! In trading, at the end, it’s a battle of who can endure, who is calmer, and who can seize the fleeting, relatively 'fair' opportunity!
1560 days on the financial road, an exclusive guide from a pioneer in the crypto world: Insight into the market, steady progress, pay attention to Xiao Chen teaching you how to steadily increase value and double your wealth!#我的交易风格 $DOGE
