How to make money in the cryptocurrency market? Let me share my current trading approach.
I usually start by looking at the trend. If I feel that the market might experience a significant fluctuation of over 30%, I patiently wait. As soon as I identify a potential reversal point, I enter a position.
If the market moves as I anticipated, I hold on and look for opportunities to increase my position. To be honest, finding market reversal points does involve some luck, but increasing my position is purely a technical skill. I need to be especially careful about when to increase my position and by how much. In uncertain situations, I prefer not to increase my position because making the wrong move can easily affect my mood.
If the market does not move as I expected, I either cut my losses, hedge, or take profits and exit, then wait for the next opportunity. This approach has a downside: I often end up making small profits of 5 or even 10 points, only to return to break even in the end. There are times I work hard for a month, only to feel like I've been on a roller coaster and end up cutting losses.
However, as long as I catch a wave of the right market trend, I can make a lot of money. For those with small capital looking to grow, I think this is the way to go. Use money that you can afford to lose, and patiently wait for the highest risk-reward opportunities, ideally at least 1:10.
If I make a mistake, I wait for the next opportunity; if I get it right, I profit and increase my position. As long as I can seize a wave in the market, my capital can multiply by ten to twenty times at least. Just don't keep making short-term trades frequently, as that will only narrow your perspective and make you fixate on small fluctuations.