In the cryptocurrency market, it's easy to lose money; this is a lesson I bought with real money. Four years ago, I was a 'technical trader,' staying up late to monitor K-lines, MACD, RSI, etc., but I ended up losing and gaining with little change in my account balance, and even faced liquidation multiple times. Until I met an experienced trader, who told me: Keep it simple when trading cryptocurrencies.
In my opinion, the key to trading is maintaining a good mindset; mastering the technical aspects is secondary. This calmness and composure may be the secret to my success in the cryptocurrency market.
In the cryptocurrency market, work: high win-rate structure 'bottom division+'
Bottom division usually appears at the end of a downtrend and consists of 3 to 4 candlesticks.
It is one of the classic combinations that are easiest for beginners to learn and recognize.
The larger the volume of the third bullish candle, the higher the level of the engulfing pattern, making it more reliable.
When paired with a bottom doji, it is truly perfect!
1. Technical characteristics of bottom division.
1. Appearing during a downtrend.
2. Consisting of three candlesticks, the first is bearish, the second is a small bearish candle, a small bullish candle, or a doji, and the third is bullish.
3. The third bullish candle's body should be large, nearly fully recovering or engulfing the first bearish candle's body.
2. The technical meaning of bottom division.
The bottom division is a common high win-rate signal for trend reversal. This pattern indicates that after a significant drop, the bearish energy is almost fully released, and the price is unable to fall further. The bullish candle on the right indicates that bulls are starting to counterattack, intuitively reflecting the comparison of bullish and bearish forces, making the probability of structural reversal very high, and the market outlook is bullish!
The bottom division perfectly embodies the short-term trend reversal in Dow Theory.
The first bearish candle is lower than the previous low.
The second candlestick indicates that the coin price has stopped falling and is consolidating.
The third bullish candle is higher than the previous high.
Practical logic.
The first bearish candle is like a car driving on the road; the drop of the bearish candle is like the speed of the car, and the trading volume is like the power. The smaller the drop, the slower the speed; the smaller the volume, the less force there is to drop.
The second candlestick shows the entire process of a car making a sudden stop, halting, and turning around.
The third candlestick is a bullish candle, like the first bearish candle. The size of the bullish candle's increase and the trading volume represent speed and momentum. The larger the increase, the faster the speed; the larger the volume, the stronger the buying momentum.
Feedback in trends indicates that when the price drops to a certain extent, the bearish force weakens, and bulls take the opportunity to counterattack, reversing the trend. Therefore, traders can follow up and buy after the bottom division appears!
Special reminder:
When bottom division and ascending flags appear simultaneously, there is a very high probability of a rise in the market; this is also an important signal for identifying the end of the flag pattern. Strike while the iron is hot; tomorrow we will discuss ascending flags!
Direct trading tips (collection).
Six don'ts, four hold-ons:
Six don'ts:
1. Don't touch coins that are continuously falling and haven't stabilized at the 60-day line. Follow the trend; wait and see when the coin turns back.
2. Do not buy coins that rise sharply after good news. Good news often signals a selling point; coins that have already risen significantly might be set up for a trap by the main players.
3. If a coin rises too aggressively, avoid chasing it when it's far from the 5-day line. Coins that rise too quickly carry high risks, and chasing high prices can easily lead to being trapped.
4. Avoid coins that suddenly jump up at high levels; the risks are significant, and it may be the main players quietly distributing.
5. For coins with a turnover rate exceeding 30%, we should avoid them. A high turnover rate indicates fierce battles between bulls and bears; it's best to stay away from this volatile market.
6. Avoid coins that are struggling in a poor environment. Coins that are still being pushed in a bad market are likely to be tricks.
Four hold-ons:
1. If RSI is between 50 and 80, hold onto the coin. A higher RSI indicates that the coin still has momentum; holding can lead to more profits.
2. Do not rush to sell coins that have jumped up from a low position. A gap up indicates strong bullish momentum; see if it can continue rising. 3. For coins trending upward, hold tightly. Following the trend, the longer you hold a rising coin, the more you earn.
4. For coins with concentrated chips, do not sell easily. When chips are stacked together, the main players may still want to push the price higher, so waiting for a peak to sell is not too late.
Cryptocurrency trading insights: Trading requires following rules; it cannot be based on feelings.
Understanding the trends is much more reliable than guessing!
Three major perspectives, ninety-nine key points! Tips for trading that big players won't tell you.
In the cryptocurrency market, one day is like a year in the real world; this statement is not exaggerated. Many people want to catch this speeding train, but risk and profit coexist.
Sunny days often see messages in the background asking what to do if a coin drops today or whether to sell a coin tomorrow. I feel a panic and confusion facing the unpredictable cryptocurrency market.
Today, I will share some practical insights from three angles: news, technology, and mindset, which are very suitable for beginners who feel lost in the cryptocurrency market.
News Section.
. One must find ways to gather first-hand information to succeed; analyzing major consulting media is particularly important.
2. Most media are agents of large investors and are not reliable investment advisors.
3. Understanding the characteristics of different industries is essential for profit opportunities.
4. Buying against expert opinions can sometimes be a unique speculation method!
5. Before investing, make all necessary preparations. Familiarize yourself with financial knowledge and domestic and international economic and political dynamics. Detailed analysis of teams and practical applications is key.
6. Buy or sell when the news breaks; sell or buy when the news is confirmed.
7. You must research and judge the market yourself; do not change your resolution due to unverified rumors.
8. Teams with issues will have product problems; it's best to minimize involvement.
9. Any direct investment is a professional investment, and professional investment requires professional knowledge as a foundation.
10. Those who claim to predict accurately are mostly losers.
11. Incorrect information leads to losses; attempting to guess the psychology of big players and traders is the most futile behavior.
12. When buying, understand the relationship between the issuer's profit potential and the current market conditions.
13. This circle is small, but that doesn't mean there isn't a circle; knowing a few big players can be very helpful.
14. Do not change your original intention to buy or sell due to sudden news.
15. Good news being fully released is bad news, and bad news being fully released is good news.
16. Institutions operate with coded language; for example, an order of '232323' might indicate they are about to distribute, but each institution is different, so it is necessary to study them.
17. Don't join small secret groups; if you do, just bring your ears and brains.
18. White papers without specific content and a development team have an 80% chance of being scams.
19. Whether a project is open-source is crucial; generally, open-source projects will be uploaded to GitHub. If not, caution is advised.
2. Technical Section
20. Following the right coin means you've succeeded halfway.
21. The tricks of large investors are often unexpected, deceiving inexperienced retail investors to facilitate their own buying and selling. You must accurately analyze trading volume patterns.
22. The timing of buying is the most important part of virtual market investment.
23. A decline of more than one-third is a warning sign.
24. The three-step rise: bottoming -- breaking through -- soaring!
25. The index has updated for three consecutive days, but the trading volume has decreased each day; the market may not be good.
26. Those leading in the long term will likely experience significant declines afterwards, with a drop of more than 50%, and the chance of rebounding 30% is relatively high.
27. Retail investors being trapped by large investors is common, which is why diversifying investments is crucial.
28. The rise and fall of indexes are not random; they are much simpler than lottery patterns, and appropriate screenshot analysis is key!
29. Any coin that leads to an increase will also lead the decline.
30. Avoid excessive trading back and forth. When in doubt, do not act rashly; remain steady amidst changes.
31. A surge in trading volume with stable prices is a signal of nearing a peak; at this time, 'leaving is the best strategy.'
32. The longer it hovers at a low level, the greater the potential rise. There is a greater than 70% chance that it can rise by 30%.
33. To judge growth or decline, you must consider the gap with the trend of the times; policy is the biggest risk, and it is still necessary.
34. Trading volume is like a pulse; you can tell if it is sick.
35. Choosing to buy at the right time is far more important than merely selecting a coin.
36. Do not put all your financial resources into one asset.
37. Avoid thinking that low prices mean high potential for gains; once a reversal occurs, selling can become difficult, and declines can multiply. 38. Buying low-profit potential coins may be more cost-effective than buying slightly better profit potential coins. 39. Without substantial experience, never engage in long/short trades; it is common to get hurt badly.
40. Establishing long-term investment goals and principles is the primary issue.
41. Market fluctuations follow a track; if you master this track, you will surely win every battle.
42. The narrowing rise and declining trading volume are obvious signs approaching a peak.
43. Experience shows that technical factors usually have a shorter market duration, about one-third of that of fundamental factors. 44. Preventing being trapped at high prices is the most important lesson for beginners, so practicing at lower levels is key. 45. If it should rise but doesn't, you should be pessimistic; if it should fall but doesn't, you should be optimistic.
46. Fundamental analysis can tell you which coins have intrinsic value, while technical analysis tells you the best time to exploit them.
47. Funds in the market always flow towards the most favorable direction.
48. Low-priced coins tend to have larger fluctuations than high-priced ones.
49. Buy when you can, sell when you should, and stop when necessary. Safety first, stability above all; recklessness leads to losses, greed leads to poverty.
50. The short-term fluctuations in the market have no real correlation to long-term performance.
51. Understanding the 'Sunday Theory+' is important; many coins rise on this day.
52. Robots are still worth buying, as they react faster than the human brain.
53. The price fluctuations and wave changes in different exchanges can vary; choosing a good exchange is very necessary.
54. New coins are often the best choice for short-term trading.
55. It is best to allocate a combination of international large markets and altcoins.
56. Large coins tend to decline steadily, while altcoins are much more volatile with more opportunities.
57. During rapid stretches, try not to operate.
58. It is best not to go all in; half positions or keeping 1/3 of your chips is advisable for averaging down.
59. You must truly understand the operational status of the team or foundation. If necessary, discuss it with someone you think is the most naïve to get their opinion.
60. Do not buy too much of a hot coin, as hot coins often rise quickly and fall just as fast.
61. Do not put all your resources into one coin; try to diversify.
62. The trading volume can show the changes. When the trading volume starts to increase, it should be noted, either sell or trade.
63. Everything you hold will eventually have to be sold; not selling is foolish. The highest or lowest price during a market change often becomes a peak or trough; breaking past this point will either rocket or plummet.
65. Following trends is like boosting your wallet.
66. It is best to choose those with good prospects but not yet popular, as they are easier to profit from.
67. Experts generally formulate a plan, with each step clearly written out; the rest is about strictly following the requirements.
68. The basic routine of institutions: building positions, testing the market, rallying, consolidating, and distributing in five stages.
69. Sudden volume spikes typically indicate two possibilities: either the market maker is protecting the price, or institutions are buying; at this time, one should follow the trend.
70. Generally, after reaching a new high, there will be a washout; getting off the bus at this time may mean you'll miss the next one.
71. Making money off the market at 10 yuan is not impossible; luck is also key.
72. A significant pullback presents an opportunity to buy a little.
73. Do not overestimate the intelligence of big players; many operations are just for show.
74. Before making small profits, take it slow; do not use large funds.
75. Chasing high prices is risky; beginners should ignore this advice.
76. Newbies should never chase after rising prices; it's better to miss out than to rush in.
77. Be cautious with stocks that are traded only on one exchange and have a very small market cap.
78. Joining a free program that later charges various fees is generally considered a pyramid scheme; it is advisable not to join.
79. If it hasn't been listed yet and has already multiplied many times during the fundraising period, it is advisable not to participate.
80. Arbitrage is a low-risk, easy-money job.
Mindset Section.
81. Small profits often delay big opportunities; don't let small fluctuations confuse the overall direction.
82. At any time, the most trustworthy is oneself; it is crucial to walk your own path.
83. When in doubt, stop taking action; this indicates that the market is still unclear.
84. Being a step ahead can ensure victory.
85. There is no situation where prices only rise or only fall; opportunities always exist, and the key is the psychological price; regretting won’t help. 86. Build a strong body to prepare your heart for the shocks of big ups and downs.
87. The secret to buying and getting trapped or selling and seeing prices rise lies in the operations of the traders, as they continually study the psychology and behavior of retail investors.
88. Trading is about trading numbers; never establish a relationship with money. If you do, you will certainly lose.
89. Market changes happen very quickly; it is normal for bullish changes to occur within 10 minutes. Maintain a balanced mindset.
90. If you can't handle fear, you won't gain anything; courage, courage, still courage.
91. Patience in waiting for large-scale building positions to become true blue-chip stocks is the real mindset.
92. The psychology of wanting to make money quickly is a major taboo for participants in trading.
93. Remember that the power of compound interest is the greatest.
94. The definition of a 'retail investor' is someone who chases after rising prices and sells during declines, believing rumors, with an anxious mindset.
95. Listen less to tips and think more.
96. Do not use your financial resources to estimate the market; do not let profits or losses affect your resolution; in this industry, what you hold is just fluff.
97. You might be doing well in business, but that doesn't guarantee success in the cryptocurrency market.
98. Experience can cultivate inspiration, but inspiration should not solely rely on experience.
99. There is no free lunch; you should set a loss threshold that you can tolerate.
Learn to release the burdens in your heart, do not rejoice too much in profits, and do not be depressed by losses. Actively put down your phone and computer, reduce excessive attention to market trends, and face every trading challenge with a calm and determined mind.
