The crypto market is about 3,000 yuan, which is roughly 400 USDT!
Recommended Optimal Strategy: Contracts
Each time use 100 USDT to speculate on hot coins, and be sure to set profit-taking and stop-loss.
100 doubles to 200, 200 doubles to 400, 400 doubles to 800.
Remember no more than three times! Because the crypto market requires a bit of luck; each time you gamble like this, it’s easy to profit nine times and lose once!
If you conquer three levels with 100, then your principal will reach 1100 USDT!
At this time, I recommend using a triple strategy to play.
Engage in two types of trades daily: ultra-short trades and strategy trades. If opportunities arise, then enter trend trades.
Ultra-short trades are for quick strikes, typically at the 15-minute level.
Advantages: High returns.
Disadvantages: High risk.
Only trade high-level coins.
Second Type of Trade: Strategy Trade, using a small position.
For example, use 15 USDT for a 10x contract on a four-hour level.
Use your profits to save, and invest in Bitcoin regularly every week.
Third Type: Trend Trading
Medium to Long-term Trading: Once you have a clear target, go for it directly.
Advantages: High profits.
Find the right entry point.
Set a relatively high risk-reward ratio.
The madman unconsciously has been in the crypto circle for nearly ten years. From spot trading to contracts and then back to spot trading, the experience has been quite rich. Today I will share with everyone about contracts. When I first got in touch, I knew nothing, only how to open and close positions, without setting stop-loss or having any logic, just trading based on feelings. When luck was good, my account soared; when it was bad, I could only top up USDT, often with prices unchanged but money gone.
As a result of various studies, I understand more and more, but the more I understand, the more confused I become. With various indicators and data, I can no longer distinguish which one to rely on for judgment. After a long period of time, one day I suddenly realized.
A hundred-fold contract may seem risky at first glance, but it is actually my most profitable and highest win-rate investment type. Initially, I was confused by this, but later I gradually understood.
This is mainly due to my unintentional adherence to a set of clear trading rules:
1. Total Position Setting: The funds I use for contract trading are always fixed, for example, the funds of one account are always 300 USDT. This means my maximum loss is 300 USDT, but once the market trends favorably, I have the opportunity to gain substantial profits. This setting allows me to maintain controllable risks while seizing profit opportunities from significant market movements.
2. Initial Investment Amount: My initial trading amount is always very low, based on the philosophy of stock trading master Livermore. He believed that if the start is correct, it is best to start making a profit. Therefore, my initial testing amount is always small; even if the total position is 300 USDT, the initial amount is often just a single or double-digit USDT. This ensures that I am in a profitable state from the very beginning of trading.
3. Increasing Position Strategy: I only increase my position when there is profit and a clear trend. This strategy allows me to further amplify profits when market conditions are favorable while avoiding increasing risks in an unfavorable market environment.
4. Stop-loss Setting: I will adjust stop-loss positions in a timely manner based on market conditions to ensure I do not lose principal. This is a crucial principle I adhere to in trading, helping me remain calm during market fluctuations and avoid emotional trading decisions.
These four rules have unconsciously made me strictly adhere to trading discipline, and the logic behind them also applies to ordinary low-leverage contracts, as the principles are the same. Of course, before starting, I still want to remind novice players:
Contract trading is not child's play, especially for those who think there are certain contract skills or masters who can predict prices. Do not blindly believe that simply listening to them will lead to great profits; this kind of thinking should not exist. I certainly do not have any secret skills that will make you rich at first glance.
In the crypto world, the trading strategy is your 'secret weapon.' The following mnemonics are the crystallization of practical experience; quickly save them!
Entry Method: Test the waters first; prepare to enter steadily, rejecting impulsiveness.
Horizontal Trading: Low-level horizontal trading creates new lows; heavy positions can be bought at the bottom; high-level horizontal trading leads to high surges; decisively sell without hesitation.
Fluctuation: Sell on surge, enter on plunge; observe during consolidation, reduce trading. Consolidation means using sideways to avoid falling, hold tight, and the rise may come in the next second; during rapid rises, beware of sharp drops, ready to secure profits; during slow declines, it is a good time to gradually average down.
Trading Timing: Don't chase highs, don't sell; don't plunge, don't buy; during consolidation, don't trade. Buy on down candles, sell on up candles; reverse operations can stand out. Buy on significant morning dips, sell on significant morning rises; don't chase highs in the afternoon, buy on afternoon dips the next day; don't cut losses on morning dips; if the price doesn't rise or fall, take a break: if trapped, average down to seek breakeven; excessive greed is discouraged.
Risk Awareness: Calm lake surfaces can lead to high waves; there may be big waves ahead; after a big surge, there must be a pullback. In a rising trend, watch for support; in a falling trend, watch for resistance. Full investment is a big taboo; stubbornness is not feasible: face the unpredictable and know when to stop, seizing the opportunity to enter and exit. Trading crypto is essentially about managing your mindset; greed and fear are the greatest enemies: be cautious about chasing highs and killing lows; a calm mind is freedom.
In addition to mnemonics, I have also organized several super practical trading methods that can benefit both novice traders and experienced players.
Oscillation Trading Method: Most markets are in a state of oscillation. Utilizing high sell and low buy within the box is the foundation for stable profits. Use BOLL indicators + and box theory +, and combine technical indicators with chart patterns to identify resistance and support accurately. Adhere to short-term trading principles, and avoid greed.
Breakthrough Trading Method: After a long period of consolidation, the market will choose a direction; entering after the breakout can yield quick profits. However, it requires precise judgment of the breakout and maintaining a steady mindset, avoiding greed and fear.
Unilateral Trend Trading Method: After the market breaks out of a consolidation phase, it will form an unilateral trend. Trading in the direction of the trend is key to profiting. Enter trades during pullbacks or rebounds, referencing K-lines, moving averages, BOLL, trend lines, etc. Skillful application will allow smooth execution.
Resistance and Support Trading Method: When the market encounters key resistance and support levels, it often faces obstacles or gains support. Entering trades at this time is a common strategy. Use trend lines, moving averages, Bollinger Bands, parabolic indicators, etc., to accurately judge resistance and support levels.
Retracement and Rebound Trading Method: After significant rises or falls, there will be a temporary retracement or rebound, seize the opportunity to profit easily. The main basis is to judge according to K-line patterns, and a good market sense can help you accurately grasp high and low points.
Time Period Trading Method: The morning and afternoon sessions have small fluctuations, suitable for conservative investors; although the time for profits is long, the trends are easy to grasp. The evening and late-night sessions have large fluctuations, suitable for aggressive investors; they can profit quickly but with high difficulty, requiring strict technical and judgment capabilities.
Follow the public account [Madman Talks Trends] and you will definitely gain something. Helping others is like helping oneself; regardless of how the market changes, I hope we can continue to move forward together, and ten years later we can still look back on the crypto world with a smile.
Today, the madman shares another practical skill; just relying on this trick has allowed me to achieve a return rate of over seventy percent. It is worth repeated study and observation; after watching, save it: M Top + W Bottom, Spreading Triangle * and Model.
Double Top (M Top)
As shown in the figure, the two bull markets in the past 18 years of Bitcoin both ended with M Top patterns. When the second peak rises, showing obvious weakening of strength, be cautious as it may form an M Top, requiring timely selling.
2. Double Bottom (W Bottom)
Generally speaking, if the second low point of the W bottom is lower than the first low point, it may create a breaking atmosphere, allowing some bottom-fishers to exit while the chips are relatively concentrated, facilitating the main force to pull the market. If the second bottom is higher than the first bottom, it indicates strong bullish momentum, making this W bottom more accurate. Generally, the trading volume at the second low point is small, and the bottom is relatively rounded. This wave of ADA formed a very standard bullish W bottom.
3. Double Top + (Triple Head)
The M Top has one more peak, and the wider it is, the stronger it becomes. Usually after breaking the neckline, there will be a rebound before accelerating downwards. Typically, it is only after breaking the neckline that one can determine it is a triple top.
4. Triple Bottom +
Triple Bottom confirmation is the same; it must break the neckline to be considered valid.
5. The Last Frenzy of a Bull Market (Spreading Triangle)
A spreading triangle is a product of significant emotional fluctuations and only appears in impulsive markets. Breaking below the support line does not even require volume confirmation. For example, after a significant rise in ETC a few days ago, it formed a spreading triangle today, which is a dangerous signal.
6. Rising Wedge +: Represents a gradual weakening of upward momentum, requiring caution. Once the lower channel is broken, a significant drop will follow.
6. Descending Wedge +
Lastly, let's talk about how to set stop-loss and take-profit levels in trading!
Determine Investment Goals: Before entering any trade, clarify your investment goals and risk tolerance, which will help you set reasonable expectations.
Stop-loss and take-profit points.
2. Technical Analysis: Use technical analysis tools, such as support and resistance levels, moving averages, chart patterns, etc., to assist in setting stop-loss and take-profit points.
3. Capital Management: Based on your capital situation, decide the amount of capital for each trade. It is advisable not to exceed 1-2% of your total capital for each trade.
4. Dynamic Adjustment: Market conditions are constantly changing, so stop-loss and take-profit points should also be dynamically adjusted based on market changes.
5. Psychological Preparation: Be mentally prepared to accept stop-loss and take-profit; do not let temporary emotions affect your trading decisions.
Professional Strategy Suggestions
1. Proportional Stop-loss Method: Based on your investment goals and risk tolerance, set a loss percentage, such as 2% or 5%. When losses reach this percentage, stop-loss will trigger automatically.
2. Time-based Take-profit Method: Set a reasonable time frame, such as one week or one month. If the expected profit is not reached within this time frame, consider closing the position.
3. Target Price Take-profit Method: Based on market analysis, set a reasonable target price. When the price reaches or exceeds this target price, trigger the take-profit.
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