Hello everyone, I am Mr. Zhuang, focusing on crypto for over a decade. If you are also a tech enthusiast and are dedicated to researching operational techniques.
First, let's talk about capital management. Never invest all your money at once. I prefer to operate in batches, so even if I lose, it won't be too terrible. I've set a rule for myself: once I lose to a certain extent, I decisively withdraw, regardless of the market situation. This way, even if I lose several times in a row, it won't cause serious damage, but if I make a profit, the returns can be substantial. Even if I'm stuck, I can maintain my mindset.
Following the market trend is definitely the right move. When the market is falling, don't keep thinking about bottom fishing; it's unrealistic. When the market rises and pulls back, that's the right opportunity. At that time, buying low is much safer than stubbornly trying to catch the bottom.
Choosing coins requires insight. Those coins that suddenly surge, whether mainstream or altcoins, should be approached with caution. A rapid rise often leads to a sharp pullback, making it easy to get trapped.
In terms of technical indicators, I often use MACD+. When the DIF line and the DEA line cross below the zero axis and then break above it, that is a buy signal. If they cross above the zero axis and then move downward, it’s time to reduce your position. Don’t easily attempt averaging down. If you lose, don't try to average down; many people end up losing more and losing everything. Remember, losses should be cut, and profits can be added.
Trading volume is also critical. When prices break through at a low level, if the trading volume increases, it could be a great opportunity.
The most critical thing is to follow the trend and seize the trend. Combine daily, weekly, and monthly lines for comprehensive judgment; when a line turns upward, you will know how to operate.
In short, trading coins comes with risks and opportunities. I hope my experience can help everyone, but I still want to remind you to invest cautiously!
The basic principles of Dow Theory* combined with the actual situation in the crypto world can be summarized in six points:
First, average prices encompass and digest all factors. Fundamentals, policies, news, and capital can all affect supply and demand, and all of this will be reflected on the chart, with the market ultimately digesting and absorbing through price changes.
Second, the market has three types of trends. Dow classified trends into three categories: major trends, necessary trends, and temporary trends.
Major trends are like the tides of the sea, belonging to long-term trends, similar to the cyclical changes of the four seasons, where bulls can circulate infinitely.
Minor trends are like waves in the tide, representing pullbacks in the major trend, usually retreating to the three Fibonacci + important levels of 38%, 50%, and 62%. Temporary trends are ripples, which refer to subtle fluctuations that have high uncertainty and change rapidly.
Third, the major trend can be divided into three stages. The first stage is the accumulation phase, similar to yin accumulating yang. It refers to the market reaching its lowest point. Although everyone is bearish, it has already dropped to a point where it cannot drop further. The main players begin to accumulate gradually at this time.
The second stage is the bull market attack phase, where good news begins to emerge, and most retail investors with some technical knowledge gradually enter the market, with prices starting to rise steadily.
The third stage is the climax sprint, when major media start to flood with good news, boldly predicting the continued rise in prices. Retail investors actively buy in, no one wants to sell, all fearing to miss this once-in-a-lifetime opportunity to make money, but in reality, the main players who bought at the bottom have already started to sell.
Fourth, various average prices must mutually validate each other. For example, the joint increase of Bitcoin and mainstream coins must exceed the peak of the previous medium trend to be considered the arrival of a large-scale bull market! Similarly, if the joint decrease of Bitcoin and mainstream coins breaks below the neckline of the high-level fluctuation phase in the bull market trend.
Fifth, trading volume must validate trends. Dow believed that volume ranks second in technical analysis. When prices move along with the major trend, trading volume should also increase accordingly.
Sixth, only after a clear and indisputable reversal signal occurs can we determine that an established trend has ended. A major trend has inertia and generally continues to move along the main direction for a while, so we must wait for the trend to confirm reversal, such as a head and shoulders pattern + confirmation of breaking below the neckline to be considered a trend reversal.
The Dow Theory is a macro technical analysis system aimed at capturing the most significant segments of important market movements in actual trading, which is the most succulent part of the fish belly.
Its advantage lies in successfully determining the major bull and bear trends, but its disadvantage is also quite obvious; signals are usually delayed, and generally, you will miss out on 20%-25% of profit space.
Sharing insights on trading coins:
1: Regularly invest in mainstream coins and leading coins. Regular investment is better than investing all at once, as full investment has a higher chance of making a profit. If you invest everything at once and the price drops later, it becomes difficult to buy more, and you can't stock up on coins when prices are low. This is particularly frustrating as you miss the opportunity to lower your costs. Even in a bull market, your returns will be significantly less.
2. Improve the ability to earn money outside the market.
In the market, mainly buy coins and accumulate them. If you want to hold onto coins, you must also improve your ability to make money outside the market. Your ability to earn money depends on the work you do. If you have a lot of time, invest more in yourself, learn more skills, and follow me on Twitter as a KOL to turn traffic into cash.
3. Invest more in areas you are familiar with.
Invest more in areas you are familiar with, as this allows you to better control risks. Investing in things you don't understand may lead to greater losses. Increasing cash flow by investing in areas you are familiar with allows you to gain more profits, so you won't have to sell your valuable coins due to price drops.
4. Deeply study the skills of speculative trading.
Familiarize yourself with the historical trajectory of hundred-fold coins. You need to establish your own profitable trading strategy and continuously optimize your coin selection and timing thinking in practice.
Revealing little tips for trading coins:
1. Invest with spare money; avoid borrowing money to trade coins - invest money + invest energy.
2. Strictly filter valuable coins and create reasonable funding allocation plans that align with actual conditions -- Sunny Investment Strategy +.
3. Averaging down -- it's normal to experience pullbacks after entering the market, so allocate funds reasonably and enter in batches.
4. Reject full investment; rationally allocate your positions. Don't put all your eggs in one basket to effectively reduce risks.
Keep an eye on all directions - pay attention to the latest news in finance and economics. Knowing early, understanding early, and making money early.
6. Think in reverse; do not oppose the market or the operators. Go with the flow and act according to the trend.
7. Open contracts, don't fill your positions completely, use a leverage of 5 times or less, avoid using 100 times leverage lightly, and don't seek to get rich overnight; seek stable profits instead.
8. Manage your income well -- managing your positions is more important than anything else. If you are unsure, don't operate easily. Not operating means no risk and hence no loss. Take time to look at your assets often, see if they are being managed and if the management is reasonable.
9. The bottom is in your mind, and the top is in your mind. Don't be afraid, as the circle will only help you grow. Your mindset is more important than your operations. Remember the big methods in trading; you won't worry about not making money!
Investment is not a competitive game but a personal life practice.
In fact, there is another saying: every penny you earn is a realization of your understanding of this world.
Spend an evening organizing six iron rules for trading coins. There isn't much content, but it's packed with practical advice. If you don't plan to leave the crypto world in the next three years, these six rules will be a great help to you!
#币安Alpha上新
$BTC
