Having been in the cryptocurrency world for 10 years, when I first entered, I lost a lot. Along the way, I experienced both losses and gains, and now I rely on the cryptocurrency world to support my family.
I have summarized my experiences and shared them with everyone, hoping it helps you. As long as you can do it, it will be hard to incur losses. For reference only!
1. If the market crashes and the coins you hold haven't dropped much, it indicates that there is a strong player supporting the price. Such coins must be held onto, as there will definitely be profits in the future!
2. Remember when buying and selling as a newbie, to pay attention to macro information. For short-term trades, focus on the 5-day moving average; if the price is above it, hold onto it, and if it breaks, run quickly. For mid-term, watch the 20-day moving average with the same principle. Avoid fancy tactics; stick to your decisions!
3. If you bought a coin that hasn't moved for three days, quickly switch to another. If it drops after buying, and you lose 5%, don't hesitate to cut losses immediately!
4. If a coin is cut in half from the top of a mountain and then continues to kneel for nine days, it means it has fallen to the bottom, and a rebound is just around the corner. At this time, decisively get on board!
5. When trading coins, chase the leaders. The one that rises the fastest is it, and the one that is relatively resistant to declines is also it. Don't be afraid to buy because the price is high, and don't catch falling knives because it has dropped significantly; you must chase the leader and trade on the rise and fall!
How to turn 10,000 into 10 million at the start of a bull market—The technical analysis guide series in the cryptocurrency world that you don't know about.
The behavior of truly excellent investors should be personalized and based on their own investment philosophies.
Just as the invention of the steam engine brought great changes to human production and life, Dow Theory has opened a new chapter in human investment, which is why it is honored as the founding ancestor of the five major technical analysis systems.
At this point, you might wonder, 'Who founded Dow Theory? Who is Dow?' Charles Dow is the founder of the Dow Jones Financial News and the founding editor of The Wall Street Journal.
He once worked on the trading floor of a securities exchange for several years. His personality is cautious, restrained, calm, conservative, and possesses strong understanding and self-discipline. He has profound financial knowledge and exceptional judgment. The excellence of such individuals is always objective and calm; Dow's life had almost no moments of anger, which is an intrinsic factor in establishing groundbreaking theories.
The articles published by Dow were organized into various chapters of Dow Theory by his assistant and successor, William Peter Hamilton. Dow Theory objectively describes the immutable changes in financial markets, and this change has scientific reference regardless of which financial market it is placed in.
Have you ever noticed a very interesting phenomenon? There are two cryptocurrency worlds in existence. One is the real cryptocurrency world, gradually revealing a clear image amid chaotic misunderstandings; the other is the fictional cryptocurrency world, the one depicted by sensational media, the one in the minds of profit-driven authorities, the one filled with errors and dramatic commentary, where characters living in various rumors are not more real than any old cliché.
Those distorted images, alive in various sensational rumors, are no more real than the neighbors you have never truly seen.
Here, I want to tell you a hidden truth, which is the essence revealed in Dow Theory: 'No one can manipulate the main trend; the main fluctuations in the market follow a certain pattern.'
We can only objectively identify and follow the trajectory of market development rather than fantasize that the trend will conform to our own imagination. Although some claim the market is manipulated, this remains an illusion. Here you receive the second hidden code 'wealth.'
In the world, as long as you understand the rules, you have found the key to opening the treasure trove. The Western Dow Theory believes that a price is formed by the transactions between buyers and sellers, and the development of the market occurs within support and resistance, causing the market to always be in a cycle of bull and bear markets. Both bull and bear markets are divided into three periods, and index movements are composed of three overlapping movements, leading to ever-changing prices during the three periods of bull and bear markets.
The main ideas of Dow Theory can be divided into two parts: one part summarizes and describes the historical rules of the market, while the other part is the methodological thought for identifying these rules. The former is centered around the description of bull and bear market cycles and the principle of three movements, showcasing the overall operation model of the market. The specific method for self-identification is based on Dow's definitions of trends and the principle of three movements, including the breakdown of various trends and self-identification of their relative positions. The latter further allows for mutual identification of different local relative positions during the same period, and the specific method of mutual identification is based on the principle of mutual verification, enabling a three-dimensional identification of which rules the market conditions at that time conform to the Dow model.
A guide for newbies on how to trade cryptocurrencies without losing money.
I was once a newbie too, rushing headlong into the cryptocurrency world, chasing highs and cutting losses. As a result, the money I painstakingly earned through courage and luck was ultimately lost due to weak skills.
I have also followed so-called cryptocurrency teachers to do contracts and learn technical analysis. Following the teacher's lead on very critical points to short Bitcoin contracts almost led to total annihilation! I eventually realized that choosing the wrong guide and not systematically learning spot trading led to many unnecessary detours and losses! Without solid professional skills and understanding of cryptocurrency rules, it is very difficult to achieve sustained and stable profits through trading.
After many twists and turns, I finally chose to systematically study the Natural Trading Theory and also studied data analysis in the cryptocurrency world, combining volume and price relationship analysis, and finally established a three-dimensional trading system suitable for myself, which is continuously improving and being practiced.
Before the arrival of a major bull market, in order to prevent more new entrants from repeating the mistakes I made, and to seize the rare opportunity of a bull market, I have specially compiled twelve guiding principles for new traders in cryptocurrency, hoping to help newbies grasp some trading rules and principles, avoid unnecessary detours and traps, and accelerate the achievement of stable profits.
Back to the point, I urge newbie traders to carefully read, comprehend, and practice the following trading principles. Feel free to DM me on Twitter for discussions.
1. Only trade spot, not contracts.
Spot trading is a steady approach. Contract liquidation results in total loss. Newbies entering the cryptocurrency world always dream of getting rich overnight, but with impulsive mindsets and without professional skills or guidance, they tend to follow others who leverage contracts to make quick money, resulting in fast profits but equally fast losses. In the end, they usually lose their principal or even go bankrupt, severely impacting their confidence. There are frequent news reports of financial experts who, due to high leverage in contracts, end up deep in debt after liquidation and commit suicide. Contracts are a zero-sum game, requiring more professional skills and good mindset compared to spot trading. If newbies cannot even do spot trading well, they will not win in the fierce competition of contract trading and should stay away from contract trading, focusing on spot trading instead.
2. Invest spare funds, do not trade cryptocurrencies with borrowed money.
In trading cryptocurrencies, three parts are skill, seven parts are mindset! Newbie, if you use your spare money to trade cryptocurrencies, and are temporarily trapped or lose a small amount of funds, maintaining a calm mindset will not affect subsequent trading opportunities, ultimately allowing you to grasp good trading opportunities. Conversely, if you trade using borrowed funds, your mental state will be highly tense, and you may become impatient and impulsive. Trading with such a poor mindset makes it difficult to sustain profits, even if you occasionally encounter good coins and profits, ultimately you may still face disaster.
3. The principle of following the big trend and going against the small trend.
Following the big trend solves the problem of trading direction; going against the small trend solves the problem of entry points.
We all know that swimming downstream is easier and faster, while swimming upstream is very strenuous, even leading to regression. Trading cryptocurrency is like swimming; you need to go with the flow. When the market's medium to long-term trend is upward, buying mainstream coins at dips will yield profits, and even chasing highs will also be profitable. Conversely, if the medium to long-term trend of the market is downward, even buying at dips is considered counter-trend trading. If you cannot withdraw in time, you will ultimately incur significant losses or get trapped.
Therefore, trading cryptocurrencies must follow the medium to long-term trend of the market. When the market is in a bullish upward cycle, be bold in heavily investing in the trend; when the market is in a bearish downward cycle, learn to rest with no position. This is the principle of following the big trend. So, what is the principle of going against the small trend? When the larger trend is upward, be bold in looking for a good entry point to buy on dips during the short-term downward adjustment of the coin.
4. The principle of entering from the right side and exiting from the left side.
Buying coins can be divided into left-side buying and right-side buying, and profit-taking can also be divided into left-side selling and right-side selling.
As shown in the diagram, during the price decline, choose to enter the market on the left side in batches, for example, buying at points A, B, and C, which may buy at the midpoint or at the lowest point. The left-side buying method is relatively aggressive and carries higher risk, making it unsuitable for newbies.
Point D is the entry point for price confirmation after breaking through the neck line of the W-bottom reversal structure, which belongs to the right-side buying method. Although it does not buy at the lowest price, it is relatively safer and more certain, suitable for newbies.
After entering the market on the left side to buy coins, as the coin price rises, you should sell in batches; sell small on small rises and large on large rises, locking in profits. As shown in the diagram, selling at point E is considered a left-side selling method, while selling at point F after the coin price breaks below the upward trend line is considered a right-side selling method. Newbies are advised to prioritize the left-side selling method as it is comparatively safer and maximizes profits.
The right-side buying and left-side selling method, while not consuming the entire fish from head to tail, allows you to enjoy the most delectable part of the fish's body, accumulating small victories into a larger one.
5. The principle of trading new coins instead of old ones.
Coins in exchanges are divided into new coins, newly launched coins, and old coins. Newly listed coins are called new coins, those listed for a few months are called newly launched coins, and those listed for more than six months are old coins. Traders with larger capital should prioritize mainstream coins like Bitcoin, Ethereum, and SOL. Traders with smaller capital, including newbies, should focus on opportunities for profit in new and newly launched coins.
Why should you trade new coins instead of old ones? This is because, unless there is a new technological breakthrough or a new narrative driving it, old coins will not see new speculation opportunities. Investors are already well aware of those coins, and there are no fresh stories to tell. Moreover, they have already been speculated upon multiple rounds, and the number of trapped positions is quite serious, making it difficult for main institutions to raise prices and attract market funds.
New coins and newly launched coins with new technologies, new tracks, new narratives, and new token models easily attract investor attention. Once new coins and newly launched coins complete their bottom formation and break upwards, there are relatively few trapped positions, and the main institutions can smoothly lift prices. Once they break through historical highs, the space for imagination and price increases becomes larger, thus providing greater opportunities and profit margins.
Based on my long-term observation of new coins being listed on exchanges, I have summarized the basic operating model of the six stages that new coins generally follow.
1) In the days following the launch, there is a spike and then a pullback.
2) Continuous decline and bottom-picking are severely ignored;
3) Continuing to build a base for several days, starting to warm up.
4) Gradual rise and breakout attract attention;
5) Coin prices hit new highs repeatedly, and the market goes crazy;
6) Institutions distribute chips, chaos ensues.
Some newbies choose to chase high prices immediately when new coins are listed on exchanges, which carries a high risk of being trapped and incurring losses. Buying when new coins successfully break upwards after completing their bottoming phase is a more certain and safe right-side buying method, more suitable for newbies and conservative investors. I personally also choose the right-side buying method for coins.
The above is the first part of the guiding principles for newbies in cryptocurrency trading. Next, I will continue to work hard to write the second part of the content, which will be published on Twitter. The outline is as follows.
Guidelines for newbies in cryptocurrency trading (Part Two) Outline:
7. The principle of entering the market with half a position.
8. The principle of buying at five major entry points.
9. Set stop losses to protect principal.
10. The principle of not trading frequently or impulsively.
11. The principle of avoiding short-term trading in swing trading.
12. Adhere to the principle of continuous learning and integrating into excellent teams.
As someone with a decade of experience in the digital currency field, having weathered storms and crossed bull and bear markets, I stand firm in the ever-changing market, guided solely by these five principles!
These are the distillation and refinement of my years of practical experience! Please take your time to appreciate, check for any gaps, and I believe it will greatly benefit you!
In the world of cryptocurrencies, there are countless paths to wealth, and the key lies in discovering and adhering to your unique profit secrets. May the following wisdom and strategies accelerate your integration into the cryptocurrency world and unlock your exclusive wealth code!
Next, I will share the basic concepts of the cryptocurrency trading system, market analysis, investment strategies, risk management, technical tools, ecosystem applications, and regulatory policies.
I hope to provide everyone with a comprehensive overview of cryptocurrency knowledge, and I hope traders can find suitable methods to learn from.
Overview of the cryptocurrency trading system:
1. Basic concepts of the cryptocurrency world.
2. Market analysis in the cryptocurrency world.
3. Investment strategies in the cryptocurrency world.
Four. Risk management in the cryptocurrency world.
Five: Technical tools in the cryptocurrency world.
Six: Ecosystem applications in the cryptocurrency world.
Seven: Regulatory policies in the cryptocurrency world.
The truth about contract investment in the cryptocurrency world: how to find a balance between risk and opportunity.
There is a saying in the cryptocurrency world: 'Become a contract, lose as a contract!'
The meaning of this sentence is very straightforward and full of warnings: Contract trading is a field in the cryptocurrency world that is filled with huge risks and offers the greatest opportunities.
In fact, the cryptocurrency world is indeed a place where the poor can create myths, and it has the potential to make many people rich overnight. However, the accompanying risk is extremely high. Especially in contract trading, a single misstep can bring you back to square one overnight, or even face the danger of liquidation.
In the contract market, you can either make a fortune or go bankrupt. How to survive in such a high-risk market and even achieve wealth appreciation is a core skill that every contract trader must master. For those investors who want to get rich in the cryptocurrency world, the following pieces of advice are crucial, and you must keep them in mind.
Suggestion 1: Low position and low leverage operation.
One of the most important principles of contract trading is 'survive.' How much money you make is not the most important; surviving gives you the opportunity to earn more money.
Especially in the highly volatile cryptocurrency market, your capital management is crucial. If you can maintain a lower position and leverage, you can reduce the risk of liquidation during major fluctuations, ensuring your funds can withstand the market's tests.
For newbies, low position and low leverage operation are very important. Suppose you have 10,000 USDT in your account, you can moderately increase your position, but avoid putting all your funds in. For investors with account balances below 1,000 USDT, low position and low leverage are even more crucial safety measures. If your position is too large, even a slight market fluctuation could put you at risk of liquidation.
For most investors, in the funding range between 1,000 USDT and 10,000 USDT, the key to contract trading is technology and discipline, especially mindset. You must always remain calm, avoid emotional trading; otherwise, even with good technology, it is difficult to cope with market fluctuations.
The simplest truth is that the core meaning of low position and low leverage is to allow you to 'survive' the market's storms. Only by surviving can you have the opportunity to see future profits.
Suggestion 2: Trading frequency must be reduced.
High trading frequency is a fatal flaw for many investors. Many blindly chase highs and cut losses in the market, opening and closing positions continuously, ultimately losing the opportunity to profit. In fact, reducing trading frequency is a very important piece of advice for any cryptocurrency investor.
As a long-term investor in the cryptocurrency world, I advise everyone: reduce trading frequency, control the number of trades each time, preferably no more than twice a day.
Why is that? There are several obvious benefits:
Having more time to analyze the market. After reducing trading frequency, you will have more time to study market trends and conduct more comprehensive technical analysis. Through in-depth analysis, you can better grasp every market fluctuation.
Increase the success rate. According to statistics, many investors often have the highest accuracy on their first trade. As the number of trades increases, the chances of making mistakes also gradually increase. Therefore, reducing the number of trades can avoid losses caused by frequent operations.
Reduce emotional interference. Frequent trading can easily put you in an emotional state. Each fluctuation can provoke impulsive thoughts, leading to wrong decisions. Reducing trading frequency helps control emotions and avoids making erroneous judgments due to emotional fluctuations.
Suggestion 3: Avoid passionate and emotional trading.
Passionate and emotional trading are the two main causes of failure for cryptocurrency investors. Especially in contract trading, once investors lose their cool, they easily make wrong decisions, leading to liquidation.
In the cryptocurrency world, many investors cannot control their emotions when facing market fluctuations. For example, when the market shows a downward trend, some investors unwilling to incur losses stubbornly hold onto their positions, trading against the trend. Even when they know the situation is unfavorable, they insist on their views until their account funds are completely depleted and ultimately get forcibly liquidated.
Such emotional trading often comes with a strong sense of 'hope.' Many people hold on tightly to the last shred of hope, expecting the market to reverse, only to end up facing liquidation. Emotional trading is not only a neglect of technical skills but also a blind adherence to market trends.
In contract trading, the consequences of losing control of emotions are extremely severe. Regardless of market fluctuations, the most important thing is to stay calm and clarify your operational logic and goals.
Suggestion 4: The risks of small coins are extremely high; they are not recommended.
For contract traders, trading small coins carries significant risks. If operations are not handled properly, it may lead to total loss of funds. While small coins often have larger price increases than large coins, they are also highly volatile. Especially in the absence of strong technical support and market recognition, many investors face substantial risks once they enter.
Even if you can get 10 trades correct, one wrong operation can wipe out all previous gains. The market for small coins is usually quite unstable; if the amount of funds entering is insufficient, price fluctuations will be extremely violent, making it very difficult to manage risk.
Therefore, as a contract investor, I personally do not recommend trading small coins. You can pay attention to some coins with technical support and market prospects, but do not blindly follow small coin operations. After all, stable operations are far more important than blindly chasing highs and cutting losses.
In the sea of knowledge, diligence is the path; in the sea of learning, hard work is the boat. You will definitely gain something. Helping others is like helping yourself. I am Sunny, follow me, and you will catch both fish and opportunities! I share cryptocurrency trading insights every day!