In the ever-changing world of cryptocurrency, countless individuals flock here with dreams of wealth; however, very few can truly achieve financial freedom. If you also plan to dive into trading cryptocurrencies, you must carefully study the following content as it may significantly impact your investment journey.
In the trading field, no one succeeds casually. To gain a foothold, one must put in the effort. Fundamental knowledge is the foundation, news analysis is supportive, and technical indicator research is crucial. If one does not conduct in-depth market research and plan funds reasonably, invested capital is likely to go to waste. In reality, many retail investors rush into the cryptocurrency market filled with hope, only to leave disheartened.
Among many technical indicators, those like MACD divergence, KDJ overbought/oversold, support and resistance levels, etc., have lasting value. While they cannot guarantee that investors will make profits without losses, they can guide investors in a complex market.
In the cryptocurrency world, there is a well-regarded investment method called the rolling position method, which many believe is key to wealth growth. Some say that when you have 1 million in capital, life will be different. For instance, in spot trading, a 20% increase means 200,000, which is an income that many people struggle to achieve in a year. However, investments should not aim too high; do not always fantasize about earning tens of millions or even billions overnight, but start from reality. In trading, learn to judge the size of opportunities; one cannot always be lightly invested, nor can one always be heavily invested. It is common to participate with smaller positions, and once a big opportunity arises, to go all-in.
However, the rolling position method is not applicable at all times; it can only demonstrate its power at specific moments. For example, when the market has been trading sideways for a long time and volatility has dropped to a new low, facing a directional choice; when a significant drop follows a large rise in a bull market, it is a good time to buy the dip; and when key weekly resistance or support levels are broken. In other situations, it may be advisable to forgo other opportunities.
So, how should the rolling position be operated specifically? One method is to add to positions during floating profits. When an investment is already profitable, one can consider increasing the position. However, it is important to note that adding to positions should ensure that the cost is lowered; otherwise, risk cannot be effectively controlled. One should not blindly increase positions once profits are made; it is essential to find the right timing. Another method is the base position + trading rolling position, which involves dividing the funds into several portions, keeping one portion as the base position, while the rest is used for high selling and low buying operations. The specific fund allocation ratio can be decided based on personal preferences and capital amount.
However, it is essential to remind that investing in cryptocurrencies carries extremely high risks, and the market situation is complex and changeable. No method can guarantee absolute ‘profit without loss.’ When using investment strategies like the rolling position method, one must carefully assess risks and manage them well. At the same time, one should always pay attention to market dynamics and continuously learn and improve investment abilities.
In cryptocurrency investing, besides the rolling position method, are you also interested in other investment techniques? Or have you encountered any issues during actual operations? Feel free to share with me at any time.
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