Last year, I played with 200,000 and now it’s 20 million, easily achieving a hundredfold profit (suitable for everyone). This method I still use today is highly effective and very stable. You don't have to worry about whether you can learn it; if I can seize this opportunity, so can you. I'm not a god, just an ordinary person. The only difference between others and me is that they overlooked this method. If you can learn this method and pay attention to it in future trading, it can help you earn an additional 3 to 10 points in profit daily. If you find my sharing useful, please like and save, or you can message me!
First, I advise newcomers and old ‘leeks’ in the cryptocurrency market to avoid blindly entering. Firstly, it’s necessary to understand the basic knowledge of digital currencies.
1. Trading time is unlimited, meaning true 7*24 hours of trading without the concept of a market close. This allows investors to trade at their convenience, being relatively flexible. However, this also poses a downside, as it requires professional investors to dedicate significant time to monitor price trends and interpret market news.
2. Trading rules allow for spot trading, buying high and selling low to profit from price differences, or using contracts with leverage for long positions. This is relatively flexible, but to make money, high technical support is needed.
3. Trading fees: Any investment transaction incurs fees charged by the platform. Digital currency trading also incurs fees, and due to leverage, these fees can be relatively high. Different platforms have different contract specifications.
4. The T+0 trading model allows for trading at any time without strict limitations on trading time.
5. There are no limits on price fluctuations; Shenghui believes that the absence of restrictions can lead to high returns but also high and uncontrollable risks. When market news triggers, there may be phenomena of skyrocketing or plummeting prices. Whether one can seize the opportunity for profit at that moment also depends on technical skills.
6. The coins in your wallet can be withdrawn to your own wallet at any time without time restrictions and can be operated at any time without fees.
Moreover, before engaging in formal trading, it’s best to master the following four points:
1. Learn to read news and interpret market information. Major market news typically arises when cryptocurrency prices are most volatile, possibly resulting in significant price increases or decreases. It is advisable for traders, especially beginners, to mainly observe during significant news events.
2. Learn to analyze the technical aspects and master the knowledge of technical indicators. The study of technical indicators requires long-term accumulation; set a learning plan for yourself to learn moving averages, KDJ, Bollinger Bands, K-line, volume-price relationship, capital flow, etc.
3. Make a good trading plan; do not trade frequently. Frequent trading not only incurs high fees but also affects trading mentality, leading to irrational judgments.
4. Implement proper risk control, set stop-loss and take-profit levels while trading to manage risks and keep both profits and risks within acceptable ranges. When the price reaches the stop-loss or take-profit point, the system will automatically help us close the position, which means selling. Additionally, controlling the trade position size is a skill of the masters.
I can say that I have tried 80% of the methods and techniques in the market. I will share with you the most practical one from real combat—the K-line strategy, which has proven effective! A profit of 30% in a month.
I was once a novice, rushing into the cryptocurrency market, chasing highs and cutting losses. Eventually, I lost all the hard-earned money simply due to my limited knowledge and skills.
I once followed so-called cryptocurrency teachers to trade contracts and learn technical analysis. Following the teacher's advice on key points to trade Bitcoin contracts led to almost total failure! I ultimately realized that choosing the wrong guide and not systematically learning spot trading resulted in many unnecessary detours. Without solid professional skills and a good mindset, it is challenging to achieve consistent and stable profits through cryptocurrency trading.
After many twists and turns, I ultimately chose to systematically learn natural trading theory and cryptocurrency data analysis, combining volume-price relationship analysis to finally establish a three-dimensional trading system that suits me, which I continue to improve and practice.
Before the great bull market arrives, in order to help more newcomers avoid the mistakes I made, and to seize the rare opportunity of the bull market, I specially wrote twelve guiding principles for novice traders in the cryptocurrency market. I hope to help newcomers grasp some trading patterns and principles, avoid unnecessary paths and traps, and accelerate achieving stable profits.
Back to the point, I urge novice traders to carefully read, comprehend, and practice the following trading principles. You are welcome to message me on Twitter to discuss.
01 Only engage in spot trading, and do not trade contracts.
Spot trading is a gradual process. Contract liquidation can wipe out everything in one go. Newcomers entering the cryptocurrency market often dream of becoming rich overnight, leading to a restless mindset. Without professional skills and guidance, seeing others using leverage for quick profits may entice them to engage in high-leverage contract trading, resulting in rapid gains and losses. The end result is often losing all capital or even going bankrupt, severely undermining confidence. Reports of financial experts who went bankrupt due to high leverage in contracts and committed suicide are not uncommon. Contracts are zero-sum games, requiring more specialized skills and good mental attitudes compared to spot trading. If beginners cannot even succeed in spot trading, they will find it nearly impossible to win in the intense competition of contract trading and should stay away from contracts and focus on spot trading.
02 The principle of investing idle money without borrowing to trade cryptocurrencies.
Trading cryptocurrencies requires three parts technology and seven parts mindset! For novice traders, if you're using your idle money to trade cryptocurrencies, remaining calm and composed after being temporarily trapped or losing a small amount of money will not affect future trading opportunities, ultimately allowing you to wait for the clouds to clear and seize good trading opportunities. Conversely, if you're using borrowed funds to trade cryptocurrencies, the mental pressure will be high, leading to a state of anxiety and impulsiveness, making it generally difficult to earn consistently. Even if you occasionally encounter good coins and make profits, you may still face dire consequences.
03 The principle of following the big trend and countering the small trend.
Follow the big trend, solving the problem of trade direction; counter the small trend, solving the problem of entry points.
We all know that swimming with the current is easier and faster, while swimming against the current is very laborious and might even lead to regression. Trading cryptocurrencies is like swimming; it should align with the trend. When the medium to long-term trend of the market is upward, buying mainstream coins at low points will yield profits, and even chasing highs can be profitable. Conversely, if the medium to long-term trend is downward, even buying at low points is counter-trend behavior. If one does not withdraw in time, it will ultimately lead to significant losses or being trapped.
Therefore, when trading cryptocurrencies, one must follow the medium to long-term trend of the market. When the market is in a bull market cycle, be brave to enter with a heavy position; when in a bear market cycle, learn to stay on the sidelines and rest. This is the principle of following the big trend. What is the principle of counteracting the small trend? When the major trend is upward, one should dare to look for a good entry point to buy low during short-term declines.
As shown in the weekly K-line chart of BTC, several good entry points appear along the upward trend line. In the future, when BTC declines to the adjustment low points, touching the rising trend line at $32,000 and $36,500, could these be good buying points? Time will reveal the answer.
For the five best entry points in spot trading, please refer to the second part of the novice trading principles guidebook.
04 The principle of entering on the right side and exiting on the left side.
Entry methods for buying coins are divided into left-side buying and right-side buying, while exit methods are also divided into left-side selling and right-side selling.
As shown in the figure below, during the price decline, choose to enter on the left side and buy in batches, for example, at points A, B, and C. You might buy at half the height of the price or at the lowest point. The left-side entry buying method is relatively aggressive and poses higher risks, making it unsuitable for beginners.
Point D is the entry point for confirming the upward breakout of the W bottom reversal structure after retesting the neckline price level, belonging to the right-side entry buying method. Although it doesn't capture the lowest price point, it is relatively safer and has higher certainty, making it suitable for beginners.
After buying coins on the left side, as the price rises, sell in batches—small gains for small sales, large gains for large sales, locking in profits. As shown, selling at point E belongs to the left-side selling method, while choosing to sell at point F after the price breaks below the rising trend line belongs to the right-side selling method. Beginners should prioritize the left-side selling method for more stability and maximizing profits.
Right-side buying and left-side selling methods, while not capturing the entire fish, can still allow you to eat the most succulent parts, accumulating small victories into larger ones.
05 The principle of trading new coins rather than old ones.
In exchanges, cryptocurrencies are categorized as new coins, new coins after a while, and old coins. Newly listed coins on exchanges are called new coins, those listed for several months are called new coins, and those listed for over six months are old coins. Traders with larger capital prioritize mainstream cryptocurrencies, such as Bitcoin, Ethereum, and SOL. Traders with smaller capital, including beginners, should focus on new and newly listed coins for better profit opportunities.
Why is it better to trade new coins rather than old ones? This is because old coins, unless there are new technological breakthroughs or new narrative drivers, will not attract new speculative opportunities. Otherwise, investors are already well aware of these coins, and there are no new stories to tell. Moreover, they have already gone through several rounds of market speculation, leading to serious trapped positions. It becomes more challenging for the main institutions to drive up prices and attract market funds.
New coins and newly listed coins come with new technologies, new tracks, new narratives, and new token models, easily attracting investors’ attention. Once new coins and newly listed coins complete their bottom formation and break upwards, with fewer trapped positions, the main institutions can raise prices smoothly. Once they break through historical highs, the potential for growth is vast, leading to greater profit opportunities.
For example, the TIA new coin shown in the image below, with new technology and new narratives, consolidated around $2.3 before breaking through the previous high of $3. It surged by as much as 7.5 times.
Another typical new coin is ORDI, which belongs to the new narrative within the Bitcoin ecosystem: the inscription track. After being listed on Binance, it consistently oscillated upward, peaking at $92, with the price multiplying by several times.
06 The six-part principle of trading new coins.
Based on my long-term observation of new coins listed on exchanges, I have summarized the basic six-part operational model that new coins generally follow.
1) In the days after the listing, prices rise and then fall back;
2) Continuous decline and bottom-seeking, tragically ignored;
3) Continuous bottom formation over several days, beginning to warm up;
4) Gradually rising and exploding, capturing attention;
5) The price continues to hit new highs, and the market goes crazy.
6) Institutional distribution of chips leads to chaos.
Some novices choose to chase high prices to buy new coins as soon as they are listed, a method that carries a high risk of getting trapped and incurring losses. Buying during the third stage of bottom formation and successful upward breakout is a right-side entry buying method that is more certain and safe, making it suitable for novices and conservative traders. I personally also choose the right-side entry method for buying coins. We use the SEI new coin as a case study to demonstrate the right-side buying method during the third stage.
The SEI new coin experienced a rise and fall on its first day of trading, then continued to decline while seeking a bottom, taking 98 days to form a perfect arc bottom reversal structure. We can enter at point A when the SEI coin breaks through the neckline of the arc bottom structure. Although I didn’t buy at the lowest point, I bought with certainty and safety in the third stage by choosing the right-side entry.
Let’s review a case of the right-side buying method for a new coin: TIA coin, which I once bought. After it was listed on exchanges, it experienced a rise and fall, then consolidated for eight days before breaking through the historical high price of $3, also breaking through the small consolidation structure. At that point, I decisively chose to chase the high and buy. Although I didn’t buy at the bottom of $2, I purchased with certainty and safety. After breaking the historical high, TIA coin continued to rise, yielding substantial profits.
The above is the first part of the guidelines for novice traders in the cryptocurrency market. I will continue to work hard on the second part, which will be published on Twitter, as outlined below.
The guiding principles for novice traders in cryptocurrency (Part Two) outline:
7. The principle of entering trades with half of your capital.
8. The principle of five main entry points for buying.
9. The principle of setting stop-loss orders to protect the principal.
10. The principle of not trading frequently or impulsively.
11. The principle of avoiding short-term trading in swing trading.
12. Persist in learning and integrating into excellent teams.
If you want to seize this bull market, it's definitely too late to learn and apply it now. It’s best to have someone guide you for a quick start.
I mainly focus on freshness.
Teaching a man to fish is better than giving him fish.
Investors in the cryptocurrency market, whether beginners or experts, will gain not only financial returns but also growth in investment knowledge and experience.
In the investment process of all loyal fans, I not only provide analytical insights into market trends, basic knowledge for chart reading, and various investment tools, but I also deliver wonderful fundamental interpretations, clarifications on the international situation, and the identification of various investment forces.
Let you become both a winner and an expert in investment!
So for nighttime data, we will respond to changes with unchanged strategies!
Prepare to place orders!
Currently, in the bull market, opportunities abound daily with password sharing.
Still the same saying, if you don't know what to do in a bull market, click on my profile, follow me for bull market spot planning and contract secrets, shared freely.
I need followers; you need references. Guessing is not as good as following.
Currently, in the bull market, opportunities abound daily with password sharing.
Still the same saying, if you don't know what to do in a bull market, click on my profile, follow me for bull market spot planning and contract secrets, shared freely.
I need followers; you need references. Guessing is not as good as following.
Currently, in the bull market, opportunities abound daily with password sharing.
Still the same saying, if you don't know what to do in a bull market, click on my profile, follow me for bull market spot planning and contract secrets, shared freely.
I need followers; you need references. Guessing is not as good as following.
