Hello everyone, I am Coin Hero, focusing on crypto for ten years.
With three thousand dollars, it is suggested to roll positions. Before doing so, first understand what rolling positions are. For example, if you only have 50,000, how to start with 50,000? This 50,000 should be your profit. If you are still at a loss, don’t even look.
If you open a position with Bitcoin at 10,000 and set the leverage to 10 times, using isolated margin mode, only open 10% of the position, which means only opening 5,000 as margin, this is actually equal to 1 time leverage. With a stop-loss of 2 points, if you hit the stop-loss, you only lose 2%, just 2%? 1,000 dollars. How do those who get liquidated manage to lose everything? Even if you get liquidated, isn't it just a 5,000 loss? How can you lose it all?
If you are correct and Bitcoin rises to 11,000, you continue to open 10% of total funds, also setting a 2% stop-loss. If it hits the stop-loss, you still earn 8%. What about the risk? Isn’t it said that the risk is very high?
Rolling positions sound scary, but in other words, it's just adding to floating profits. This way of saying it is much better; adding to floating profits is just a common method in futures trading. You don't have to maintain 5 or 10 times leverage; just two to three times is enough. Playing with Bitcoin is relatively safe.
You need to have enough patience; time is your friend. The profits from rolling positions are huge, as long as you can roll successfully a few times, you can earn at least tens of millions or hundreds of millions. However, you must not roll easily; look for high certainty opportunities. High certainty opportunities refer to situations where after a sharp drop, there are several rounds of sideways oscillation and multiple tests of the bottom, followed by an upward breakthrough. At this time, the probability of following the trend is very high.
To earn 1 million, you only need to invest 50,000, and this 50,000 can also be risk-free. You can first invest 100,000, wait for an opportunity when the B circle kills retail investors, then go in to buy spot and earn 100,000 profit, and then use 50,000 from the 100,000 profit to gamble. To make big money, you must gamble. When good opportunities arise, roll over positions, using two to three times leverage once or twice to roll out.
If you lose 50,000 in profits and then invest another 50,000 to gamble, and you have gambled away all profits, stop and continue to rely on the 100,000 principal to earn profits to gamble.
It's easy to say, but it requires unimaginable patience. This model allows you to exist in the cryptocurrency market with the potential for sudden wealth without bearing the risk of catastrophic losses. Do not believe in hoarding coins; without sufficient off-market earning ability, hoarding is simply deceiving retail investors. If someone has 100 BTC and you have just a few BTC, isn’t that nonsense? The volatility of BTC has significantly decreased; leverage must be used to have a chance of sudden wealth. Those who hoarded BTC two years ago are just now breaking even, and those who dollar-cost averaged at the peak of the bull market won't see several times returns.
The reason experts can profit is that they prepare for trading.
Before placing an order:
1. Is it in line with the current trend?
2. Is there K-line shape support?
3. Have you analyzed the Bollinger Band oscillation indicator?
4. Is the planned trading volume too large?
5. Have you set a stop-loss price level?
6. Have you planned the price level for adding positions (in the case of floating profits)?
7. Have you set a take-profit price level?
8. Placing Orders.
After placing an order:
1. When reaching the stop-loss level, strictly implement the stop-loss price level, regardless of whether this order is closed correctly or incorrectly in the future.
2. After closing a losing position, never reverse; adjust your mindset before analyzing the market again.
3. After a failed floating profit add-on, strictly adhere to the remedial principle of 'if you don't exit after earning 10,000, you must exit when earning the last cent.'
4. After closing a position with huge profits, avoid immediately entering the market to trade. Analyze the market again after calming down from the excitement.
In three minutes, understand the king of band technical indicators, MACD.
In recent days, many in the circle have said that the current market is always in a state of volatility. How can we 'predict the future' in advance to adjust positions? Today, I will introduce the king of technical indicators in the cryptocurrency secondary market, MACD. Those who have traded stocks are not unfamiliar with technical indicators, as they can be used to judge market trends and make trading decisions based on periodic changes. However, the cryptocurrency market is not like the stock market; the stock market's maximum daily increase is only a few percent, while in the cryptocurrency market, even a few percent is the minimum. It is normal for prices to be halved or doubled multiple times in one day. Those who have not entered the cryptocurrency market might think I am joking. Isn't this gambling? Let me tell you the truth: the current cryptocurrency market is indeed gambling, but beyond luck, isn't there also skill? That's right, the cryptocurrency market is the same; beyond luck, one can only find consolation through data, information, and various technical indicators of K-lines. Alright, without further ado, this article will introduce the meaning and basic usage of the king of technical indicators, MACD.
Before learning, let's first understand the benefits of learning MACD indicator analysis:
1. After learning, investment strategies are no longer entrusted to others; take your fate into your own hands.
2. Global financial derivatives are universal; learning one technique can benefit across the financial sphere.
3. Experts can have the ability to 'predict the future' for a short time.
(PS: But remember, no matter which market, indicators are always just auxiliary tools, not the truth of decision-making.)
In this article, I will provide interpretations from the following aspects:
1. What is MACD?
2. Explain the use of golden cross and death cross with real charts.
3. Top Divergence and Bottom Divergence
4. Cryptocurrency Trading Terminology Explanation
5. Teacher's View on MACD
NO.1 What is MACD?
MACD stands for Moving Average Convergence Divergence, a technical indicator produced through a series of sophisticated treatments on stock closing prices using the principle of moving averages. It is commonly used to predict trends and judge buy/sell points, being the most frequently used technical indicator in investment analysis, thus earning the title of the king of indicators.
Composition of MACD:
MACD
MACD is mainly composed of two intertwined curves (yellow and white) and the red-green bars in between. The white line is called DIF, also known as the daily deviation, calculated as the smoothed average of the short-term 12-day moving average minus the smoothed average of the long-term 26-day moving average. The yellow line is called DEA (some exchanges show it in red), also known as the average deviation, the smoothed average of the daily deviation over 9 days, which is relatively smoother. The red-green bars are called bar charts, reflecting the distance between the DIF and DEA lines. The combination of these three is known as MACD. The white line in the middle is called the zero axis, which is actually a dividing line between the bullish and bearish markets. Investors can judge trends and price directions through the intersection, divergence, breakthroughs, support, and resistance of the three lines and one axis.
NO.2 Explain the use of golden cross and death cross with real charts.
(1) Golden Cross
Golden Cross
The MACD golden cross is formed when the DIF line (white line) crosses above the DEA line (yellow line) and DIF is higher than DEA, both moving upwards simultaneously. At this time, the bulls have the advantage, and the MACD golden cross is a very good buy signal for the medium to long term. However, if the golden cross occurs when both the DIF line and the DEA line are below the zero axis, it indicates that although bulls have the advantage, caution is needed to prevent a rebound.
(2) Death Cross
Death Cross
The MACD death cross is formed when the DEA line (yellow line) crosses downwards through the DIF line (white line) and DIF is lower than DEA, both moving downwards simultaneously. At this time, the bears have the advantage, and the MACD death cross is a very good sell signal for the medium to long term. If the death cross occurs above the zero axis, there are two possibilities: it could be a temporary pullback before continuing to rise or the beginning of a major pullback.
NO.3 Top Divergence and Bottom Divergence
Divergence literally means deviation from the predetermined normal track, referring to a situation in the coin market where the coin price is in an upward or downward trend, but the technical indicators move downwards or upwards instead, indicating that the technical indicators do not follow the changes in coin price, which is called divergence.
Essentially, it is because of certain reasons that prices and indicators exhibit different trends, causing the indicators to fail to synchronize with the prices.
Divergence is divided into two types: top divergence and bottom divergence.
Top divergence refers to a continuous rise in coin price while the MACD technical indicator's graph, made up of red bars, shows lower peaks, indicating strengthening bearish forces, which is a relatively good signal to exit at the top.
Bottom divergence refers to a continuous decline in coin price while the MACD technical indicator's DIF line declines less than the coin price or even rises, indicating strengthening bullish forces, which is a relatively good bottom-buying signal.
(PS: The DEA line is more accurate, but it requires a longer cycle and the process is slower.)
NO.4 Cryptocurrency Trading Terminology Explanation
There are many terms in the cryptocurrency market. If you don't understand what they mean, even if someone gives you the operation details, you won't understand. Therefore, knowing these terms is very important. The teacher has picked some practical ones to share with everyone.
1. Orders
That is an order. When buying/selling on a trading platform, input the price you wish to buy/sell (this price is determined by yourself), and then place the order. An order will be established; once your cryptocurrency reaches the price you want to buy or sell, it will be executed automatically.
2. Spot Trading
Refers to a trading method in which payment and delivery occur simultaneously, or a barter trading method.
3. Futures Trading
This refers to a sophisticated trading method developed based on spot trading and taking forward contracts as prototypes.
4. Hedging
Refers to executing two trades that are related in the market, opposite in direction, equal in quantity, and offsetting in profit and loss.
5. Positive News
Refers to the company of a specific coin or development coin or related investors and partners gaining mainstream media attention or the application of a certain technology.
Breakthrough developments or news that stimulate price increases are all called positive news.
6. Negative News
News that drives the coin price down, such as: government control, central bank crackdowns, and technical issues with the coin.
7. Trading Volume
Reflects the amount of transactions and the number of buyers and sellers. Generally measured by the number of coins traded and the transaction amount.
8. Brick Moving
Recharge cash to a lower-priced platform A, then buy BTC/ETH; after receiving BTC/ETH from platform A, immediately recharge to a higher-priced platform B; once the recharged BTC/ETH arrives at platform B, immediately sell it, cash out, and repeat the steps.
9. Leverage Trading
As the name suggests, it means using a small amount of capital to make investments several times the original amount, hoping to obtain several times the return on the relative investment target's volatility, or incur losses.
10. Closing Positions
This refers to the behavior of futures traders buying or selling futures contracts that have the same variety code, quantity, and delivery month as their held contracts but in the opposite trading direction to close positions.
11. Double Spending
In simple terms, it is double spending. If a user tries to make two payment operations with the same electronic currency asset, that is double spending. During cryptocurrency transactions, the payer might attempt double spending; if the payee does not wait for enough transaction confirmations (generally 6), and accepts the transaction, they could suffer losses from double spending attacks.
12. Position Size
Refers to the ratio of actual investment to actual invested capital.
13. Full Position
Invest all funds in virtual currency.
14. Reducing Positions
Sell part of the virtual currency, but not all.
15. Heavy Position
The available funds are greater than the virtual currency, with the share of virtual currency being smaller.
16. Light Position
The available funds are greater than the virtual currency, with the share of available funds being larger.
17. Empty Position
Sell all the virtual currency held, converting it all to cash.
18. Take-profit
After making certain profits, sell the held virtual currency to secure gains.
19. Stop-loss
After losses reach a certain level, sell the held virtual currency to prevent further losses.
20. Bull Market
Prices continue to rise, with an optimistic outlook.
21. Bear Market
Prices continue to fall, with a bleak outlook.
22. Bullish (Going Long)
Buyers believe the coin price will rise in the future, buy coins, and wait to sell at a high price for profit when the price increases.
23. Bearish (Going Short)
Sellers believe the coin price will fall in the future, sell the coins they hold (or borrow coins from the trading platform), and wait to buy back at a low price after the price falls for profit.
24. Building Positions
Buy virtual currency.
25. Adding Positions
Buy virtual currency in batches, for example: first buy 1 BTC, then buy another 1 BTC.
26. Full Position
Invest all funds in virtual currency at once.
27. Rebound
When the coin price falls, it may rebound and adjust due to a rapid decline.
28. Consolidation (Sideways)
The price fluctuation is small, and the coin price is stable.
29. Downtrend
The coin price is slowly declining.
30. Waterfall (Flash Crash)
The coin price falls rapidly, with a large amplitude.
31. Cut Loss
After buying virtual currency, if the price falls, one might sell the virtual currency at a loss to avoid further losses; or after borrowing coins to short, if the price rises, one incurs losses when buying back virtual currency.
32. Trapped
Expecting the coin price to rise, but after buying, the price falls; or expecting the price to fall, but after selling, the price rises.
33. Breaking Even
After buying virtual currency, if the price falls causing temporary paper losses, but later the price rises, turning losses into profits.
34. Missing Out
After selling virtual currency due to a pessimistic outlook, the price rises continuously, and if one fails to buy back in time, they miss out on profits.
35. Overbought
The coin price continues to rise to a certain height, and the buying power is basically exhausted, leading to an impending price drop.
36. Oversold
The coin price continues to fall to a certain low point, the selling power is basically exhausted, and the coin price is about to rebound.
37. Stop-loss Trap
The coin price has been consolidating for a long time, and the likelihood of a decline is greater. Most bears have already sold their virtual currency, and suddenly the bears raise the price, enticing bulls to believe the price will rise and buy, resulting in bears suppressing the price, trapping the bulls.
38. Stop-loss Trap
After bullish investors buy virtual currency, they deliberately suppress the coin price, making bears believe the price will fall, prompting them to sell and falling into the bullish trap.
NO.5 Views on MACD
The MACD indicator is relatively the most effective technical indicator verified by historical trends, and is also the most widely used indicator. It has a good application effect in grasping trending markets, where top divergence and bottom divergence are recognized as relatively effective methods for bottom buying and top selling.
1. The golden cross and death cross on the 15-minute chart can predict half a day's trend.
2. The golden cross and death cross on the 30-minute chart can predict a day's trend.
3. The golden cross and death cross on the 60-minute chart can predict the trend for 2 days.
4. Using minute K-line charts to select trading points is much more accurate than daily charts; the smaller the selected period, the more precise the buy/sell price.
5. Every indicator has its limitations and lags; it is best to combine multiple indicators and consider various factors in the broader environment, especially since the cryptocurrency market involves complex factors such as whale control.
6. The red volume bars in the intraday chart mean; within this minute, the volume of this bar has pushed the price upwards, which can be understood as buying volume.
7. The green volume bars in the intraday chart mean that within this minute, the volume of this bar has pushed the stock price down, indicating selling volume.
8. The white volume bars in the intraday chart mean; within this minute, the stock price has not fluctuated, indicating that the trading volume has not affected the stock price's fluctuation, hence it is white.
During the investment process of all loyal fans, Coin Hero will not only provide investors with analysis ideas, basic knowledge of market observation, and methods for using various investment tools, but will also bring exciting fundamental interpretations, sorting out the aftermath of international chaos, and identifying various investment forces.
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