To turn 10,000 into 10 million within a year through cryptocurrency trading, there is only one method: rolling positions + hoarding strong altcoins!
Current position management advice for everyone:
1. For example, if you take out 30,000 USDT to do contracts, my suggestion is to divide it into 3 portions, each 10,000 USDT.
2. Use 1 portion for each position. A fixed 10,000 USDT; Bitcoin not exceeding 10 times, altcoins not exceeding 5 times.
3. If you lose money, say you lost 1,000 USDT, you should add 1,000 USDT from outside. If you earn 1,000 USDT, then withdraw 1,000 USDT.
4. Ensure that in recent times, every time you open a position, you can maintain a fixed position of 10,000 USDT.
5. Until you have earned 60,000 USDT from 30,000 USDT using this method, increase each of your positions to 20,000 USDT.
The benefits are: First, partitioning + low leverage, avoiding losses of all funds due to exchange spikes.
The second point: avoid falling into problems that lead to excessive emotional involvement. If one day you become overly emotional and lose everything, you can only afford to lose 1/3 at most; the remaining amount can still give you a buffer opportunity.
The third point: maintain a fixed position. Whether you are losing or profiting, maintaining this relatively calm mindset can help stabilize your mentality.
The secret skills have been provided to you; whether you can become famous in the world depends on your own efforts.
In the crypto space, if you want to earn 12 million from 10,000, there is only one way. If you want to do it quickly, it's rolling positions +
The most risky method should also be divided into three attempts. In other words, you should at least give yourself three chances.
For example, if the total account funds are 200,000, and the client allows a maximum loss of 20%, which is 40,000, then I suggest the most risky loss plan: the first loss of 10,000, the second loss of 10,000, and the third loss of 20,000. I believe this loss plan still has a certain rationality. Because if you get it right once in three attempts, you can profit or at least continue to survive in the market. Not being kicked out of the market itself is a kind of success, and there is a chance to win.
2. Grasp the overall market trend. Trends are much harder to navigate than fluctuations because trends require chasing upward and selling downward, demanding composure in holding positions, while high selling and low buying align with human nature. Trading that is more aligned with human nature tends to earn less; it is precisely because it is difficult that it is profitable. In an upward trend, every violent pullback should be treated as an opportunity to go long. Remember what I said about probabilities? Therefore, if you weren't on the train or got off, wait patiently for a 10-20% drop to boldly invest.
3. Set Profit-Taking and Stop-Loss Targets. Profit-taking and stop-loss can be said to be the key to determining whether one can profit. In several transactions, we need to ensure that total profits exceed total losses. Achieving this is not difficult; just follow these points: ① Each stop loss ≤ 5% of total funds; ② Each profit > 5% of total funds; ③ Total transaction win rate > 50%. Meeting the above requirements (profit-loss ratio greater than 1 and win rate greater than 50%) can achieve profitability. Of course, it can also be high profit-loss ratio with low win rate or low profit-loss ratio with high win rate. Anyway, just ensure total profit is positive: Total profit = Initial capital × (Average profit × Win rate - Average loss × Loss rate).
4. Remember to avoid excessive frequent trading. Since BTC perpetual contracts are traded continuously 24 hours a day, many beginners operate daily, trying to trade almost every day of the month. As the saying goes, 'If you walk by the river often, how can you not get your shoes wet?' The more operations, the more likely to slip up. After failing, your mentality may worsen. Once the mindset changes, it may lead to emotional and 'revenge' trading, potentially going against the trend or over-leveraging. This can lead to a series of mistakes, easily causing significant losses that may take years to recover.
Points to note for rolling positions:
1. Sufficient patience; the profits from rolling positions are enormous. As long as you can successfully roll a few times, you can earn at least a million, so don’t roll too easily. You need to find opportunities with high certainty.
2. High Certainty Opportunities refer to situations where the market consolidates after a sharp drop and then breaks upward, making it highly probable to follow the trend. Find the point where the trend reverses and get on board right from the start.
3. Only roll long, do not short.
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A guide to bottom fishing and topping out in the cryptocurrency space, teaching you how to make big money using these five major indicators.
Today, I will mainly introduce how to use indicators to judge tops and bottoms and how to optimize investment strategies.
How to earn cyclical profits and amplify your cyclical returns.
2. The Five Major Indicators Teach You How to Judge Tops and Bottoms.
1. Ahr 999 Hoarding Indicator
Indicator Introduction: This indicator was created by Weibo user Ahr 999, assisting Bitcoin regular investment users in making investment decisions combined with timing strategies. This indicator implicitly contains the short-term return rate of Bitcoin regular investments and the deviation between Bitcoin price and expected valuation.
How to Use:
When the ahr 999 index < 0.45, it is suitable for bottom fishing.
When the ahr 999 index is between 0.45 and 1.2, it is suitable for regular investment.
When the ahr 999 index > 1.2, the coin price is relatively high and is not suitable for regular investment.
Recommended reading of the indicator author's work (Hoarding Bitcoin).
2. Rainbow Chart
Indicator Introduction: The Rainbow chart is a long-term valuation tool for Bitcoin. It uses a logarithmic growth curve to predict the potential future price direction of Bitcoin.
It covers the rainbow-colored bands at the top of the logarithmic growth channel, attempting to highlight the market sentiment of each rainbow color stage when the price crosses it. Thus, highlighting potential buying and selling opportunities.
So far, Bitcoin's price continues to stay within the rainbow-colored bands of the logarithmic growth channel.
The closer to blue, the closer the price is to the bottom.
The closer to red, the closer the price is to the top.
3. RSI
Indicator Introduction: RSI (Relative Strength Index) is an indicator that measures the speed and magnitude of Bitcoin price changes, calculating the RSI score based on the performance of the past 12 months to assess market strength and whether it is in an overbought or oversold zone.
The stronger the upward momentum, the closer the RSI will be to 100, and a high RSI also indicates that the price movement over the past 12 months has been relatively positive. Conversely, the stronger the downward momentum, the closer the RSI will be to 0, and a low RSI value indicates that the price movement is relatively negative.
An RSI value of 30 or below (the closer to red) indicates that Bitcoin is oversold or may soon face overselling, making it suitable for considering bottom fishing.
An RSI value of 70 or above (the closer to green) indicates that Bitcoin is overbought and may soon face a decline, making it suitable for considering selling.
4. 200-Week Moving Average Heatmap
Indicator Introduction: This indicator uses a color heatmap based on the percentage growth of the 200-week moving average.
Assign a color to the price chart based on the monthly percentage growth of the 200-week moving average.
Historically, in every major market cycle, Bitcoin's price has bottomed near the 200-week moving average.
The closer the color of the dots on the price chart is to red, the more it indicates that the market is overheated and suitable for selling.
The closer it is to purple, the more it indicates that the market is too cold and suitable for buying.
It is important to note that this indicator failed at the top of the last bull market, which indicates that one cannot rely entirely on indicators. Indicators are merely tools to assist our judgment, and many other factors need to be taken into account.
5. CVDD
Indicator Introduction: CVDD stands for Cumulative Value-days Destroyed.
How to Use: When the price of Bitcoin touches the green line, it indicates that the price is severely undervalued, representing a great buying opportunity.
Summary
To facilitate readers in using these indicators, we have created charts.
It is important to note that these indicators provide reference for the timing of buying and selling Bitcoin and do not necessarily indicate that other tokens can also be purchased.
3. Strategies Suitable for Cyclical Trading
When we engage in long-cycle trading, it is easy to encounter situations like the one depicted below; many of these are due to subjective judgment errors. If a strategy is formulated in advance, such mistakes can be avoided.
1. Combine Martingale Theory with Regular Investment.
First, let's understand the concepts of the 'Martingale strategy' and 'regular investment.'
Martingale Strategy: The Martingale strategy was originally a gambling strategy, which refers to increasing the bet amount by a factor of 2 each time you lose in a game until you win.
Assuming a fair betting game, with both high and low having a 50% probability, the probability of losing once at any given moment is 50%, the probability of losing twice in a row is 25%, the probability of losing three times in a row is 12.5%, and the probability of losing four times in a row is 6.25%.
By analogy, the more times you play, the lower the probability of losing. Theoretically, having unlimited funds means you cannot lose.
Later, the Martingale strategy was applied to trading, manifesting as pyramid-like position increases (the Martingale strategy can be subdivided into reverse Martingale, forward Martingale, and scalp Martingale; the one introduced here belongs to reverse Martingale).
Regular Investment: Regular investment is a long-term investment strategy that averages the purchase price by regularly purchasing assets according to a plan. This strategy emphasizes continuous investment and long-term holding rather than trying to profit from short-term market fluctuations.
When using the above indicators, these indicators cannot tell us the precise bottom and top points; they can only judge the relative bottom and top within a cycle. Moreover, we cannot keep staring at the indicators, which is why we need to engage in regular investment.
How to Formulate a Strategy: We can apply the ideas of the Martingale strategy to regular investment to minimize our average holding price. The specific strategy can be formulated as follows: Assume the current Bitcoin price is $37,000, and we start regular investment from this price. According to the above indicators, we can determine that the current Bitcoin price is at a reasonable position to invest.
We set the benchmark amount for regular investment at 1,000 yuan, with a frequency of once a week. In each weekly investment, if the price rises by $1,000, the investment amount decreases by 5%. If the price falls by $1,000, the investment amount increases by 5%, provided that the indicators indicate that the Bitcoin price is still within the investment range.
When Bitcoin's price exceeds this range, pause the regular investment plan. Resume regular investment when it returns to the investment range or monitor the indicators for position reduction. These strategy parameters are just examples; different parameters yield different returns, and readers can formulate their own regular investment strategy based on this process.
Disadvantages: The Martingale strategy claims to 'never lose money,' but this is based on the premise that the trading target does not go to zero and the trader has unlimited funds. Therefore, the Martingale strategy is not suitable for trading long-tail assets; the larger the trader's capital, the more the advantages of the Martingale strategy can be reflected.
2. How to Use Grid Strategies to Expand Profits
When we engage in long-cycle investments while holding Bitcoin spot, depositing it in decentralized lending platforms yields low APY; if deposited in exchange wealth management, the APY is considerable but limited. To improve capital utilization and earn additional income, using a spot grid is a good choice.
Spot grid strategy: The spot grid strategy is an automated strategy that executes low-buy and high-sell within a specific price range. Users only need to set the highest and lowest prices for the range and define the grid number to start running the strategy.
If needed, trigger conditions can also be set in advance. When market conditions meet the trigger conditions, the strategy will automatically start running. The strategy will calculate the low-buy and high-sell prices for each small grid, automatically placing orders and continuously buying low and selling high to earn profits from the fluctuations.
How to Formulate a Strategy: Generally, grid strategies are suitable for fluctuating markets or upward-trending markets; they are not suitable for one-sided markets. The drawbacks of grid strategies are obvious. When the price rises or falls outside the set range, it results in selling too early or buying too late, which is why some people call it a garbage strategy.
We have optimized the grid strategy. We do not choose the conventional non-stablecoin/stablecoin traditional grid strategy; we choose the ETH/BTC trading pair combined with the infinite grid strategy.
The infinite grid strategy is an advanced version of the regular grid strategy. It ensures that users hold an equivalent amount of priced currency assets during bullish markets. Using the infinite grid strategy, regardless of how many times the user sells, they still hold assets equivalent to the previous position.
For example, if the initial price is 20,000 USDT/BTC and the user owns 1 BTC, they have 20,000 USDT in assets for investment. When the price rises to 40,000 USDT/BTC and they sell 1/2 unit, the user still holds 1/2 unit, maintaining 20,000 USDT in assets for investment. When the price rises to 80,000 USDT/BTC, selling 1/4 unit means the user still holds 1/4 unit, still maintaining 20,000 USDT in assets for investment.
Infinite grid strategies do not have a defined top range, so using an infinite grid strategy can effectively avoid the situation of selling too early due to continuous price increases.
So why choose the ETH/BTC trading pair? Our optimization idea for the grid strategy is to avoid losses caused by prices exceeding the grid range. However, due to the inherent characteristics of the grid strategy, it cannot solve losses caused by continuous price declines. We can only reduce losses caused by the decline.
ETH/BTC reflects the relative strength of the trends between ETH and BTC. From a cyclical perspective, the ETH/BTC exchange rate trends upward during bull markets and trends downward during bear markets. The ETH/BTC trading pair matches well with the infinite grid strategy, which is suitable for long-term slow bull markets.
Moreover, we not only gain profits in BTC but also benefit from the uptrends of both ETH and BTC during bull markets.
4. Summary
Although the indicators and profit methods introduced in this article are focused on Bitcoin as the investment target, readers can also apply the ideas of bottom fishing and topping out introduced in this article to invest in other cryptocurrencies. Moreover, the price changes of Bitcoin also have guiding significance for the trends of other cryptocurrencies, especially mainstream coins with high market capitalization.
Regardless of the indicator, there is an inherent invariance. Although the market often experiences black swan events, the crypto market will not go to zero. As long as it does not go to zero and someone is participating, prices will continue to fluctuate, existing in cycles. This is not only an estimate of value but also a verification of time.
For ordinary investors, as long as they make good use of cycles and benefit from industry development, that is enough. This is not only true in the cryptocurrency space but also in other industries. The multiple is not important; the ability to survive continuously is the most crucial aspect. What the crypto market lacks is not opportunities but the ability to participate continuously.
So what elements are needed to become a trading expert? I believe there are three:
The first element: being objective and neutral towards others' opinions and market news, without any thoughts. Maintain an objective and neutral stance, free from any emotions. Act according to the rules; if it does not comply, do not act. When there are no market opportunities, read books or enjoy tea. When market opportunities arise, pay close attention and be ready at all times.
The second element: plan your trades. There is a saying that goes, 'Plan your trades, and trade your plan.' Based on our strategic methods, develop a trading plan. When the opportunity truly arises, trade according to our plan. After preparing the trading plan, we need to patiently wait for the final confirmation signal. When there is no trading plan in place, we should wait patiently for the plan to emerge. Once the confirmation signal appears, take decisive action and, after opening a position, patiently wait for a stop loss or to reach the profit-taking position.
The third element: no method or strategy is 100% effective. After opening a position, be prepared for the worst. You can have expectations for the outcome of this trade, but do not have overly high expectations. When expectations are low, if the market turns bad, it won't cause too much pain. When the market is smooth and the results are good, it will exceed expectations, bringing a little joy. Trading ultimately should be like this: no great sadness, no great joy, facing trading calmly, with a heart that is peaceful and serene. If you earn money and are overly ecstatic, telling everyone, or if you lose money and are gloomy or regretful, showing emotional instability, then it proves you still have a long way to go in trading.
Short-term trading methods for cryptocurrency include the following:
1. Technical Analysis: Using chart analysis, trend analysis, and other technical indicators to judge price trends, including support levels, resistance levels, moving averages, etc., to find buying and selling opportunities.
2. News Driven: Pay attention to news and events in the market, quickly buying or selling by analyzing and predicting their impact on the cryptocurrency market.
3. Day Trading: Profiting by capturing short-term price fluctuations, typically completed within a day.
4. Breakout Trading: By observing the changes in trading volume when the price breaks through resistance or support levels, determine the market direction and buy or sell at the right time.
5. Swing Trading: Utilizing the characteristics of significant price fluctuations for medium to short-term buying and selling.
However, the cryptocurrency trading market is highly risky, and the operation time is short. Investors need to have a high risk tolerance and be familiar with market conditions. Moreover, short-term operations also require attention to risk control, reasonably setting stop-loss and profit targets to protect the principal and achieve good returns.
The crypto market is like a marathon; running fast is not as good as running steadily. Those who earn money by luck often lose it back to skill. Only by embedding position management into your DNA can you survive in this ruthless market. Remember: staying alive gives you a chance to turn things around.
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Continued Attention:$BTC $ETH $BNB
