Now I’ll share my tested method: quickly turning several thousand into 100,000, with the only method being: (rolling positions) +.
Step one: initially divide your several thousand yuan into USDT into three parts!
Step two: make three contract trades, with a multiplier of 100, each position being 60%, full position, just trade Bitcoin or Ethereum, operation time: between 9:30 PM and 4 AM!
Step three: make three contract trades; if you win all three normally, your capital will increase by several thousand US dollars, and if there are big market movements, it can reach several tens of thousands of US dollars.
Step four: Continue the previous day's operations, dividing the principal into three parts, and perform the same operation three times!
I have operated this method several times, and the most recent operation was from February this year to March; in one month, I turned 5000 into 106000.
Steps from 100,000 to 100!
Step one: reasonable position management.
1. Spot 60%, contracts 40%.
Let me first mention my position management.
Whether in spot or contract trading, how to manage your position directly determines your risk control, average holding price, and the size of your final profits. This can be said to be the most important point aside from direction and mindset. Let’s get straight to the point.
What is position management?
Position management refers to the comprehensive management of planning and carrying out each step of entering, increasing, reducing, and clearing positions when you decide to enter the market. Good position management is one of our important means of avoiding risks and can achieve minimal losses and maximal benefits!
So what is a position?
Position refers to the total amount you use for trading and the ratio of funds already traded.
For example, if you have 100,000 yuan for trading and have used 30,000 yuan to buy coins, then your position is 30%, which is 3 layers of position; this buying behavior is called opening or building a position.
If half of the total funds are used for buying, it is called half position; if the buying funds account for a small proportion of total funds, it is called light position. If the proportion is large, it is called heavy position. If you buy again after building a position, it is called adding to the position. When selling part of the position, it is called reducing the position. Selling all is called clearing the position. Holding temporarily without selling is called holding position. Always keeping some position without operating is called bottom position. Selling all without buying again is called flat position.
The following are terms related to positions.
Position management is a component of the entire trading system. Different market conditions require different trading strategies, so the methods of position management vary under different strategies. However, regardless of the method, there are several basic principles.
First: Do not operate with a full position; always maintain a certain proportion of backup funds: operating with a full position is like fighting a battle without backup troops. Especially in unstable market conditions, if the market falls, it will create a passive situation where buying and selling become difficult. Selling will incur losses, and if you don't sell, there won't be excess funds to increase your position and dilute costs. When other market conditions arise again, there may be no funds available or you may have already lost and exited. Holding a full position can lead to psychological imbalances due to market fluctuations. Operating with a full position is more likely to result in a liquidation rather than the imagined overnight wealth.
Highlighting key points.
Second: Phased buying and selling to reduce risks, dilute costs, and amplify profits. The advantage of buying in phases as prices drop and selling in phases as prices rise is that you achieve a lower average price than others and higher returns.
Third: When the market is weak, hold a light position; in a bear market, it is best not to exceed 50% of the position. In a strong market, you can take a heavier position, and in a bull market, it is recommended to limit the position to 80%, keeping 20% for short-term trading or emergency funds for unexpected events.
Fourth: As market conditions change, make corresponding adjustments to your position by appropriately increasing or decreasing your holdings.
People are alive; when the market is strong, I can appropriately reduce my position to capture some profit, and when it is weak, I can appropriately increase my position to lower costs. This is making corresponding adjustments.
After increasing the position, even a slight price rebound will be very close to or exceed the cost.
For example: when the trend clearly goes down, reduce the position. When the trend begins to stabilize and rise, increase the position. When unsure of market trends, do not heavily invest or easily increase positions. When support is seen, you can increase your position; when resistance is seen, you can reduce your position and realize profits.
Fifth: When the market is sluggish, you can temporarily hold a flat position while waiting for opportunities to arise.
At the end of a bull market, at the beginning of a bear market, or before the bottom stabilizes, you can temporarily hold a light position or be flat while waiting for opportunities. But as long as you want to continue fighting in this market for a long time, do not stay flat for too long, as not participating for a long time will gradually reduce your sensitivity to market changes and your market feel. Alternatively, you can operate in a bear market with a small amount of funds to summarize experience and skills and train your market feel. This is very important.
Step six: Change positions: retain strong coins, sell weak coins.
Whether rising or falling, as long as there are fluctuations, it is a favorable market, and there are opportunities to profit. If a coin remains flat for a long time or fluctuates very little, it is necessary to flexibly change positions and not fall in love with a specific coin; rationally make trade-offs and seize opportunities in other markets.
The above six principles apply to both spot and contract trading.
Next, let’s discuss methods of position management, which is phased operations.
Phased operation refers to dividing the invested funds into segments and conducting phased position building, increasing, or decreasing. Phased operations can be completed in one day or over a period.
Why do these actions? Because the cryptocurrency market is unpredictable; both rises and falls are highly probable events, and no one can accurately predict short-term price fluctuations, so you need to leave enough funds to cope with unpredictable volatility.
If you operate with a full position without sufficient confidence, once the market changes contrary, it will bring huge losses. Therefore, you can lower the risk of full position investment through a phased approach, diluting costs, which is the basis for reducing costs and amplifying profits.
Next, let’s talk about how to operate in phases: dividing into equal parts and unequal parts.
First: Equal allocation, also known as rectangular trading method, refers to dividing funds into several equal parts, buying or selling in sequence, with each transaction having the same fund proportion. Typically, 3 or 4 equal parts are used. For example, initially buy 30%, if you start making a profit, buy another 30%, and if there is no profit, temporarily refrain from further investment. When the price of the coin reaches a certain high point or the market changes, gradually sell in parts.
Second: Unequal allocation, meaning dividing funds into different proportions for buying or selling, such as 1:3:5, 1:2:3:4, 3:2:3, etc. The patterns created by the proportions can be classified as diamond, rectangular, hourglass shapes, etc., with the commonly used method being the pyramid trading method.
Third: Using the same funds and the same positions, compare different methods.
Pyramid: Buy 5 layers at 1000, 3 layers at 1100, 1 layer at 1200, average price 1055.
Inverse pyramid: Buy 1 layer at 1000, 3 layers at 1100, 5 layers at 1200, average price 1144.
Equal rectangle: Buy 3 layers at 1000, 3 layers at 1100, 3 layers at 1200, average price 1100.
When the price rises to 1200, profits are: Pyramid 145, Inverse pyramid 56, Rectangle 100.
Price drops to 1000 with respective losses: Pyramid +55, Inverse pyramid -144, Rectangle -100.
Comparing shows that the pyramid method has the least cost and maximizes profits when prices rise. When prices fall, it bears greater risk. The inverse pyramid is just the opposite; when the price drops to 1000, the inverse pyramid loses 144. In actual use, it is more reasonable to use the pyramid method for buying and the inverse pyramid method for selling.
The above comparison clearly shows the role of position management.
After a significant drop in coin prices, if we see the bottom but are uncertain whether it has reached the bottom, we can use the pyramid building method to buy at this point.
For example: if a coin's price drops to 10 yuan, buy 20% of the position; if the price drops to 8 yuan, then enter 30%. At this time, the average cost is 8.6 yuan. If the market continues to fall to 5 yuan, then enter 40%, bringing the average to 6.5 yuan. If the price rebounds to 6.5 yuan, it is breaking even; if it rebounds to 10 yuan, it is equivalent to earning 3.5 yuan. But if at 10 yuan you bought with a full position, when the price returns to 10 yuan, you have just managed to exit your loss.
During the price increase process, the lower the price, the larger the buying position should be; as the price gradually rises, the position should gradually decrease. This method of buying belongs to right-side position building. This cost is relatively safe; even if the market falls, as long as it does not drop below the holding cost, there is no need to panic.
This method has a heavier initial position, so the requirements for the first entry are relatively high; it requires grasping market fluctuations and is suitable for technical players.
The inverse pyramid selling method, opposite to the regular pyramid, has a wider top and narrows downwards, resembling a funnel. When the coin price rises, gradually reduce the number of coins held, meaning the amount sold increases as the coin price rises. This is about reducing positions or clearing out.
The core of position management lies in the above points. Once you understand them, I believe in the future, whether it's spot trading or contract trading, you will have a clear mindset.
Finally, let me share some personal suggestions for doing good trading.
First: Technical aspects, including technical indicators, candlestick patterns, trading volume. Judgment of trends, distinguishing between bull and bear markets, grasping buy and sell points, assessing support and resistance, and using volume-price-time-space.
This varies from person to person; some may not understand the technology or have no interest, so there’s nothing you can do.
Second: Fundamental analysis, including relevant macroeconomics, policies, regulations, and the project itself.
Third: News front, good or bad news, operate under favorable news and fundamentals.
Fourth: Time cycles, intraday short-term, medium-short term, medium-long term, long-term (trend trading), confirm trading cycles to ensure consistency in operational cycles; for example, when doing long-term trading, do not frequently engage in short-term buying and selling. In long-term trends, intermediate adjustments and fluctuations can be tolerated as long as there is enough space and it is a mainstream coin, the price will rise again.
Fifth: Mindset control, remember not to waver, implement the plan well, and do not cut corners.
These are all personal insights; what you learn is yours, and if you can't learn it, there’s nothing you can do.
Two key points: first, the methods and functions of position management; second, the personal insights of the instructor.
Words of encouragement:
If you are just entering the market, come to me, and I will teach you to learn and operate at the same time; if you are already in it and it is not ideal, you can come to me, and I will help you, so you won't make the same mistakes repeatedly; if your position is trapped, I will provide a reasonable way to untrap you based on your entry point. Because everyone has different trapped points, the methods to untrap will also be different; some are suitable for conservative traders, while others are suitable for aggressive traders. I will surely use the most suitable method to genuinely solve your problems and assist you in exiting.
Step two: The ten steps to success in trading.
Below are my ten steps for successful trading.
Many traders are willing to actively learn trading knowledge and skills to better execute trades. However, they often overlook some of the most basic things in trading, and the more advanced traders pay more attention to these details.
If you start using these methods, at least you can initially get the direction right, ensuring that you won't go down the wrong path or take detours.
The ten steps of successful traders are mainly divided into three aspects: aside from the first and last aspects, the others are directly related to trading.
First aspect: preparation work.
01: Cultivate insight into yourself.
If you have sufficient self-awareness and a good mindset, you can have confidence in winning before the battle. For example, normally you can perform at 85% of your ability, but if you're sick today, you may not perform normally, and the chance of failure will be much higher.
Frequently ask yourself, how do I feel?
Also ask yourself, what do you really want?
What is my biggest goal?
What is my most desired goal?
What is the most important thing to me?
Only when you realize that there may be a problem can you solve it. Write down the areas you need to improve and the places you are confused about every day, and then think about how to resolve them.
Second aspect: trading work.
02: Daily psychological rehearsal.
Every day before starting work, take 10 minutes to mentally rehearse the things you need to do once or three times.
The more detailed and specific, the better; the more thorough, the better; try to 'calculate more.' When various situations arise, you can deal with them objectively and calmly.
03: Design a low-risk operational plan.
If risks are firmly controlled, returns will naturally increase.
· Beginners primarily consider returns. If I make this trade, how much can I earn?
· Experienced traders first consider risk. Before entering a position, they already have answers about the probability of loss and how much they will lose.
Entering the market under these circumstances will feel very different. Because there is a bottom line, trading will be more flexible and less influenced by emotions. What we pursue is low-risk returns.
A. Collect data.
Analyze the market comprehensively using various information and form an overall view. Determine trading targets and directions. Many beginners think this is the most important thing, but in reality, the accuracy of market analysis is relatively low in importance during operations.
B. Analyze win rate
Consider the opportunity for this trade to profit based on experience.
C. Decide when to enter, when to exit, and how much position to take.
· This is the most important step; you need to write a detailed written plan. Studies show that written plans have a higher likelihood of being executed. If you only think about it in your mind, you may find that there are too many details you haven't considered when it comes time to execute, leading to increased psychological conflict and execution hesitation. The more detailed the plan, the greater the likelihood of execution and success.
This is exactly what was previously mentioned: 'calculate more wins, calculate fewer losses.' Combining judgment of the general trend with stop-loss and phased entry and exit applications has already limited significant risks. It doesn’t mean that using these plans will make you money right now, but at least we need to ensure we are on the right path.
Be aware that when making a trading plan, do not be influenced by others; be independent and fully listen to yourself.
04: Track, check charts, look for entry patterns/points.
In life, we may observe that a kitten chases after a bird but can never catch it; whereas an older cat stalks quietly, gradually getting closer to the bird, capturing it when the bird is least aware. This is the difference between how old and young cats hunt.
This is a survival skill in nature and a necessary skill for traders. Experienced hunters do not immediately shoot when they see prey but gradually approach, seeking the best position and distance, and take action at the most favorable moment.
There is a practice that everyone can refer to. Once a variety is listed as a tracking target, you can conduct opposite trades on paper.
For example, if you plan to buy but have already shorted on paper, you can continue to observe. When you can no longer bear it and must close your position on paper, that is the best time to buy. You can try using this method to track.
05: Action - Entering the market.
Once the right opportunity is tracked, you must act decisively and take action. Be still as a virgin, move like a rabbit.
Many people stop at this critical point. Even if there are better methods, not taking action is pointless. Of course, this also depends on whether the previous steps were taken seriously.
If you have a plan, and the conditions in the plan appear, you must execute it without hesitation. Of course, when entering a trade, you need to pay attention to the timing of entry and the method of entering; do not put all your eggs in one basket!
06: Observation.
Once you take action, you have a position, and you enter the observation phase. Continuously observe your holding situation; it is very likely that the reason you originally entered has changed, and both favorable and unfavorable conditions will occur.
In a calm state, ask yourself, how do I feel about this position? Should I take action?
07: Termination/Profit exit.
This point is about exiting the market; it is essentially the golden rule.
Loss exit
1. Take going long as an example: When the market falls to a predetermined or trailing stop-loss point, exit.
2. If the reason for buying no longer exists, exit and abandon the pointless hope.
3. If a long time passes after buying and the price has not moved as expected, consider exiting. Normally, the price should show movement shortly after buying.
If the price is rising, do not wait too long.
Profit exit
1. Once the predetermined profit target is reached, exit.
2. After achieving a certain profit, if the market becomes very volatile, it is also possible to exit first. For example, in the forex market, when affected by a certain news, the market may fluctuate violently, at which point we can consider exiting and observing.
Some may think this is a great opportunity to make money, but as previously mentioned, professional traders first consider risk.
It is very difficult to grasp the oscillating trend, as it can easily trigger stop-losses and cause unexpected losses. When volatility increases or is likely to increase, you should exit or at least partially exit to avoid risks.
Exiting with a loss is relatively easier to control, but exiting with a profit is more difficult; after all, taking profits too early wastes profitable market conditions, while taking profits too late leads to profit withdrawal. So how should one exit to let profits run?
08: Daily summary (write a trading diary)
After each trading day, write a summary; this is the most important raw material for traders. From the summary, you can pay attention to seeking these issues:
Did I strictly follow my trading rules? If so, even if I lose money, I should praise myself.
In today’s trading, what mistakes did I make? Our goal is to gradually reduce our own mistakes. Through these reviews, we can understand how we actually perform.
For trades that impress you, at least think of 3 strategies that are better than the one you have already taken. Then tell yourself, next time I will use one of these three strategies.
09: Periodic summary.
I suggest everyone summarize weekly and monthly. Take out all trading records and see which practices can be improved. You can also see what progress has been made recently.
"Reviewing and learning anew" is a good method of learning. I still often review past records, and each time I do, I feel I gain something.
Third aspect: improving your realm.
10: Being outside the market - a balanced lifestyle.
This point seems unrelated to trading, but in reality, it is the most important. It is the cornerstone of a trader's long-term stable performance.
For traders, the time spent not trading is the most important.
Handling life outside of trading is very important, including adjusting your physical/mental state, time management, handling relationships, etc.
Just like appreciating Chinese landscape painting, the blank part is the most important.
Psychologists say that our psychological makeup consists of different components. Some parts seek stimulation, some seek attention from others, and some seek a sense of security, etc.
When you’re outside the market, let these parts be satisfied. Otherwise, they will manifest in your trading and pose dangers.
Everyone brings their psychological issues into the market. If you realize you have psychological problems, you should handle them outside of the currency market; otherwise, they will definitely appear in your trading and cause losses.
Therefore, a successful trader generally has a balanced life, arranging each aspect such as family, health, and work well, and crises are also less likely to occur.
When trading, being very relaxed and calm is one of the conditions for achieving trading success. Like in other industries, the higher a person's position, the better their temperament, and the more refined their handling of various aspects.
I hope everyone remembers these 10 points well; copy the title down and paste it next to your computer or somewhere visible. This work should be done immediately.
The importance of following the correct work procedures outweighs abilities such as market analysis and trading levels. Beginners often overlook this, focusing more on specific trading methods.
Many experienced traders often fail on this point. These ten aspects need constant training, active attention, and gradual improvement in each area.
Think like successful people, trade like successful people, and handle your life like successful people! How many steps do you usually go through when trading?
The stable compound interest trading strategy in the cryptocurrency market, today I will share how I turned from a novice to a stable monthly income of seven digits through trading strategies and insights. Sometimes, enlightenment comes in an instant when there is sufficient accumulation; I hope you can read carefully and save it!
1. Buy early when prices drop, sell early when prices rise: When you see a significant drop in coin prices, there is no need to panic; this may be a good opportunity to enter. When the coin price rises sharply, be wary of possible pullbacks and reduce positions in a timely manner. Grasping market fluctuations can achieve steady profits.
2. Fund allocation: Fund allocation is a key factor in determining profits. Funds should be reasonably allocated according to your risk tolerance and market conditions. Pursue higher returns while ensuring safety.
3. Afternoon strategy: If the coin price continues to rise in the afternoon, do not blindly chase high prices; try to avoid high positions. If a sharp drop occurs, first observe the market reaction and do not rush to catch the bottom; wait for the market to stabilize before making a decision.
4. Stay calm: Market volatility is intense, and emotional management is crucial. Do not panic when the market drops in the morning; take a break during consolidation, stay calm, and do not let emotions control you.
5. Follow the trend: Do not rush to operate when the trend is unclear. Do not sell when the coin price has not reached a new high, do not buy when it has not pulled back, and be patient during consolidation; do not easily enter the market.
6. Yin and Yang line strategy: Choose a bearish line when buying, as this is more secure; wait for a bullish line to appear before selling to achieve higher profits.
7. Contrarian thinking: Going with the trend is a conventional strategy, but at certain times, contrarian operations may also bring opportunities. Only by daring to challenge market rules can you gain more profits.
8. Be patient and wait for opportunities: When the coin price is fluctuating in a high-low range, do not rush to achieve results. Be patient and wait for the market to show a clear trend before taking action, which is safer.
9. Risks after high-level consolidation: If the coin price suddenly rises after consolidating at a high level, beware of the risk of a pullback. At this time, reducing positions or decisively exiting is an effective method to avoid being trapped.
10. Hammer and Doji star warning: The hammer and Doji star pattern indicates a market turning point; when encountering this pattern, stay alert, avoid operating with a full position, and controlling risks is the way to be prudent.
11. Summarize and review: Continuously optimize trading strategies after each trade ends, analyze the successes and failures during the trading process. By continuously optimizing trading strategies, improve profitability.
Still the same, if you don't know what to do in a bull market, click on the Coin Hero avatar, follow, and plan for bull market spot trading, contract trading, and share for free.
