When I first entered the cryptocurrency circle, I made about 4 million with an initial capital of 50,000. I graduated from college without working. I just played in Kunming and Dali, without buying a house or a car. My monthly expense was 1,500.
How I made money:
1. Initial capital of 50,000, doing projects in college, affiliate marketing, shua orders, express delivery, app crowd-filling, various small tasks, accumulated 50,000.
2. Entering the crypto circle, I feel that BTC is too expensive, so I kept playing with ETH+, ETH has leverage, and then into altcoin spot trading. Choosing coins and managing positions well. The simple idea has been executed consistently. In unfavorable markets, I incur small losses, but when the market comes, I make significant profits.
Why enter the cryptocurrency circle: If you want to change your fate, you must try the cryptocurrency circle. If you can't make money in this circle, ordinary people will have no chance in their lifetime.
As someone who has experienced three rounds of bull and bear markets, here are the three things you absolutely must not do in the cryptocurrency circle.
1: Don't touch contracts, don't hold positions, don't chase after unreliable projects.
2: The worst thing you can do is to frequently buy and sell, chasing highs and lows.
3: The worst thing you can do is put all your coins on one wallet address or exchange, which is riskier than trading futures leverage.
Below, I will bring you pure dry goods, the most important things to do in the cryptocurrency circle.
After trading cryptocurrencies for 10 years, I went from being deeply in the red to becoming very wealthy, and I have understood 9 rules of the crypto world. The content is not much, but it is highly valuable, and I will share it with you today. Understanding a few of these rules can lead to smoother trading.
1. Capital management: Act according to your ability, diversify risks.
Focus on holding one coin with less than 100,000: When the funds are limited, concentrate on holding one potential coin and deeply study its fundamentals and technicals.
200,000 to 300,000, playing with two coins: When the capital is slightly more, you can diversify into two coins to reduce the risk of a single coin.
With funds under 500,000, three to four coins are enough: As capital further increases, hold at most three to four coins to avoid excessive diversification.
No matter how much capital you have, do not exceed five coins: Regardless of the amount of capital, do not hold too many coins to avoid management difficulties. Focus fire in a bull market, light positions in a bear market: In a bull market, concentrate funds on the most potential coins; in a poor market, operate with light positions to reduce losses and withdraw in time even if you incur losses.
2. Trend is king: Follow the market and do not go against the trend.
Watch the news, learn the techniques: Understand market dynamics and technical indicators to improve investment success rates.
Downward rebounds are often bait, and upward adjustments may be traps: Do not blindly try to catch the bottom or chase highs; follow the trend.
Do not guess the thoughts of the major players: The operations of market leaders are difficult to predict; focus on your investment strategy.
3. Only act when the market is active and respond flexibly.
Act when the market is active: When market activity is high, investor sentiment is positive, making it easier to seize opportunities.
Operate flexibly, do not be rigid: Adjust your strategy promptly according to market changes and do not stick to old patterns.
4. Stop loss and take profit: Protect the principal and lock in profits.
Set fixed stop loss points: Cut losses in a timely manner to avoid bigger losses.
Gradually raise the selling price: Gradually increase the selling price when profitable to ensure profits are not lost.
5. Buy fast and sell decisively: Make decisive decisions and avoid hesitation.
Buy quickly: Make decisive purchases when opportunities are discovered to avoid missing out.
Sell decisively: Sell decisively when reaching expected targets or when the market turns to avoid losses due to greed.
6. Think carefully before adding positions.
Ask yourself: Before increasing your position, consider whether you are willing to invest new funds under the current circumstances. If the answer is yes, then consider increasing your position.
7. Primarily long-term, with short-term as a supplement.
Avoid frequent short-term speculation: Short-term operations can easily lead to confusion and affect your mindset.
Follow the trend: Big money should follow the market trend and hold potential coins for the long term.
8. Do not blindly try to catch the bottom; treat the market rationally.
A significant drop does not mean you can catch the bottom: A sharp market drop does not necessarily mean the bottom has been reached, and blindly trying to catch the bottom may continue to trap you.
Few market winners: Only a small number of people can make money in the market, so stay rational and do not blindly follow the crowd.
Final advice.
A bull market is not only a test of market fluctuations but also a test of the investor's mindset. Stay calm, follow the above iron rules to succeed in the bull market.
Steadily moving forward during bearish alternations ultimately achieves wealth growth.
There is a 'foolproof' way to trade cryptocurrencies that increases the win rate by 80%! A professional trader's 'optimal timeframe for short-term profit system' is publicly shared. It's very simple to eat with the big players! I share this with those who have the fate to see this article.
Choosing a timeframe for day traders is a very important decision, but there is no definitive answer. The suitable timeframe varies from person to person, depending on their trading strategy and how they prefer to spend their trading time (easily or tightly). Here are the pros and cons of each intraday trading timeframe so you can decide which period suits you.
Day traders can choose to trade using a single timeframe or multiple timeframes. Here are common time period examples: 1 minute, 5 minutes, 15 minutes, 30 minutes, 60 minutes, and Tick charts (based on a fixed number of trades).
◎ Smaller time periods (like 1 minute): Provide more details, suitable for fast trading, such as scalping.
◎ Longer time periods (like 15 minutes): Less detail, smoother charts.
◎ 5-minute period: Balances detail and smoothness.
It is recommended to combine multiple timeframes for analysis: Look for trading opportunities on longer time periods, then switch to shorter time periods to determine precise entry points and smaller stop-loss levels.
1. For example, on the 60-minute chart, a triangle pattern is close to a breakout point.
2. Switch to the 1-minute chart and set the stop loss below the recent swing low on the 1-minute chart. This is usually closer to the current price than the swing low on the 60-minute chart.
3. Smaller stop losses mean larger position sizes and higher potential profits.
4. Use target profit levels on the 60-minute chart to achieve a higher risk-reward ratio. When the price approaches the target, switch to the 1-minute chart and exit at reversals to avoid giving back too much profit.
Look for and observe patterns on longer timeframes. Patterns on shorter timeframe charts appear quickly and disappear just as fast. If a larger perspective is needed, we just need to zoom out the chart (compress the chart).
Pros and cons of various intraday trading time frames.
Charts can be broken down into different timeframes, including 1 minute, 5 minutes, 10 minutes, 15 minutes, and other timeframes beyond these. We will analyze these time periods one by one, discuss their pros and cons, and the suitable trading styles.
Please read the analysis of each timeframe carefully, as they are compared to each other.
Before starting, here is a chart that shows the differences between 1-minute, 5-minute, and 15-minute charts. They all display price data for 11 hours on the same day but have significant differences in detail.
There is no superiority between the two, but a certain timeframe might be more suitable for you as it may provide more trading opportunities or the charts may appear clearer. Additionally, combining multiple timeframes is also feasible. We will discuss how to use multiple timeframes later.
1-minute chart timeframe.
The 1-minute timeframe may be suitable for those who like to observe price movement details and want to enter and exit the market through short-term trades (lasting only a few minutes).
If you want to trade on a 1-minute chart, build and test your strategy on the 1-minute chart.
Trading a 1-minute chart requires almost constant attention, as a new candlestick is generated every minute, and trading signals may appear frequently (depending on the strategy).
Due to the frequent appearance of price candlesticks, 1-minute chart traders usually have more opportunities to trade than traders using longer periods. If there is a profitable system, more trades mean more profits and faster account compound growth. However, if there is no profitable strategy, traders may quickly incur losses.
For trades based on smaller candlesticks (rather than higher timeframe trades), stop loss and profit target levels are often smaller than what higher timeframe traders use. But this is not absolute. Traders can use smaller stop losses on 1-minute charts and pursue larger risk-reward ratios. Waiting for larger profits may mean reducing the number of trades throughout the day.
Due to smaller stop losses, position sizes can be very large.
The position size in forex trading may require leverage of 20 times, 50 times, or even 100 times... while still controlling trading risk to below 1% of the account balance. Currently, many brokers offer 100 times leverage, or even higher.
In the U.S. stock market, the position size for day trading is usually (but not always) limited to 4 times leverage. This means that even if each trade only bears 1% or 0.5% risk of the account balance, most of the funds in the account (including maximum leverage) can be easily utilized (without taking on so much risk, you can take on less). A single day trade may occupy a large portion of the available funds in the account, leaving little for other trading activities, such as swing trading. You can choose to allocate a specific amount for day trading and use the remaining funds for other trades.
Trade using a fixed 2:1 risk-reward ratio.
The following stock day trading charts showcase some trades and potential trading opportunities using the 2-minute chart (missed). The 2-minute chart has slightly less detail than the 1-minute chart but more than the 5-minute chart.
Main conclusion: The 1-minute chart is suitable for those who wish to maximize trading time through more trades, typically using larger position sizes and smaller stop-loss and profit targets (though targets can be expanded if needed).
5-minute chart timeframe.
The 5-minute chart may be suitable for those who focus on larger intraday trends and do not need to check the opening price, highest price, lowest price, and closing price every minute, but rather wish to receive summary data every 5 minutes.
If you want to trade on a 5-minute chart, build and test your strategy on the 5-minute chart.
Trading a 5-minute chart requires focus but does not need the same level of constant attention as a 1-minute chart. A candlestick forms every 5 minutes, so there is a longer time interval between data points. If traders wait until the candlestick closes before acting, it means there is at least one action every 5 minutes, usually taking a longer time.
Traders on the 5-minute chart usually trade less frequently than those on the 1-minute chart because there are fewer actionable data points (candlesticks). In a two-hour trading window, there may be one or two trades, or even more, but fewer than on the 1-minute chart.
Stop losses and profit targets are usually larger than those on the 1-minute chart. There is no intrinsic good or bad in this, but it usually means fewer trades per day.
Due to the larger candlesticks on the 5-minute chart, the position size is usually smaller than on the 1-minute chart, meaning the distance between selected entry and exit points may be greater.
Due to the position size being slightly smaller than the 1-minute chart, traders may be able to hold multiple positions simultaneously. Similarly, you can allocate a specific amount for each intraday trade to ensure there is enough capital for all desired positions.
Trade using a fixed 2:1 risk-reward ratio.
Each part of the Euro/USD (EURUSD) chart is from the same day, just with different timeframes, which affects the number of trades and entry points.
Here are some examples of stock day trading using the 5-minute chart:
Main conclusion: The 5-minute chart is suitable for those who want to focus on larger intraday price fluctuations, receive fewer data points, and use medium position sizes (smaller than the 1-minute chart but larger than longer period charts).
10-minute or 15-minute chart time periods.
10-minute or 15-minute charts are suitable for those who want to see the main trends and price fluctuations throughout the trading day, rather than every small fluctuation (such as in 1-minute or 5-minute charts).
If you want to trade on a 15-minute chart, build and test your strategy on the 15-minute chart.
Trading 10-minute or 15-minute charts requires less constant attention since candlestick formation time is longer. If you wait for the candlestick to close (not necessary), there will be at least a 10 to 15-minute interval between possible actions.
Traders using this timeframe may only make one or two trades per day. If trading within a two-hour or shorter time window, many days may pass without trading signals. Trading this timeframe may require more time in front of the screen due to longer times to enter and exit trades.
Stop losses and profit targets are usually larger than those on the 5-minute chart. There is no intrinsic good or bad in this, but it usually means fewer trades per day.
Due to the larger candlesticks on the 10-minute or 15-minute charts, the position size is usually smaller than on the 5-minute chart, which means the stop loss distance may be greater.
Due to fewer trades and smaller position sizes, it is easier to hold multiple positions simultaneously.
Main conclusion: The 10-minute or 15-minute chart is suitable for traders who want to focus on larger price fluctuations throughout the trading day and do not mind waiting longer to open and close positions. They prefer clearer price trends and may only make one or two trades during several hours of trading.
Summary comparison of the best intraday trading time periods:
Due to the rapid formation of 1-minute candlesticks, traders usually have more trading opportunities on the 1-minute chart. The pace is also the fastest, as a new candlestick is formed every minute, providing new information.
The position size on the 1-minute chart is the largest because the stop loss is very small; we can use all funds plus leverage, taking only 1% risk of the account per trade. This means that capital consumption is also very high. As mentioned earlier, if you take a fixed percentage of account risk per trade, you may end up using all funds for a trade with a small stop loss.
Interestingly, the amount of capital required for a 1-minute chart is the least because the stop loss is usually minimal, which means that even small accounts can typically control risk at 1% or lower. As the scale of the stop loss increases, the amount of capital needed to trade in a risk-controlled manner also increases.
The constantly forming new candlesticks every minute means that we have the highest psychological focus on the 1-minute chart, while on longer time periods, the focus may decrease due to the lower frequency of new candlesticks/information.
Multi-timeframe analysis.
Some traders only use a single timeframe for trading, while others use multiple timeframes to look for trading opportunities.
When trading on a single timeframe, if you see a trading opportunity on a certain timeframe, just trade directly without checking other timeframes for confirmation.
Multi-timeframe trading means you can look at charts of longer periods and use them as a filter for trading on lower time periods. For example, traders might look at 5-minute or 10-minute charts to determine the overall trend direction and then look for entry opportunities that align with the trend on the 1-minute chart. Alternatively, they might use a 30-minute chart to determine the overall direction and then use 5-minute or 10-minute charts for entry.
The left side of the chart shows the 60-minute chart of Draftkings (DKNG), and the right side shows the 5-minute chart. The 60-minute chart provides a potential trading opportunity, then the 5-minute chart is used to find entry points and stop-loss levels. The 60-minute chart also provides some reference for the potential running space of prices, although we cannot determine the specific running range for a single day (for day trading).
There is no perfect combination or answer. A profitable trading system can be built on any time period or any combination of timeframes. However, understanding the pros and cons of each time period can help you decide which is best for you.
Alternative options for intraday trading chart time periods — Tick charts and Renko charts.
Time periods are often discussed as the only chart options, but this is not the case. There are also some chart types based on other factors.
◎ Tick chart: Based on a fixed number of trades. Once a certain number of trades is reached, a candlestick is formed. This means that during busy trading times, candlesticks can form quickly, but during slow trading times, it may take several minutes or even hours to form a candlestick. I like to use this chart when trading futures contracts. (See: (Avoiding market noise — Understanding Tick charts correctly))
◎ Renko chart: A brick chart based on price movements. A brick is formed once the price moves a certain amount. As long as the price continues to move in the same direction and reaches the desired amount, bricks will continue to form. If the price reverses and reaches a range of two brick sizes, the bricks will change color and start to move in the opposite direction. Bricks are not based on time but on price movements. (See: (An essential tool for intraday trading — Renko charts, what are their uses?))
These are just a few examples of existing alternative chart types.
The chart time periods I use for trading.
● Forex day trading: I use a 1-minute chart.
● Stock day trading: I use a 1-minute chart, but if I try to capture larger fluctuations, I may switch to a 2-minute or 3-minute chart.
● Stock swing trading: I only use daily charts. If I have time, I occasionally look at other timeframes.
● Forex swing trading: I look for patterns on daily, 4-hour, and hourly charts. I usually trade based on the single timeframe I am observing. Sometimes, if I find a desirable trading opportunity on these longer periods, I may switch to a 5-minute chart to find entry points and maximize my risk-reward ratio (stop loss based on the 5-minute chart, targets based on the 4-hour or hourly chart, depending on the timeframe used).
Playing in the cryptocurrency circle is essentially a battle between retail investors and big players. Without cutting-edge news and first-hand information, you can only be cut! Those who want to layout together and harvest the big players can come (Crypto Muqing) and welcome like-minded people in the cryptocurrency circle to discuss together~ The secret skills have been given to everyone, whether you can become famous in the rivers and lakes depends on yourself.
These methods should definitely be saved and reviewed multiple times. If you find them useful, you can share them with more people trading cryptocurrencies around you, follow me, and learn more dry goods from the crypto circle. Having been through the rain, I am willing to hold an umbrella for the retail investors! Follow me, and let's walk hand in hand on the path of cryptocurrency!
