Everyone need not worry about whether they can learn; if I can seize this opportunity, so can you. I am not a god; the only difference between me and others is that others have overlooked this method.
If you can learn this method, it can help you earn an additional 3 to 10 percentage points in profits daily in later trades.
The trading principles of excellent operators in the cryptocurrency market:
First, buy during sideways trading and buy dips, not during vertical rises; sell points are at the boiling point. The cryptocurrency market resembles a turbulent sea; the price fluctuations of virtual currencies are like rolling waves, ceaseless. In this domain full of opportunities and risks, excellent operators know that trend judgment must be prioritized. Just as navigation requires a compass to guide the direction, closely watching moving average indicators is the key to insight into the cryptocurrency market's direction. By carefully studying the subtle changes of each moving average, one can understand the tug-of-war between bulls and bears early on, laying a solid foundation for subsequent operations.
Second, a series of small increases indicates a real rise, while a series of large increases suggests it's time to exit. After accurately capturing the trend's hint, the choice of entry timing becomes crucial. It's like a hunter waiting for the best moment to catch prey; operators must fixate on volume changes like a hawk locking onto its target. The flow of funds in the market is like an undercurrent; once unusual volume fluctuations occur, it often signals that the market will start up. But at this moment, one must not be anxious; patiently wait for the price to stabilize after a pullback, confirm that this is not a false signal, and then act decisively. One must never let a temporary rise cloud judgment and blindly chase high prices, otherwise, it’s easy to get stuck at high levels.
Third, a sharp drop with low volume is intimidation; a gradual drop with volume signals to exit. Entering the cryptocurrency market, stop-loss and profit-taking are like two solid lines guarding wealth and must be set cleverly and accurately. Each order must weigh the risk-reward ratio in advance and clarify the bottom line of losses you can bear. This is the basic principle for survival in the market. Meanwhile, when facing profits, always keep a clear head, do not let greed blind your eyes, and set reasonable profit targets, taking profits when they are available; do not be greedy, or you might end up losing what you have already earned.
Fourth, a significant rise requires a pullback; avoid digging deep pits and making large buys. Properly planning your position size is another essential skill for excellent operators. This is akin to military strategy, where troop distribution is crucial. You must never rashly concentrate all your 'troops', meaning funds, in one cryptocurrency at once; this all-in approach carries extremely high risks. If the market reverses, it will suffer severe blows. In contrast, adopting a strategy of gradual entry and exit is much more sophisticated, adjusting positions step by step according to market changes, which can both reduce risks and flexibly respond to various emergencies, ensuring safety amid the cryptocurrency market's turbulent waves.
Never trade emotionally in the cryptocurrency market; don’t sell hastily when the market drops or rush in when it rises. Such emotional trading often leads to regret. Calm analysis and rational operations are the hard truths; cryptocurrency trading is not just a technical and strategic contest, it is also a test of the operator's mindset!
Dignity only exists above high prices, and truth lies within reliable data and analysis: my cryptocurrency trading insights.
1. The temptation of high points; how to respond rationally.
You must always believe that dignity only exists above high prices, and truth lies within reliable data and analysis. In the market, cruelty coexists with opportunity.
When the cryptocurrency continues to break through its highest point, I believe that most people holding the cryptocurrency feel a sense of dignity and accomplishment during those moments of rising prices. However, high points often come with greater risks. How can you know that the place you are standing on is the highest point? Once the market rebounds or perhaps climbs even higher, can you really capture that so-called highest point?
Therefore, true dignity lies not just in reaching high points, but in how rationally we treat these high points and avoid blindly chasing after them. When the price reaches its highest point, please learn to set appropriate profit-taking points to lock in profits in time, avoiding missing the best selling opportunity due to greed.
Please do not concentrate all your funds into a few cryptocurrencies; you must learn to diversify investments. Diversifying investments can reduce the risk of a single investment; please maintain a long-term investment perspective and do not be misled by short-term highs; focus on the long-term development potential and technical advantages of the projects.
2. Truth only lies within reliable data and analysis.
The truth of the market is not always obvious. In this uncertain market, only by relying on reliable data and scientific analysis can we make wise decisions. Do not be misled by short-term fluctuations; instead, focus on long-term trends and technical indicators to maintain calm and rationality in a complex market environment.
(1) The importance of data.
In the world of cryptocurrencies, the importance of data is self-evident. To make money in this highly volatile market, you need to be the first to know about major news in the market, new government policies, the latest developments in projects, and the general perspective of the market. This information truly helps us see the market's direction, identify genuine opportunities from traps, allowing us to make smart choices to protect and increase our wealth. In other words, whoever possesses useful and up-to-date data will gain an advantage in this market. Remember, it must be useful and up-to-date data. High-quality data is the foundation for effective analysis; incorrect or incomplete data leads to erroneous conclusions, while timely data reflects the latest market dynamics, and outdated data may cause you to miss the best trading opportunities.
(2) Scientific technical analysis.
Technical analysis plays a decisive role in our decision-making. Why is that? It's like wanting to understand the weather; we need weather forecasts to predict changes, similarly, using tools like candlestick charts, MACD, and RSI can help us understand past market performance, judge whether the price trend is upward or downward, and whether there are signs of a reversal. At the same time, we should also pay attention to changes in trading volume, as it indicates market participants' enthusiasm for price movements.
Only by relying on accurate data and scientific analysis can we make more correct decisions, reduce investment risks, and increase returns. If we neglect this point, making blind decisions often leads to failure. Before making decisions, always consider whether you have done the necessary technical analysis and whether the information you possess is reliable. Only by ensuring that these preparations are in place can you progress further.
3. From confusion to steady profit: my cryptocurrency trading insights.
I have always believed that dignity only exists above high prices, and truth only lies within reliable data and analysis. I have also been confused, panicking when reaching a high point, wondering whether to exit or continue chasing? This dilemma has made every trade less composed. But over time, I gradually found a simple and stable method, which still brings me continuous profits. You don't have to worry about not being able to learn; if I can learn it, so can you.
First, select potential cryptocurrencies. We can include cryptocurrencies that exhibit an upward trend in the past 10 days, and then exclude those that have shown a significant decline in the last three to four days. The purpose of this is to filter out those cryptocurrencies that not only have an upward trend but also do not show obvious short-term risks, while avoiding those that have already entered a correction phase, thereby improving the success rate of subsequent operations and reducing risks.
Secondly, use candlestick charts to select only those cryptocurrencies with MACD golden crosses on the monthly level. This is to ensure that the selected cryptocurrencies possess strong upward momentum in the long-term trend; MACD golden crosses usually indicate the beginning of a new upward trend, thereby further enhancing the accuracy of selection.
Finally, check the daily candlestick chart, focusing on the 60-day moving average. When the price pulls back near the 60-day moving average and shows a strong candlestick, enter heavily. This approach is designed not only to buy at relatively low levels but also to increase the likelihood of rising. After entering, use the 60-day moving average as a standard: if above, continue holding; if the increase exceeds 25%, sell one-third; if it exceeds 50%, sell another third; if below, exit immediately, do not hold out hope; protecting your capital is the most important thing right now.
The above three steps have been quite useful for me. Through these methods, I have also gained quite a bit. This is also an important reason I can remain calm at high points and no longer act blindly in panic. I hope these experiences and methods help you achieve better results in the cryptocurrency market.
In summary, regardless of how the market fluctuates, maintaining dignity and finding truth are goals every investor should pursue. I hope every investor can remain rational in the cryptocurrency market, find their own investment path, and not be swayed by the short-term fluctuations of the market, but instead steadily walk towards financial freedom.
Understanding cryptocurrency trading is similar; from seven losses to two breakevens to one profit, it’s about maintaining focus and not getting distracted by various profit models; firmly sticking to this trading system will eventually make it your cash machine.
By mastering my simplest cryptocurrency trading method, I can now trade as if I am on a winning streak, with all green lights, simply because I have firmly grasped the following 10 rules.
1. For strong cryptocurrencies, if they fall for nine consecutive days, you must follow up promptly.
2. Any cryptocurrency that has risen for two consecutive days must be promptly reduced.
3. Any cryptocurrency that rises more than 7% will have the opportunity to rise again the next day; you can continue to observe.
4. For strong bull cryptocurrencies, wait until the pullback is over before entering.
5. If any cryptocurrency experiences three days of flat volatility, observe for another three days; if no changes occur, consider switching.
6. If any cryptocurrency fails to recover its cost price from the previous day, you should exit promptly.
7. In the rising list, for every three rises, there must be five; for every five, there must be seven. Cryptocurrencies that rise for two consecutive days should be entered during dips, and the fifth day is usually a good selling point.
8. Volume-price indicators are crucial; trading volume is the soul of the cryptocurrency market. When the price breaks through at low levels with increased volume, it needs attention; at high levels, if there is a volume stagnation, one must decisively exit.
9. Only choose cryptocurrencies that are in an upward trend for operations, as this maximizes chances and does not waste time. If the 3-day line turns upward, it indicates short-term rises; if the 30-day line turns upward, it implies medium-term rises; if the 80-day line turns upward, it indicates a major upward trend; if the 120-day moving average turns upward, it signifies long-term rises.
10. In the cryptocurrency world, small funds do not mean no opportunities. As long as you grasp the correct methods, maintain a rational mindset, and strictly execute strategies while patiently waiting for opportunities.
11. Binance contract fan, 40 points, those in need can find me. Must save up!
21 days to develop a profitable investment habit; teaching you how to build your own trading system!
Creating a system is not very difficult. The challenge lies in following the rules you set when creating the system.
The goal of the trading system.
When you build your system, you need to achieve two very important goals:
1. Your system must be able to determine trends early.
2. Your system must prevent you from suffering double losses.
If your trading system can achieve the above two points, your chances of success will increase.
The reason these goals are difficult to achieve is that they contradict each other.
If you have a system that is characterized by quickly capturing trends, you are likely to catch false trends.
On the other hand, if your system emphasizes avoiding losses, you might enter trades too late or miss many opportunities.
When establishing a mechanical system, your task is to find a compromise between these two goals. Find ways to quickly judge the trend while distinguishing between false and true trends.
Six steps to formulate a trading system.
From a long-term perspective, a good trading system may help you earn a lot of money.
Step 1: Time frame.
When formulating a trading system, the first thing you need to determine is what type of trader you are.
Are you a day trader or a swing trader? How often do you look at charts—daily, weekly, monthly, or yearly? How long do you want to hold your position?
This will help you determine the time frame for your trading. Even if you look at charts across multiple time frames, this will decide the primary time frame you use to identify trading signals.
Step 2: Find the indicators that help you judge new trends.
Since your goal is to determine the trend as early as possible, we need indicators that can achieve this goal. Moving averages are one of the most popular indicators used by traders to judge trends.
Use two moving averages (one fast, one slow) and then start waiting until the faster one crosses or moves below the slower moving average. This is the foundation of the 'Moving Average Convergence' system.
The moving average convergence system in its simplest form is the fastest way to identify new trends. It is also the simplest way to discover new trends.
Of course, traders have many methods to distinguish trends, but moving averages are one of the easiest tools to use.
Step 3: Find the indicators that help you determine this trend.
The second goal of our trading system is to avoid suffering double losses, meaning we do not want to be trapped in false trends. We avoid double losses by confirming the signals of new trends with other indicators.
There are many indicators that can confirm trends, but we prefer the MACD, stochastic index, and relative strength index. As you become more familiar with various indicators, you can find your favorites and incorporate them into your system.
Step 4: Clarify your risks.
When creating a trading system, it is crucial to determine the size of the loss you can bear for each trade. Few people are willing to discuss losses, but in fact, good traders think about how much they can bear to lose before considering how much they can earn.
The size of the loss you are willing to bear will differ from others. You need to determine how much breathing room your trading requires and not take too much risk on a single trade. In the upcoming lessons, you will learn how to manage funds. Proper fund management significantly impacts how much risk you take on each trade.
Step 5: Clarify entry and exit points.
After determining the size of the loss you are willing to bear in trading, the next step is to find the entry/exit points that can yield the most profit.
Some people like to enter trades immediately when their indicators align and send good signals, even if the candlestick has not closed yet. Others prefer to wait until the candlestick closes before entering trades.
A trader stated that he believes waiting until the candlestick closes before entering is the best choice. He has repeatedly entered the market when all indicators aligned before the candlestick closed, only to find that by the close, the trade was completely contrary to his expectations.
This is just a matter of trading style. Some traders are more aggressive, and eventually, you will discover what type of trader you are.
Regarding exit strategies, you have several options. You can move your stop-loss; if the price moves X points in your favor, set your stop-loss to move X points.
Another method is to set fixed targets; when the price reaches the target, you exit. How you calculate your target levels depends on yourself. Some people choose to use support and resistance levels as their targets.
Some people set the same number of points for each trade. No matter how you calculate your target, make sure you stick to it. No matter what happens, do not exit early. Stick to your system! After all, you created it.
Another way to exit is to have a set standard; when you meet the standard, you exit. For example, if your indicator pulls back to a certain level, you exit.
Step 6: Write down the rules of your trading system and follow them.
This is a trait that every trader must possess; therefore, you must act according to your trading system. If you do not follow its rules, your trading system is useless. So remember to stick to the principles.
Did we mention that you need to adhere to principles?
How to test your trading system.
The quickest way to test your trading system is to find a charting software platform that allows you to backtrack past movements and move individual candlesticks. Each time you move one candlestick forward, trade according to your trading system.
Record your trading system and be honest with yourself! Document your profits, losses, average gains, and average losses. If you are satisfied with the results, you can start the next round of testing: real-time trading with a demo account.
Use your system to trade in a demo account for at least two months. This will help you understand how to utilize your system when the market changes. Trust us, real-time trading is very different from backtesting.
After trading with a demo account for two months, you will know whether your system can stand firm in the market. If you still achieve good results, you can choose to start trading with a real account.
However, you must have great confidence in your trading system and trade without hesitation.
Finally: In the cryptocurrency market, only this type of person can make money; it does not depend on what technology and methods are used, but on your discipline. Trading in the cryptocurrency market is sometimes not a battle of strategies, but rather a contest of time and patience. Essentially, playing in the cryptocurrency market is a struggle between retail investors and institutional traders. If you lack cutting-edge news and first-hand information, you can only be at a disadvantage! If you want to collaborate on layouts and harvest the gains from institutional traders, you can follow me!
