Seven years ago, like all beginners, I watched Bitcoin rise from 789 to 19,783, succumbing to FOMO (Fear of Missing Out) and going all in, only to see it plummet 40% a week later... But now my investment portfolio has outperformed the market by 470%, and the key is—rolling position strategies.
● Adding positions with floating profits: After gaining floating profits, consider adding to your position. However, ensure that your holding cost has decreased to minimize the risk of loss. This does not mean blindly adding positions after making a profit; it should be done at the right moment.
● Base position + trading rolling operation: Divide the funds into several parts, keeping a portion as a base position unmovable, while conducting high selling and low buying operations with another portion.
Specific ratios can be chosen based on individual risk preference and capital scale. For example, you can choose to use half of your funds for rolling trades, one-third for base positions, or seven-tenths for base positions, etc. This operation can reduce holding costs and increase returns.
In defining the 'right time,' I believe there are primarily two types:
1. Increase positions during convergent breakout trends, and quickly reduce the added positions after breaking through.
2. Increase trend positions during pullbacks in trends, such as buying in batches at moving averages during pullbacks.
There are various specific methods for rolling positions, the most common being through adjusting holdings. Traders can gradually decrease or increase the number of holdings based on market changes to achieve profit. Traders can also use trading tools like leverage to amplify returns, but this also increases risk.
Increase risk.
Three factors to pay attention to in trading:
First, the factor is mindset.
Second, the truth of human nature.
Third, be diligent in learning and improve your understanding.
I will share my ten years of cryptocurrency trading insights. Today, I will thoroughly analyze the trading rules and strategies that have weathered market storms, hoping to illuminate your investment journey in the cryptocurrency market and help you avoid detours while significantly increasing your chances of profit.
If investors can strictly follow these trading rules and flexibly apply them according to market conditions, it will certainly help them avoid common investment traps and significantly increase their chances of profiting in the cryptocurrency market.
7 Trading Skills and Insights to Help You Achieve Profit!
Today, I will share 7 trading techniques and insights. These details are also what I consistently practice daily, hoping to be of help to you!
1. Watch the market after it closes
Many of us retail investors are non-professional traders, lacking a complete trading system and having unstable psychological states, making us easily influenced by market fluctuations.
When we keep an eye on the market, our attention is entirely focused on minor fluctuations, even minor pullbacks make us feel very nervous. At that moment, trading can become chaotic. Good market conditions may lead to premature closing of positions, and impulsively entering positions we haven’t researched can lead to losses.
When looking back after the market closes, I feel as if I were bewitched, having traded chaotically.
Therefore, I suggest that those with poor self-control reduce the frequency of watching the market, or even not watch it at all.
My habit is to review the market after closing, as it does not involve current price fluctuations and does not affect my mood, allowing me to rationally execute my trading plan.
When the stock price drops to a low point, enter the market after the price tests support and forms a reversal candlestick. After the drop forms a new reversal candlestick, add to your position, and after entering, use previous highs as profit targets for closing.
2. Use limit orders more and market orders less.
I use limit orders most frequently in trading, primarily for two purposes: one is to reduce impulsive trading, and the other is to obtain better execution prices.
When you use limit orders to trade, once you place your orders, you don't need to keep watching the market; you just need to occasionally check if your orders have been executed. When placing limit orders, you can also set stop-loss and take-profit orders simultaneously, which saves a lot of effort.
Many people like to keep an eye on the market while trading, crying out with minor losses and becoming anxious when profits arise, as if trading were a battle, sweating profusely.
Under such a mental state, it is impossible to trade well. Therefore, I often say to maintain a certain distance from the market, which means reducing the time and frequency of watching the market, allowing one’s mindset to remain stable, which is more conducive to making objective judgments.
Moreover, placing limit orders usually allows entry after market corrections, which provides a more advantageous entry price compared to market orders during practical trading.
Do not underestimate the price advantage of entering through limit orders, as they provide better entry prices. Orders can achieve profits faster, allowing traders to gain psychological advantages more quickly, and can also expand the profit-loss ratio, which is very helpful for subsequent trade execution.
Although this is a very small detail, after many years of practice, one cannot say that it hasn't been beneficial. Our success is built on many small details.
3. When having floating profits, use technical pullbacks for short-term trades
Most trends operate in a manner of oscillating upward or downward. During the oscillating pullback process, holding profits will decrease, leading to significant psychological pressure as we worry about whether the market will reverse and whether to continue holding. At this time, we can utilize the technical pullbacks in the market to create reverse short orders.
For example, when holding a long position with floating profits, near the pressure point of the market, combine it with the candlestick patterns to make a short-term short position. After entering the short position, if the market pulls back, the short position will generate profits, while the long position's profits decrease, but overall profits will not shrink significantly. After the market pulls back, near the turning point of a second market surge, close the short position and continue holding the long position.
Doing this first alleviates psychological pressure during market fluctuations, and secondly, it can increase profits.
4. Be an Independent Trader
Trading is a very serious and personal matter.
The money in the account is earned through our hard work, not picked up off the ground; we must be responsible for every penny.
Many people, when uncertain about something, habitually seek help from others or discuss with others to gain a sense of validation, thereby solidifying their decisions. However, this is a taboo in trading.
Because each person has different judgments about direction, entry and exit points, position proportions, and the indicators and cycles used, everyone has their own standards. Once discussions occur, your insecurities about human nature will be triggered, leading to doubts about your trading strategy, ultimately resulting in gains and losses in trading and causing losses.
There is a saying in "The Crowd" that goes, when one enters a group, their IQ severely declines; to gain acceptance, individuals are willing to abandon right and wrong and exchange their intelligence for a sense of belonging that feels safe. Therefore, when trading, do not fall into this mental trap; try to find a relatively quiet environment where you can think independently, develop strategies, test them, adjust them, and finally execute them independently.
As for the feeling of loneliness, it definitely exists, but in the face of making money, this slight loneliness is nothing. Once you reach real profitability, you will understand.
5. Non-action governance
Today I saw a passage that resonated deeply! What constitutes successful trading is actually not trading!
Let's look at it from the Buddhist perspective: if I were blind, there would be no difference between marrying Xi Shi or Dong Shi.
If I were deaf, it would be no different whether you praised me or scolded me. If I lost my sense of smell, it would be no different whether I was in a toilet or a flower sea.
If I die, whether my body is eaten by dogs or given a grand burial is of no difference.
The reason why people are troubled, why they are fickle in emotions, and why love and hate are intertwined is because of their delusional mind making distinctions! Because of the distinctions of the mind, good and evil, beauty and ugliness, right and wrong are born; everyone in the world knows, beauty is beauty, thus evil is also.
Your attachment to love gives rise to greed. When greed is unfulfilled, it produces anger, and the mix of love and hate leads to delusion. The cycle of greed, anger, and delusion, driven by karma, ultimately manifests countless good and evil results, each one realized with you. Your fate becomes predetermined, all cycling through cause and effect. Heaven and earth are unkind, treating all beings as straw dogs, for the way has no distinctions.
Thus, the mastery of all things, the senses of sight, hearing, smell, taste, touch, and mind can perceive colors, sounds, scents, flavors, and touch, all are the wonderful use of the mind. The mind perceives all things and responds to all things, yet is never contaminated or directly takes from all things; thus, the mind is inherently complete, and so the mind can give rise to all dharmas.
The essence of practice is to clarify the mind. How to clarify? When you have no distinctions and do not know the extremes, you should not cling to anything; then the Bodhi mind will reveal itself.
Similarly, how to trade? When you have no trading in your mind, you can naturally traverse bull and bear markets!
Cryptocurrency Market Secrets: How to Profit Steadily, Avoid Risks, and Achieve Doubling through Rolling Positions?
In the cryptocurrency market, many investors harbor dreams of overnight wealth, blindly following trends, only to find themselves trapped at high positions and sinking into losses. As an experienced investor, I want to tell you that those who can achieve stable profits in the cryptocurrency market are not those who pursue short-term gains, but those who possess rational thinking and a steady approach. Today, I will share how to invest stably in the cryptocurrency market and how to achieve long-term stable profits through rolling strategies and reasonable position management.
Below I will share the basic concepts of the cryptocurrency trading system, market analysis, investment strategies, risk management, technical tools, ecological applications, and regulatory policies.
I hope to provide a comprehensive overview of cryptocurrency knowledge, so that stock friends can find suitable methods they want to learn.
Overview of the Cryptocurrency Trading System:
1. Basic Concepts of Cryptocurrency Market
2. Cryptocurrency Market Analysis
3. Cryptocurrency Investment Strategies
4. Risk Management in Cryptocurrency Market
5: Technical Tools in the Cryptocurrency Market
6: Ecological Applications in the Cryptocurrency Market
7: Regulatory Policies in the Cryptocurrency Market
1. The Mindset for Cryptocurrency Investment: Control Emotions, Avoid Greed
In the cryptocurrency market, successful trading relies not only on technical analysis but also on good psychological control. Many investors make irrational decisions during market fluctuations due to emotional volatility. For example, they impulsively chase prices when they see a significant rise or panic sell when prices drop. This emotional trading is one of the main reasons retail investors incur losses.
As an investor, you need to remain calm and rational. Especially when facing significant market fluctuations, you must stick to your investment strategy and avoid blindly chasing prices up or down. Do not be affected by short-term price fluctuations; instead, make rational judgments based on long-term market trends about when to buy and sell.
2. Position Management: Reduce Risk, Ensure Steady Profits
Position management is one of the most important parts of investing. Especially in the cryptocurrency market, where volatility is severe, reasonable position management can help you retain capital during market corrections and quickly profit when prices rise. Here are my personal position management suggestions:
1. Warehouse management to reduce risk
The core principle of position management is to diversify risks, not to put all funds into one trade. For example, if you have 30,000 USDT in funds, you can divide it as follows:
Divide the funds into three parts, each part 10,000 USDT.
Use one share of funds for operations each time you open a position. This way, even if a loss occurs, it will not affect all your funds.
Specific leverage settings: For major cryptocurrencies (like Bitcoin), use no more than 10x leverage; for altcoins, leverage should not exceed 5x.
2. Operations of Adding and Reducing Positions
When in profit, consider adding to your position. Especially in clear market trends with favorable conditions, adding positions can expand profits. However, before adding, ensure that your costs have decreased to avoid blind addition leading to greater risks. One misconception to avoid is that floating profits are not an unlimited reason to add positions; you must ensure that the market trend continues to develop in your favor.
3. Set Take-Profit and Stop-Loss to Avoid Excessive Greed
Setting take-profit and stop-loss levels is a basic operation every investor needs to establish. If stop-loss points are not set properly, you may miss the chance to exit due to small fluctuations, resulting in significant losses; if take-profit points are unreasonable, you may miss out on profits during price reversals. A reasonable take-profit and stop-loss strategy can help you protect profits and avoid emotional interference from chasing prices.
3. Rolling Strategy: Capture the 'Big Opportunities' in the Market
The rolling strategy achieves the effect of compound interest by increasing positions in a major trend. Many investors misunderstand rolling positions as blind adding to positions, but in reality, rolling is a very timing- and strategy-focused operation. It is only suitable to roll when market trends are clear and signals are strong.
Three major applicable scenarios for rolling operations:
1. Choosing a direction after long-term consolidation: When the market enters a sideways consolidation phase, the price fluctuations narrow, usually indicating a future breakout. At this point, if the market breaks through key support levels above or below, rolling operations can be performed.
2. Pullbacks after significant gains in a bull market: Pullbacks in a bull market often present good buying opportunities. When a significant rise is followed by a 20%-30% pullback, it is suitable to add positions and wait for the market to recover.
3. After breaking through key resistance levels: When the market breaks through long-term key resistance or support levels, it usually indicates that the price will enter a new upward cycle. At this point, rolling operations can yield substantial returns.
Specific methods for rolling positions:
Adding positions with floating profits: If you have gained floating profits after a market rise, you may consider adding to your position, but the premise is that you have reduced your holding costs to ensure minimal risk.
Base position + trading rolling: Divide the funds into two parts, keeping one part as a base position unmovable, while using the other part for high selling and low buying rolling operations. This not only reduces losses but also gains profits amidst volatility.
4. Risk Management: Stay Calm Amidst Volatility
In the cryptocurrency market, risk control is key to determining long-term profitability. The market is highly volatile, and rapid price fluctuations often impair investors' emotions, leading to poor decision-making. Therefore, maintaining a good risk control mechanism is essential.
1. Building Risk Tolerance:
Mental preparation: The drawdown in the cryptocurrency market is often large, so you must be mentally prepared to withstand a 30%-50% drawdown. Only with a stable mindset can you maximize gains during market fluctuations.
Diversify investments: Do not concentrate all funds in one trade. Diversifying investments can effectively reduce risks associated with fluctuations in a single market.
2. Avoid excessive speculation with high leverage:
The high leverage characteristics of the cryptocurrency market can easily lead investors to develop overly speculative psychology, but high leverage carries significant risks. When trading with leverage, you must act within your means, reasonably control leverage ratios, and ensure risks are manageable.
5. Conclusion: Rational Investment, Stay Away from 'Wealthy' Fantasies
Through reasonable position management, rolling strategies, setting stop-loss and take-profit orders, and market trend analysis, you can achieve stable profits in the cryptocurrency market. However, remember that the cryptocurrency market is not a place for overnight wealth. Investors should remain rational, avoiding blind pursuit of short-term profits, and focus on long-term planning. The high volatility of the market and short-term temptations may lead you to lose your rationality, but only by maintaining a calm mindset and employing scientific investment methods can you steadily advance in this turbulent market.
If you want to layout together and reap the rewards from the market makers, feel free to reach out to me! Our community group offers daily market strategy analysis, quality coin recommendations, and will also recommend individual coins with favorable news, allowing you to pre-emptively position yourself. Any questions can also be consulted in the group for the best answers!!!#Strategy增持比特币 #山寨币突破 $BTC
