The Truth About Making Money in the Crypto World: It's Actually This Simple
Many people lose money playing contracts, so how can one make a profit?
Only trade the two strongest coins (Bitcoin and Ethereum). Focus mainly on the 4-hour charts: if there is significant resistance from moving averages above (for example, MA60 consistently preventing upward movement), take this opportunity to short in batches; if there is support at the same level or higher below, buy in batches near the support level. Set stop-loss like this: if the support level is at 2220, and it dips to 2210 and then bounces back, set the stop-loss just below 2210 (around 2100).
Stop-loss and position sizing are crucial: if total losses reach 15%-20%, try not to open new positions that day; keep individual stop-losses within 10%, and make a maximum of two trades a day, each with the same position size. Try to enter in batches, and don’t invest all your money at once.
Follow the trend: if the overall direction is bullish, go long; if the overall direction is bearish, go short. During bullish times, chase hot coins. Control your risk-reward ratio, aiming for around 4:1. Review and summarize your trades daily.
When faced with a market crash: wait to short until the spikes, and enter in batches; if there’s no opportunity, continue to short, as not losing money in this situation is equivalent to making money. Regarding win protection stop-loss: if you opened a position that day without a stop-loss, and the same level candlestick pattern hasn’t been broken, you don’t need to set a win protection stop-loss.
Keep your mindset and prohibitions in mind: don’t think about getting rich quickly; only trade what you understand, learn to short, and avoid over-leveraging. Don’t hold overnight positions, and avoid trading on weekends without market activity. After being stopped out, don’t get emotional; maintain a good mindset and avoid further trades. Always control your position size; don’t over-leverage or go all-in, and set take-profit and stop-loss levels properly.
