Basic Terminology for Cryptocurrency Trading
Position: Refers to the ratio of the actual investment to the actual investment funds of the investor.
Full Position: Using all funds to buy cryptocurrency.
Reduce Position: Selling part of the cryptocurrency but not all.
Heavy Position: The proportion of cryptocurrency is large compared to cash.
Light Position: The proportion of cash is large compared to cryptocurrency.
Empty Position: Selling all held cryptocurrencies, converting everything to cash.
Take Profit: Selling the held cryptocurrency after achieving a certain profit to secure the gains.
Stop Loss: Selling held cryptocurrency after losses reach a certain level to prevent further losses.
Bull Market: Prices continue to rise, outlook is optimistic.
Bear Market: Prices continue to fall, outlook is bleak.
Bulls (Going Long): Buyers who believe the price will rise in the future, buy cryptocurrency, and sell at a high price after the price increases to take profits.
Bears (Short Selling): Sellers who believe the price will fall in the future, sell part of their holdings (or borrow from trading platforms), locking in until the price drops to a certain level to take profits, while also avoiding risks.
Establish Position: Buying cryptocurrency.
Averaging Down: Buying cryptocurrency in batches, e.g., first buying 1 BTC, then buying another 1 BTC.
Rebound: When the price drops too quickly, a price recovery occurs.
Consolidation (Sideways): Price fluctuates within a small range, with stable prices.
Steady Decline: The price is slowly declining.
Plunge (Waterfall): The price drops rapidly and significantly.
Cut Losses: After buying cryptocurrency and the price falls, selling it at a loss to prevent further losses. Alternatively, after shorting, if the price rises, buying back at a loss.
Stuck: Expecting the price to rise, but after buying, the price falls; or expecting the price to fall, but after selling, the price rises.
Break Even: After buying cryptocurrency and the price falls, leading to temporary paper losses, but the price later rebounds, turning losses into profits.
Missed Opportunity: After selling cryptocurrency due to a bearish outlook, the price rises continuously, and failing to buy back in time leads to missed profits.
Overbought: The price has risen to a certain height, with buying pressure mostly exhausted, and the price is about to fall.
Oversold: The price has continuously decreased to a certain low point, with selling pressure mostly exhausted, and the price is about to rebound.
Trap for Bulls: The price has been consolidating for a long time, with a high possibility of falling. Most bears have sold their cryptocurrency, and suddenly the bears pull the price up, luring the bulls to think the price will rise, leading to buying, which results in the bears suppressing the price, trapping the bulls.
Trap: After the bulls buy cryptocurrency, they deliberately suppress the price, making the bears think the price will drop, leading them to sell, ultimately falling into the bulls' trap.
The market is never short of opportunities; the question is whether you can seize them. By following experienced and the right people, we can earn more! The team still has spots, come quickly.
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