Let's talk about what kind of people can really navigate Bitcoin in the crypto space?
There are only two types of people: those with vision and those with insight.
(1) Visionary people can grasp the major trends of the future, while insightful people can seize current major opportunities. It can actually be very responsible.
Let me tell everyone: you can only rely on yourself to continuously learn from trial and error, and then take various detours to reach where you are now.
(2) There are actually many ways to make money in the crypto space; some may not align with your views, but there are indeed people who can make money. You just haven’t seen it.
His growth is completely the same as yours; without the solid foundation laid in the previous years, there will be no subsequent explosive growth.
Any success is certainly not a coincidence.
(3) If you want to earn steadily, you must go through several years of bottleneck periods: six months learning techniques, one year practicing execution, one and a half years practicing mindset.
The most important thing during the bottleneck period is to minimize losses. If you are willing to spend time, energy, and summarize, and have a good mentor.
From being deeply in debt to becoming rich through trading cryptocurrencies!
I. About returns
Assuming you have 1 million, once the profit reaches 100%, your assets will be 2 million. If you then lose 50%, it means your assets will go back to 1 million. Clearly, losing 50% is much easier than gaining 100%.
II. Regarding price fluctuations
If you have 1 million, after a 10% increase on the first day, your assets reach 1.1 million, then after a 10% drop the next day, your assets remain at 990,000. Conversely, if you drop 10% on the first day and rise 10% on the second, your assets are still 990,000.
III. About volatility
If you have 1 million, earning 40% in the first year, losing 20% in the second, earning 40% in the third, losing 20% in the fourth, earning 40% in the fifth, and losing 20% in the sixth, your remaining assets would be 1.405 million, with a six-year annual yield of only 5.83%, which is even lower than the yield rate of a five-year treasury bond.
IV. About earning 1% daily
If you have 1 million, and if you earn 1% every day and exit, then after 250 days, your assets could reach 12.032 million, and after 500 days, your assets will reach 145 million.
V. About achieving 200% every year
If you have 1 million, and if you achieve a 200% return for five consecutive years, then after five years, your assets will reach 243 million, but such high returns are difficult to sustain.
VI. About achieving tenfold in ten years
If you have 1 million and hope to reach 10 million in ten years, 100 million in twenty years, and 1 billion in thirty years, then you need to achieve an annualized return of 25.89%.
VII. About averaging down
Assuming you buy 10,000 of a certain cryptocurrency at 10 yuan, and it has now dropped to 5 yuan, if you buy another 10,000 yuan, then the cost of what you hold can be reduced to 6.67 yuan, not the 7.5 yuan you might think.
VIII. About holding costs
If you have 1 million and invest in a certain cryptocurrency with a profit of 10%, when you decide to sell, you can leave behind assets worth 100,000 yuan, then your holding cost will become zero, and you can hold long-term without pressure. If you are extremely optimistic about this cryptocurrency and leave behind assets worth 200,000 yuan, you will find that your profit will increase from 10% to 100%, but do not get complacent, because if this cryptocurrency drops by 50% later, you might still incur losses.
IX. About asset allocation
Having risk-free asset A (annual yield 5%) and risky asset B (yield -20% to 40%), if you have 1 million, you can invest 800,000 in risk-free asset A and 200,000 in risky asset B, then your worst annual return is zero, and the best return could be 12%, which is the prototype of the CPPI technology used in capital preservation funds.
Summary of practical experience: The 'secret weapon' of trading strategy
After years of struggle in the crypto space, I have accumulated some practical trading strategies. The following mnemonics are the crystallization of my personal practical experience.
Entry section
Testing the waters in the crypto space, preparing to lead; entering steadily, refusing to rush in.
Consolidation section
When the price is low and consolidating, it's a good time to buy in heavily; when the price is high and consolidating again, decisively sell without hesitation.
Volatility section
Sell when the price rises, enter quickly when it drops; stay on the sidelines during consolidation to reduce trading.
Consolidation means replacing declines with sideways movement, hold tight to your assets, and a rise may come in the next second; during rapid surges, beware of sharp declines and be ready to take profits; a slow decline is a good time to gradually add to your position.
Timing of trades section
Do not sell when the price rises; do not buy when it drops; do not trade during consolidation.
Buy on bearish candles, sell on bullish candles; reverse operation can help you stand out.
Buy in during a morning drop, sell out during a morning rise; do not chase highs during an afternoon rise and buy during an afternoon drop the next day; do not cut losses during a morning drop, stay idle if there is no rise or drop; average down in a stuck position to break even, excessive greed is not advisable.
Risk awareness section
Calm lake surface rises high waves; there may be big waves ahead; after a big rise, a pullback is inevitable; candlesticks show a triangle over several days.
In an uptrend, look for support; in a downtrend, look for resistance.
Full position trading is a big taboo; stubbornness is not feasible; in the face of uncertainty, know when to stop and seize the opportunity to enter and exit.
Trading cryptocurrencies is essentially about trading mindset; greed and fear are the biggest enemies; be cautious when chasing highs and cutting losses; staying calm is the key.
In addition to mnemonics, I have also organized several extremely practical trading methods that can benefit both beginners and seasoned players.
Volatility trading method
Most markets are in a volatile pattern, using high sell and low buy within the range is the foundation for stable profits. Use the BOLL indicator and box theory, combined with technical indicators and patterns to find resistance and support. Follow short-term trading principles, and avoid greed.
Breakthrough trading method
After a long period of consolidation, the market will choose a direction; entering after a breakout can yield quick profits. However, you need to have precise judgment capabilities for breakouts, maintain a steady mindset, and avoid greed and fear.
One-sided trend trading method
When the market breaks through a consolidation phase, it will form a one-sided trend; trading with the trend is key to profit. Enter trades during pullbacks or rebounds, using K-line, moving averages, BOLL, trend lines, and other indicators proficiently to navigate with ease.
Resistance and support trading method
When the market encounters key resistance and support levels, it often gets blocked or supported; entering trades at this time is a common strategy. Use trend lines, moving averages, Bollinger Bands, parabolic indicators, etc., to accurately judge resistance and support levels.
Pullback trading method
Significant rises and falls will lead to brief pullbacks or rebounds; seize the opportunity for easy profits. Mainly rely on candlestick patterns for judgment; good market sense can help you accurately grasp highs and lows.
Time-based trading method
Morning and afternoon sessions have small fluctuations, suitable for conservative investors, although the time to profit is long, the market is easier to grasp; evening and early morning sessions have large fluctuations, suitable for aggressive investors, can profit quickly but are difficult, requiring strict technical and judgment skills.
I hope these experiences and insights can help you. Remember, in the crypto space, the most important thing is to maintain a calm mindset and strict operational discipline. May you achieve success in your future investments.
Bitcoin trading, the size cycles determine the entry points, profits can multiply tenfold.
I previously discussed entry points in the trading system, the choice of entry points is very important for trading.
Those with practical trading experience know about false breakouts or entry points that are not good with too large stop losses. At this time, you can only reduce the entry funds, often making less profit in a big market move.
Everyone needs to summarize their own entry methods; do not mention those who enter at random based on feelings.
My commonly used method is to use the combination of large and small cycles to find entry opportunities.
Because we are doing trend trading, the method must include trend judgment; secondly, choose the trading level based on your trading style.
Therefore, I recommend using large, medium, and small cycles for judgment.
1. Long-term cycle: Determine the direction and analyze the trend, whether it is in a volatile or trending phase, only engage in the initiation and continuation phases of the trend, and stop waiting during volatility...
2. Medium cycle: operational level, holding level
3. Small cycle: entry level, stop-loss level
Choose based on your trading habits among large, medium, and small cycles.
Opportunities arise, assets double! Follow Brother Biao closely and easily earn big money.
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