In the cryptocurrency space, full of opportunities and challenges, stories of becoming rich overnight or going bankrupt in an instant are not uncommon. Recently, I personally experienced a thrilling trade, earning 110,000 with a principal of 3,000 in just two days, and the key lies in the precise grasp of contract trading techniques. Next, I will share the entire operation process and the technical key points behind it in detail, hoping to bring inspiration and gains to cryptocurrency enthusiasts.
Practical Review: Three Waves of Operations Achieve Capital Leap
First Move: Accurately Capture Positive News and Go Long on Ethereum
At that time, I entered the market with 500 USDT (about 3,500 RMB), opening a 60% position (100x leverage), with a holding amount of about 30,000 USDT. That night, a key piece of news became the catalyst for the market explosion — a U.S. official announced that the probability of the SEC approving the ETF had risen to 75%. This news had a huge impact on the cryptocurrency market, with Ethereum's price surging nearly 20% in one day. From a technical analysis perspective, before the news was released, Ethereum's price had been moving within a relatively stable upward channel, and various technical indicators such as the MACD showed that bullish momentum was gradually strengthening, while the RSI was in the overbought zone but showed no clear signs of a pullback, indicating that the market was in a strong bullish state. The emergence of this positive news further reinforced the bullish trend. By paying timely attention to market news and conducting a comprehensive analysis of technical indicators, I accurately judged the market trend and almost captured the entire wave of gains, with capital rising from 500 USDT to nearly 6,000 USDT.
Second Move: Continue to Pursue Success and Extend the Bullish Trend
After the success of the first trade, I continued to pursue the trend, using 6,000 USDT to open a 50% position (100x leverage) and continued to go long on Ethereum. The next day, Ethereum's price continued to rise, with an increase of nearly 1.5%. During this phase, technical analysis indicated that Ethereum's price steadily rose along the 5-day moving average, with trading volume remaining relatively stable, showing no significant signs of contraction or abnormal expansion, indicating that bullish momentum was continuously driving prices up and that market participation was relatively stable. Based on these technical signals, I firmly held onto my bullish position, ultimately bringing my capital, plus the principal, to nearly 11,000 USDT.
Third Move: Grasp the Upward Channel of Small Coins and Strike Accurately
Finally, I turned my attention to the small coin BB. After observing that BB was in a clear upward channel, I used 11,000 USDT to open a 20% contract (20x leverage), with a holding amount close to 70,000 USDT. The price fluctuations of small coins are usually more intense, but they also contain greater opportunities. While trading BB, I found through technical analysis that its price was in an upward channel, with each pullback receiving support near the lower edge of the channel, and the MACD indicator formed a golden cross above the zero line, which is a typical bullish signal. With my grasp of these technical points, I successfully profited nearly 5,000 USDT in this wave of upward movement, ultimately increasing my initial capital of 500 USDT to 15,000 USDT.
Summary of Key Points in Cryptocurrency Contract Trading
Low Position and Low Leverage Operation — The Core of Risk Control
In cryptocurrency contract trading, risk control is crucial. Low position and low leverage operations are key strategies for achieving sustained profitability. Generally, for operations with funds above 3,000 USDT, it is recommended that positions be below 1/5 and leverage below 50x (for major coins like Bitcoin and Ethereum). The main reason for this is that the greatest risk in contract trading is liquidation, and the market often experiences unpredictable price spikes. If the position is too heavy and leverage is too high, significant price fluctuations can easily lead to forced liquidation due to insufficient margin. For example, in extreme market conditions, prices may rapidly fall or rise in a short time, causing high-leverage positions to be liquidated in an instant. Low position and low leverage provide a greater margin of safety, reducing the risk of liquidation and ensuring continuous survival in the market. It is like sailing in a stormy sea; low position and low leverage are like sturdy ships that can better withstand the wind and waves, giving us the opportunity to continuously accumulate profits and achieve steady capital growth.
Strictly Control Trading Frequency — The Key to Improving Trading Quality
Reducing trading frequency is an important principle I always adhere to in cryptocurrency trading. I limit my trading frequency to below two times a day, and if I am temporarily stuck, I may only trade once every 2 to 3 days. There are many benefits to reducing trading frequency. First, you have enough time to conduct in-depth analysis and research on each trade, greatly improving the accuracy of your trades. Many investors often lose direction in frequent trading, while the first operation of the day tends to have a relatively high accuracy rate; as the number of trades increases, the error rate tends to rise as well. Secondly, it effectively avoids emotional trading. In the cryptocurrency market, emotions are the enemy of trading. When the number of trades is too high and the error rate is high, investors are easily trapped in emotional pitfalls, such as fear, greed, and anger, which can affect the rationality of decision-making. Finally, reducing trading frequency can also decrease transaction fee expenses. In reality, many high-frequency traders end up losing amounts that exceed their transaction fees, which is undoubtedly an unwise approach. Therefore, strictly controlling trading frequency allows us to treat each trade more calmly and rationally, improving trading quality and increasing the chances of profitability.
Avoid Passionate and Emotional Trading — The Foundation for Rational Trading
Passionate and Emotional Trading Are Common Causes of Failure for Cryptocurrency Investors. Passionate trading manifests as being unable to control one's hand and blindly following the trend; emotional trading mainly reflects an inability to control one's thoughts, such as blindly holding onto losing positions or trading against the trend. In the cryptocurrency market, once a trend is established, it usually has strong continuity in the short term. If investors are unwilling to cut losses when they know a trend has formed and instead hold on, it can lead to disastrous consequences like liquidation. For example, when the market is in a clear downtrend, some investors hold on to the hope that prices will rebound, refusing to sell, resulting in deeper losses. Therefore, in cryptocurrency trading, we must remain calm and rational, overcoming emotional interference. When we find that our actions contradict the market trend, we must decisively cut losses and adjust our trading strategy in a timely manner. Only by daring to admit mistakes and making prompt decisions can we avoid significant losses and achieve long-term stable profits in the complex and ever-changing cryptocurrency market.
Approach Small Coins with Caution — A Double-Edged Sword of High Risk and High Reward
Although small coins can bring attractive gains at times, they also come with great risks. The market size of small coins is relatively small, and prices are easily manipulated by big players, resulting in significant price volatility and uncertainty. Even if investors can correctly predict the trend of small coins 10 times, just one wrong judgment could erase all previous profits and even lead to substantial losses of principal. For example, some small coins may suddenly plummet in a short period, catching investors off guard. Therefore, I personally do not recommend ordinary investors to participate too much in small coin trading. If participation is necessary, in-depth analysis of the fundamentals and technical aspects of small coins is essential, along with strict control of positions and risks to avoid major losses from small mistakes.
In summary, cryptocurrency contract trading is full of opportunities but also carries enormous risks. Through the analysis of my practical experience, we can see that only by mastering the correct technical analysis methods, strictly adhering to trading principles, and reasonably controlling risks can we succeed in the cryptocurrency market. I hope that cryptocurrency enthusiasts can learn from my experiences, continuously improve their trading skills, and realize their wealth dreams in the cryptocurrency space.
Trading cryptocurrencies means repeating simple tasks consistently; by persistently using one method over a long time, you can master it. Trading cryptocurrencies can be like any other industry — practice makes perfect, allowing for quick and instinctive decision-making.
This year marks my seventeenth year of trading cryptocurrencies. I entered the market with 10,000, and now I support my family with cryptocurrency trading! I can say that I have used 80% of the market's methods and techniques. If you want to take cryptocurrency trading as a second career to support your family, sometimes listening and observing more will reveal things beyond your understanding, at least saving you five years of detours!
Follow me @加密大师兄888 to keep up with the trend and become rich together! Together through Bull and Bear
