If you plan to invest in the crypto world, please take a few minutes to read my answer word for word, as it might save your life and that of your family.
Thousands of originally happy families end up broken and impoverished, all stemming from the pursuit of an unattainable dream of making a fortune in the crypto world.
I believe that if I truly want to continue on the path of trading, I must study diligently. In addition to understanding the basic knowledge, analyzing news, and studying technical indicators is also essential.
If you don't conduct in-depth research and reasonably plan your financial management, your funds will eventually be depleted. In the end, as an unfounded retail investor, you will only joyfully enter the market and leave in gloom.
Some well-known technical indicators have endured over time for a reason. For example, the divergence signals of MACD, the overbought and oversold signals of KDJ, support and resistance signals, etc. While they cannot guarantee profit, they allow for quantitative analysis based on a relatively mature model, providing investors with a basic direction.
In the crypto world, making 100,000 from a few thousand U is only possible through rolling over positions.
Once you have a principal of 1 million, you'll find that your entire life seems different. Even if you don’t use leverage, a 20% increase in spot trading means 200,000, which is already the ceiling of annual income for the vast majority.
Don’t always think in terms of millions or billions; you must start from your actual situation. Bragging only makes you feel good. Trading requires the ability to identify the size of opportunities; you can’t always hold light positions nor heavy positions. Usually, play with small positions, and when big opportunities arise, pull out the big guns.
For example, rolling over positions, this is a great opportunity that can only be acted upon when it arises. You can’t always roll over; missing out is okay because you only need to roll over successfully three or four times in your lifetime!
First, we need to know under what circumstances rolling over positions is appropriate:
Currently, only the following three situations are suitable for rolling over positions:
1- Choosing a direction after a long-term sideways volatility 'new low'
2- Buying the dip after a big drop in a bull market
3- Breaking through significant weekly resistance/support levels
In general, you only have a higher chance of success in the above three situations; all other opportunities should be abandoned.
Here are the methods for rolling over positions:
Adding to a position with unrealized gains: After realizing unrealized gains, consider adding to your position. However, before adding, ensure that the holding cost has been reduced to minimize the risk of loss. This does not mean blindly adding to the position after making a profit, but rather doing so at the right time.
Base position + T trading rollover operation: Divide funds into multiple parts, keeping a portion of the base position unchanged while the other part executes high sell-low buy operations. The specific ratio can be chosen based on personal risk preference and capital scale. For example, one can choose to roll half the position for T trading, or 30% base position for T trading, or 70% base position for T trading, etc. This operation can reduce holding costs and increase profits.
The martial arts secrets have been given to you all; whether you can gain fame in the world depends on yourself.
Playing in the crypto world is essentially a contest between retail investors and market makers. If you don't have cutting-edge news or firsthand information, you'll only get cut! If you want to strategize and reap the rewards together with the market makers, come join!
