In the crypto world, it is easy to lose money, and this is a lesson I learned with real money. Four years ago, I was a 'technical trader' staying up late studying K-lines, MACD, RSI, and other indicators, but I ended up making losses and gains, with my account balance hardly changing, and I even experienced several liquidations. Until I met an old trader, who told me: the simpler the trading, the better.
In my opinion, the key to trading cryptocurrencies is maintaining a good mindset; mastering technical aspects is secondary. This calmness and composure may be the secret to my success and abundance in the crypto world.
Work in the crypto space: high-probability structure 'bottom division'.
Bottom division usually appears at the end of a downtrend and consists of 3 to 4 K-lines.
It is one of the classic combinations that is easiest for beginners to learn and recognize.
The greater the volume of the third bullish candle, the higher the degree of engulfing, making it more reliable.
When combined with a bottom doji, it is perfect!
1. Technical features of bottom division.
1. Occurs within a downtrend.
2. Composed of three K-lines, the first is a bearish candle, the second is a small bearish candle, small bullish candle, or doji, and the third is a bullish candle.
3. The third bullish candle's body must be large, almost fully recovering or engulfing the body of the first bearish candle.
2. The technical meaning of bottom division.
Bottom division is a common high-probability bottom reversal signal, indicating that after a significant drop, the short-selling energy is almost exhausted, and the price is unable to fall further. The bullish candle on the right indicates that bulls are beginning to fight back, reflecting the contrast of forces between bulls and bears, which significantly increases the probability of structural reversal, indicating an optimistic market outlook!
Bottom division perfectly embodies the short-term trend reversal in Dow Theory.
The first bearish candle has a lower low than the previous low.
The second K-line shows price stabilization after a drop.
The third bullish candle is higher than the previous one.
3. Practical logic.
The first bearish candle is like a car driving on the highway; the drop of the bearish candle is like speed, and trading volume is like power. The smaller the drop, the slower the speed; the smaller the volume, the less power to drop.
The second K-line shows the entire process of a car abruptly braking, stopping, and turning around.
The third K-line is a bullish candle, and like the first bearish candle, the rise and trading volume size represent speed and power. The greater the rise, the faster the speed; the larger the volume, the stronger the bullish momentum.
Feedback in trends indicates that when prices drop to a certain extent, bears become exhausted and unable to fall further, allowing bulls to counterattack and reverse the trend. Therefore, traders can follow up and buy when bottom division appears!
Special reminder:
When bottom division and ascending flag patterns appear simultaneously, the probability of a market rally is significantly high, making it an important signal for identifying the end of the flag pattern. Strike while the iron is hot; tomorrow we will discuss the ascending flag pattern!
Secret tips for trading cryptocurrencies (collect this).
Six don'ts, four don't let go:
Six don'ts:
1. If a coin keeps falling and hasn't stabilized at the 60-day moving average, let's not touch it for now. Follow the trend; if a coin keeps falling, let's wait and see when it will turn back.
2. Don't buy coins that rise after good news. When good news comes, it often signals a selling opportunity; if a coin has risen and then good news comes, the main players may be trying to take profits.
3. If a coin rises too sharply and is far from the 5-day moving average, don't chase it. Fast-rising coins are also risky, and chasing high can easily get you trapped.
4. Don't take risks with coins that suddenly spike at high levels. A gap at a high price carries significant risk, as it may indicate that the main players are quietly offloading.
5. Avoid coins with a turnover rate exceeding 30%. A high turnover rate indicates intense battles between bulls and bears; it’s best to stay clear of this volatile market.
6. Coins that are still holding up despite a bad market should be avoided. If a coin is being pulled up in a weak market, it is likely a 'smokescreen'.
Four don'ts:
1. Hold coins with an RSI between 50 and 80. An RSI that is moderately high indicates that the coin still has momentum; holding on can yield greater profits.
2. Don't rush to sell coins that jump from a low position. A gap up indicates strong bullish momentum; let's see if it can continue to rise.
3. For coins trending upwards, hold on tight. Following the trend, the longer you hold a rising coin, the more you earn.
4. Don't easily sell coins with concentrated chips in one place. When chips are piled together, the main players may want to push prices higher; waiting for a peak before selling is also a good strategy.
Insights on trading cryptocurrencies: when it comes to trading, rules must be followed rather than relying on instincts.
Understanding trends is much more reliable than guessing!
Three major angles, ninety-nine key points! The big players won’t tell you their secrets for trading cryptocurrencies.
In the crypto world, a day is like a year in the human world. This statement is not an exaggeration; many people want to ride this fast track, but risks coexist with benefits.
I often receive messages on sunny days, asking what to do if this coin drops today or whether to sell that coin tomorrow. I sense a kind of panic and confusion faced with the unpredictable crypto world.
Today, I share a valuable lesson from three perspectives: news, technology, and mindset; it is very suitable for novices who are lost in the crypto world.
1. News chapter.
1. You must find ways to collect firsthand information to succeed; analyzing major consulting media within the circle is especially important.
2. Most media are business agents for big players and also investment advisors for novices.
3. Mastering the characteristics of different industries is the key to profit opportunities.
4. Sometimes buying against expert opinions can be a unique speculative approach!
5. Before investing, make sure to prepare thoroughly; it is crucial to understand financial knowledge and the dynamics of domestic and international markets and politics, with detailed analysis of teams and practical applications.
6. Buy or sell when news is released, and sell or buy when the news is confirmed.
7. Do your own research and make your own judgments about market trends; do not change your mind based on unverified rumors.
8. Teams with problems will produce problematic products; it is better to act less.
9. Any direct investment is professional investment, and professional investment requires a foundation of specialized knowledge.
10. Those who claim to predict accurately are mostly losers.
11. Inaccurate news guarantees a loss; the most futile action is attempting to guess the psychology of big players and speculators.
12. When purchasing, understand the profit potential of the issuer and whether it is reasonable in relation to the current market.
13. This circle is small, but that doesn't mean there aren't groups; knowing a few big players is very helpful.
14. Do not let sudden news change your original intentions to buy or sell.
15. Once all good news is out, it is bad news; once all bad news is out, it is good news.
16. Institutions have their own codes; for example, a sell order like '232323' might indicate they are offloading. Each institution is different, so it's necessary to study a bit.
17. Don't add small secret circles; if you join, just bring your ears and brain.
18. If the white paper lacks specific content and a development team, the probability of it being a scam coin is over 80%.
19. Whether a project is open source is important; generally, open-source projects will be uploaded to GitHub, and if not, everyone should be cautious.
2. Technical chapter.
20. Following the right coin means you have succeeded halfway.
21. The tricks of big players are often unexpected, deceiving uninformed novices to facilitate their own buying and selling. You must accurately analyze trading volume patterns.
22. The timing of buying is the most critical aspect of virtual currency investment.
23. A drop of more than one-third raises alarms.
24. The three-step rise: bottoming out - breaking through - skyrocketing!
25. If the index updates for three consecutive days but trading volume decreases each time, the market may not be good.
26. Coins that have been leading in price for a long time will inevitably experience a significant drop; a drop of over 50% makes it quite likely to rebound 30%.
27. It is common for small investors to be trapped by large players, so diversifying investments is crucial.
28. The rise and fall of indices are not random; they are much simpler than the patterns of lotteries. Proper screenshot analysis is key!
29. Any coin that leads in rising will also lead in falling when the market turns.
30. Avoid excessive switching between buying and selling; do not act impulsively when uncertain, instead remain steadfast.
31. A sudden increase in trading volume with stable prices is a signal of nearing a peak; at this time, 'it's best to leave'.
32. The longer a coin hovers at a low level, the larger the potential upward movement; a 30% rise has a probability of over 70%.
33. To judge growth or decline, one must look at the gap with the trends of the times; policies are the biggest risk and still necessary.
34. Trading volume is like a pulse; it indicates whether the market is healthy.
35. Choosing to buy is not as important as choosing the right timing; knowing how to sell is a hundred times better than knowing how to buy.
36. Do not gamble all your financial resources on one asset.
37. Avoid thinking that a low price means a big opportunity; once it reverses, selling becomes difficult, and the drop can be significant.
38. Buying coins with slightly lower profit potential and lower prices might be more cost-effective than buying those with slightly better profit potential.
39. Without considerable experience, never engage in short selling; getting burned is common.
40. Establishing long-term investment goals and principles is the primary issue.
41. Market fluctuations have traceable patterns; if you grasp this pattern, you can achieve consistent victories.
42. A shrinking increase and declining trading volume are obvious signs of approaching a peak.
43. Experience shows that technical factors generally have a much shorter market duration, about one-third of that of fundamental factors.
44. Preventing being stuck at high prices is the most important lesson for novice investors, so practicing at low positions is crucial.
45. If it should rise but does not, it should be viewed negatively; if it should fall but does not, it should be viewed positively.
46. Fundamental analysis can tell you which coins have intrinsic value, while technical analysis reveals the best timing to exploit them.
47. The funds in the market always flow in the most favorable direction.
48. Lower-priced coins tend to have larger fluctuations than higher-priced ones.
49. Buy when you can, sell when you should; stop when necessary. Safety first, stability above all, recklessness leads to loss, and greed leads to poverty.
50. Short-term market fluctuations have no correlation with long-term performance.
51. Understanding the 'Sunday theory' is essential; many coins rise today.
52. Robots are still worth buying, after all, they react faster than human brains.
53. The same coin on different exchanges has different price fluctuations and trends; choosing a good exchange is necessary.
54. New cryptocurrencies are often the best short-term choices.
55. It's best to combine major international coins with altcoins.
56. Major coins are relatively stable, while altcoins are highly volatile, offering more opportunities.
57. During rapid expansions, try not to operate.
58. It is best not to go all-in; ideally, hold half or leave one-third of your chips to buy on dips.
59. It's essential to understand the operational status of the team or foundation, and if necessary, share it with someone you think is the most naive to hear their opinions.
60. Avoid buying too many hot assets because they often rise quickly and fall just as fast.
61. One should not put all their money into one cryptocurrency; diversification is essential.
62. Trading volume can show changes; when volume starts to increase, pay attention, either sell or take a position.
63. Everything you hold will eventually be sold; not selling is foolish.
64. The highest or lowest price during market fluctuations often becomes the peak or bottom price; passing this threshold leads to either a rocket or a waterfall.
65. Following trends is like filling your wallet.
66. It is best to choose those with promising prospects but not yet high popularity to earn easily.
67. Experts usually have a plan, with each step clearly outlined, and the rest is strict execution according to requirements.
68. The basic routine of institutions: five stages of building positions, testing the market, lifting prices, washing positions, and offloading.
69. A sudden surge in volume generally has two possibilities: one is the market maker protecting the market, and the other is institutions buying; at this time, one should go with the flow.
70. After stepping up, there is usually a washout; at this time, getting off may mean waiting for a long time for the next bus.
71. It is not impossible to get rich in the crypto world with just 10 yuan; luck is also a key factor.
72. A significant pullback is an opportunity to buy a little.
73. Don't overestimate the intelligence of big players; many operations are just showing off.
74. Before earning small money, proceed step by step; don't play with large sums.
75. Chasing high prices to buy coins carries great risk; beginners should treat those coins as if they don't exist.
76. Beginners should avoid chasing after rising prices; it is better to miss out than to rush in.
77. Coins with a small market cap, trading only on one exchange, should be approached with caution.
78. Joining for free at the start, then needing to pay various fees later is basically a sign of a pyramid scheme; it is advisable not to join.
79. If it hasn't been listed yet and has already multiplied in value during the fundraising period, it is advisable not to participate.
80. Brick moving is a relatively low-risk and easy money-making job.
3. Mindset chapter.
81. Small profits often delay major trends; do not be misled by small fluctuations.
82. At any time, the most trustworthy thing is yourself; it is crucial to follow your own path.
83. When in doubt, you should stop acting; this indicates that the market is still unclear.
84. Being one step ahead may guarantee success.
85. There is no such thing as only rising without falling, nor only falling without rising; opportunities always exist, and the key is your mental price level. Regret is useless.
86. Build a strong body to withstand the shocks of large ups and downs.
87. Buying leads to being trapped, selling leads to rising; the secret lies in the actions of the traders, as they constantly study the psychology and behavior of novices.
88. Trading cryptocurrencies is about trading numbers; never establish a relationship with money, or you will surely lose.
89. Market conditions change rapidly; it's normal for bullish shifts to occur within ten minutes, so maintain a balanced mindset.
90. One must have courage to withstand fear and seize opportunities.
91. Patiently waiting for coins with a large-scale position to become real blue-chip stocks is the true mindset.
92. The mindset of being eager to make money is a significant taboo for cryptocurrency participants.
93. Remember that the power of compound interest is the greatest.
94. The definition of a novice is someone who buys high and sells low, believes rumors, and has a restless mindset.
95. Listen less to tips and think more.
96. Do not estimate market trends based on your own financial capacity; do not let profits or losses affect your decisions; in this industry, what you hold is negligible.
97. You might be very successful in business, but that does not necessarily connect with the crypto world.
98. Experience can cultivate inspiration, but inspiration cannot rely solely on experience.
99. There is no free lunch; set a loss tolerance range that you can bear.
Learn to release the burden in your heart; do not be elated by profits, nor depressed by losses. Actively put down your phone and computer to reduce excessive focus on market conditions, and face each trading challenge with a calm and determined heart.
