In the cryptocurrency world, if you want to turn 10,000 into 12 million, there is only one way: you keep losing, and if you want to adjust quickly, that is rolling positions.
Once you have 1 million in capital, you will find that your whole life seems different. Even if you don't use leverage, if you hold spot and it rises by 20%, you will have 200,000, which is already the income ceiling for most people in a year.
Moreover, when you can grow from tens of thousands to 1 million, you will touch upon some ideas and logic for making big money. At this point, your mindset becomes much calmer; from then on, it's just about copying and pasting.
Don't just think about making tens of millions or hundreds of millions; start from your actual situation. Bragging only makes yourself comfortable. Trading requires the ability to identify the size of opportunities; you can't always play with small positions nor always with heavy positions. Generally, play with small guns and only pull out the big artillery when significant opportunities arise.
For example, rolling positions should only be done when significant opportunities arise. You cannot keep rolling; it's okay to miss some because you only need to succeed in rolling once in your lifetime.
Three to four successful rolls can turn 0 into tens of millions, which is enough for an ordinary person to advance into the ranks of the wealthy.
How to easily capture contract trading points
Although technical indicators originate from traditional markets, they can also be used in sufficiently competitive investment markets, such as the cryptocurrency industry.
I will use the most commonly used MACD indicator in the cryptocurrency space to analyze the logic behind it: When it comes to this indicator, many crypto friends immediately think of buying on a golden cross and selling on a death cross, which is the simplest way to use MACD.
1. Golden Cross:
Golden Cross 1: When both the yellow line and the white line are below the zero line, and the white line crosses upward through the yellow line, it indicates that the market is about to strengthen, and the coin price is recovering from a decline; one can buy or hold. This is the form of the MACD indicator known as the 'Golden Cross.'
Golden Cross 2: When both the white line and the yellow line are below the zero line, and when the white line crosses upward through the zero axis, it indicates that the market has entered a bullish phase and one can add to positions.
Golden Cross 3: When both the white line and the yellow line are above the zero line, and the white line crosses upward through the yellow line, it indicates that the market is in a strong area, and the price of the coin will rise again. You can add to your position or hold for an increase; this is the form of the MACD indicator known as the 'Golden Cross.'
2. Death Cross:
Death Cross 1: When both the white line and the yellow line are above the zero line, and the white line crosses downward through the yellow line, it indicates that the market may enter a weak phase, and the price of the coin may enter an adjustment period. This serves as a sell signal, indicating a short-term small adjustment or large drop.
Death Cross 2: When both the white line and the yellow line are above the zero line, and when the white line and the yellow line cross below the zero axis, it indicates that the market has entered a bearish phase, and one should hold cash and observe.
Death Cross 3: When both the white line and the yellow line are below the zero line, and the white line crosses downward through the yellow line, it indicates that the market is weak, and the price of the coin is still declining; one should timely liquidate positions to avoid risk.
Next, let's analyze the method of divergence.
Let's first talk about top divergence.
When the trend on the candlestick chart for the coin shows higher peaks, and the price continues to rise, while the MACD indicator shows a pattern of red bars forming lower peaks, it indicates that the latest high is higher than the previous high.
When the high point of the MACD indicator is lower than the previous high point, this is called a top divergence phenomenon. Top divergence generally signals that the price of the coin is about to reverse from a high position, indicating that the price will likely decline in the short term, serving as a signal to short.
Next, let's discuss the method of bottom divergence.
Bottom divergence generally appears in low price areas. When the trend on the candlestick chart for the coin is still declining, while the MACD indicator shows a pattern of green bars forming higher bottoms, it indicates that the price's low point is lower than the previous low, while the indicator's low point is higher than the previous low; this is called bottom divergence.
Bottom divergence generally indicates a signal that the price of the coin may reverse upward from a low position, suggesting that the price may rebound in the short term. This is a signal for short-term buying.
Any main chart indicators and sub-chart indicators are based on bare K charts. Of course, directly analyzing bare K requires a high level of personal experience and trading skills. To improve the win rate, it is still necessary to use main chart indicators for assistance. Additionally, theories such as Chan Theory, Elliott Waves, and Gann are currently the most popular and practically significant. As long as you can grasp them, you can absolutely beat the market. For instance, Chan Theory is the most complete investment philosophy, but it is quite complex, and few people can fully understand it. It requires a lot of time and effort to research, and even fewer make big money after learning it.
In the cryptocurrency world, pursuing the first million in wealth is particularly critical, especially for investors with limited initial capital. If you hold a small amount of capital, such as $50 to $100, an aggressive yet highly cautious strategy is contract rolling.
First, clarify your goals: Choose trending and high-potential popular coins, such as BNB, CYBER, SKL, which have shown active performance recently. These coins may bring high returns in a short period.
Secondly, control risk: Given the high risk brought by high leverage, it is recommended that beginners start with a lower leverage ratio, such as 10x rather than 20x. This way, even if the market fluctuates, you can maintain a higher margin for error and avoid significant losses due to a single pullback. By conducting precise market analysis and using technical indicators for assistance, grasp the timing of entry and use leverage to go long at low positions.
Furthermore, rolling profits: When holding positions are profitable, one can moderately engage in rolling operations, that is, using part of the profit to open new positions to expand gains. But remember, rolling needs to strictly set stop-loss points to prevent profit giving back or even turning into losses.
Finally, maintain calmness and discipline: The cryptocurrency market is full of twists and turns, and emotional management is especially important. Regardless of gains or losses, one should stick to the established strategy, avoiding impulsive trading. At the same time, continuously learn about market dynamics, technical analysis, and risk management to improve one's investment skills.
In summary, pursuing a million wealth in the cryptocurrency world with a small amount of capital is not impossible, but it requires the right strategy, strict risk control, and continuous learning and trial and error. Remember, successful investments often stem from careful consideration rather than blindly following trends.
Several points to note about rolling positions:
1. Sufficient patience; the profits from rolling positions can be enormous. As long as you can successfully roll a few times, you can earn at least millions, so you shouldn't roll easily; look for high-certainty opportunities.
2. High certainty opportunities refer to a period of consolidation after a sharp decline, followed by a breakout; at this time, the probability of following the trend is very high. You need to identify the point of trend reversal and get on board from the very beginning.
3. Only roll long positions and do not short.
Finally, thank you for watching. Follow Yan Zong to avoid getting lost! I hope to use the experiences and lessons I have accumulated over many years in the cryptocurrency world to help you take fewer detours and double your assets!