If your funds are within 500,000 and you want to achieve quick success in the crypto space through short-term trading, please read this post carefully; after reading, you will gain a profound understanding of the essence of short-term trading! I am 36 years old this year, and I have been in the market for 10 years, with 6 years as a professional trader supporting my family!
Not choosing finance as my major in college is a major regret in my life. Starting from freshman year, I began to learn about stocks/finance/forex online, the screens of red and green filled my life with color, captivating me. With endless aspirations for the market, I blindly opened an account in my sophomore year, and gradually learned about the crypto space, bitcoin, and through a classmate's introduction, I learned more and more, feeling very interested and thus began my investment career.
Like most friends who have just entered the market, at the beginning, everyone is fascinated by technical indicators, constantly backtesting different cryptocurrencies to find patterns; eager to enter low-priced coins or significantly retraced coins, thinking their safety is higher. In fact, this understanding of the market is completely wrong.
Only later did I understand that if you want to achieve quick profits in the market, you must engage in both short-term and medium to long-term compound interest together!
What I've concluded is: do not let the blood of profits cloud your mind; know that the hardest thing in the world is how to sustain profits. You must carefully review whether it was luck or skill; a stable trading system suitable for you is the key to sustained profits.
There is a saying that left a deep impression on me: Ideology is something you must occupy; if you do not, others will occupy it.
Today, I share with you my trading philosophy, which is the essence that has allowed me to stand firm in the market for a long time. If you study seriously, you will definitely gain greatly, and your understanding of trading will undergo a tremendous change!
First, let me share with you a 'Guide to Surviving in Crypto' - trading cryptocurrencies is not as simple as you think; it is not just about buying low and selling high.
A qualified investor needs to possess economic knowledge, keep an eye on news dynamics, understand national policies, care about international situations, and deeply study the fundamentals and technical aspects of virtual currencies.
In addition, one must constantly struggle with their own fears and greed, possess strong psychological endurance, and be able to withstand the market's ups and downs.
It can be said that those who can survive in the crypto market are almost all resilient, resisting temptation, and strong individuals who have gone through hardships.
Three major principles of mining:
Principle one: Strictly control the position at 50% when building a position; this allows for both defense and offense. Never operate with a full position because if the market crashes, a full position will be unable to save itself.
Principle two: When the investment's increase reaches 2-3 times, one should first sell half to recoup costs. Afterwards, we can use the remaining profits to negotiate with the big players and gradually exit when reaching the expected price. Keeping 10% of the base position can avoid missing out on sudden rallies triggered by strong players.
Principle three: When the market goes crazy and everyone rushes to buy, you should sell your holdings in stages and batches. Don't be misled by the numbers in your account; only cash truly belongs to you; the numbers in the account are just numbers.
Three major secrets to trading cryptocurrencies:
Secret one: For small, unregulated trading websites, do not casually invest large amounts of money to avoid sudden disappearance of the site. If you want to participate, choose a legitimate large platform.
Secret two: There are many crowdfunding virtual currencies recently, please identify carefully. Not all projects are worth investing in; many carry risks. Consider carefully before investing, do not rely on luck.
Secret three: Currently, the market is sluggish, and the big trend is cooling down. Short-term operations should focus on observation and precise entry into the market.
For long-term investment, consider high-quality virtual currencies ranked in the top 20 globally, building positions in batches at low prices. Enter the market, control risks and funds well. When the market rises or falls, timely increase positions or cut losses; this is more beneficial for profits.
If unable to act in time, you can still minimize losses. The purpose of trading cryptocurrencies is to make money, so you must be well prepared to avoid unnecessary losses.
Finally, do not blindly follow trends. Many newcomers, when they start trading cryptocurrencies, will easily sell due to group influence or others' suggestions, which is often the most foolish thing to do.
Because many times, these people either have no assets or are misleading newcomers, creating panic and enticing you to sell at low prices. Once you sell, they will pick it up at a low price.
Therefore, in trading cryptocurrencies, others' opinions can only serve as references; the key is to rely on your own judgment.
Learn to make big money using MACD indicator with this formula:
1. MACD above the 0-axis - every time a golden cross occurs, the stock price will reach a new high.
2. MACD below the 0-axis - every time a dead cross occurs, the stock price will reach a new low.
3. MACD above the 0-axis - the golden cross belongs to an upward trend bullish market, you can buy low and sell high to the top divergence.
4. MACD below the 0-axis - the golden cross belongs to the downward trend rebound market, and you should only participate once it goes above the 0-axis.
5. MACD above the 0-axis - the more times the golden cross and dead cross occur, the better, it's a bull stock.
6. MACD below the 0-axis - the more times the golden cross and dead cross occur, the worse it is, it's a bear stock.
7. MACD's uncertainty - if the green bar reverses downwards for the second time, it must fall.
8. MACD's uncertainty - if the red bars reverse upwards for the second time, it must rise.
9. MACD sells small - if the stock price rises, and the next wave of red bars does not exceed the previous wave, it will fall.
10. MACD buys small - if the stock price falls or levels off, and the next wave of green bars does not exceed the previous low, it will rise.
11. MACD is neither here nor there - after breaking the 0-axis trend, it will either be the third wave or the fourth wave, and it must rise.
12. MACD high position contraction - after a sharp rise in stock price, if the MACD moves far from the 0-axis and the red bars shorten, quickly take profits and leave.
13. MACD low position golden cross - after a sharp drop in stock price, if the MACD moves far from the 0-axis, it must rise, and the second golden cross will be even stronger.
14. MACD resurrection - after a washout correction during the rising process, if it dead crosses and quickly golden crosses again within a day or two, it must rise.
15. MACD is beyond saving - after a rise, entering a correction, if a rebound golden cross occurs and then quickly dead crosses again within a day, it must fall.
16. MACD golden pit - after a wave of stock price rise, if the MACD dead cross has shorter green bars within 7 days and then crosses golden again, it must rise.
17. MACD burning fire - if the red bars continue for more than two months, it's a bull market.
There's a saying in the crypto space: 'Trading cryptocurrencies based on luck, you will lose 80-90% of the time.'
Trading cryptocurrencies relying on skills, the chance of making money is about 80-90%. Dare to enter the market for investment, it depends on courage and strength.
Whether you can make money trading cryptocurrencies depends on your insight and skills.
Investing in cryptocurrencies cannot be based on momentary impulse and grand ambitions; only by understanding effective operational procedures, mastering necessary foundational knowledge, and learning practical technical methods can you seize fleeting profit opportunities in the unpredictable cryptocurrency market.
I have been crawling in the crypto space for many years, summarizing several classic quotes, hoping to help both new and old investors.
First, do not hold onto losing positions; the profits gained by holding will eventually be returned to the market because of 'holding'.
Second, do not guess the top or bottom; the profits gained from guessing will eventually be returned to the market because of 'guessing'.
Third, do not guess the top or bottom, because you might still be halfway up the mountain.
Fourth, do not rely on news, because that is just 'guessing' the top and bottom.
Fifth, do not easily exit while in profit, because you might be running halfway up the mountain.
Sixth, do not get excited when seeing large bearish or bullish candles, because it might be a 'performance' for the retail investors from the big players.
Seventh, do not think that the market you see is the last wave and act recklessly; as long as your capital is still there, there will always be a market.
Eighth, do not trade frequently; it will not only make you lose sight of the big direction and increase the chances of making mistakes but also increase trading costs, making it not worth the loss.
Ninth, do not go against the trend; if you are right, hold on tightly; if you are wrong, run quickly.
Tenth, do not buy just because the price is low, nor sell just because the price is high; if the trend has not changed, do not act rashly.
