Opening 10 times leverage with 1000u and 5 times leverage with 2000u have the same holding value of 10000u, but the liquidation prices are different. Therefore, do not focus on the liquidation price; the important thing is to set a stop loss.
True cryptocurrency trading experts simplify things; they repeat simple tasks. This short-term trading model has a win rate of 98.8%. Learning it can easily turn 100,000 into 10 million; just focus on this one model.
I met a friend from Fujian who likes to do short-term trading and is particularly enthusiastic about many techniques. In just a few years, he has grown from small to large, and now he makes a living by trading cryptocurrencies. I have improved his 'techniques' and have practiced them this year, turning an initial capital of 170,000 into 40 million in less than a year. I hope this will help everyone!
I have been trading cryptocurrencies for 10 years, earning 60 million. If you want to change your fate, you must try the crypto world. If you can't make money in this circle, ordinary people will not have a chance in their lifetime.
Methods for trading cryptocurrencies:
1. Buy mainstream value coins in large positions (do not do contracts), regardless of whether they rise or fall. Hold them for the medium to long term based on the entry price, and apply rolling position strategies (adding or reducing positions).
When the market experiences a sharp decline, do not panic if the four-hour chart does not break below the twenty-day line for several reasons:
a. Explosive contracts: If you don't have the confidence, don't play with contracts. They are completely different from spot data. Preserve your capital to continue enjoying the benefits of a bull market!
b. Demand for pullbacks: After mainstream value coins surge, they usually need to pull back to the five-day line or even the ten-day line to gather strength before continuing to rise!
C. Cutting leeks: Retail novice traders like to chase highs and kill lows. After retail traders chase high prices, market makers will quickly drop prices to scare retail traders into cutting losses and handing over their chips.
2. For profitable swing trades, reduce positions in advance or sell in batches at high levels to lock in profits;
3: Pre-set buy orders at the 5-day, 10-day, and 30-day moving averages on the daily chart to accumulate at lower levels.
4: Based on the life line's trading method + judging the trend of rising and falling. If the trend changes and effectively breaks below, reduce positions promptly on the pullback to the life line.
5. During a surge, be aware of risks and do not blindly chase highs; during a sharp drop, be opportunistic and accumulate in batches at lower levels.
6: For profitable positions, reduce positions appropriately to avoid rollercoaster trading. For bottom-fishing trades, it is recommended to set stop losses to preserve capital.
7. If the direction is unclear, it is better to miss the opportunity than to make a mistake. Preserve your capital to enjoy the market longer.
Enough talk!
I share my trading strategies and insights with friends. There is a saying: standing on the shoulders of giants allows you to achieve ten years of effort with less work. If you are lucky enough to see this,
To achieve stable profits in forex trading, the first thing to do is find a trading style that suits you and then refine your trading strategy instead of blindly imitating others.
Viewing the market with a developmental perspective in cryptocurrency trading is a state of limitless possibilities.
How should this sentence be understood?
In simpler terms, it means whenever you have time, open your computer and check the market to see if you can make a trade to earn some money.
Previously, I introduced intraday short-term trading, which has principles and techniques, gaining popularity among short-term trading enthusiasts; however, some friends feel that intraday short-term trading requires constant chart monitoring, which is exhausting.
They want to hold a trade position for a long time but do not want to constantly check the charts; they want to set larger profit targets while also keeping losses within a smaller range. So, is there such a trading method?
The answer is definitely yes, that is swing trading.
Swing trading is a very popular trading type, offering relatively less pressure to traders while providing considerable returns, especially for part-time traders, making it the perfect trading type.
But before introducing swing trading, it is necessary to emphasize one point:
Regardless of the trading style, traders are fighting alone in the market, responsible for their account funds. Even if there are losses, they cannot blame others. It cannot be said which style is better; it only depends on which method you prefer and which suits you better.
Take today’s share of this foreign exchange swing trading expert, who has been in the industry for over ten years and has tried various trading types and strategies, yet frequently faces liquidation.
Until he discovered swing trading, he found that for him, swing trading is the best trading type, and the daily chart provides the most accurate trading signals.
Therefore, to achieve stable profits in forex trading, the first step is to find a trading style that suits you, then refine your trading strategy, rather than blindly following others.
01 Advantages and disadvantages of short-term and swing trading.
Since you want to find a trading style that suits you, you need to first understand the advantages and disadvantages of each style. Let's first look at the strengths and weaknesses of short-term trading and swing trading:
Advantages and disadvantages of short-term trading:
The market has many short-term volatility opportunities, with trading opportunities at entry points of 1 minute, 5 minutes, and 15 minutes being plentiful.
Intraday trading models can effectively lock in short-term trading goals, making trading have clear pursuits and assessment indicators.
Intraday trading can lock in risks. By forcibly stopping losses on a daily basis according to capital and points, allocating funds operationally, quantifying positions, and implementing risk control more effectively.
Disadvantages:
Frequent trading carries a higher risk probability.
Staring at the market for long periods drains energy, creates significant pressure, and is not good for health.
Advantages and disadvantages of swing trading
Advantages:
They will choose trades with a higher probability of profit.
Less pressure than intraday trading; no need to focus on charts all day; trading costs are lower than intraday trading.
Disadvantages:
Longer holding times bring overnight risks.
Requires more patience and stronger principles.
Intraday trading has more potential profits, while swing trading offers more freedom and less pressure. In terms of profitability, any trading method can make traders profitable, but the key still lies in personal character, skills, and knowledge.
Next, I will share this swing trading expert's understanding of swing trading and detail the six steps he takes in swing trading.
02 What is swing trading?
I have introduced short-term trading in last week's article, so I won't repeat it today. Those who haven't seen it can check the past valuable content you might have missed at the end of the article. Today, we will mainly focus on swing trading.
Swing trading (also known as swing trading) is a trading strategy that attempts to capture a significant wave of rising or falling prices, with a holding period ranging from a few days to a few weeks.
While swing traders use technical analysis to look for trading opportunities, they also leverage fundamental analysis to analyze price trends and patterns.
Swing trading mainly consists of two parts—the swing and the volatility points. As shown in the figure below:
03 How to conduct swing trading?
Next, I will introduce the six steps of swing trading.
1. Pay attention to the daily chart.
Observe the daily chart more, as it provides the most comprehensive price trends and more reliable price signals.
But be careful: not all daily charts are worth paying attention to.
I mainly use the New York closing price on daily charts. Because each 24-hour trading session closes at 5 PM Eastern Standard Time, this is also referred to as the 'closing time' of the forex market.
Therefore, I recommend that swing traders best use daily charts. If you have already made profits using daily charts, you can try starting with 4-hour charts.
In summary, generally speaking, a higher time frame means more reliable price action signals.
2. Draw key support and resistance levels.
Draw key support and resistance levels, which is the most important part of the entire process. For swing traders, if key support and resistance levels are not found, it is impossible to profit.
Next, I will introduce two important levels:
1. Support and resistance lines
Support and resistance are points on the chart that endure continuous upward or downward pressure. Support levels are usually the lowest points in all chart patterns, while resistance is the highest point (peak) in the chart.
In addition, support and resistance levels are usually not an 'exact' level; it is best to view them as a region.
2. Trend lines
Although trend lines are one of the most common methods in technical analysis, not all traders use trend lines, possibly because most traders cannot draw the correct trend lines.
Generally speaking, an upward trend line connects the lows of each wave, while a downward trend line connects the highs of each wave.
3. Judging oscillation
If you have learned to mark support and resistance areas on the daily chart, the next step is to use the volatility highs and lows to determine the oscillation.
Oscillation mainly has the following three types: upward trend, downward trend, and range trend.
1. Upward trend
Higher highs and higher lows; the following diagram is a typical upward trend:
In the above figure, each volatility high point is higher than the previous one. In this bullish trend, one can buy.
2. Downward trend
Lower highs and lower lows; the following diagram is a typical downward trend:
In the above figure, each volatility high point is lower than the previous one; this is when one can sell.
3. Range trend
Horizontal movement, also known as consolidation, as shown in the diagram below:
Range trends are the most common type of trend. Although the above chart does not show a bullish or bearish trend, volatility traders can still profit within this range, and it may even be easier to profit than in the other two oscillating trends.
What should be done?
Utilize support and resistance levels. As shown in the diagram below, pay attention to the two pin bars in the chart:
4. Look for price action signals
Through the above three steps, you have identified the current oscillation on the daily chart.
1. If the market is in an upward trend, then you need to start paying attention to buy signals at key support levels. As shown in the diagram below, a bullish pin bar appears at the key support level.
The bullish pin bar in the above chart is a buy signal, indicating that we can profit in the market's ongoing upward trend.
2. If the market is in a downward trend, then focus on sell signals at resistance levels, as shown in the diagram below:
We can take the bearish pin bar shown in the chart as a sell signal.
In fact, for swing traders, capturing the entire swing is difficult. What we can do is pay as much attention as possible to swing changes and patiently wait until the price trend is confirmed before entering a trade.
5. Determine exit points
Determining exit points has an important prerequisite: establish take profit and stop loss levels before entering the trade. This is because once you enter, your emotions will be influenced by market changes.
So how do you determine the exit points?
It’s simple, just rely on support and resistance levels, as shown in the diagram below:
The above is a GBPUSD daily chart: it is obviously an upward trend, and the price has exceeded our set profit target.
When this situation occurs, there is no need to be frustrated; we have already captured most of the upward trend. Remember, do not be too greedy when trading.
Let's take a look at the AUDNZD daily chart: we can also determine the take profit based on support and resistance levels, which is the exit point. As shown in the diagram below:
In summary, support and resistance areas and trend lines are the foundation of all trading setups. Once these are determined, the entry and exit points become clear.
6. Calculate and manage risks
Currently, risk is usually calculated using the R multiple. For example, a setup with a 100-point stop loss and a 300-point take profit is 3R. If your capital is $100 and you earn $500, then the risk-reward ratio is 5R.
Risk management essentially involves stop loss and take profit:
Stop loss: The best stop loss level is at the upper or lower end of the pin bar tail.
If a bullish or bearish engulfing pattern appears, it is best to set the stop loss 10 to 20 points above or below the candlestick.
Take profit: Take profit is also related to key support and resistance levels. For swing traders, the key to profit is capturing the fluctuations between support and resistance levels.
If there is an upward trend in the market and a bullish pin bar forms at the support level, set the take profit at the next key resistance level.
Still, the same saying: if you don't know what to do in a bull market, click on the avatar of Awen, follow him, and get free market planning and contract passwords.
