Prerequisites for contracts: suitable entry points, absolute exit points, disciplined stop-loss points, and content take-profit points. Master level position management + strong psychological qualities.
Without at least 5 years of experience, you can't manage it at all. Of course, if you find Teacher Lele, you can also learn quickly. If you really don’t want to deal with it anymore, just close the contracts and take a cooling-off period. If you can't control your itchy hands, just study hard with the teacher. It can save you years of detours in the crypto world; this is not just a pep talk, it's reality!
Crypto newbies must master these iron rules to leap in their trading career!
In this turbulent sea of the crypto world, true experts rely not solely on technology, but on a profound understanding of market rules and strict adherence to them. I share the six iron rules I follow with those destined to find it, so you can navigate the crypto trading road smoothly, easily managing risks!
1: Market fluctuations are unpredictable; mindset is key. Market rises and falls unpredictably, and mindset determines success or failure. Don't hastily claim the peak when prices rise, and don’t easily assert the bottom when prices fall. Just like whether Bitcoin can break through 150,000, the answer will only be known when the market goes crazy. What you think is the bottom may just be a brief pause; the real bottom is always hard to foresee.
2: Build positions in batches; stability is key. Experts never rush to build positions; they control each buy and sell to a small proportion, usually not exceeding one percent. This allows them more room for trial and error, keeps costs low, and reduces risks.
3: Dare to chase highs; the opportunities are greater. In the crypto world, fearing high prices means missing out on opportunities. The cost for major players is far more complicated than you think, including promotional costs, chip costs, and development costs, all of which are multiples or even tens of times the input. Therefore, daring to chase highs is essential to seize real opportunities.
4: Bull markets are a chance not to be missed. Bull markets are the only opportunity to change your fate. Just like Buffett: no matter how smart he is, if he misses the bull market, he can only wait in a bear market. So in the crypto world, seizing the bull market is seizing the key to wealth.
5: Technical indicators + for reference only. Technical indicators are lagging; many times they can only be referenced and cannot be the sole basis for trading. During strong upward trends, even if technical indicators look good, the price may already be high, so chasing after price increases requires caution.
6: Full of confidence, unafraid of the market. True crypto trading experts have enough confidence; they have experienced losses but have never been defeated by the market. Because they believe they can ultimately conquer the market, this belief is the key to their success. Trading in cryptocurrencies is not just a battle of skills and luck, but also a test of mindset and wisdom. Only those who master and strictly adhere to these iron rules can stand undefeated in the crypto world!
1. Definition of Moving Average: The Moving Average (MA) is a statistical analysis method that averages securities prices (or indices) over a certain period and connects the average values over different times to form an MA line, used to observe trends in securities price movements. Ultimately, moving averages are a trend-following tool that helps identify when a trend has ended or reversed and the opportunities for leading trends are forming or continuing. It does not lead the market but faithfully follows it, thus exhibiting lagging characteristics, yet it cannot be fabricated.
2. Calculation Method: N-day Moving Average = Sum of N-day Closing Prices / N
Calculation Formula: MA = (C1 + C2 + C3 + C4 + C5 + ... + Cn) / n, where C is the closing price, and n is the moving average period. For example, the 5-day moving average price calculation method for Bitcoin is: MA5 = (closing prices of the last four days + closing prices of the last three days + closing price of the day before yesterday + yesterday's closing price + today's closing price). Moving averages can be divided into three types based on time periods: short-term, medium-term, and long-term moving averages. Short-term moving averages are generally calculated over 5 or 10 days, medium-term moving averages mostly over 30 or 60 days, and long-term moving averages usually over 100 or 200 days. It should be noted that 5 days represent a week of trading for stocks, but cryptocurrencies trade 7x24 hours without breaks. Compared to the stock market, the trading time in the cryptocurrency market is six times that of the stock market plus two weekends. Therefore, the selection of specific short, medium, and long-term periods can be based on personal preference, and there are no hard rules.
3. Nature of Moving Averages: Tracking Trends. If you can identify an upward or downward trend line from the cryptocurrency price chart, the MA curve will remain consistent with the direction of the trend line, eliminating the fluctuations in the price during this process. The original price chart does not possess this characteristic of maintaining a tracking trend. The lagging characteristic means that when the original trend of the price changes direction, the MA's tracking nature often leads to slow action, with its turnaround speed lagging behind the major trend. This is a significant weakness of MA. By the time the MA issues a reversal signal, the depth of price reversal has already been considerable. Stability usually increases with the length of the moving average; that is, moving averages do not easily move upward or downward until the price trend is genuinely clear. Moving averages will extend upward, and frequently when the price begins to decline, the moving average is still moving upward. It is only when the price drops significantly that the moving average starts to decline. This is the biggest characteristic of moving averages. The shorter the moving average, the worse the stability; the longer the moving average, the stronger the stability. However, this also gives moving averages a delayed reaction characteristic. When the price breaks through the MA, whether it is an upward or downward breakout, if the price desires to continue in the breakout direction, this is the supportive characteristic of MA. When the price breaks upwards from below the average line, the average line also begins to move upward to the right, which can be seen as a bullish support line. When the price falls back to near the average line, it naturally generates support strength. Short-term moving averages move upward quickly, while medium and long-term moving averages move upward slowly, but both indicate that the average cost has increased over a certain period. If selling power slightly exceeds buying power and the price falls back to near the average line, it becomes a buying opportunity; this is the supportive effect of the average line until the price rises slowly or declines, at which point the average line begins to slow its movement. If the price returns to the average line, the average line will lose its supportive effect, and there will be a tendency to fall below the average line again, so it’s best not to rush to buy. Conversely, if the price breaks downwards from above the average line, the average line also begins to move downward to the right, becoming a bearish resistance line. When the market price rises back to near the average line, it naturally generates resistance; therefore, when the average line is moving downwards, the price rising back to near the average line becomes a selling opportunity, and at this time, the average line has a bearish effect. Until the price declines slowly or rises, and the average line begins to slow its movement, if the price approaches the average line again, the average line will lose its bearish significance, leading to a tendency to rise above the average line again, so there is no need to rush to sell.
Still the same: In a bull market, if you don’t know what to do, click on the avatar of Awen, follow him, and get plans for spot trading and contract trading shared for free.
