With 1000U using 10x leverage, the position value is 10,000U; 2000U using 5x leverage, the position value is also 10,000U, but the liquidation prices are different, so do not focus on the liquidation price when trading; what is important is the stop-loss.
True cryptocurrency trading experts simplify everything. They repeat simple tasks. This short-term trading model has a win rate of up to 98.8%. Learning this can effortlessly take you from 100k to 10 million, focusing solely on this model.
Xiao Xun met a friend from Fujian who enjoys short-term trading and is particularly keen on many techniques. In just a few years, starting small and growing big, he now makes a living trading cryptocurrencies. I have improved his 'techniques' through my modifications, and after practice this year, in less than a year, he has grown an initial capital of 170,000 to 40 million. I'm sharing this to help everyone!
I have traded cryptocurrencies for 10 years, making 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 never have a chance in their lifetime.
Methods for trading cryptocurrencies:
1. Purchase mainstream value coins in large positions; do spot trading (do not do contracts), regardless of whether it rises or falls, hold it for the medium to long term, enter based on the entry price, and use rolling positions (adding or reducing positions).
When the market crashes, don't panic if the four-hour chart doesn't break the 20-day line; there are several reasons:
a. Explosive contracts: If you don't have the skills, don't easily play with contracts; the data is completely different from spot trading. Protect your capital so you can continue to enjoy the benefits of a bull market!
b. Pullback demand: After mainstream value coins surge, they usually need to pull back to the five-day line or even the ten-day line before continuing to rise!
C. Cutting leeks: Retail newbies love to chase highs and kill lows. After retail investors chase high prices, the big players will quickly drop the prices, scaring retail investors into selling at a loss.
2. For profitable swing trades, reduce positions in advance or sell in batches at high levels to lock in profits;
3. Pre-set orders at the daily level for the 5-day line, 10-day line, and 30-day line to buy at low levels in batches.
4. Based on the lifeline trading method + judging the trend of rises and falls, if the trend changes and effectively breaks down, reduce positions in time.
5. When there is a surge, be sure to have risk awareness; do not blindly chase high prices. When there is a drop, have opportunity awareness; buy in batches at low levels.
6. For profit-taking chips, reduce positions appropriately to avoid rollercoaster rides; for bottom-fishing orders, it is recommended to set stop-loss levels to protect the principal.
7. If the direction is unclear, it is better to miss than to make a mistake; protect your capital to smile longer.
Without further ado!
Share my trading strategies and insights with friends. There is a saying that standing on the shoulders of giants can save ten years of struggle. If you are lucky to see this,
Friends who want to improve their cryptocurrency trading skills should watch more and study diligently.
Viewing the market with a developmental perspective in cryptocurrency trading is a state of infinite possibilities.
How should this sentence be understood?
In simple terms, it means looking at the charts whenever you have time to see if you can make a profitable trade.
Previously, I introduced intraday short trading, which has principles and techniques, gaining the love of many short-term enthusiasts; but some friends feel that intraday short trading requires constant chart monitoring, which is too exhausting.
They want to hold a trading position for a long time without constantly checking the charts; they want to set larger profit targets while keeping losses within a smaller range. So, is there such a trade?
The answer is definitely yes, and that is swing trading.
Swing trading is a very popular trading type. It brings relatively minimal pressure to traders, but the returns are considerable, especially for part-time traders, making it the perfect trading type.
But before introducing swing trading, I need to emphasize one point:
Regardless of the trading style, traders in the market are fighting alone, responsible for their account funds, and cannot blame others even if they incur losses. It cannot be said which style is better; it depends on which method you prefer and which suits you better.
Take this forex swing trading expert I'm going to share with you today. He has been in the industry for over ten years, tried various trading types and strategies, yet still frequently faced liquidation.
Until he discovered through swing trading that it was the best trading type for him, and the daily chart could provide him with 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, and then hone your trading strategy, rather than blindly imitating 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 understand the pros and cons of each style. Let's first look at the advantages and disadvantages of short-term trading and swing trading:
The advantages and disadvantages of short-term trading are as follows:
There are many short-term fluctuations in the market, and there are numerous trading opportunities based on 1-minute, 5-minute, and 15-minute cycles.
Intraday trading patterns can effectively lock in short-term trading targets, making trading have clear pursuits and evaluation criteria.
Intraday trading can lock in risks. By enforcing intraday stop-loss based on funds and price levels, allocating funds for operational ratios, and quantifying positions, the implementation of risk control is stronger.
Disadvantages:
Frequent trading carries a higher risk probability.
Staring at the charts for a long time consumes energy, carries significant stress, and is detrimental to health.
The advantages and disadvantages of swing trading
Advantages:
. Choose trades with higher profit potential;
. Less pressure than intraday trading; no need to watch the chart all day; lower trading costs than intraday trading.
Disadvantages:
. Long holding times bring overnight risks;
, requiring more patience and stronger principles.
Intraday trading has more potential profits, while swing trading offers more freedom and less pressure. Any trading method can allow traders to profit, but the focus remains on personal character, skills, and knowledge.
Next, I will share this swing trading expert's understanding of swing trading and detail the six steps he follows for swing trading.
02 What is swing trading?
I introduced short-term trading in last week's article; I won't repeat it today. Friends who haven't read it can check the past articles you might have missed at the end of this article. Today, we will mainly understand 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 holding periods ranging from a few days to several weeks.
While swing traders use technical analysis to find trading opportunities, they also rely on fundamental analysis to analyze price trends and patterns.
Swing trading mainly consists of two parts – swings and fluctuations. As shown in the figure below:
03 How to conduct swing trading?
Next, I will introduce the six steps of swing trading.
1. Focus on the daily chart
Observe the daily chart more, as the daily chart provides the most comprehensive price trends and more reliable price signals.
But be aware: not all daily charts are worth paying attention to.
I mainly use the New York closing price daily chart. Because the trading period closes every 24 hours at 5 PM Eastern Standard Time, it is commonly referred to as the 'closing time' of the forex market.
Therefore, I suggest that swing traders best use the daily chart. If you are already profiting from the daily chart, you can try starting with the four-hour chart.
In general, higher time frames generally mean 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 horizontal lines:
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.
Moreover, support and resistance levels are generally not 'exact' levels, it is better to treat them as areas.
2. Trend lines
Although trend lines are the most common method in technical analysis, not all traders will use trend lines, possibly because most traders cannot draw correct trend lines.
Generally speaking, an uptrend line connects the lows of fluctuations, while a downtrend line connects the highs of fluctuations.
3. Judging fluctuations
If you have learned to mark support and resistance areas on the daily chart, the next step is to use the peak and trough fluctuations to determine oscillations.
Fluctuations mainly consist of the following three types: uptrend, downtrend, and range trend.
1. Uptrend
Higher highs and higher lows; the chart below is a typical uptrend:
In the above chart, each fluctuation high is higher than the previous one, and in this bullish trend, buying is appropriate.
2. Downtrend
Lower highs and lower lows; the chart below is a typical downtrend:
In the above chart, each fluctuation high is lower than the previous one, and this is when you can sell.
3. Range trends
Horizontal movement, also known as the consolidation phase, as shown in the figure below:
Range trends are the most common type of trend. Although no bullish or bearish trends appear in the above chart, swing traders can still profit within this range, and it may even be easier to profit than in the other two oscillating trends.
What should we do?
Utilize support and resistance levels. As shown in the figure 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 fluctuations on the daily chart.
1. If the market is in an uptrend, you should start paying attention to buying signals at key support levels. As shown in the figure below, a bullish pin bar has appeared at the key support level.
The bullish pin bar in the above chart is a buy signal, indicating that we can profit from the ongoing uptrend in the market.
2. If the market is in a downtrend, you should pay attention to selling signals at resistance levels, as shown in the figure below:
We can consider the bearish pin bar in the chart as a sell signal.
In fact, for swing traders, capturing the entire swing is quite difficult. What we can do is focus as much as possible on the changes in swings and patiently wait until the price trend is confirmed before entering a trade.
5. Determine the exit point
Determining the exit point has an important prerequisite: establish take-profit and stop-loss levels before entering. This is because once you enter, your emotions will be influenced by market changes.
So, how do you determine the exit point?
It's very simple, still rely on support and resistance levels, as shown in the figure below:
The above chart is a GBPUSD daily chart: it is obviously an uptrend, and the price has exceeded our set profit target.
When this happens, don't be upset; we have captured most of the uptrend. Remember, in trading, do not be too greedy.
Let's take another 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 figure below:
In summary, support and resistance zones 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, setting 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 is essentially about setting stop-loss and take-profit levels:
Stop-loss: The best stop-loss level is at the upper or lower end of the pin bar's tail.
If a bullish or bearish engulfing pattern appears, it is best to set the stop-loss level 10 to 20 points above or below the candlestick.
Take profit: Take profit is still related to key support and resistance levels. For swing traders, the key to profit is to capture the fluctuations between support and resistance levels.
If the market shows an uptrend and a bullish pin bar forms at the support level, then the take profit should be set at the next key resistance level.
Still the same: if you don’t know what to do in a bull market, click on Xiao Xun's avatar, follow, and get free shares of bull market spot planning, contract passwords.
