1000u with 10x leverage, holding value 10000u; 2000u with 5x leverage, holding value 10000u. The value is the same, but the liquidation price is different, so do not focus on the liquidation price; what matters is the stop loss.
True cryptocurrency trading experts simplify things. Repeating simple tasks can lead to a high success rate of 98.8% in this short-term trading model, allowing you to easily grow from 100,000 to 10 million, focusing only on this model.
I know a friend from Fujian who loves short-term trading and is particularly passionate about many techniques. In just a few years, he has grown from small to large, now making a living from cryptocurrency trading. After improving his 'skills' and practicing this year, he has turned an initial capital of 170,000 into 40 million in less than a year. I'm sharing this in hopes that it will help everyone!
I have been trading cryptocurrency for 10 years and made 60 million. To change your fate, you must try the cryptocurrency circle; if you can't make money in this circle, ordinary people will have no opportunity in this lifetime.
Cryptocurrency trading methods:
1. Buy mainstream value tokens in large positions, spot (do not do contracts), regardless of whether it rises or falls, hold it for the medium to long term based on the entry price, adding rolling warehouse strategies (adding or reducing positions).
When the market crashes, do not panic if the four-hour chart does not break the 20-day moving average for several reasons:
a. Exploding contracts: Without a solid foundation, do not play with contracts lightly; it is completely different from spot data. Protecting your capital allows you to continue enjoying the bull market's dividends!
b. Pullback demand: After a sharp rise in mainstream value tokens, gap up above the 5-day moving average, it generally has to pull back to the 5-day moving average, or even the 10-day moving average, before it can gather energy to continue rising!
C: Cutting leeks: Retail investors love to chase highs and sell lows. After retail investors buy high, the market makers will quickly drop the price to scare retail investors into cutting losses and handing over their chips.
2. For profitable swing trades, reduce positions in advance, or take profits in batches at high points to lock in profits.
3: Pre-set orders in batches on the daily chart at 5-day, 10-day, and 30-day moving averages to accumulate positions at low levels.
4: Based on the life line strategy + judging the trend of rises and falls, if the trend changes and effectively breaks down, reduce positions in a timely manner when pulling back to the life line.
5. During a sharp rise, be aware of the risks and do not blindly chase highs; during a sharp drop, be aware of opportunities and accumulate positions in batches at low levels.
6: For profitable positions, reduce them appropriately to avoid rollercoaster trading; for bottom-fishing orders, it is recommended to set a stop loss to protect your capital.
7: If the direction is unclear, it is better to miss out than to make a mistake. Protecting your capital allows you to smile longer.
Without further ado!
I share my trading strategies and insights with friends. There is a saying, 'Standing on the shoulders of giants, you can achieve ten years of success with less effort.' If you are fated to see this,
Friends who want to improve their cryptocurrency trading skills must watch more and study carefully.
Viewing the market with a developmental perspective in cryptocurrency trading is a boundless state.
How should this sentence be understood?
To put it simply, it means that whenever you have time, just open your computer to see if you can make a trade to earn some money.
Previously, I introduced intraday short-term trading, which has its principles and tactics that many short-term enthusiasts love; however, some forex friends feel that intraday short-term trading requires frequent chart checking, which is too tiring and exhausting.
They want to hold a trading position for a long time but do not want to constantly check the charts; they hope to set larger profit targets while also keeping losses to a minimum. So, is there such a trading method?
The answer is definitely yes, that is swing trading.
Swing trading is a very popular trading type, it brings relatively less pressure to traders while offering substantial returns, especially for part-time traders; it is the perfect trading type.
But before introducing swing trading, it is also important to emphasize one point:
Regardless of the trading style, traders in the market are working solo and are responsible for their account funds. Even in losses, one cannot blame others. It cannot be said which is better; it depends on which style you prefer and which suits you better.
Take this forex swing trading expert I want to share today as an example. 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 for him, swing trading is the best trading type, and the daily chart can provide him with the most accurate trading signals.
Therefore, for forex trading to achieve stable profits, the first step is to find a trading style that suits you, then refine your trading strategy, rather than blindly imitate others.
01 Advantages and disadvantages of short-term and swing trading
Since you need to find a trading style that suits you, you must first understand the advantages and disadvantages of each style. Let’s take a look at the advantages and disadvantages of short-term trading and swing trading.
Advantages and disadvantages of short-term trading:
There are many opportunities for short-term intraday fluctuations in the market, with trading opportunities at 1-minute, 5-minute, and 15-minute intervals being plentiful.
Intraday trading models can effectively lock in short-term trading targets, making trading have clear goals and assessment indicators.
Intraday trading can lock in risks. By forcibly stopping losses in intraday trading according to funds and points, allocating funds for operational ratios, quantifying positions, and implementing risk control is stronger.
Disadvantages:
Frequent trading carries significant risk.
Staring at the screen for long periods is exhausting, creates significant pressure, and is detrimental to physical health.
Advantages and disadvantages of swing trading
Advantages:
Will choose trades with a higher probability of profit;
. Less pressure than intraday trading; no need to focus on the charts all day; trading costs are lower than intraday trading.
Disadvantages:
. Long holding times bring overnight risks;
More patience is needed, as well as stronger principles.
Intraday trading has more potential profits, while swing trading offers more freedom and less pressure. When it comes to profitability, any trading method can yield profits, but the focus is still 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 uses for swing trading.
02 What is swing trading?
Short-term trading was introduced in last week's article, so I won't repeat it today. Those who haven't seen it can check the previous content you might have missed at the end of the article. Today, we will mainly learn about swing trading.
So-called swing trading (Swing Trading, also known as oscillation trading) is a trading strategy that attempts to catch a big wave of rising or falling prices, with holding periods varying from a few days to a few weeks.
Swing traders, while using technical analysis to find trading opportunities, will also use fundamental analysis to analyze price trends and patterns.
Swing trading consists of two main parts: the swing and the fluctuation points. 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 movements 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 trading periods close every 24 hours at 5 PM Eastern Standard Time, this is also known as the forex market's 'closing time.'
Therefore, I suggest that swing traders use the daily chart, and if you have achieved profits through the daily chart, you can try the 4-hour chart.
In general, a higher time frame means more reliable price action signals.
2 Draw key support and resistance levels.
Drawing key support and resistance levels is the most important part of the entire process. For swing traders, if key support and resistance levels are not found, profits cannot be made.
Next, I will introduce two important horizontal lines:
1. Support and resistance lines
Support and resistance are points on the chart that withstand continuous upward or downward pressure. Support levels are typically 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 'exact' levels; it is best to consider them as areas.
2. Trend lines
Although trend lines are one of the most common methods in technical analysis, not all traders will use trend lines, possibly because most traders cannot draw correct trend lines.
Generally speaking, an upward trend line connects the lows of each fluctuation, and a downward trend line connects the highs of each fluctuation.
3. Judging oscillations
If you have learned to mark support and resistance areas on the daily chart, the next step is to use the high points and low points of fluctuations to determine the oscillation.
There are mainly three types of fluctuations: upward trend, downward trend, and range trend.
1. Upward trend
Higher highs and higher lows; the figure below shows a typical upward trend:
In the above chart, each fluctuation high is higher than the previous one; in this bullish trend, buying is recommended.
2. Downward trend
Lower highs and lower lows; the figure below shows a typical downward trend:
In the above chart, each fluctuation high is lower than the previous one, indicating a sell signal.
3. Range trend
Horizontal movement, also known as consolidation, as shown in the figure below:
Range trends are the most common type of trend. Although there are no bullish or bearish trends in the chart above, fluctuation traders can still profit within this range, and it may even be easier to profit than in the other two oscillation trends.
What should be done?
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 oscillation on the daily chart.
1. If the market is in an upward trend, then you should start paying attention to the buy signals at key support levels. As shown in the figure below, a bullish pin bar appeared at the key support level.
The bullish pin bar in the above chart is a buy signal, indicating that we can profit in a sustained upward market trend.
2. If the market is in a downward trend, then pay attention to sell 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 very difficult; what we can do is to pay as much attention to swing changes as possible and patiently wait until confirming the price trend before entering the trade.
5 Determine exit points.
Determining the exit point has an important prerequisite: set your take profit and stop loss before entering. This is because once you enter, your emotions will be influenced by market changes.
So, how do we determine the exit point?
It's simple; it still relies on support and resistance levels, as shown in the figure below:
The above is a daily chart of GBPUSD: it is clearly an upward trend, and the price has exceeded our set profit target.
When this happens, do not be upset; we have captured most of the upward trend. Remember, do not be too greedy in trading.
Let’s take a look at the daily chart of AUDNZD: 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
Current risk is usually calculated using the R ratio. For example, setting a 100-point stop loss and a 300-point take profit is 3R. If your capital is $100 and you profit $500, the risk-reward ratio is 5R.
Risk management essentially involves setting stop-loss and take-profit orders:
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, the stop-loss should ideally be set 10 to 20 points above or below the candlestick.
Take profit: Taking profit is still related to key support and resistance levels. For swing traders, the key to profitability is to seize the fluctuations between support and resistance.
If there is an upward trend in the market, and a bullish pin bar forms at the support level, then the take profit should be set at the next key resistance level.
It's still the same saying: if you don't know what to do in a bull market, click on the profile picture and follow, planning real-time spot trades, contract passwords, and share freely.