There is a dumbest way to trade coins that allows you to keep 'earning forever'
'Lazy person's three axes,' I rolled 8000U into 120,000U, with a profit-taking rate close to 85%, without a single explosion. The method I personally tested: my coin trading method is very simple and practical. In just one year, I made it to an eight-figure sum, only focusing on one pattern, entering the market only when I see the opportunity; I do not trade without a pattern, maintaining a win rate of over 90% for five years! This method is still in use (suitable for everyone) and is very stable. In the later trading process, it is crucial to pay attention, as it can help you earn an additional 3 to 10 points daily.
There are only three core methods:
1. Look at trend funds, not K-line charts.
Every morning, I only do one thing: observe the capital flow of mainstream coins. *Who is entering? Who is running? Who is playing dead? A drop in coin prices is not scary; what is scary is when core addresses lack confidence. As long as 'smart money' is still there, I dare to act.
2. Split position operation*, never gamble your life.
I am used to breaking an opportunity into three positions: the first small trial, the second add-in, and the third lock in profits. The maximum stop-loss is 2%; if there's direction, increase the position; if wrong, exit immediately without dragging.
3. Take the opposite position that 'others dare not take'
When the market sentiment is most panicked, it is often when the main force enters. The more it drops, the more chaotic it becomes, the more they shout 'it's over,' the closer I watch. While others cut losses, I take the first bite; while others want to catch the bottom, I have already taken profits and exited. Maintain the rhythm, refuse to fantasize, and respect losses. Losing is fine; now start using the 'dumbest method,' only make certain moves, only make money that you understand. The correct method + stable execution + a good team to lead the pace is far superior to blindly busying yourself alone! Those who want to turn around and understand will naturally find me.
In the crypto world, achieve financial freedom and social mobility, summarizing 10 trading skills. Understand one, and you can also achieve stable profits, worth it.
Repeat learning:
1. Two-way trading+: suitable for bull and bear markets. Two-way trading is the most common trading method currently promoted by Giant Stone Wealth GGtrade; it can operate investments according to the trends in the coin market, allowing for both long and short positions. Moreover, as year-end approaches, Giant Stone Wealth GGtrade has launched a series of generous benefits, such as a 20% increase in investment returns, which is a great boon for investors.
2. Coin holding method+: suitable for bull and bear markets. The coin holding method is the simplest yet the hardest way to play. It's simple because after buying a certain coin or a few coins, you hold them for over six months or a year without operating. Basically, the minimum return is tenfold. However, newcomers can easily see high returns or encounter price halving, leading them to consider switching coins or exiting; many find it hard to resist not operating for even a month, let alone a year. So this is actually the hardest part.
3. Bull market dip chase method+: only suitable for bull markets. Use a portion of idle funds, preferably no more than one-fifth of the total funds. This method is suitable for coins with a market cap between 20-100, as they won't be stuck for too long. For example, if you buy the first altcoin, when it rises by 50% or more, you can switch to the next coin that has drastically fallen, and so on. If your first altcoin gets stuck, just wait; the bull market will certainly allow you to break even. The premise is that the coin should not be too troublesome; this method is not easy to control, so newcomers need to be cautious.
4. Hourglass switching method+: suitable for bull markets. In a bull market, basically any coin bought will rise, and funds act like a giant hourglass slowly seeping into every coin, starting with large coins. There is a clear pattern in price increases: leading coins rise first, such as BTC, ETH, DASH, ETC, followed by mainstream coins like LTC, XMR, EOS, NEO, QTUM, and then coins that have not risen will rise in unison, such as RDN, XRP, ZEC, etc. After that, various small coins will rise in turn. But if Bitcoin rises, then you should choose the next level of coins that have not yet risen and start building positions.
5. Pyramid bottom-fishing method+: suitable for predicting a significant crash. The bottom-fishing method: place orders to buy 10% of your bullets at 80% of the coin price, 20% at 70%, 30% at 60%, and 40% at 50%.
6. Moving Average Method+: Understand some basics of candlestick patterns. Set indicator parameters MA5, MA10, MA20, MA30, MA60, and select the daily timeframe. If the current price is above MA5 and MA10, hold steadily. If MA5 falls below MA10, sell the coin; if MA5 rises above MA10, buy to open a position.
7. Violent coin holding method+: trade coins you are familiar with; only suitable for high-quality long-term coins. With some liquid funds, if a coin's current price is 8 USD, place an order to buy at 7 USD; once the purchase is executed successfully, place an order to sell at 8.8 USD. Use the profit to hold the coin. Take the liquid funds out to continue waiting for the next opportunity. Adjust dynamically according to the current price. If there are three such opportunities in a month, you can accumulate a lot of coins.
8. The ICO violent compound interest method*: continuously participate in ICOs, when the new coin rises by 3-5 times, take back the principal, and invest in the next ICO, letting the profit continue to accumulate and cycle.
9. Cycle segment method+: find coins like ETC that are undervalued; add positions when prices continuously fall, keep adding when it falls further, and then wait for profits to sell out continuously, cycling repeatedly.
10. Small coin violent play+: if you have 10,000 RMB, divide it into ten parts and buy ten different types of small coins, preferably priced under 3 RMB. After buying, don’t worry. Don’t sell until it triples to five times; if you get stuck, don’t sell; just hold for the long term. If a coin triples, take back the principal of 1,000 RMB and invest in the next small coin. This will yield impressive compound returns! After years of struggling in the cryptocurrency market, I have summarized a set of effective investment strategies. These iron rules not only apply to newcomers but also help veterans maintain clarity in complex market environments and achieve stable returns. Here are the eight iron rules for seasoned traders in the crypto world:
1. Capital management: act according to your ability and diversify risks.
If you have less than 100,000, focus on holding one coin: when funds are limited, concentrate on holding one potential coin and deeply research its fundamentals and technicals. With funds between 200,000 and 300,000, play with two coins: with slightly more funds, you can diversify into two coins to reduce the risk of a single asset. Under 500,000, three to four coins are sufficient: as funds increase further, hold a maximum of three to four coins to avoid excessive diversification. No matter how much capital you have, do not exceed five coins: regardless of your funds, the number of coins held should not be too many to avoid management difficulties. Concentrate firepower in a bull market, and respond lightly in a bear market: invest heavily in the most promising coins during a bull market; during poor market conditions, operate lightly to reduce losses and exit promptly if losses occur.
2. Trend is king: follow the market, do not go against the trend.
Watch the news and learn the technology: understand market dynamics and technical indicators to improve investment success rates. Downward rebounds are often traps, while upward pullbacks may be pitfalls: do not blindly catch the bottom or chase highs; operate according to the trend. Don't speculate on the main force's intentions: the actions of the market's main force are difficult to predict, so focus on your own investment strategy.
3. Only act when the market is active, respond flexibly.
Act when the market is active: when market enthusiasm is high, investor sentiment is positive, making it easier to seize opportunities. Be flexible and not rigid: adjust strategies timely according to market changes and do not cling to old patterns.
4. Set stop-loss and take-profit: protect the principal and lock in profits.
Set fixed stop-loss points: cut losses in time to avoid greater losses. Gradually increase selling prices: gradually raise selling prices when profitable to ensure profits are not lost.
5. Buy quickly and sell ruthlessly: make decisive decisions to avoid hesitation.
Buy quickly: decisively buy when an opportunity is found to avoid missing out. Sell decisively: sell when reaching the expected target or when the market turns to avoid losses due to greed.
6. Think carefully before adding positions: ask yourself whether you are willing to invest new funds in the current situation before considering adding positions.
7. Focus on long-term, with short-term as a supplement: big money should follow the market trend and hold potential coins for the long term.
8. Don't blindly catch the bottom; rationally treat market declines as not necessarily a bottom: a significant market drop does not mean the bottom has been reached; blindly catching the bottom may lead to further losses. Few make money in the market: only a small number of people can really profit in the market, so stay rational and don't follow the crowd blindly.
Advice:
A major bull market is not only a test of market fluctuations but also a test of investors' mindsets. Maintaining calm and following the aforementioned iron rules is essential for progressing steadily through alternating bull and bear markets, ultimately achieving wealth growth. Playing in the crypto world is essentially a struggle between retail investors and institutional players; if you don’t have cutting-edge information or firsthand data, you can only be cut! If you want to plan together and harvest institutional players, you can find me! [Public Account: Smart Apostle] Welcome like-minded crypto enthusiasts.
Let's discuss together~
I will share another set of my practical strategies accumulated over the years, with an average win rate of 80%, which is quite a remarkable achievement in the crypto trading world. Without further ado, let’s get straight to the point! In two years, I transformed 3,000 RMB step by step into over 10 million, relying on this (5-0 trading pattern)+. If you read this article carefully, you will benefit for a lifetime!
The 5-0 trading pattern is a harmonic trading model that technical analysts use to identify potential reversal points in the market. This pattern features a unique five-wave structure, providing a systematic approach to predicting and capturing market direction changes. By combining Fibonacci retracement and extension levels, the 5-0 trading pattern can accurately identify potential reversal areas. Especially for traders looking to enter during reversals, this model is a high-probability trading tool.
Structure breakdown of the 5-0 pattern
The 5-0 trading pattern is essentially a technical chart pattern composed of five consecutive price fluctuations (or 'legs'), labeled as XA, AB, BC, CD, and DE. This pattern typically appears after a long-term trend, indicating that the original trend may reverse or pause. Each wave follows specific Fibonacci retracement and extension ratios, making the 5-0 pattern a structurally rigorous and logically clear tool that can reveal reversal areas that ordinary technical indicators might miss.
Here are detailed explanations of each price structure:
0X: Initial trend.
XA: Retracement of the 0X wave, usually near the 38.2% to 50% Fibonacci retracement levels.
AB: The extended wave beyond XA, usually reaching 113% to 161.8% Fibonacci retracement levels of XA.
BC: The extended wave beyond AB, typically reaching 161.8% to 224% Fibonacci retracement levels of the AB wave.
CD: The final wave to complete the pattern, usually aligning with the 50% Fibonacci retracement level of the BC wave.
How to draw the 5-0 trading pattern: drawing the 5-0 trading pattern requires a systematic approach, whether manually or using automated tools. When manually drawing the 5-0 trading pattern, traders must follow these steps:
1. Identify the initial trend (0X): First observe a strong trend in the market, which serves as the basis for the entire pattern, forming the XA wave.
2. Measure the retracement of the XA wave: use the Fibonacci retracement tool to measure the retracement magnitude of the XA wave, ensuring it falls within the 38.2% to 50% range of the XA wave. This step is used to confirm the first adjustment phase of the pattern.
3. Identify the extension of the AB wave: recognize the AB wave, which must exceed the high/low of the XA wave. Confirm that the amplitude of the AB wave exceeds 100% of the XA wave using Fibonacci extension tools; this is one of the key features of this pattern.
4. Draw the extension of the BC wave: measure the BC wave (the extended part of the AB wave), which usually ranges from 161.8% to 224% retracement levels of the AB wave.
5. Verify the CD wave: finally confirm whether the CD wave has retraced about 50% of the BC wave. This step will confirm the completion of the 5-0 pattern and mark potential reversal points.
For traders who prefer automated solutions, charting platforms like TradingView, MetaTrader, and ThinkorSwim offer harmonic pattern recognition indicators. These tools can automatically detect and mark 5-0 trading patterns on price charts, significantly simplifying the analysis process. Simply activate the harmonic pattern tool, check the 5-0 trading pattern option in the settings, and the system will automatically scan for potential pattern structures.
Automated tools are especially beneficial for traders operating multiple varieties or multiple time frames, saving time and improving efficiency.
How to trade using the 5-0 pattern
The key to trading the 5-0 pattern lies in identifying the completion of the DE segment and trading based on the expected reversal. The following are effective trading methods for this pattern.
Several steps:
1. Identify the pattern
The first step to trading the 5-0 pattern is to identify it on the price chart. Traders can manually draw the pattern based on the aforementioned steps or use automatic harmonic pattern recognition indicators provided in the trading platform (if available) to assist in identification. Remember, confirming the validity of the pattern is crucial; ensure that all segments (XA, AB, BC, CD, and DE) adhere to specific Fibonacci ratios. The accuracy of identification will significantly impact the reliability of the trade.
2. Wait for the pattern to complete
Patience is key when trading the 5-0 pattern. Traders must wait until the DE segment reaches the expected Fibonacci retracement level before taking action. The DE segment typically completes at the 50% retracement level of the BC segment. If you enter the trade too early before the pattern is fully formed, you may suffer unnecessary losses due to price not reversing near the expected point. Monitoring price behavior near the expected completion area of the DE segment helps confirm the validity of the pattern and reduces the likelihood of false signals.
3. Determine the entry point
Once the DE segment is completed, it marks a potential reversal area. Traders should enter as close to this completion point as possible. For a bullish 5-0 pattern, where the price is expected to reverse upwards, traders can establish long positions. Conversely, for a bearish 5-0 pattern, where the price is expected to reverse downwards, it is recommended to establish short positions. Combining other confirmation signals (like candlestick patterns: hammer, engulfing patterns, etc., or momentum indicators: relative strength index RSI, MACD, etc.) can further enhance the reliability of the trade.
4. Set stop-loss and target levels.
When trading the 5-0 pattern, risk management is a crucial aspect. To prevent unexpected price volatility or pattern failure, traders should set stop-loss levels outside the completion point of the DE segment. For bullish patterns, the stop-loss should be set slightly below the DE point; for bearish patterns, it should be set slightly above the DE point. This stop-loss setup allows trades to have natural development space while minimizing potential losses. Setting profit target areas is also an important step in trading the 5-0 pattern. Suitable target prices can be judged using Fibonacci extension levels and previous significant support/resistance levels. Common targets include 38.2%, 50%, or 61.8% Fibonacci extension levels of the DE segment. Traders can also choose to take profits in batches, reducing positions in phases at multiple target levels to lock in profits while allowing part of the position to continue holding in case prices develop further in the expected direction for more gains.
Case Study
The structure of the 5-0 trading pattern is similar to the inverted head and shoulders pattern, where the second 'shoulder' is elongated over time. In the following EUR/USD daily chart, we can draw a 5-0 pattern.
We drag the Fibonacci retracement tool from point X to point A. In this example, point B nearly touches the 1.618 level, complying with the pattern rules—it must fall between 1.13 and 1.618.
Next, reposition the Fibonacci tool from point A to point B. Point C should align with the 1.618 projection of the AB segment. In this example, point C successfully meets this condition, allowing us to proceed to the next step.
Now move the Fibonacci tool from point B to point C to evaluate the trend of the DE segment. Pay attention to whether the price retraces to the 0.50 retracement level and begins to move upward. This indicates that the DE segment may be forming and is also a signal that the pattern is about to complete. For further confirmation, you can draw an ascending channel. The first line connects points A and C; the second line connects point B. If the price remains within this channel, it will further strengthen the validity of the pattern and serve as an additional buy signal. After confirming the pattern, formulate a trading plan... In this case, the best buying area is approximately around 1.2615. The stop-loss should be set below the correction range, around 1.2470, which also corresponds to the 0.618 Fibonacci retracement level. To further confirm the entry signal, you can draw a descending trendline and wait for the price to break above that trendline before executing the trade.
Finally, set profit targets for effective trade management. The first target can be set at 1.3110, aligned with the level of the XA segment; the second target is 1.3195, which is the previous high of this pattern. Many people do contracts; when asked 'do you use full position or isolated margin,' the other person looks confused. More seriously, some don't even understand the difference between the two and directly open leveraged positions, resulting in liquidation without understanding how it happened.
First, let's talk about isolated margin:
Isolated margin means that whatever you invest in this contract is the most you can lose. For example, if you have 5000U in your account and only use 500U for this trade, then even if the market goes against you, you can only lose that 500U and won't drag the entire account down. Who is it suitable for? Suitable for those who want to control risks and prefer a steady approach. You can treat each trade as an independent battle, and you won’t lose everything because of one mistake.
Let's talk about using the entire position:
Full position means that if this trade fails, all the remaining money in the account goes down with it. The system will use the remaining funds in your account to sustain the current position until the entire account can no longer bear it, at which point it will be liquidated all at once. It sounds like 'higher fault tolerance,' but the risk is also greater. Many people have the illusion of full positions: they think they can withstand it, but when a big fluctuation occurs, they end up losing everything. Especially for those who like to hold positions without setting stop losses, full positions are almost a time bomb. So how to choose? If you are still familiarizing yourself with the market or just starting to try contracts, prioritize using isolated margin; this is the most direct way to protect your principal. Once you have your own trading system and can execute risk control stably, consider using full positions to improve efficiency— but even then, you must set stop losses. After all, the essence of contracts is not to make quick money but to allow you to endure longer and move steadily. Don't treat your account like a casino; if you don't even know where the risks come from, dare to place heavy bets; that's not trading, it's gambling with your life. Full position and isolated margin are not about which is superior, but whether you have the ability to control them. In this round of market conditions, whether you can recover your investment all depends on yourself. Plan early with me to get you out of the lows sooner. Playing in the crypto world is essentially a struggle between retail investors and institutional players; if you don’t have cutting-edge information or firsthand data, you can only be cut! If you want to plan together and harvest the institutional players, you can find me!
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