With two thousand on hand, exchange it for about 300U, and everyone needs to find ways to increase value. The most direct and effective method is to use contract trading to amplify returns:
The first step is to steadily build up, gradually increasing the principal. Each time take 100U.
Go for the hot coins, remember to set your take profit and stop loss. If you make a profit, double it, for example, 100 turns into 200, 200 turns into 400, and so on. But remember, you can only operate consecutively three times at most, because luck plays a role here; you might win several times in a row, or you might lose on the first try. So, take it easy.
The second step is that when our principal rolls to around 1100U, we can start using more advanced strategies. At this point, we need to add some tricks and deploy three strategies at once:
1. Super short trades, use 100U for 15-minute rapid trades, take profits and run; it's fast but also carries high risks, so choose stable coins like Bitcoin or Ethereum.
2. Single strategy, using a small position, like 15U, to trade 4-hour contracts, take it slow, allocate a fixed amount every week into Bitcoin, and accumulate a significant wealth over time.
3. Trend trades, which are our main focus; after identifying the market trend, enter directly, as it relies on it to make big profits. However, note that this requires us to have the same market judgment ability, and plan the risk-reward ratio in advance.
Playing contracts in the cryptocurrency space is not about random gambling; it requires a systematic approach, reasonable position management, and strict profit-taking and stop-loss strategies. Using 2,000 to strive for nearly a million sounds difficult, but as long as you master these techniques and execute each trade well, the dream of becoming a millionaire can be fully realized!
Friends who have traded cryptocurrencies know that buying low and selling high leads to profits.
How to buy when Bitcoin is at the bottom of the bear market at 10,000, and then hold on until it exceeds 150,000 in the bull market.
Some people see this and think it's easy, isn't it just buying and selling? But what seems like a simple strategy has actually endured many trials, and it is a complete test of human nature from start to finish.
The following is a simulation of the heart and mind of retail investors:
Doubt: Can Bitcoin really drop to 10,000? I can't think of any black swan event that could push it that low?
Fear: Wow! Bitcoin has dropped to 10,000. Could it continue to fall? Blockchain scams! Don't buy at all costs!
Conservative: I bought Bitcoin at 10,000, and now it has risen to 20,000. I’ll cash out to secure my profits.
Missing out: Sold at 20,000, waited for a pullback, and now it's up to 50,000; no choice but to re-enter.
Satisfied: Bitcoin is at 100,000! I feel it should be at its peak, better to pull out now. The tail-end market is left for you, might as well short it.
Greed: Bitcoin has reached 150,000! Short positions are being liquidated, it's time to go long, it will surely continue to rise! Eternal bull market! Sell the house and go all in! The bull-bear transition proceeds quietly; soon the cryptocurrency market starts a new round of significant corrections, and those who did not run in time are trapped at the peak.
Throughout the process, Bitcoin's actual increase exceeded 15 times, but many retail investors may have only gained a few times, and some might even have missed the peak and lost their only profits due to not selling on time.
Let's discuss the differences between long-term and short-term trading:
1. Long-term trading:
Advantages: Can reduce trading frequency, lower trading costs; more emphasis on fundamental analysis, suitable for investors who do not have time to monitor the market frequently; generally less affected by short-term market fluctuations.
Disadvantages: Requires a large amount of capital to cope with potential long-term fluctuations; needs patience to wait for investment results; if the long-term market trend is judged incorrectly, one may face significant losses.
2. Short-term trading:
Advantages: Provides more trading opportunities, potentially yielding high returns in a short time; suitable for investors who can monitor the market frequently and make quick decisions; can profit from short-term market fluctuations.
Disadvantages: High trading costs due to frequent buying and selling; requires strong market analysis and quick reaction abilities; greatly affected by market sentiment and short-term news events, resulting in higher risks.
Here are some considerations to help you decide which trading strategy suits you better:
Time investment: Do you have enough time to monitor the market and engage in frequent trading?
Risk tolerance: How much loss can you accept? Long-term trading may face long-term uncertainties, while short-term trading may experience high volatility.
Capital amount: Is your capital amount suitable for the trading strategy you choose? Long-term trading may require larger capital to withstand volatility.
Market knowledge: How well do you understand the market? Are you able to conduct effective fundamental or technical analysis?
Investment goals: What is your investment goal? Is it for long-term appreciation or short-term profit?
Ultimately, there is no one-size-fits-all trading strategy. Investors should choose the trading method that suits them best based on their situation and continuously learn and adjust strategies to adapt to market changes. At the same time, attention must be paid to risk management to ensure that one does not face excessive financial risk due to a single trading decision.
In fact, it doesn't matter whether you do short, medium, or long-term trades; the level you trade at is not important.
What's important is, what are you good at?
The key is whether you can help yourself make money. And ability is also the key to making money.
From what direction to analyze and layout medium to long-term positions?
1. Analysis of market trends.
When investing in medium to long-term positions in cryptocurrencies, it is essential to analyze support and resistance levels.
When the overall trend of the market rises and then falls, the highest point reached before the fall becomes a resistance level in the current market trend.
If the market is likely to rise next, then the lowest point before the rise is the support level. Therefore, accurately judging support and resistance can better facilitate medium to long-term investments.
However, it is essential to remember that support and resistance are not fixed numbers; it is best to determine them based on a range, which can minimize risk as much as possible.
2. The types of trends help you judge the right investment timing.
In the decision-making factors for medium to long-term investments in cryptocurrencies, the analysis and judgment of trends are quite important.
Typically, there are three types of trends: an upward trend which gradually rises from a low point, a downward trend which gradually lowers the high points, and a sideways trend that primarily shows different regions and amplitudes.
In trading during an upward trend, it is usually easy to profit, while in a downward trend, one needs to be more cautious; thus, medium to long-term investments should not be prolonged too much and should end quickly. Sideways trends are difficult to judge, so make sure to have an accurate judgment before trading.
3. Types of channels.
There are mainly three types of channels: ascending channels, descending channels, and horizontal channels.
These three types of channels serve different purposes in medium to long-term investment trading; investors can make different choices based on varying circumstances.
Investors can also create different channels based on their varying needs to help them complete medium to long-term investments in cryptocurrencies. Recently, due to Bitcoin's volatile fluctuations, the cryptocurrency market has presented many short-term 'earning' opportunities.
However, we must be clear that earning profits also comes with significant risks, just like many investors recently facing liquidation in Bitcoin contracts.
Because during the process of the market rising, it does not continuously rise without falling; it often encounters sharp declines after rising. Contract trading usually has a liquidation point of 10%. For Bitcoin's recent market conditions, if one chases high or shorts eagerly, they can easily face the risk of liquidation.
Therefore, I have always reminded friends to set stop-losses; risk is always the top priority.
Therefore, I feel it is necessary to discuss some basic short-term trading principles that we must adhere to.
1. Even if the selected variety fails in 'short-term price speculation,' your mind can still transition to 'long-term price investment' without pressure.
This means selecting short-term varieties that you are very familiar with and are confident in their value.
Just like Li Xiaolai holding onto Bitcoin without moving, becoming the current Bitcoin billionaire, it's because he knows it thoroughly that he invests heavily, due to his understanding and conviction.
Because he knows the future development trend, he can anticipate the future of the currency.
2. The key to taking profits and losses lies in thinking in advance about 'buying' and 'selling,' to turn 'overcoming greed' into 'channeling greed.'
Put simply, it is about when to sell and when to buy; this must be clearly defined, otherwise, you may miss the timing to exit.
Greed exists in everyone, including Feng Chu, but greed is human nature and unavoidable, though it can be channeled, so we must learn to manage our greed.
3. When buying, control the capital to around one-fifth of your disposable investment amount.
When investing, never put all your money on the line. As Li Xiaolai said, sentencing part of your funds to 'death' means losing that money won't affect your normal life.
Zhang Sanjiu's view is that if you have 100,000, you can take out 20,000 for investment, which gives you risk-bearing capacity.
4. Think in advance about the 'trigger points' for selling, selling in batches, and strictly executing this plan.
In a bear market, for short-term speculation, when doubling, sell half, then sell one-third or one-fourth for every 50% increase, just based on your mood. In a bull market, sell one-fifth when it rises to five times, securing your investment and selling part for every 50% increase; during short-term price speculation, utilize people's herd mentality, as there will be pullbacks.
5. Entering and exiting quickly, following the trend, taking profits at the right time, and avoiding frequent operations! These points are also major taboos, and of course, the literal meaning is easy to understand, so I won't explain them one by one here.
Many people say that long-term trading is easier to succeed than short-term trading; what is the reason?
One is due to market reasons, and the other is due to the trader's own reasons.
From the market's perspective, the trend of a large cycle tends to be more resolute. The fundamentals of a large cycle generally do not change suddenly, and significant changes in the fundamentals of a large cycle usually undergo a budding development process. During this process, funds gradually flow in to drive it. Driving the trend of a large cycle or changing the original trend of a large cycle requires larger funds.
Small cycle trends in the short term are more random; the smaller the cycle, the more random it is. Because the small cycle trend accommodates less capital. A wave of hourly trends within a day can change the original trend with just one piece of data. Many major institutions can also perform technical feints in small cycles, creating false breakouts.
I have previously mentioned following the trend; it's essential to understand the three factors in doing so: first, define what a trend is, usually the Dow theory or moving averages, and trend lines. Second, the level of the trend, as there are hourly trends and daily trends. Third, clarify under what circumstances to follow small-level trends and under what circumstances to follow large-level trends. Following the trend does not merely refer to meeting the definition of a trend, but rather aligns with the direction of large cycles beyond the daily level, as this is the direction of large funds which is steadfast and enduring.
For us technical traders, technical analysis becomes more effective with larger cycles and less effective with smaller ones. For example, in futures, a daily-level structure built over more than three months, once broken, has a 90% chance of triggering a wave of trends; however, a structure on the hourly level, once broken, does not have such a high probability of triggering a trend. If we look at minutes, the validity of the structure is even lower. The turtle trading system is already negative expectation in the intraday, but it is positive expectation above the daily level. Therefore, learning to trade is easier in large cycles, while it's challenging in small cycles.
From the trader's perspective, trading is a highly mentally taxing activity. We need to maintain physical health and energy, avoiding fatigue trading, as fatigue can lead to confusion and trigger gambling tendencies.
Controlling risk is the only way to profit from trading. Risks stem from two sources: one is misreading the market, and the other is emotional triggers. Long-term trading allows for longer intervals between trades, facilitating sufficient rest and thought, which aids in clearer thinking and emotion control, thus reducing trading risks. Short-term trading, with its more frequent trades, can be extremely mentally taxing, and when we are fatigued, emotions become difficult to control, leading to impulsive orders and heightened gambling tendencies.
Most beginner traders, due to human nature, prefer to start learning techniques with short-term trading, often struggling for a long time to grasp trading principles. However, switching to long-term trading can make it easier to find the trading path.
Why do most beginners prefer to start with short-term trading? Beyond human nature, there is also an underlying issue of capital thresholds. Long-term trading requires a higher capital threshold.
Large funds are suitable for long-term trading. Normally, long-term trading will have larger stop-losses set, which requires relatively lighter positions. Following the trend with light positions is suitable for large funds to engage in long-term trading; a large fund can fully benefit from a major trend in a large cycle, earning about 20% in a year is already a good profit. However, for small funds, even earning 20% is not as valuable as not trading at all for most market entrants. Small funds need to be fully utilized, which leads to heavier positions, increased trading frequency, and attempting to capture both the main trend and its adjustments of a large cycle, making it suitable for short-term trading. This is also the reason many newcomers resort to short-term trading; ironically, not having learned trading principles, engaging in short-term trading with heavy positions and frequent trades is a primary cause of losses for beginners. However, once trading is learned, I don't believe heavy positions and frequent trades are untouchable taboos.
3-step 'pullback confirmation' rule, easily avoiding liquidation traps, with a 90% profit rate!
In this magical realism-infused cryptocurrency world, some become rich overnight while others leave in despair. Today, we are not discussing mysticism or 'wealth passwords,' but a hardcore technique that can instantly elevate your trading strategy—'pullback confirmation' rule.
Step one: Learn to 'read the lines,' find your 'golden ratio point.'
The candlestick chart in the cryptocurrency market resembles an electrocardiogram, hiding countless secrets between rises and falls. 'Pullback' refers to the price testing the support level after breaking through a critical position, like a spring contracting. At this moment, you need to focus on two lines: the moving average and the trend line.
The moving average reflects the market's average cost. When the price pulls back to the moving average without breaking it, it is like a diver lightly tapping the springboard, often resulting in a second burst of energy after building up;
The trend line represents the boundary between bulls and bears. When the price pulls back and bounces off the trend line, it means that the main funds are secretly laying out their strategies.
Remember, 'online bearish candles are opportunities, offline bullish candles are traps.'
Step two: Wait for the 'confirmation signal,' don't be an impatient retail investor.
The confirmation signal after a pullback is like the 'other person is typing' during a date—exciting yet requires patience. Here are two key indicators:
Low volume pullback: When the price is corrected, the trading volume decreases, indicating that selling pressure is weakening, and the main funds have not fled;
Indicator resonance: Technical indicators like MACD golden cross and RSI leaving the oversold zone synchronously send out bullish signals, which is the real 'right time and place.'
If the market wails during a pullback, but you notice that the price 'won't drop any further,' congratulations, this may be the main force performing a tragic play, just waiting for you to hand over your chips.
Step three: Position management, be a 'playboy-type' trader.
Even if the pullback confirmation is perfect, remember: 'Love may not disappear, but money will.'
Initial probing: Use 10-20% of your position to test the waters, to avoid being liquidated after going all in;
Incremental addition: When the price moves in the expected direction, gradually add more, like cutting a steak into small pieces and savoring each bite;
Stop-loss rule: Set a stop-loss line of 3%-5%, and immediately exit if broken; don't fall in love with the market.
Finally, let's say something heart-wrenching
There are no guaranteed secrets to making money in cryptocurrency; there are only probability games. The essence of the pullback confirmation rule is to use rules to counter human nature—stay calm when others panic, and restrain yourself when others get carried away.
I am Ah Peng, having experienced multiple bull and bear markets, with rich market experience in various financial fields. Here, I penetrate through the fog of information to discover the real market. Seize more opportunities for wealth and discover truly valuable opportunities; don't miss out and regret later!
Ah Peng only does real trading; the team still has positions available, hurry up to join #机构疯抢以太坊 $BTC $ETH
