Continuous learning, constantly deepening, strengthening knowledge reserves—this is the only rule for surviving and thriving in the cryptocurrency world. Whether you are a seasoned veteran who has been struggling in the crypto space for years or a newcomer who is clueless and inexperienced, only through persistent learning can you gradually enhance your understanding of the market. After all, there are no naturally gifted traders in this world; all success comes from the accumulation and sedimentation of day-to-day efforts.
Having been in the crypto space for nearly ten years, I have experienced all the pitfalls and losses that should have been encountered. Writing this article now is to share my experiences and lessons so that newcomers can avoid some detours, break through cognitive bottlenecks, and embrace this market filled with opportunities and challenges with a broader perspective and vision.
A few small tips for making money in cryptocurrency trading.
First, accurately grasp the entry and exit points.
"Buy low and sell high" is the most basic profit logic in cryptocurrency trading. Everyone understands this principle, but very few can actually achieve it. The reason is that most people cannot understand market trends, cannot grasp the timing of entry and exit, and are easily influenced by emotions, falling into the trap of chasing highs and cutting losses.
Take this year as an example: the market was filled with panic emotions, and most people were observing or even selling off, while I decisively urged everyone to enter; by June and July, when market enthusiasm surged and everyone was chasing highs, I timely warned about risks, stating that the market had peaked and was about to decline. If one could accurately grasp this trend and timing of entry and exit, making several times return would not be difficult, which is much better than working hard. Unfortunately, many people did not heed my advice. At the beginning of August, I was still posting reminders, but those who did not listen are mostly deeply trapped now, with their funds losing liquidity. Now they come to ask me for solutions, but after being trapped, there is little I can do.
Second, closely follow the hotspots and accurately filter potential cryptocurrencies.
Understanding market trends is just the first step; you also need to learn how to capture hotspots and have the ability to filter potential cryptocurrencies; otherwise, all your efforts may be in vain. Have you ever noticed that even in a bull market, the cryptocurrencies you bought remain lukewarm or even stagnant? Why is that?
In fact, this is because you lack research and investment capability and do not know how to filter potential cryptocurrencies. Buying those without potential "garbage coins" naturally won't attract any market makers to pump them. What we need to do is closely follow the flow of hot money and places where people gather, because where there is popularity, there is capital, and where there is capital, it will attract more people to pour in.
However, I have said so much, and I guess most people still do not know how to filter potential cryptocurrencies, only buying whatever is reported as strong by the media, often resulting in high-level purchases. After all, by the time the media reports it, the price is often already inflated. I wonder if you understand what I mean.
Third, manage positions well.
"The secret of traditional Chinese medicine lies in dosage; the secret of investment lies in positions." This saying fully explains the importance of position management.
Many people have a positive outlook on a certain coin or two or three coins and buy them all at once, then neglect them, neither adjusting positions according to market changes nor knowing when to take profits at high points. As a result, they can only watch profits gradually evaporate, and ultimately even turn from profit to loss. In the end, this is due to a lack of trading plan and inadequate position management.
Regarding position management, it is difficult to explain clearly in a sentence or two, and everyone's financial situation and risk tolerance vary. If you do not understand, you can ask those who do. I will try my best to help within my capabilities. Of course, you also need to take the initiative to learn and think independently, after all, "Heaven helps those who help themselves."
In the end, that's all I have to say. I hope this content can help you, and I also hope everyone does not find cryptocurrency trading too difficult. Learn more, summarize the rules, because everything in the world has traces to follow!
Million-value indicator EMA.
Correct usage and注意细节 for medium to long-term trading.
Indicator introduction: EMA, moving average.
Indicators, here I will only share the medium to long-term usage, which is very practical and has a super high accuracy rate.
Applicable groups: Suitable for spot or low-leverage medium to long-term trading users.
Applicable targets: High liquidity, high market value, i.e., large scale, high stability targets; not suitable for altcoins and other small targets.
Applicable cycles: Daily line level and above is best, with strong stability; the minimum short-term signal should not be less than a 4-hour cycle.
Indicator parameters: EMA21-55-120-200. In bear or bull markets, they align in a bearish arrangement (from top to bottom: 200-120-55-21) or a bullish arrangement (from top to bottom: 21-55-120-200). The initial signal only looks at the cross signal of EMA21-55.
Signal judgment: Observe the cross situation of EMA21 and EMA55 at daily line levels and above. Buy on a golden cross, sell on a dead cross, and strictly execute.
Usage methods and注意细节:
1. Buying: Buy when a golden cross is seen at the daily line level.
You may not be able to buy at the lowest point here, but buy according to the trend, let the profit be given to time, and pay attention to the buying position. There are a few points to note.
During oscillation and consolidation, daily golden crosses and dead crosses may frequently alternate, leading to buying and selling losses. However, ultimately one side will show a continuation in the medium term. Therefore, even if there are losses, buying and selling signals must be strictly executed to prevent missing trends. To reduce losses, you can judge during oscillation and consolidation, such as forming golden cross and dead cross signals, then waiting for prices to pull back close to the moving average to buy, or initially building positions and waiting for the moving average to rise close to the average price to supplement positions. Usually, when EMA21 is close, and above EMA55 can be bought, as illustrated in the graphical cases below.
2. Selling: There are two types of selling.
1. Sell when a dead cross is observed above the daily line level (this usually results in some profit withdrawal when the medium-term trend is not long).
2. Sell when the predetermined target is reached (this point can be flexibly adopted based on personal needs and plans; the downside is that it is easy to miss out during a bull market).
The above are important points and must conditions; more details can refer to graphical cases.
In summary, the EMA indicator is used to judge medium to long-term directions and is applied to profit from trends. One will never buy at the lowest point or sell at the highest point; greater profits and flexible applications can be utilized.
Thank you! Friends who like it can follow Lele, and I will continue to share more experiences with indicators.
Cryptocurrency position management---building positions, increasing positions, reducing positions, and clearing positions.
Batch trading operation methods for position management.
Building and increasing positions must be operated in batches, while reducing positions should be gradually reduced or directly cleared based on the actual situation.
Basis for building, increasing, and reducing positions.
1. Technical aspects: Including technical indicators, candlestick patterns, and trading volume. Judgment of trends, distinguishing between bulls and bears, grasping buy and sell points, judging support and pressure, and the application of volume-price-time-space, etc.;
2. Fundamental analysis: Includes relevant macroeconomics, national policies, regulations, the project itself, etc.;
3. News aspect: Bad and good news, operate under good conditions for news and fundamentals;
4. Time cycles: Intraday short-term, medium-short term, medium-long term, long-term (trend trading). Confirm the trading cycle to achieve consistency in the operation cycle. For example, when doing long-term trades, do not frequently engage in short-term buying and selling. When doing long-term trends, the intermediate adjustments and fluctuations are acceptable as long as there is enough space and it is a mainstream cryptocurrency, and prices will rise again.
Building positions.
Refers to the behavior of buying into a certain cryptocurrency at the initial stage. Building positions can be divided into left-side building and right-side building. The principle of investment lies in going with the trend. Building positions in line with the trend is the most conventional and lowest-risk method. The greatest characteristic of a trend is continuity, using the sustainability of the trend to increase positions for higher returns with lower risk.
Establish the position building funds and allocation ratio based on your own trading system and maximum loss tolerance. It is recommended that the funds for the first position building should not exceed 30% of the available funds, using a pyramid approach for gradual buying. The first position serves as a directional test, and if it meets expectations, gradually increase positions.
There are three stages for building positions:
① Before the market starts: The big trend refers to the end of the bear market, and the medium-term refers to when a stop-loss signal appears. Suitable for investors or investment institutions with relatively strong funds and long operation cycles, often starting to build positions before the market starts and supplementing positions when the market starts. The profit space is the largest;
② When the market starts: The big trend refers to the beginning of a bull market, and the medium-term refers to when obvious upward signals appear after a stop-loss. Requires higher mastery of technology and trend judgment, suitable for professional investors;
③ After the market starts: At this time, the timing for building positions is easier to judge, but the profit space becomes smaller. Conservative investors can build positions after the market starts, but inexperienced retail investors are likely to buy at the end of the rise, getting trapped by chasing highs.
The three timing methods are neither good nor bad; it varies from person to person. Choose a suitable timing for building positions. Before entering the market, first, analyze the fundamentals, judge the market trend through technical aspects, as well as the upward and downward space, trend duration, etc. After assessing the market conditions and trends, weigh potential risks and profit expectations, and choose a suitable entry timing based on sufficient consideration of your own risk tolerance. However, do not expect to buy at the lowest point every time.
Increasing positions
Increasing positions refers to the behavior of continuing to add purchases due to a sustained optimistic outlook on future market conditions. Reducing positions is the opposite.
The essence of increasing positions: Increasing positions is a technique for investment and a tool for increasing returns. Therefore, only when increasing positions can help investors achieve the above goals does it have value. Otherwise, do not blindly increase positions.
Basic principles of increasing positions:
① Do not increase positions without profits: Gradually increase positions under the premise of profit protection;
② Do not increase positions without seeing a pullback: do not chase highs; increase positions when prices drop to support levels;
③ Do not increase positions without a clear direction: Do not increase positions during the end of a bull market, the beginning of a bear market, sideways phases, and when the volatility is relatively small. Increasing positions during an upward trend or when the bear market bottom stabilizes has a higher win rate;
④ Light positions can increase positions, heavy positions should not increase positions. When 80% of the positions can be held, do not consider increasing positions;
⑤ Increase positions when clear signals for increasing positions are seen. For example, favorable news, technical support levels, breaking through resistance levels, etc.;
⑥ Determine the investment fund ratio for batch increasing positions, by incrementing or decrementing, using the average positioning method;
⑦ Continuous position increases should not exceed three times; the more times, the higher the transaction fees;
⑧ Do not increase positions when breaking below support; increase positions when the support is effective.
Only carry out position increases when you are confident; otherwise, every additional fraction of a position increases greed and fear, and also increases risk.
Reducing positions and closing positions.
Reducing positions refers to the operation of selling a portion of the positions, usually taken when the future market is uncertain, aiming to secure some profits or reduce losses. Closing positions, also known as clearing positions, refers to the act of confirming that the market is developing weakly and selling all.
The essence of reducing positions: Reducing positions can lower risk and minimize losses when risks arise. It is a means and technique for realizing profits when obtaining excess returns. Do not reduce positions arbitrarily based on feelings and emotions.
The premise for reducing positions:
① Combine with the investor's risk-bearing ability. If it exceeds the tolerance range, it must be reduced;
② Combine the investor's investment goals and plans (profit taking and stop loss), for example, set a maximum loss of 5% for each transaction, and execute a reduction in positions when the set value is reached. If the profit is set at 10%, when partial profit is reached and the market begins to stagnate, and a reversal signal appears, reduce positions, and increase positions at low levels;
③ Reduce positions when a downward signal appears in the technical aspects or when bad news emerges in the fundamentals.
Timing for reducing positions:
① Reduce positions in an upward trend;
② Reduce positions during rebounds;
③ Reduce positions at high points in the oscillation range;
④ When positions are heavy, reduce positions if the first two or three points are met.
Techniques for reducing positions:
① Reducing positions is a follow-up operation after increasing positions. When there are gains after increasing positions, it lays the foundation for reducing positions, allowing for short-term operations and profit taking.
② Reduce positions when rebounding to important resistance levels during a decline;
③ Reduce positions when the upward trend breaks;
④ Reduce positions when multiple technical indicators validate the downward signal, such as dead crosses, overbought conditions, and multiple moving averages declining;
Closing and clearing positions: The number of operations for closing positions is relatively small.
① When reaching the expected profit, do not be greedy, clear positions and take profits;
② Continuous decline, decisively clear positions;
③ When there is significant bad news affecting the market, especially when it has a long-term impact, clear positions;
④ Clear positions at the end of a bull market;
⑤ Clear positions when switching positions, for example, if the investment target is incorrect, or clear positions when the cryptocurrency has fluctuated for a long time with little change;
Increasing positions during operations is beneficial for expanding profits, and reducing positions is beneficial for lowering risk. In a consolidating market, reducing positions is more effective. During the period of increasing positions, set stop losses for the futures market. When the market reverses downwards, gradually reduce positions and do not go against the trend. If the market continues to rise, gradually increase positions. When holding mainstream cryptocurrencies for medium to long-term operations, you can supplement positions during short-term declines to lower costs.
Only by maintaining a good mindset, refusing to feel the trade, and viewing the market rationally and objectively, constantly summarizing practices, can one respond to various potential market changes, achieve moderation in operations, take the initiative, and finally establish a position control strategy based on personal experience, aiming to minimize being trapped, avoid missing opportunities, and achieve the goal of low risk and high profit.
I am A Xin, having experienced multiple ups and downs in the cryptocurrency market. I entered the industry two years ago, became proficient in four years, and have dominated for eight years. I have rich practical experience in multiple sectors of the cryptocurrency world. Here, break through the chaos of information and see the true cryptocurrency market. More opportunities for wealth appreciation can be controlled, and truly valuable cryptocurrencies can be mined. Don't regret it anymore! Offer people fragrant grass, leaving a fragrance in their hearts. Thank you for your likes, and welcome to follow Huihui, where you can learn and communicate in real time, and also clearly understand the market direction and strategy. Regardless of the market's style, knowing in advance allows for better mastery!!!
A Xin only does real trading; the team still has positions available.
