There is a dumbest method for trading cryptocurrencies that allows you to maintain 'eternal profit'
'Lazy person's three axes', I rolled 8000U into 120,000U, with an account profit rate close to 85%, and not a single blowout.
Tested method: My cryptocurrency trading method is very simple and practical, and I achieved 8-digit profits in just one year, only trading one pattern, entering the market only when I see the opportunity, and not taking trades without a pattern, maintaining a win rate of over 90% for five years!
I am still using this method to this day (suitable for everyone), which is high and very stable. During the later trading process, it is important to pay attention, and it can help you earn at least 3 to 10 points of profit daily.
The core method has only three steps:
① Look at the trend of funds, not the K-line chart
I only do one thing every morning—watch the capital flows of mainstream cryptocurrencies: Who’s coming in? Who’s running away? Who’s playing dead?
The price drop is not a big deal; what’s scary is the lack of confidence in the core addresses. As long as the “smart money” is still there, I dare to do it.
② Split positions, never gamble on your life
I am used to splitting an opportunity into three positions: the first one is for a small trial, the second one is for increasing the bet, and the third one is for locking in profits.
The stop loss is no more than 2%. If there is a direction, increase the investment. If you are wrong, leave immediately without dragging your feet.
③ Do the opposite direction that others dare not do
When market sentiment is most panic, it is often when the main players enter the market.
The more it falls, the more people explode, and the more people shout "it's over", the more closely I watch it.
When others are cutting their losses, I am the first to take the first bite; when others want to buy at the bottom, I have already taken profits and left.
Keep a steady pace, reject fantasies, and respect losses.
It doesn't matter if you lose money, now start using the "stupidest method",
Only make certain moves and only invest money that you can understand.
The right approach + stable execution + a good team to set the pace.
It’s much better than just busying yourself!
Those who want to turn things around and who understand will naturally find me.
In the cryptocurrency world, to achieve financial freedom and class transition, I have summarized 10 trading skills. If you master one of them, you can also make stable profits. It is worth learning repeatedly:
1. Two-Way Trading: Suitable for both bull and bear markets. Two-way trading is currently the most common trading method on Jushi Wealth GGtrade. It allows investment based on cryptocurrency market trends, allowing both long and short positions. Furthermore, as the year draws to a close, the Jushi Wealth GGtrade platform has launched a series of preferential benefits, such as a 20% increase in investment returns, which is a great boon for investors.
2. Hoarding: Suitable for both bull and bear markets. This method is both the simplest and most challenging. The easiest approach involves buying a specific coin or coins and then holding them for six months or a year or more. Generally, returns can be as low as tenfold. However, newcomers are prone to switching or exiting the market when they see high returns or see a price drop in half. Many struggle to maintain a holding period of a month, let alone a year. Therefore, this method is also the most challenging.
3. Bull Market Diving: This strategy is only suitable for bull markets. Use a portion of your spare funds, ideally no more than one-fifth. This strategy is suitable for coins with a market capitalization of 20-100, as it at least prevents you from being locked in for too long. For example, if you buy your first altcoin and wait for it to rise by 50% or more, you can switch to the next coin that has plummeted, and repeat the cycle. If you are locked in on your first altcoin, continue to wait; a bull market will definitely unlock your position. However, the coin shouldn't be too expensive. This strategy is also difficult to master, so newcomers should exercise caution.
4. The Hourglass Swapping Method: Suitable for bull markets. In a bull market, virtually any coin you buy will appreciate. Funds act like a giant hourglass, slowly seeping into each coin, starting with the big ones. There's a clear pattern in coin price increases: leading coins rise first, such as BTC, ETH, DASH, and ETC. Then, mainstream coins begin to rise, such as LTC, XMR, EOS, NEO, and QTUM. Then, less-traded coins rise across the board, such as RDN, XRP, and ZEC. Then, smaller coins take turns rising. If Bitcoin rises, however, you can start building a position in the next lower-tier coin, one that hasn't risen yet.
5. Pyramid Picking: Suitable for predicted major market crashes. Bottom-picking method: Buy one-tenth of the bullet at 80% of the order price, two-tenths of the bullet at 70% of the order price, three-tenths of the bullet at 60% of the order price, and four-tenths of the bullet at 50% of the order price.
6. Moving Average Method: You need to understand the basics of K-line charts. Set the indicator parameters to MA5, MA10, MA20, MA30, or MA60, and select the daily moving average. If the current price is above the MA5 and MA10 lines, hold on. If the MA5 falls below the MA10, sell the coin. If the MA5 rises above the MA10, buy and enter a position.
7. Aggressive Hoarding: Invest in coins you're familiar with, and only invest in high-quality coins for the long term. If you have a certain coin at $8, place a buy order at $7. When the buy is successful, place a sell order at $8.8. Use the profits to hoard the coins. Use the liquid funds to wait for the next opportunity. Adjust your position dynamically based on the current price. If you have three such opportunities in a month, you can accumulate a significant amount of coins. The formula is: the entry price is 90% of the current price, and the selling price is 110% of the current price!
8. IOS’s violent compounding method: continuously participate in ICOs. When the new coin increases by 3-5 times, take out the principal and invest in another ICO. The profits will continue to be retained, and the cycle will continue.
9. Cyclic Band Method: Find black market coins like ETC, and increase your position when the price continues to fall. Continue to increase your position when it falls again, and then continue to sell when you make a profit, and repeat the cycle.
10. Small Coin Aggressive Play: Imagine you have 10,000 RMB, divide it into ten parts, and buy ten different types of small coins, preferably priced under 3 RMB. Once you've bought, leave them alone. Don't sell until they've tripled 3-5 times, and if you're stuck, don't sell them. Hold them for the long term. If a coin triples, take your 1,000 RMB and invest in another small coin. The compound interest you'll earn will be incredible!
After years of experience in the cryptocurrency market, I've developed a set of proven investment strategies. These principles apply not only to beginners but also to veterans, helping them maintain their composure and achieve stable returns in complex markets. Here are eight principles that veteran cryptocurrency traders must adhere to:
1. Fund management: act within your means and diversify risks
Focus on holding one coin within 100,000: When you have less funds, concentrate on holding one potential coin and conduct in-depth research on its fundamentals and technical aspects.
200,000 to 300,000, try two coins: When the funds are slightly larger, you can diversify them into two coins to reduce the risk of a single currency.
Within 500,000, three to four coins are enough: when the funds increase further, hold a maximum of three to four coins to avoid over-diversification.
No matter how much money you have, don't hold more than five coins: No matter how much money you have, the number of currencies you hold should not be too many to avoid management difficulties.
Concentrate your firepower in a bull market and keep a light position in a bear market: In a bull market, concentrate your funds on investing in the currencies with the greatest potential; when the market is not good, operate with a light position to reduce losses, and be able to withdraw in time if you lose money.
2. Trend is king: follow the market, don’t go against it
Read the news and learn technology: understand market trends and technical indicators to improve your investment success rate.
A rebound from a decline is often a lure to buy, while a pullback from an increase may be a trap: do not blindly buy at the bottom or chase highs, follow the trend.
Don’t guess what the main players are thinking: The operations of the market leaders are difficult to predict, so focus on your own investment strategy.
3. Act only when the market is busy and respond flexibly
Invest when the market is active: When the market is hot, investors are in positive mood and are more likely to seize opportunities.
Be flexible and not rigid: Adjust strategies promptly according to market changes and do not stick to the old model.
4. Stop loss and take profit: protect the principal and lock in profits
Set a fixed stop-loss point: stop loss in time when you are losing money to avoid greater losses.
Gradually increase the selling price: Gradually increase the selling price when making a profit to ensure that the profit is not lost.
5. Buy fast and sell hard: Make decisive decisions and avoid hesitation
Buy quickly: Buy decisively when you find an opportunity to avoid missing out.
Sell ruthlessly: Sell decisively when the expected target is reached or the market turns to avoid losses caused by greed.
6. Think carefully before adding to your position
Ask yourself: Before adding to your position, consider whether you are willing to invest new funds under the current circumstances. If the answer is yes, then consider adding to your position.
7. Long-term investment is the main focus, short-term investment is the secondary focus
Avoid frequent short-term speculation: short-term operations can easily lead to loss of direction and affect your mentality.
Follow the general trend: Big money should follow the market trend and hold potential currencies for the long term.
8. Don’t blindly buy at the bottom, treat the market rationally
A large drop does not mean you can buy at the bottom: When the market falls sharply, it does not necessarily mean that the bottom has been reached. Blindly buying at the bottom may continue to be trapped.
There are few people who can really make money in the market: There are only a few people who can really make money in the market. Stay rational and don’t follow the trend blindly.
advice:
A bull market is not only a test of market fluctuations, but also a test of investor mentality. Only by staying calm and adhering to the aforementioned iron rules can one steadily forge ahead through the cycles of bull and bear markets and ultimately achieve wealth growth.
Let me share with you a set of practical strategies that I have used for many years. The average winning rate has reached 80%, which is a rare achievement in the cryptocurrency trading world.
Without further ado, let’s get straight to the point!
In 2 years, I have built a brilliant record of more than 10 million yuan step by step from 3,000 yuan, relying on this set (5-0 trading pattern). After reading this article carefully, you will benefit for life!
The 5-0 pattern is a harmonic trading pattern used by technical analysts to identify potential reversal points in the market. Characterized by a unique five-wave structure, the pattern provides a systematic approach to predicting and capturing directional shifts in the market.
By combining Fibonacci retracement and extension levels, the 5-0 trading pattern can accurately identify potential reversal areas. This makes it a high-probability trading tool for traders looking to enter reversal trades.
Structural analysis of the 5-0 morphology
The 5-0 trading pattern is essentially a technical chart formation consisting of five consecutive price swings (or "legs") labeled XA, AB, BC, CD, and DE. This pattern typically appears after a long-term trend and signals a possible reversal or pause in the existing trend.
Each wave follows specific Fibonacci retracement and extension ratios, making the 5-0 pattern a rigorous and logical tool that can reveal reversal areas that are difficult to detect with ordinary technical indicators.
Below is a detailed description of each pricing structure:
● 0X: Initial trend.
● XA: The retracement of the 0X wave, usually around the 38.2% to 50% Fibonacci retracement level.
● AB: An extension wave beyond wave XA, usually reaching the 113% to 161.8% Fibonacci retracement level of wave XA.
● BC: An extension wave beyond wave AB, usually reaching the 161.8% to 224% Fibonacci retracement level of wave AB.
● CD: The final wave that completes the pattern, usually coincides with the 50% Fibonacci retracement level of wave BC.
How to draw a 5-0 trading pattern
Drawing the 5-0 trading pattern requires a systematic approach, whether done manually or with the help of automated tools.
To manually draw the 5-0 trading pattern, a trader must follow these steps:
1. Identify the Initial Trend (0X): First observe a strong trend in the market. This trend will serve as the basis for the entire pattern, forming the XA wave.
2. Measure the retracement of wave XA: Use the Fibonacci retracement tool to measure the retracement of wave XA, ensuring it is between 38.2% and 50% of wave XA. This step confirms the first corrective phase of the pattern.
3. Find the extension of wave AB: To identify wave AB, it must extend beyond the high/low of wave XA. Use the Fibonacci extension tool to confirm that the amplitude of wave AB exceeds 100% of wave XA, which is one of the key characteristics of this pattern.
4. Draw the extension of wave BC: Measure wave BC (the extension of wave AB), which is usually between the 161.8% and 224% retracement of wave AB.
5. Verify Wave CD: Finally, confirm that Wave CD has retraced approximately 50% of Wave BC. This step confirms the completion of the 5-0 pattern and marks a potential reversal point.
For traders who prefer automated solutions, charting platforms like TradingView, MetaTrader, and ThinkorSwim offer indicators for identifying harmonic patterns. These tools automatically detect and mark 5-0 trading patterns on price charts, greatly simplifying the analysis process.
To use it, simply enable the Harmonic Patterns tool, check the 5-0 Trading Pattern option in the settings, and the system will automatically scan for potential pattern structures.
Automated tools are particularly beneficial for traders who operate multiple instruments or time frames simultaneously, saving time and improving efficiency.
How to trade using the 5-0 state
The key to trading the 5-0 pattern is to identify the completion of the DE segment and trade based on the expected reversal. Here are a few steps to effectively trade this pattern:
1. Identify the pattern
The first step in trading the 5-0 pattern is to identify it on the price chart. Traders can draw the pattern manually using the steps above, or use an automated harmonic pattern identification indicator provided in the trading platform (if available).
Remember, it is crucial to confirm the validity of the pattern; make sure all bands (XA, AB, BC, CD, and DE) meet specific Fibonacci ratios. The accuracy of identification will significantly affect the reliability of your trades.
2. Wait for the pattern to complete
Patience is the key when trading the 5-0 pattern. Traders must wait for the DE segment to reach the expected Fibonacci retracement level before taking action.
The DE segment usually completes at the 50% retracement level of the BC segment. If you enter the market too early before the pattern is fully formed, you may suffer unnecessary losses if the price fails to reverse near the expected reversal point.
Monitoring price action around the expected completion area of the DE segment can help confirm the validity of the pattern and reduce the likelihood of false signals.
3. Determine your entry point
Once the DE segment completes, it marks a potential reversal zone. Traders should enter the market as close to this completion point as possible.
For a bullish 5-0 pattern, where the price is expected to reverse upwards, traders can initiate a long position.
On the contrary, for a bearish 5-0 pattern, the price is expected to reverse downwards, so a short position is recommended.
Combining it with other confirmation signals (such as candlestick patterns: hammer, engulfing patterns, etc., or momentum indicators: relative strength index RSI, MACD, etc.) can further improve the reliability of transactions.
4. Set stop loss and target
Risk management is crucial when trading the 5-0 pattern. To protect against unexpected price fluctuations or pattern invalidation, traders should set their stop-loss order beyond the DE segment completion point.
For a bullish pattern, the stop loss should be set slightly below the DE point; for a bearish pattern, it should be set slightly above the DE point. This stop loss setting can minimize potential losses while leaving room for the transaction to develop naturally.
Setting a profit target is also an important step in trading the 5-0 pattern. You can use Fibonacci extension levels and previous significant support and resistance levels to determine the appropriate target price.
Common targets include the 38.2%, 50%, or 61.8% Fibonacci extension levels of the DE. Traders can also choose to take profits in batches, reducing their positions in stages to lock in profits at multiple target levels, while holding some positions to capture further gains if the price moves in the expected direction.
Case Studies
The 5-0 trading pattern is similar in structure to the inverted head and shoulders pattern, with the second "shoulder" being extended in time. In the EUR/USD daily chart below, we can create a 5-0 pattern.
We drag the Fibonacci Retracement tool from point X to point A. In this case, point B almost touches the 1.618 level, which meets the rules of the pattern – 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 band. In this example, point C successfully meets this condition, so we can proceed to the next step.
Now, move the Fibonacci tool from point B to point C to evaluate the direction of the DE segment. Watch for price to retrace to the 0.50 retracement level and begin to move upward. This would indicate that a DE segment may be forming and signal the pattern is nearing completion.
For further confirmation, draw an ascending channel. The first line connects points A and C, while the second line connects point B. If the price remains within the channel, it will further strengthen the validity of the pattern and serve as an additional buy signal.
Once the pattern is confirmed, develop a trading plan... In this case, the optimal buying zone is around 1.2615. The stop-loss should be placed below the correction range, around 1.2470, which also corresponds to the 0.618 Fibonacci retracement level. For further confirmation of the entry signal, draw a descending trendline and wait for the price to break through it before executing the trade.
Finally, set a profit target to effectively manage the trade. The first target can be set at 1.3110, which aligns with the level of the XA segment; the second target is 1.3195, which is the previous high of the pattern.
Many people who do contracts are confused when asked "Are you using full position or sequential position?"
What’s even more serious is that some people don’t even understand the difference between the two, and they directly place orders with leverage, ending up getting liquidated without knowing how it happened.
Let’s talk about position by position first:
Position by position means that the maximum you can lose is the amount you invest in this contract.
For example, if you have 5,000U in your account, and you only use 500U for this order, then even if the market goes against you, you will only lose 500U at most, and your entire account will not be dragged down.
Who is it suitable for? Suitable for those who control risks and prefer a steady and cautious approach.
You can treat each order as an independent battle, and you will not lose the whole game because of a mistake in one order.
Let’s talk about full position:
Full position means that if this order goes bankrupt, the remaining money in the account will also be lost.
The system will use the remaining funds in your account to "extend" the current position until the entire account can no longer hold on, and then it will be cleared out all at once.
It sounds like "more tolerance for error", but the risk is also greater.
Many people use full-position trading under the misconception that they can withstand it, but when a major fluctuation occurs, they will be completely wiped out. Especially for those who like to carry orders and do not set stop-loss orders, full-position trading is almost like a time bomb.
So how to choose?
If you are still familiar with the market or have just started to try out contracts, it is recommended to use isolated position trading as it is the most direct way to protect your capital.
After you have your own trading system and can implement risk control stably, you can consider using full position to improve efficiency - but even then, you must set a stop loss.
After all, the essence of a contract is not to make quick money, but to allow you to last longer and walk steadily.
Don’t treat your account as a casino. If you don’t even know where the risks come from, but you dare to place big bets, that is not trading, it is gambling with your life.
It’s not about which is more advanced, full-position or position-by-position, but it depends on whether you have the ability to control it.
In this round of market, whether you can turn your positions around and recover your losses depends entirely on yourself. Make plans with me early and I will help you get out of the trough as soon as possible.
To put it bluntly, playing in the cryptocurrency world is a battle between retail investors and bankers. If you don't have cutting-edge information and first-hand information, you will only be harvested! If you want to plan together and harvest the bankers together, come and find me!
I am Axin and only do real trading. The team still has positions to move up.