7 years ago, like all newbies, I watched Bitcoin rise from 789 to 19783, FOMO (fear of missing out) kicked in and I went all in, only to see it plummet 40% a week later... but now my portfolio has outperformed the market by 470%, the key is — the rolling position method:
● Floating Profit Adding Position: After gaining floating profits, you can consider adding positions. However, before adding, you need to ensure that the holding cost has been reduced to minimize the risk of losses. This does not mean blindly adding positions after making a profit, but rather doing so at the right time.
● Base Position + T-type Rolling Position Operation: Divide the funds into multiple parts, keeping a portion of the base position unchanged, while using another portion to engage in high selling and low buying operations.
The specific ratio can be chosen based on personal risk preferences and fund scale. For example, one can choose half position rolling T, 30% base position rolling T, or 70% base position rolling T, etc. This operation can reduce holding costs and increase returns.
I believe there are two main interpretations of the 'right time' in definitions:
1. In a converging breakout trend, add positions, and after the breakout, quickly reduce the added position during the main upward wave.
2. Increase trend-oriented positions during retracement in a trend, such as buying in batches during moving average pullbacks.
There are many ways to operate rolling positions, the most common being through adjustments in holdings. Traders can gradually reduce or increase their holdings based on market changes to achieve profitability. Traders can also use trading tools like leverage to amplify returns, but it also increases risks.
Increase the risk.
Three factors to pay attention to in trading:
First, the factor is mindset.
Second, the truth of human nature.
Third, be diligent in learning and enhance your awareness.
I publicly share ten years of cryptocurrency trading insights today, and I will thoroughly analyze the trading rules and strategies that have been tested in the market's storms, hoping to illuminate your investment journey in the cryptocurrency circle, helping everyone avoid detours and significantly enhance profit opportunities.
If these trading norms can be strictly followed by investors and flexibly applied in conjunction with the actual market conditions, they will surely help everyone avoid common investment traps and significantly increase the chances of making profits in the cryptocurrency market.
7 trading tips and insights to help you achieve profitability!
Today I share seven trading techniques and insights; these details are what I persistently practice in daily trading, hoping they will be helpful to you!
1. Observe the market after trading halts
Many of us retail investors are not professional traders, lack a well-established trading system, and are not very stable in our psychological states, making us easily influenced by market fluctuations.
When we stare at the market, our attention is entirely focused on very small price fluctuations; even a minor retracement makes us feel anxious. At this time, operations become chaotic, and previously favorable market conditions are closed early, while unstudied conditions lead to impulsive entries being trapped.
When looking back after the market halts, it feels as if one were bewitched, and trading was done messily.
Therefore, I suggest that those with weak self-discipline reduce the frequency of checking the market, or even not look at the market.
My habit is to check the market after closing because it does not involve the current market's ups and downs, which will not affect my mood, allowing me to execute according to my trading plan rationally.
When stock prices drop to low levels, enter when the price tests support and forms a reversal candlestick; add positions after the price drops and forms a new reversal candlestick, and upon entering, use previous highs as profit targets for closing.
2. Use pending orders more often, and market orders less often.
The order operation is what I use most in trading, mainly serving two purposes: one is to reduce impulsive trading, and the other is to obtain better execution prices.
When you use order trading, once your orders are placed, you don't need to keep staring at the market; just occasionally check if the orders have been executed. When placing orders, you can also set stop-loss and take-profit simultaneously, which saves a lot of mental energy.
Many people like to keep staring at the market while trading; they complain when they lose a little and become anxious about corrections when they make a small profit, making daily trading feel like a battle where they sweat profusely.
In this mental state, it is impossible to execute trades well. Therefore, I often say to maintain a certain distance from the market; physically, this means reducing the time and frequency spent staring at the market, allowing your mindset to be stable, which is more conducive to making objective judgments.
Moreover, order trading typically enters the market after a market correction, thus gaining a more advantageous entry price compared to current price trading.
Do not underestimate the price advantage of entering with pending orders; better opening prices can lead to faster profits. Traders can gain psychological advantages more quickly and expand profit-loss ratios, which is very helpful for subsequent trading execution.
Although this is a very small detail, after years of practice, I cannot say I have not benefited; our success is built upon many small details.
3. When holding positions in profit, use technical corrections for short trades
Most trends operate in a manner of oscillating up or down, and during the oscillation and decline process, the profit from holding positions will decrease. At this time, our psychological pressure will be significant, worrying whether the market will reverse or whether to continue holding. At this time, we can utilize the technical levels of the market's correction to place reverse short-term orders.
For example, when holding a long position in profit, near the market's pressure level, combine with the candlestick pattern to place a short position. After entering the short position, if the market corrects, the short position yields profit while the long position's profit decreases, but overall profit won't shrink significantly. After the market corrects, close the short position near the turning point of the market's second launch and continue to hold the long position.
Doing so can first alleviate psychological pressure during fluctuations and second enhance profits.
4. Be an independent trader
Trading is a serious and personal matter.
The money in our accounts is earned through our hard work, not found on the ground; we must be responsible for every cent.
Many people, when feeling uncertain about something, habitually seek help from others or discuss with others to gain a sense of validation, which can then solidify their decisions. However, this is highly discouraged in trading.
Because everyone's judgment on direction, opening and closing points, position ratios, and the indicators and cycles used are different, everyone has their own standards. Once discussions begin, the insecurity in your nature will be triggered, leading you to doubt your trading strategy, ultimately causing losses in trading.
(In "The Crowd") it is said that when individuals enter a group, their IQ drops significantly. To gain validation, individuals are willing to abandon right and wrong, exchanging their intelligence for a sense of belonging. Therefore, when we trade, we should avoid falling into this thinking trap and try to find a relatively quiet environment where we can think independently, develop strategies, test them, and adjust before executing them independently.
As for the feeling of loneliness, it surely exists, but in the face of making money, this slight feeling of loneliness is nothing. You will understand when you reach true profitability.
5. Rule by doing nothing.
Today I came across a passage that resonated deeply with me! What successful trading really means is not trading at all!
Let's look at it from a Buddhist perspective: If I were blind, then marrying Xi Shi and marrying Dong Shi would make no difference.
If I were deaf, there would be no difference between praising or scolding me. If I lost my sense of smell, it would make no difference whether I was in a toilet or a sea of flowers.
If I die, does it matter whether my body is eaten by dogs or buried with honors? There is no difference.
The reason people suffer, and their emotions fluctuate between joy and anger, love and hate, is due to their deluded minds making distinctions! Because of the mind's distinctions, goodness and evil, beauty and ugliness, right and wrong arise. The world knows this; beauty is beauty, and thus, evil is also.
Your pursuit of love gives rise to greed; when you cannot have it, it leads to aversion. The cycle of love and hate produces delusion. The repeated cycle of greed, aversion, and delusion, driven by karma, ultimately results in countless good and evil fruits, all of which will be returned to you one by one. Your fate becomes predetermined, all cycling in cause and effect.
Thus, the ruler of all things, the eye, ear, nose, tongue, body, and mind can perceive color, sound, fragrance, taste, and touch, all due to the wonderful use of the mind. The mind perceives all things and responds to all things, yet it never clings and never directly takes from all things, hence the mind is inherently complete, and thus the mind can give rise to all dharmas.
The essence of practice is to clarify the mind. How to clarify? When you have no distinctions and do not know the two ends, you should be without attachment; then, the Bodhi mind appears naturally.
Similarly, how to trade? When you have no thoughts of trading in your mind, you can naturally traverse bull and bear markets!
Cryptocurrency circle secrets revealed: How to steadily profit, avoid risks, and achieve rolling position doubling?
In the cryptocurrency market, many investors harbor dreams of getting rich overnight, blindly following trends, but often end up trapped at high prices, falling into a pit of losses. As an experienced investor, I want to tell you that those who can achieve stable profits in the cryptocurrency circle are not those who pursue short-term windfalls, but those who possess rational thinking and steady approaches. Today, I will share how to invest steadily in the cryptocurrency circle, how to use rolling strategies and reasonable position management to achieve long-term stable profits.
Below are basic concepts of the cryptocurrency trading system, market analysis, investment strategies, risk management, technical tools, ecological applications, and regulatory policies.
I hope to provide everyone with a comprehensive overview of cryptocurrency trading knowledge, hoping that stock friends can find methods suitable for themselves and that they want to learn.
Overview of the cryptocurrency trading system:
1. Basic concepts of the cryptocurrency circle
2. Cryptocurrency market analysis
Three. Investment strategies in the cryptocurrency circle
4. Risk management in the cryptocurrency circle
Five: Technical tools in the cryptocurrency circle
Six: Ecological applications in the cryptocurrency circle
Seven: Regulatory policies in the cryptocurrency circle
1. The mindset of investing in the cryptocurrency circle: control emotions, avoid greed
In the cryptocurrency circle, successful trading relies not only on technical analysis but also on good psychological control. Many investors, due to emotional fluctuations, often make irrational decisions during market volatility. For example, impulsively chasing high prices when the coin price rises sharply, and panic selling when the coin price falls. This emotional trading is one of the main reasons for retail losses.
As an investor, you need to remain calm and rational. Especially when facing significant market fluctuations, you need to stay firm in your investment strategy and avoid blindly chasing prices or selling at a loss. Do not let short-term price movements affect you; instead, assess the timing for buying and selling based on long-term market trends.
2. Position management: reduce risks, ensure steady profits
Position management is one of the most important parts of investing. Especially in the cryptocurrency circle, where market fluctuations are intense, reasonable position management can help you preserve funds during market corrections and quickly profit during market upswings. Here are my personal position management suggestions:
1. Position management, reducing risks
The core principle of position management is to diversify risks and not invest all funds into a single trade. If you have 30,000 U, you can allocate your funds as follows:
Divide the funds into 3 parts, each part being 10,000 U.
Use one part of the total for each operation. This way, even if there are losses, your losses will not affect the entire fund.
Specific leverage settings: For major coins (like Bitcoin), do not use more than 10x leverage; for altcoins, leverage should not exceed 5x.
2. Operations for adding and reducing positions
When in profit, one can consider adding positions. Especially when the market trend is clear and the situation is good, adding positions can expand profits. However, before adding positions, be sure to ensure that your costs have been reduced to avoid blindly adding positions that lead to greater risks. One misconception to avoid here is: floating profits are not a reason for unlimited position increases; it must be ensured that the market trend continues to develop in a favorable direction.
3. Set stop-loss and take-profit levels to avoid excessive greed.
Setting stop-loss and take-profit is a basic operation that every investor needs to establish. If the stop-loss point is not set properly, you might miss the opportunity to exit due to minor fluctuations, leading to significant losses; if the take-profit point is unreasonable, you might miss out on profits when prices reverse. A reasonable stop-loss and take-profit strategy can not only help you protect your profits but also avoid emotional interference from chasing highs and cutting losses.
Three. Rolling strategies: capturing the market's 'big opportunities'
The rolling strategy aims to achieve the compounding effect by increasing positions during a major trend. Many investors misunderstand rolling as blindly increasing positions, but in reality, rolling is a very strategic operation method that requires clear market trends and strong signals to be suitable.
Three major applicable scenarios for rolling operations:
1. Choosing a direction after a long period of sideways movement: When the market enters a sideways oscillation phase with reduced price volatility, it usually indicates that a breakout will occur soon. At this time, if the market breaks through the key support level above or below, rolling operations can be conducted.
2. Retracement after a big rise in a bull market: Retracements in a bull market are often a good buying opportunity. When a retracement of 20%-30% occurs after a big rise, it's suitable to add positions and wait for the market to recover.
3. After breaking through key resistance levels: When the market breaks through long-term key resistance or support levels, it usually indicates that prices will enter a new upward cycle. At this time, rolling operations can bring significant returns.
Specific methods for rolling positions:
Adding positions with floating profits: If you have floating profits after a market rise, you can consider adding positions, but only if you have reduced the holding costs and ensured minimal risk.
Base position + T trading rolling positions: Divide funds into two parts, keep one part as a base position unchanged, and use the other part for high selling and low buying rolling operations. This not only reduces losses but also allows for gains amid fluctuations.
4. Risk management: maintaining calm amid fluctuations
In the cryptocurrency market, risk control is key to long-term profitability. The market's volatility is significant, and rapid price fluctuations often harm investors' emotions, leading to incorrect decisions. Therefore, maintaining a good risk control mechanism is essential.
1. Establishing risk tolerance:
Psychological preparation: The drawdown in the cryptocurrency market is usually significant, so you must be mentally prepared to withstand a 30%-50% drawdown. Only with a stable mindset can you maximize profits during market fluctuations.
Diversify investments: do not concentrate all funds in one trade. Diversifying can effectively reduce risks brought about by fluctuations in a single market.
2. Avoid excessive speculation with high leverage:
The high leverage characteristic of the cryptocurrency market can easily lead investors to over-speculate, but behind high leverage lurks huge risks. When engaging in leveraged trading, it is essential to act within your means, reasonably control leverage multiples, and ensure that risks are manageable.
5. Conclusion: Rational investing, staying away from the fantasy of instant wealth
Through reasonable position management, rolling strategies, stop-loss and take-profit settings, and market trend analysis, you can achieve stable profits in the cryptocurrency market. However, remember that the cryptocurrency circle is not a place for overnight wealth. Investors should remain rational, avoid blindly pursuing short-term windfalls, and focus on long-term planning. The market's high volatility and short-term temptations may cause you to lose your rationality, but only by maintaining a calm mindset and employing scientific investment methods can you steadily move forward in this turbulent market.
One cannot achieve success alone; a lone sail cannot travel far! In this circle, if you don't have a good community or first-hand news from the cryptocurrency circle, I suggest you follow Lao Wang, who will help you profit without investment; welcome to join the team!!!