Hello everyone, I've summarized 5 common pitfalls to share with those looking to enter the circle; money won't just fall from the sky
If someone tells you 'Invest 100 and earn 1000' or 'This coin will double next week', just listen and don’t take it seriously. Many projects are scams, and the money you invest may just disappear. If you want to play, first check if the project is reliable; don’t let the 'dream of getting rich' cloud your judgment.
If it rises, chase it; if it loses, it suffers the most
Seeing the coin price rising and itching to buy? But as soon as you buy in, it drops; this happens too often. I have a friend who bought Dogecoin at a high, only to be stuck for a month, unable to eat. Stay calm, don’t let your emotions lead you.
Safety first, don't give your password to others casually
Your wallet password and private key are more important than your bank card; never disclose them. There are also fake websites and customer service representatives out there trying to scam you. Think twice before clicking on a link, and it's best to set up two-factor authentication on your phone, too. It's much safer.
Too much news, my mind is confused
There are a lot of rumors flying around in the cryptocurrency world. Today, this coin is good, and tomorrow, that coin is going to collapse. Don’t believe everything. Pick a few reliable sources.
The cryptocurrency world is risky, but it’s also fun.
Five Iron Rules of Cryptocurrency Trading
Iron Rule 1: Cryptocurrency trading is not gambling, but a battle—a risk control system is essential
The cryptocurrency world is not a casino, it is a battlefield.
A true trader is a warrior who must have "armor" and "retreat route".
You need to learn how to build a position with risk control:
Perpetual Contracts ≠ Gambling Tools
No matter how high the leverage is, as long as the position is light and the stop loss is clear, the risk is still low
With 100x leverage, only 1% of the principal is required to open a position, and 99% is used as a risk buffer, which actually reduces the risk.
For example, I have a capital of 5000U, and I only open 20 orders or less. I set a trailing stop-loss of 2% for the floating profit, and a stop-loss of no more than 3%. I only trade for 2 hours a day. Emotional stability is more important than anything else.
What really destroys people is never the market, but your lack of risk control and your refusal to admit mistakes.
Iron Rule 2: Emotions are not strategies, discipline is the solution
90% of retail investors lose money because they chase rising prices and sell when prices fall.
When the coin goes up, I am afraid of missing out, so I go all in; when the coin goes down, I am afraid of losing it, so I sell it overnight.
Don't improvise:
Before buying, write down "what price to buy, where to stop loss, and how much profit to make".
Increase positions when profit is gained and reduce positions when loss is lost, never replenish positions
Don’t look at the K-line to impress yourself, only look at “trading volume” and “structural changes”
The truth of rise and fall is written in the trading volume. There is price only when there is volume. Without volume, there will be decline.
Iron Rule 3: Only trade what you understand, don’t chase hot spots, and don’t touch sentimental coins
Don't be greedy for the "coin circle rich myth"
The projects that rise the most also fall the most
If you don’t understand the structure of the sector, don’t buy fake stocks to catch up.
Bitcoin itself has not changed, but its price can rise from 15,000 to 70,000, and can also fall back to 15,000. This is not a change in value, but a change in market sentiment.
What you really need to learn when trading cryptocurrencies is to understand emotions
Iron Rule 4: Do not cover your position, do not hold onto orders, and do not linger on past prices
The first step to losing money is to cover your position.
Covering a position is an emotional desire to recover the investment rather than a strategy
If the position is wrong, you should stop loss, not average it out.
The mentality of wanting to get your money back will destroy the rest of your capital.
Trading is always "process management, not result persistence"
Being trapped is because of not setting stop-loss orders, and being liquidated is because of holding on stubbornly.
You don't lose money, you lose your mind
Iron Rule 5: Improve a model until it stabilizes before expanding
What newbies fear most is not not knowing how to do something, but being greedy and imitating others.
A sense of the market, a technique and a set of models, first understand them thoroughly
Don’t look at MACD today, study Elliott Wave tomorrow, and chase on-chain data the day after tomorrow.
Mastering a style of play is far more efficient than blindly following others.
Cryptocurrency trading isn't scientific research; you don't need all the skills. All you need is a working system, and then use it repeatedly to make money.
The market is unpredictable, but your strategy must be simple, repeatable and executable.
Ending: Remember that you don’t get rich by one critical hit, but survive by discipline.
You can make big money not because you caught a wave of the market, but because of how many crashes you have withstood, how many temptations you have resisted, and how many impulses you have avoided.
When you lose money, control your emotions; when you make a profit, control your greed
The end of the transaction is human management
Five Iron Rules of Cryptocurrency Trading
Risk control first, control positions and set clear stop-loss
Plan your trades, don't make decisions based on feelings
No covering of positions, no carrying of orders, and timely stopping of losses
Focus on one strategy, achieve stability, and then expand
Stop being a prey in the market and become a real player.
It can be said that I have used 80% of the methods and techniques in the market. The most practical one in actual combat is the MACD strategy. It is one of the necessary skills for short-term and swing trading. It is also the simplest and most practical short-term strategy. It is also practical when used on contracts.
30%-50% profit per month. Proven and reliable!
Market Implications
1. The meaning of double moving average market
1. Location meaning
1. The double lines above the 0 axis indicate a bullish trend, while those below the 0 axis indicate a bearish trend.
2. The double lines crossing above or below the 0 axis are used as the basis for judging the current market trend.
2. Double line crossing
There are too many signals of crossover death cross in small cycles, so it is best not to use them alone.
2. Market significance of volume column
Long-short watershed: The 0 axis is the long-short watershed, above the 0 axis tends to be long, and below the 0 axis tends to be short;
2. Long follow the trend:
The volume column on the 0 axis changes from small to large, indicating a bullish trend, and the market shows an upward trend;
3. Bullish callback:
The volume column on the 0 axis gradually shrinks from large to small, which is a bullish callback, and the market shows an upward trend adjustment;
4. Short position follows the trend:
The volume column below the 0 axis changes from small to large, indicating a bearish trend, and the market shows a downward trend;
5. Short rebound:
The lower volume column under the 0 axis changes from large to small, which is a bearish rebound, and the market shows a downward trend adjustment.
Comprehensive meaning
1. Balance of Long and Short Powers
The moving average circles around the 0 axis, and the volume columns are distributed in sporadic small quantities. At this time, the market is likely to show volatility.
2. Divergence
Divergence is a sign of kinetic energy exhaustion. An effective divergence is when both the double lines and the volume column diverge simultaneously.
3. Trend Continuation
The trend is rising and the volume column is always above the 0 axis, indicating that the upward trend continues; the trend is falling and the volume column is always below the 0 axis, indicating that the downward trend continues.
8 entry points of "MACD"
1. Chaos Theory
The first and second types of buying and selling points
The first buying point
Trading principles:
Bottom divergence + golden cross as a buying point;
Top divergence + death cross is used as a selling point.
The second buying point
Trading principles:
The double lines run above the 0 axis for the first time;
The first callback double line is pulled to near the 0 axis;
After that, buy when a golden cross is formed above the 0 axis.
2. Trend Judgment Trading Method
Trading principles:
Determine the trend based on the big cycle;
Enter the market in a small cycle.
From the weekly and daily analysis, the long cycle is bullish, and the daily line has a short-term correction. Our trading strategy is to only take the correction if you short the daily line, or wait until the daily line has no power to rebound and then go long along the weekly line.
We can find entry points in small cycles, such as 1 hour or 4 hours.
3. Trading principles of energy column position trading method:
1. The moving average circles around the 0 axis;
2. The volume bars are distributed in sporadic small amounts;
3. Enter the market when the price breaks through at the same time.
The MACD indicator volume column is shrinking, and the moving average is coiled near the 0 axis, indicating that the bulls and bears are in a state of equal strength, which is consistent with the consolidation and oscillation of the K-line, and is a form of energy accumulation.
Therefore, when the shape of the MACD indicator column is consistent with the classic shape of the K-line, such as triangle, flag and other narrow consolidation market trends, once the narrow fluctuation shape is broken, it is often a good opportunity.
4. Trading principles of key position trading method:
1. Key support and resistance levels;
2. The K-line shows a needle-piercing signal;
3. If the volume bar changes from positive to negative, go short;
4. When the volume column changes from negative to positive, go long.
5. Secondary Red-Green Trading Method (Air Refueling Signal)
Trading principles:
1. The first wave of rising volume should not be too large or too small. It should be in an attacking pattern corresponding to the K-line price pattern.
2. The first wave of positive volume bars gradually expands and then gradually shrinks, but when it shrinks to a certain extent, there is no negative volume bar. Instead, the positive volume bar expands again and continues to gradually expand.
6. Buddha’s Hand Upward
Trading principles:
After the double-line golden cross, the price moves upward as the commodity price rises, and then the price pulls back;
2. After the double lines return to near the 0 axis, the DIF line immediately turns upward, forming an upward Buddha's hand shape.
7. Main rising wave trading method: Principles of falling main rising wave trading:
1. The MACD volume column has been above the 0 axis, and the price has continued to rise;
2. The MACD volume bar is below the 0 axis for the first time, and the price has a wave 1 correction;
3.2 The wave volume energy bar is less than 1 wave volume energy bar;
4. When the 2nd wave pulls back and the MACD volume column shortens or expands twice, enter the market to short trade the 3rd wave.
The same applies to the main upward wave.
8. Divergence + Pattern Trading Method
Trading principles:
MACD divergence occurs;
Trend broken.
Divergence does not mean a reversal, it can also be a sign of momentum. After a divergence, there will be another divergence, so it is easy to be deceived when we use divergence to exit or enter the market.
But we can use macd + price trend to judge the turning point of the market.
I am Axin and only do real trading. The team still has positions to move up.
