With two thousand in hand, change it to about 300U, everyone needs to find ways to increase value. The most direct and effective method is to leverage contract trading to amplify returns:
The first step is to steadily increase the principal. Each time take 100U
Go for the trending coins, remember to set stop-loss and take-profit, double your earnings, for example, 100 becomes 200, 200 becomes 400, and so on. But remember, you can operate at most three times in a row because there is an element of luck involved; you might win several times in a row or lose in one go. So, take it easy.
The second step, when our principal rolls to around 1100U, we can start using more advanced strategies. At this point, we need to play a bit creatively, using a three-pronged strategy together:
1. Ultra-short orders, using 100U to make quick trades at the 15-minute level. Profit and run quickly, but the risks are high; choose stable coins like Bitcoin or Ethereum.
2. Single strategy, using a small position, such as 15U, for 4-hour level contracts. Take it slow, invest in Bitcoin weekly, and accumulate a significant wealth over time.
3. Trend orders, this is our main act. Once you find the market trend, enter the market directly, making big money relies on it. But it should be noted that this requires us to have the same market judgment ability and to plan the profit-loss ratio in advance.
Playing contracts in the crypto world is not random gambling; it requires a systematic method, reasonable position management, and strict take profit and stop-loss strategies. Using two thousand to fight for nearly a million may sound difficult, but as long as you master these skills and do well in every trade, the dream of becoming a millionaire can be fully realized!
Friends who have traded cryptocurrencies know that to make money in crypto, you have to buy low and sell high.
So how to buy when BTC drops to ten thousand at the bear bottom, and then hold it until it exceeds fifteen thousand in a bull market?
Some people see this and think it's easy; isn't it just buying and selling? But seemingly simple strategies have actually gone through many hardships, and from beginning to end, they are a supreme test of human nature.
The following is a simulation of the psychological journey of retail investors:
Doubt: Can Bitcoin really drop to ten thousand? I can't think of what black swan could hit that low?
Fear: Wow! Bitcoin dropped to ten thousand! Will it continue to fall? Blockchain scams! Definitely don’t buy!
Conservative: I bought Bitcoin at ten thousand, and now it has risen to twenty thousand. I clear my position for a double profit and secure the bag.
Missing the opportunity: Sold at twenty thousand waiting for a pullback, now it's risen to fifty thousand, no choice but to re-enter.
Satisfied: Bitcoin has reached one hundred thousand! It feels like it should peak, better to withdraw first, leaving the tail-end market to you, and easily make a short.
Greed: Bitcoin has reached one hundred fifty thousand! Shorting leads to liquidation, and now starting to go long, it will definitely continue to rise! Eternal bull market! Selling houses to go all in! The transition between bull and bear markets is silent, and soon the crypto world enters a new round of major adjustments. 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 even because of not escaping the peak in time, they returned the profits they had.
Let's talk about the difference between long-term and short-term:
1. Long-term trading:
Advantages: Can reduce trading frequency and lower trading costs; focuses more on fundamental analysis, suitable for investors who do not have time to frequently monitor the market; usually less affected by short-term market fluctuations.
Disadvantages: Requires a larger capital amount to cope with possible long-term fluctuations; requires patience to wait for investment results; if the market's long-term trend judgment is incorrect, it may lead to significant losses.
2. Short-term trading:
Advantages: Provides more trading opportunities, possibly obtaining high returns in a short time; suitable for investors who can frequently monitor the market and make quick decisions; can profit from short-term market fluctuations.
Disadvantages: Higher trading costs due to frequent buying and selling; requires a higher market analysis ability and quick reaction capability; greatly affected by market sentiment and short-term news events, hence higher risks.
Here are some considerations to help you decide which trading strategy is more suitable for you:
Time investment: Do you have enough time to monitor the market and conduct frequent trading?
Risk tolerance: How much loss can you accept? Long-term trading may face long-term uncertainty, while short-term trading may face high volatility.
Capital amount: Is your capital amount suitable for your chosen trading strategy? Long-term trading may require larger funds to withstand fluctuations.
Market knowledge: How well do you understand the market? Are you able to conduct effective fundamental or technical analysis?
Investment goal: What is your investment goal? Is it for long-term appreciation or short-term profit?
Ultimately, there is no trading strategy that fits everyone. Investors should choose the trading method that is most suitable for them based on their own situation, and continuously learn and adjust strategies to adapt to market changes. At the same time, they must also pay attention to risk management to ensure that they do not face excessive financial risks due to a single trading decision.
In fact, it doesn't matter whether you do short-term, medium-term, or long-term; the level of trading is not important.
The important thing is, what are you good at?
The key is whether you can help you make money. And ability is the key to making money.
From what direction to analyze and layout medium to long-term?
1. Analysis of market trends.
When making medium to long-term investments in cryptocurrencies, it is essential to pay attention to the analysis of support and resistance.
When the overall market trend rises and then falls, the highest point reached before the pullback becomes the resistance in the market trend.
Next, the market may rise, so 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, always remember that both support and resistance are not fixed numbers; it is best to determine based on a range to minimize risks as much as possible.
2. Types of trends help you judge appropriate investment timing.
Trend analysis and judgment are relatively important factors in decision-making for medium to long-term investments in cryptocurrencies.
Usually, there are three types of trends: the rising trend gradually increases from low points, the falling trend gradually lowers high points, and the sideways trend mainly shows different regions and amplitudes.
Trading in an upward trend is usually easy to profit from, while in a downward trend, one must be more cautious. During this time, medium to long-term investments should not drag on too long and should be ended quickly. The sideways trend is difficult to judge, so one must make an accurate judgment before trading.
3. Types of channels.
There are mainly three types of channels: rising channel, falling channel, and horizontal channel.
These three types of channels play different roles during medium to long-term investment trading, allowing investors to make different choices based on varying situations.
Investors can also create different channels based on their needs, helping themselves complete medium to long-term investments in cryptocurrencies. Recently, due to the volatility of Bitcoin, many short-term "money-making" opportunities have appeared in the crypto market.
However, we must make it clear that while earning profits, there are also great risks, just as recently many investors in Bitcoin contracts faced liquidation.
Because during the process of rising market trends, it does not always go up without falling; it is common to encounter sharp declines after rises. In contract trading, the liquidation point is usually at 10 points. For Bitcoin's recent market conditions, if one is not careful, whether chasing highs or shorting, they can easily face liquidation risks.
Therefore, I have been reminding friends to set stop losses; risk is always the priority.
Therefore, I feel it is necessary to talk about some basic short-term trading principles that we must adhere to.
1. Even if the selected variety's "short-term price speculation" fails, you can still convert to "long-term price investment" without any pressure in your heart.
This means that the selected short-term varieties are ones you are very familiar with and are confident in their value.
Just like Li Xiaolai holding onto Bitcoin, becoming the current Bitcoin billionaire, it is because he understands it thoroughly, leading to large investments due to his understanding and confidence.
Because he knows the trend of its future development, he can foresee the future of the currency.
2. The key to taking profit and cutting losses is to think in advance about "buy" and "sell," using investment strategies to turn "overcome greed" into "guide greed."
In simple terms, it is about when to sell and when to buy; this must be clearly planned, otherwise, you will miss the moment to get off.
Greed is inherent in everyone, and Feng Chu is one of them. However, greed is human nature and cannot be avoided, but it can be guided, so we must learn to guide our own greed.
3. When buying in, control the funds to about one-fifth of your disposable investment amount.
When investing, never put everything in. Li Xiaolai also said to put part of your funds on death row; that is, this money is lost but does not affect your normal life.
Zhang Sanjiu's opinion is that if you have one hundred thousand yuan, you can take out twenty thousand as investment; this way, you have the ability to resist risks.
4. Think in advance about the "trigger point" for selling, sell in batches and strictly execute.
Short-term speculation in the context of a bear market involves selling half after doubling, and then selling one-third or one-quarter every time it rises by fifty percent, just based on your mood. In a bull market context, sell one-fifth when it rises to five times, first secure the capital, and every time it rises by fifty percent, sell a portion, using human herd mentality during short-term price speculation, which may fall back.
5. Quick in and out, go with the trend, take profits when they are available, and avoid frequent operations! These points are also taboos, and the literal meaning is easy to understand, so I won't explain them one by one.
Many people will say that long-term is easier to succeed than short-term; 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 the large cycle will be more determined. The fundamentals of the large cycle generally do not suddenly change. When the fundamentals of the large cycle change, there is usually a process of bud development and maturation. During this process, funds gradually attract into the market to promote it. To push the trend of the large cycle or change the original trend of the large cycle, larger funds are needed.
The small cycle trend of short-term is more random, the smaller the more random it is. Because the small cycle trend accommodates smaller funds. A wave of hourly trends within a day can be changed by just one piece of data. Many main institutions can also do technical feints in small cycles, creating false breakthroughs.
I've said before that we need to follow the trend. We must understand the three factors of following the trend: first, define what a trend is, generally it is Dow theory or moving averages and trend lines. Second, the level of the trend; the hourly trend has its own, and the daily trend has its own. Third, clarify the conditions under which to follow small-level trends and the conditions under which to follow large-level trends. Following the trend does not merely refer to definitions but means following the trend of large cycles above the daily level because that is the direction of large funds—firm and lasting.
For us technical traders, technical analysis is more effective on larger cycles and less effective on smaller cycles. For example, in futures, the daily level shapes formed over more than three months, once broken, have a 90% probability of triggering a trend, while patterns formed at the hourly level, once broken, do not have such a high probability of triggering a trend. If looking at minutes, the effectiveness of the patterns is even smaller. The turtle system is negative expectation intraday but positive expectation above the daily level. Therefore, learning to trade is easier on larger cycles, while it is difficult on smaller cycles.
From the trader's perspective, trading is a very mentally exhausting activity. We need to maintain our physical health, stay energetic, and avoid tired trading, as tired trading can lead to confusion and easily trigger gambling tendencies.
Controlling risk is the only path to trading profitability. There are two sources of risk: one is misreading the market, and the other is emotional triggers. Long-term trading has longer time intervals, allowing for sufficient rest and clearer thinking, which is more conducive to controlling emotions and reducing trading risks. Short-term trading is relatively frequent, which can be extremely mentally taxing. When we are tired, it is hard to control emotions, leading to random orders and easily triggering gambling tendencies.
Most novice traders, due to human nature, prefer to start learning techniques with short-term trading and often cannot grasp the essence of trading for a long time. If they switch to long-term trading, it is easier to find the path of trading.
Why do most beginners prefer to start with short-term trading? Besides human nature, there is also an implicit 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 a larger stop-loss setting, which requires lighter positions. Following the trend with lighter positions is suitable for large funds. A large fund can fully capitalize on a major cycle's main wave, earning a 20% profit in a year is already quite good, but for small funds, earning 20% is not worth trading for most market entrants. Small funds need to be fully utilized, which inevitably leads to heavy positions and increased trading frequency, attempting to capture both the main wave and adjustment waves of a major cycle, making it suitable for short-term trading. This is also the reason many newcomers have to resort to short-term trading. Ironically, not having learned trading yet, they engage in short-term trading, heavy positions, and frequent trading, which are the main reasons for novice losses. However, if they learn trading, I don't believe that heavy positions and frequent trading are untouchable taboos.
3-step "pullback confirmation" rule, easily avoid liquidation traps, profit rate soars to 90%!
In this magical and realistic crypto world, some people become rich overnight, while others leave in silence. Today, we will not discuss metaphysics or "wealth secrets," but a hard-core technique that can instantly elevate your trading strategy's rank—the "pullback confirmation" rule.
Step one: Learn to "read the lines" and find your "golden ratio point."
The K-line chart in the currency circle is like an electrocardiogram, hiding countless secrets between rises and falls. The so-called "pullback" is when the price breaks through a key position and then retracts like a spring to test the support level. At this point, you need to focus on two lines: the moving average and the trend line.
The moving average reflects the market's average cost. If the price pulls back and does not break the moving average, it's like a diver lightly tapping the springboard before a second explosion.
The trend line is the boundary between bulls and bears. If the price pulls back to the trend line and rebounds, it means that the main funds are secretly laying out.
Remember, "online bearish candles are opportunities, offline bullish candles are traps."
Step two: Wait for the "confirmation signal," don't be an impatient leek.
The confirmation signal after the pullback is like the "other party is typing" during a date—making people anxious yet requiring patience. Here are two key indicators:
Volume reduction pullback: when the price adjusts, the transaction volume shrinks, indicating that selling pressure weakens and the main force has not fled.
Indicator resonance: MACD golden cross, RSI exiting the oversold zone, and other technical indicators synchronously sending bullish signals is the true "timing and positioning."
If the market is crying out during the pullback and you find that the price "can't fall anymore," congratulations, this may be the main force putting on a sad play, just waiting for you to hand over your chips.
Step three: Position management, be a "scumbag type" trader.
Even if the pullback confirms perfectly, remember: "Love won't disappear, but money will."
Initial position testing: Use 10-20% of your position to test the waters, avoiding a total bet and getting harvested in the opposite direction.
Add positions in batches: When the price moves in the expected direction, gradually increase the position, like cutting a steak into small pieces and savoring them slowly.
Stop-loss iron rule: Set a stop-loss line of 3%-5%, and immediately exit once it breaks, don't fall in love with the market.
Finally, let's say something heart-wrenching
There are no surefire secrets in the crypto world, only probability games. The essence of the pullback confirmation rule is to use rules to counter human nature—be calm when others panic and restrain yourself when others are excited.
I am Ming Ge, having experienced multiple bull and bear cycles with rich market experience in various financial fields. Here, I pierce 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 it!
Ming Ge only does real trading; the team still has positions available, hurry up to join #BTC #ETH
