Friends who want to enter the cryptocurrency market should spend a few minutes seriously listening to what I have to say; it might help you avoid significant losses and protect your wallet.
If you want to make it big in trading, you need to put in real effort to learn. Your foundational knowledge must be solid, news analysis must be thorough, and technical indicators must be well studied.
If your research is not in-depth and your capital planning is unreasonable, you might end up losing everything. Many retail investors enter the market happily, only to leave in disappointment.
Some technical indicators have been passed down for a long time for a reason. For example, MACD divergence, KDJ overbought/oversold, support and resistance levels—though they cannot guarantee profits, they can at least guide investors in the right direction.
In the cryptocurrency world, if you want to turn small money into big money, you have to explore the method of rolling positions.
Once you have a capital of 1 million, life will be very different. If the spot market rises by 20%, that’s a profit of 200,000, which is already more than many people's annual income.
Don’t always think about making tens of millions at once; you need to be grounded. Trading requires you to be aware of the size of opportunities; don’t always be in light or heavy positions. Usually, practice with small positions, and when big opportunities arise, go all out.
The method of rolling positions should only be used when big opportunities arise. Don’t keep thinking about rolling back and forth; if you miss it, it’s okay. If you can roll successfully three or four times in a lifetime, that’s already quite good!
In what situations should rolling positions be used?
For instance, if volatility drops to a new low after a long period of sideways movement, it might be time to choose a direction. After significant rises in a bull market followed by sharp declines, that might be a good opportunity to buy at the bottom. Also, if major resistance or support levels are broken on the weekly chart, rolling positions can also be considered.
Apart from these situations, other opportunities must be abandoned.
So how should rolling positions be operated?
Adding to positions with floating profits means that after making money, you can consider buying a little more. But you must ensure that the cost is lower to minimize risk. Don’t just blindly add positions when you make a profit; you need to find the right timing.
There’s also maintaining a base position + rolling positions, which means dividing your money into several parts, keeping one part as a base position unchanged while buying high and selling low with the rest. How to divide that depends on your own preferences and capital.
I've given you all the tips; whether you can make a name for yourself in the cryptocurrency world depends on your own fortune!
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