If you want to make a lot of money in the cryptocurrency world, there are many key points involved.
Successful investors will strictly limit losses, cut off loss positions in time, and expand profitable positions. In the cryptocurrency circle, no matter what trading method you choose, you must insist on not incurring large losses, adopt a trial-and-add strategy, quickly stop losses when the market is inconsistent with your judgment, and gradually increase your position when it is consistent. At the same time, you must reduce the frequency of transactions and avoid blindly pursuing all volatile profits.
The "W" bottom pattern is an important reference. When the price of the currency falls to the previous chip concentration area or a certain depth, the trading volume shrinks, the short position is weak, the currency price stops falling and rebounds with increased trading volume. After rebounding to the pressure level, it falls for the second time, stops falling when it is close to the previous low, and the trading volume is smaller. Then it rebounds again with a larger trading volume and breaks through the first rebound high point, and the "W" bottom is formed. Its technical characteristics include appearing at the end of a downward trend or a mid-term adjustment, the position of the double bottom low point, and the trading volume has a specific pattern, and the neckline is mostly a horizontal line passing through the first rebound high point. The "W" bottom is a turning pattern, which means that the currency price has bottomed out and rebounded, which is a buy signal.
Establishing a Bitcoin trading system that suits oneself is crucial. The trading system should cover aspects such as the underlying asset, position size, direction, entry point, stop-loss, and take-profit. When establishing it, one must consider the principal, capital usage, acceptable losses, and expected returns, based on which to determine investment strategies and risk preferences.
There are some practical tips for trading cryptocurrencies: A price breakout at a key level may bring short-term opportunities; after a big surge, there is often a pullback, so do not chase high prices; if the price rises but the volume does not increase, beware of being misled by the main force; do not rush to sell during a sharp drop with low volume, but withdraw quickly during a gradual decline with increasing volume; a main rise accelerating may reach a peak; do not chase high prices when buying coins, wait for a pullback to re-enter; combine daily and weekly charts to grasp the main force's direction; don’t panic over small rises and falls, but be cautious during a big surge; a new low in price with reduced volume may indicate a bottom, and a recovery in transaction volume with rising prices is a good entry point. In summary, making money in the cryptocurrency market requires the comprehensive application of various methods, continuous experience summarization, and maintaining rationality.