The prerequisites for contracts include: suitable entry points, absolute exit points, disciplined stop-loss points, and contented profit-taking points. Position management at the master level + strong psychological qualities.
Without at least 5 years of experience, it is simply impossible to succeed. Of course, if you find Teacher Lele, you can also achieve quick results. If you really don't want to deal with it anymore, just close the deal and enter the cooling-off period. If you can't control your urge to trade, then learn well from the teacher, which can save you years of detours in the cryptocurrency world. This is not just motivational talk; it's reality!
Cryptocurrency novices mastering these iron rules will leap forward in their trading careers!
In the turbulent ocean of the cryptocurrency world, true experts rely not only on technology but also on a profound understanding of market laws and strict adherence to them. I share the six iron rules I follow with those who are destined to encounter them, helping you navigate the cryptocurrency trading journey with ease and confidence in managing risks!
1: Prices are volatile, mentality is key. Market fluctuations are unpredictable; your mindset determines success or failure. Don't hastily declare a peak when prices are rising, nor should you easily assert a bottom when prices are falling. Just like whether Bitcoin can break through 150,000, the answer will only be known when the market goes crazy. What you think is the bottom may just be a temporary pause; the true bottom is always hard to predict.
2: Build positions in batches, stability is key. Experts never rush to build positions; they control each transaction to a small percentage, typically no more than one percent. This approach gives them more room to experiment, resulting in lower costs and risks.
3: Dare to chase highs, the opportunities are greater. In the cryptocurrency world, being afraid of heights means missing opportunities. The cost for major players is far more complicated than you think, including promotion costs, chip costs, and development expenses, which can be multiples or even tens of times the investment. Therefore, daring to chase highs allows you to seize real opportunities.
4: Bull market turnaround, seize the opportunity. The bull market is the only chance to change your destiny. Just like Buffett, no matter how smart he is, if he misses the bull market, he can only wait in the market. Therefore, in the cryptocurrency world, seizing the bull market is seizing the key to wealth.
5: Technical indicators +, for reference only. Technical indicators have a lagging nature and can often only serve as a reference rather than the sole basis for trading. During strong uptrends, although technical indicators look favorable, prices may already be high, so be cautious when chasing.
6: Full of confidence, unafraid of the market. True cryptocurrency trading experts have enough confidence; they have experienced losses but have never been defeated by the market. Because they believe they can ultimately conquer the market, this belief is the key to their success. Trading cryptocurrencies is not just a battle of skills and luck; it is also a test of mentality and wisdom. Only those who master and strictly adhere to these iron rules can remain undefeated in the crypto space! Trading technical indicators, moving average + MA
1. Definition of moving average: Moving Average, abbreviated as MA, is a statistical analysis method that averages the prices (indices) of securities over a certain period and connects the average values over different times to form an MA line, which is used to observe the trend of price movements. Ultimately, moving averages are a trend-following tool that helps identify whether a trend has ended or reversed, or if a leading trend is forming or continuing. It does not lead the market but faithfully follows it, which gives it a lagging characteristic, yet it cannot be manipulated.
2. Calculation method: N-day moving average = sum of N-day closing prices / N
Calculation formula: MA = (C1 + C2 + C3 + C4 + C5 + .... + Cn) / n, where C is the closing price and n is the moving average period. For example, the calculation method for Bitcoin's 5-day moving average price is: MA5 = (the closing prices of the previous four days + the closing price of the day before yesterday + the closing price of yesterday + the closing price of today) / 5. Moving averages can be categorized by duration into three types: short-term, medium-term, and long-term moving averages. Short-term moving averages typically use 5 or 10 days as the calculation period, medium-term moving averages often use 30 or 60 days, and long-term moving averages mostly use 100 and 200 days. It should be noted that 5 days represent the trading value of a week in stock markets, while digital currencies trade continuously 24/7. Compared to the stock market, the trading time of the digital currency market is six times that of the stock market, plus two weekends. Therefore, the specific values for short, medium, and long-term averages can be tailored to personal preferences, with no hard rules.
3. Nature of moving averages: following trends. If you can identify upward or downward trend lines from cryptocurrency price charts, then the MA curve will remain consistent with the direction of the trend line, eliminating price fluctuations that occur in the process. The original price chart does not have this trend-following characteristic. The lagging nature of MA means that when the price trend reverses, the actions of MA often lag behind the major trend. This is a significant weakness of MA. By the time MA issues a reversal signal, the depth of the price reversal may already be substantial. Stability tends to increase with longer-term moving averages, which do not easily shift up or down; they only extend upwards when the price trend is clearly bullish. Often, when the price begins to decline, the moving average may still be trending upwards. It is only when the price drops significantly that the moving average begins to trend downwards, which is the biggest characteristic of moving averages. Short-term moving averages are less stable, while long-term moving averages are more stable, but this also means that moving averages react with a delay. Supporting or resisting price movements: When the price breaks through the MA, whether upwards or downwards, it tends to continue in the direction of the breakthrough. This is the supporting or resisting nature of MA. When the price breaks upward from below the average line, the average line also starts to move upwards, functioning as a support line. If the price falls back to near the average line, it naturally generates support. Short-term moving averages tend to move upwards quickly, while medium- to long-term moving averages move upwards more slowly, but both indicate that the average cost has increased over a certain period. If the selling pressure slightly exceeds the buying pressure and the price falls back to near the average line, it represents a buying opportunity, showcasing the supporting effect of the moving average. Until the price rises slowly or declines, the moving average begins to slow down, and if the price returns to near the average line, the average line loses its supporting effect, indicating a trend towards falling back below the average line, and it is best not to buy. Conversely, if the price breaks down from above the average line, the average line begins to move downwards, becoming a resistance line. When the market price rises back to near the average line, it naturally creates resistance. Therefore, when the average line trends downwards, and the price rises back to near the average line, it represents a selling opportunity, demonstrating the resisting effect of the average line. Until the price declines slowly or rises back, the moving average begins to slow down, and if the stock price approaches the average line again, the average line loses its resisting significance, indicating a trend towards returning above the average line, and there is no rush to sell.
Shendan continues to make plans every day!
Comment section, hit 9!
No long-term entry!
