The following article includes all my experiences and knowledge from ten years in the cryptocurrency market. Interested friends can bookmark and take a look; perhaps you will use it next time?
In the cryptocurrency market, if you want to turn 10,000 yuan into 70 million, there is only one way in the cryptocurrency market. If you keep losing and want to adjust quickly, then it is rolling positions +.
Once you have 1 million in capital, you'll find that your entire life seems different. Even if you don't use leverage, if you hold assets and it rises by 20%, that's 200,000, which is already the ceiling of annual income for most people.
Moreover, when you can turn tens of thousands into 1 million, you’ll also grasp some ideas and logic for making big money. At this point, your mindset will calm down a lot, and from then on, it’s just about copying and pasting.
Don't always aim for tens of millions or even a billion; you should start from your actual situation. Bragging only makes the bull comfortable. Trading requires the ability to identify the size of opportunities; you can't always hold small positions nor can you always hold large ones. Usually, play with small positions, and when a big opportunity comes, then bring out the heavy artillery.
For example, rolling positions can only be done when there is a significant opportunity; you cannot constantly roll. Missing an opportunity is okay because you only need to succeed in rolling once in your lifetime.
Three or four times can turn from zero to tens of millions, and tens of millions is enough for an ordinary person to join the ranks of the wealthy.
How to easily grasp contract buying and selling points
Although technical indicators come from traditional markets, they can also be used in sufficiently competitive investment markets, such as the cryptocurrency industry.
Let me use the most commonly used MACD indicator in the cryptocurrency market to analyze the logic behind it: When it comes to this indicator, many friends in the crypto space first think of buying on a golden cross and selling on a death cross. This is the simplest way to use the MACD.
1. Golden Cross:
Golden Cross 1: When both the yellow line and the white line are below the zero line, and the white line crosses above the yellow line, it indicates that the market is about to strengthen, and the price is recovering and heading upwards, which is a signal to buy or hold.
Golden Cross 2: When both the white line and the yellow line are below the zero line, and the white line and yellow line cross above the zero axis, it indicates that the market has entered a bullish phase, and additional positions can be taken.
Golden Cross 3: When both the white line and the yellow line are above the zero line, and the white line crosses upward through the yellow line, it indicates that the market is in a strong area, and the price will rise again. Additional positions can be taken, or one can hold for appreciation, which is the form of the MACD indicator's 'golden cross'.
2. Death Cross:
Death Cross 1: When both the white line and the yellow line are above the zero line, and the white line crosses down through the yellow line, it indicates that the market may enter a bearish state, and the price may enter a correction phase, serving as a sell signal, indicating a potential small adjustment or a significant drop in the short term.
Death Cross 2: When both the white line and the yellow line are above the zero line, and the white line and yellow line cross down through the zero axis, it indicates that the market has entered a bearish phase, and one should hold and observe.
Death Cross 3: When both the white line and the yellow line are below the zero line, and the white line crosses down through the yellow line, it indicates that the market is in a bearish state, and the price decline has not stopped; timely liquidation is required to avoid risks.
Next, let's analyze the method of divergence
First, let’s talk about top divergence
When the price trend on the cryptocurrency K-line chart has peaks that are higher than the previous ones, the price is continuously rising. However, the trend of the MACD indicator composed of red bars shows peaks that are lower than the previous ones. That is, when the price's high points are higher than the previous high points,
The highest points of the MACD indicator being lower than the previous highest points is called the top divergence phenomenon. The top divergence phenomenon generally signals that the price may soon reverse from a high level, indicating that the price is likely to fall in the short term, serving as a signal to short.
Next is the method of bottom divergence
Bottom divergence generally appears in the low price range. When the price trend on the K-line chart is still declining, while the MACD indicator composed of green bars shows that the lows are getting higher, that is, when the price's low points are lower than the previous low points, but the indicator's low points are higher than the previous low points, this is called the bottom divergence phenomenon.
The phenomenon of bottom divergence generally indicates a signal that the price may reverse upwards at a low level, indicating that the price is likely to rebound in the short term, serving as a signal for short-term buying.
Any primary indicator and secondary indicator are based on bare K-lines, and direct analysis of bare K-lines requires high personal experience and trading skills. To improve the win rate, it is necessary to use primary indicators for assistance. Additionally, theories such as Chande, Elliott Wave, and Gann are currently the most popular and practically significant. As long as one can master them, they can definitely conquer the market. For example, Chande represents the most complete investment philosophy theory, which is quite complex, and very few people can fully understand it even now. It requires a lot of time and effort to study, and even fewer succeed and make big profits.
In the cryptocurrency market, pursuing the first million in wealth is particularly crucial, especially for investors with limited initial capital. If you hold a small amount of capital, like $50 to $100, a radical yet highly cautious strategy is to roll contracts.
First, clarify your goals: Choose popular currencies with high volatility and potential, such as turbo, not, people, etc., which have performed actively recently. These currencies may bring high returns in a short time.
Secondly, control risk: Given the high risks associated with high leverage, it is recommended that beginners start with lower leverage ratios, such as 10x instead of 20x. This way, even if the market fluctuates, you can maintain a higher margin for error and avoid heavy losses from a single pullback. By accurately analyzing the market and using technical indicators, seize the opportunity to enter the market and leverage to buy at low points.
Furthermore, rolling profits: When holding positions are profitable, rolling operations can be moderately conducted, that is, using part of the profits to open new positions to expand returns. But remember, when rolling, it is essential to strictly set stop-loss points to prevent profit reversals or even losses.
Finally, maintain calm and discipline: The cryptocurrency market is unpredictable, and managing emotions is crucial. Regardless of profit or loss, you should adhere to the established strategy and avoid impulsive trading. At the same time, continuously learn about market dynamics, technical analysis, and risk management to continuously improve your investment capabilities.
In short, pursuing millions in wealth in the cryptocurrency market with small amounts of capital is not impossible, but it requires the right strategy, strict risk control, and continuous learning and trial and error. Remember that successful investments often stem from careful consideration rather than blind following.
Points to note when rolling positions:
1. Sufficient patience: The profits from rolling can be huge. As long as you can successfully roll a few times, you can earn at least millions, so you should not roll easily; look for high-certainty opportunities.
2. High-certainty opportunities refer to those that experience a sharp drop followed by sideways fluctuations and then break upwards; at this point, the probability of following the trend is very high. Find the point of trend reversal and get in from the beginning.
3. Only roll long, do not short.
The following are all my experiences. I hope you can take a serious look and learn; it will definitely help you.