Trading for 10 years, earning 20 million! In the cryptocurrency circle, turning 3000 yuan into 1 million is not a myth. Here are some practical tips: Contract trading: Use 100 yuan for each contract trade, focusing on speculative hot cryptocurrencies. Set profit and stop-loss levels, aiming for 100 yuan to turn into 200 yuan, 200 yuan to 400 yuan, and 400 yuan to 800 yuan. Remember, at most three times! Because trading requires a bit of luck, it's easy to win 9 times with this kind of all-in speculation, but lose everything in one go! If you successfully pass three rounds with 100 yuan, then your capital will reach 1100 yuan! At this point, you need to solidify your gains. In-depth research: Spend time studying and understanding the cryptocurrency market, focusing on the fundamentals, technology, team, and market trends of projects.
Understand the risks and potentials of different projects.
Diversify investments: Spread your funds across multiple potentially promising cryptocurrency projects to reduce the risk of individual investments. Choose projects with long-term growth potential and good fundamentals. Time holding: Consider adopting a long-term investment strategy, holding tokens of high-quality projects, and believing in their long-term value appreciation potential. The cryptocurrency market is highly volatile; you need patience and a long-term perspective. Use leverage cautiously: If you choose to use leveraged trading, make sure you fully understand the risks of leveraged trading and control the leverage ratio reasonably.
Active trading: Actively participate in trading and capture market fluctuations. Understand technical analysis tools and indicators, learn trading strategies, but be cautious of market risks and volatility.
Continuous learning and adaptation: The cryptocurrency market changes rapidly, so keep learning about the industry and market, and flexibly adjust your investment strategies based on market conditions.
Risk management: Ensure that you have appropriate risk management strategies in place, including setting profit and stop-loss levels, controlling position sizes reasonably, and maintaining sufficient cash flow.
Focus on strategy: It is recommended to use a triple strategy for a day, making two types of trades: ultra-short trades and strategy trades. If the opportunity arises, then enter trend trades; ultra-short trades are used for quick attacks, making trades on a 15-minute level. Advantages: high returns; disadvantages: high risk. Only trade with large cryptocurrencies.
The second type of trade, strategy trade, involves using a small position, such as 10 times 15 yuan, to do contracts around the four-hour level. Use profits to accumulate and invest in Bitcoin weekly.
The third type, trend trading for the medium to long term, involves entering directly when you see the right opportunity. Through these strategies, you can find your own profit opportunities in the fluctuations of the cryptocurrency market.
Then it makes sense that some well-known technical indicators have stood the test of time. For example, the divergence signals of MACD, the overbought and oversold signals of KDJ, and support and resistance signals Q, etc. While they cannot guarantee profit, they allow for quantitative analysis based on a relatively mature model, thereby giving investors a basic direction.
It can be said that I have used 80% of the market's technical methods. I will share the most practical -- candlestick trading strategy, which is tried and true! A profit of 30% in one month.
Before learning candlesticks, let's first understand what the two-line reversal pattern is. We will recognize this pattern in three steps.
Step one: Bearish two-line reversal: a bullish line followed closely by a bearish line; bullish two-line reversal: a bearish line followed closely by a bullish line. Of course, such situations appear too frequently on charts! They are almost meaningless, so don't rush.
Now let's look at the second step:
1. The two-line reversal pattern is prominent, not hidden within a consolidation range.
2. In the two-line reversal pattern, regardless of whether it is an upward or downward movement, both lines push strongly in the corresponding direction.
3. The two candlesticks have a large area of overlap.
Having seen this, some investors may feel somewhat enlightened: What constitutes 'prominent'? What constitutes 'strong advancement'? What constitutes 'large area overlap'?
This seems to reflect the differences between the East and West. Just like when cooking, a Chinese chef might say to add a little salt or an appropriate amount of soy sauce. But what is 'a little'? What is 'an appropriate amount'? This undoubtedly has to be based on experience. In contrast, a Western chef would use a scale to tell you the exact grams of salt or sugar. Each approach has its pros and cons; the quantitative approach of Westerners is easier for beginners to grasp. However, if the environment changes, overly rigid rules lose flexibility. To help everyone master this strategy faster, I will still use the Western quantitative method here, and you can optimize it in practice (I will give examples again at the end).
If we want to quantify the aforementioned 'prominent', 'strong advancement', and 'large area overlap', we need to introduce a concept called 'typical price': typical price = (highest price + lowest price + closing price) / 3. From the formula, it can be seen that the so-called typical price refers to the average of a candlestick's highest point, lowest point, and closing price.
In the cryptocurrency circle, there are some truths you must know! The basic logic of the secondary market: your biggest opponent is actually yourself. In the cryptocurrency world, the threshold does not seem high; as long as you can operate with your hands, you can easily step in.
Choosing the right exchange is a crucial step. The difference between top exchanges and those bottom-tier exchanges lies not only in security but also in whether they can provide you with a fair and transparent trading environment. Remember, those small exchanges often just aim to earn your money or offer referral rewards, so be very cautious.
Once you step into the cryptocurrency circle, facing the dazzling array of cryptocurrencies, you may feel confused. Asking around, but everyone's risk control strategies and investment perceptions are different; what they recommend may not suit you. Therefore, learning to analyze projects on your own is crucial. From participating institutions, financing situations, token economics, empowerment to staking unlocking situations, every detail cannot be ignored. Of course, candlestick charts are also an important reference, but just looking at popularity is far from enough.
For short- to medium-term trends, Bitcoin's movements are often an important indicator. As for cryptocurrencies you are unfamiliar with, long-term trends need to be approached with caution.
Because even the top ten cryptocurrencies can experience huge fluctuations or even disappear in a short time.
When choosing cryptocurrencies, those listed on major exchanges have often undergone certain security audits, but that does not mean you can trade with complete confidence. Trading itself is a game of human nature; you need to remain vigilant at all times.
When it comes to candlesticks, I want to emphasize that you should at least look at weekly and monthly candlesticks; short-term indicators often lack reference value.
- A truly valuable cryptocurrency will have 'line artists' quietly depicting its great works when no one cares. But you must remember, candlesticks are like 'grain' for the retail investors; a qualified trader eats until full and flies away before the basket is smashed.
Whether it is institutional traders or operators, they cannot completely escape the constraints of human nature. They are good at guessing retail investors' psychology and formulating strategies based on that. Therefore, understanding the intentions of major operators is very important. However, this does not mean you should blindly follow the trend to engage in contracts or high-risk short-term trading. On the contrary, I want to remind you that these activities carry significant risks, and you must be extremely cautious.
Each stage of the cryptocurrency market has its unique hotspots and trends, and retail investors often realize too late that a certain sector or project is hot when the trend has already risen. Often, as soon as they enter the market, the trend begins to decline, making them 'warriors' who buy at high prices. This situation arises fundamentally from not understanding the basic logic of market operation.
So, what is the basic logic of the secondary market?
It is a game and a matching trading market: It is a game, and it is also a matching trading market. If you want to sell, there must be someone to take it; otherwise, it cannot be sold. Project teams also need retail investors to take over when they want to sell. Therefore, many favorable news are actually operations conducted by project teams to facilitate selling.
Reasonable valuation: Every project has its reasonable valuation. This valuation refers to the project's liquidity market value; when it exceeds reasonable value, a bubble exists, and bubbles will eventually burst.
Media and truth: What you see may not be real. Many media outlets have institutions, exchanges, or major players behind them, and the information they release is often intended to guide market sentiment and retail investor behavior.
The starting point of a ten-thousand-fold project: Ten-thousand-fold projects all start on-chain. A project needs to go through a long process to get listed on top exchanges, including private placements, public offerings, promotions, etc. However, once it reaches the secondary market, it is rare for it to continue rising; generally, it will first experience a round of selling.
The biggest opponent is yourself: In cryptocurrency trading, your biggest opponent is actually yourself. Many people make incorrect trading decisions due to greed, fear, or anxiety. Therefore, finding and overcoming your weaknesses is the first step to making money.
Opportunities are reserved for those who are prepared!
Seizing opportunities is the key to success!
What are you hesitating for!
