However, reality gave me a hard slap in the face. I encountered many problems later, causing me to not only give back all my profits but also incur a huge debt, ultimately forcing me to sell my house, and my wife and children almost left me. 2017 was my darkest moment, experiencing a fall from peak to trough in just a few months.
His words shocked me deeply. After that, I began to summarize methods, reflect, change my erroneous trading methods and strategies, and started changing my mindset and understanding. Learning + learning + learning, and it was only under the guidance of experts that I gained enlightenment! While I cannot say I am extremely wealthy now, I have achieved stable profits and can at least consistently outperform over 80% of people. Looking back at my journey in the cryptocurrency market, it has been tumultuous. From initially entering the market with 300,000, to making millions during the bull market; then back down from millions to just over 200,000, and now aiming for a small target of 1.1 million; I am currently waiting for the next bull market to come, with a goal of reaching three small targets.
Next, I will summarize my experiences, hoping to provide some help to cryptocurrency enthusiasts:
Bitcoin trading, using a one-to-ten rolling position method.
There is a very practical problem in trading:
1. If someone has 100,000 yuan in capital, a price increase of 10% means a profit of 10,000 yuan.
2. If you have 10,000 yuan in capital, you can only profit 10,000 yuan if you double your investment.
Is it easier for the market to grow by 10% or to double?
In personal trading, is it easier to catch 10% of the market movement or to catch a doubling opportunity?
Even those who have never traded, the answer is also obvious.
But if you only have 10,000 yuan in capital, how can you quickly grow your capital? Is there a method?
In this world, many fast tracks are designed for the brave. If you're willing to take risks, there are plenty of paths.
The pyramid trading method or rolling positions is a technique for exponentially amplifying benefits. When others make two or three times, you can make six or seven times. After more than a decade of trading cryptocurrency, I have gained more insights into making waves and identifying peaks and troughs, choosing the right mainstream themes.
In the context of an upward trend, holding valuable low-priced coins will ultimately lead to victory!
Only by possessing the 'secret' of success from top experts can you transform from a novice to a master in this field.
In this zero-sum game of finance, making money is always a privilege of the few, while the vast majority of people are losing money.
Do you know the fundamental reason for losing money in the financial field? This reason is very simple: "making mistakes."
"Making mistakes" sounds simple, but explaining this category is quite broad. Usually, the common traps for beginners in the cryptocurrency market include the following ten, and
Every trap is enough to put a novice at risk, leaving behind irretrievable economic losses.
The first trap: trading based on rumors without taking the time to research the cryptocurrencies you invest in;
The second trap: acting emotionally, with emotions fluctuating with the market's ups and downs, leading to irrational buying or selling decisions;
The third trap: chasing after newly listed altcoins;
The fourth trap: being afraid of missing opportunities and blindly buying;
The fifth trap: blindly going all-in on a cryptocurrency without leaving any margin;
The sixth trap: blindly believing various rumors or opinions from self-media;
The seventh trap: having a mysterious faith in a particular cryptocurrency while ignoring systemic risks;
The eighth trap: hasty investments, buying unresearched cryptocurrencies based on gut feelings;
The ninth trap: trading on small exchanges, resulting in the exchange running away, being attacked, or being unable to withdraw funds;
The tenth trap: wanting to get rich overnight by rushing for quick gains.
The basic principles of Dow Theory applied to the cryptocurrency market can be summarized in six points:
First, the average price accommodates and digests all factors. Fundamentals, policies, news, and capital can all influence supply and demand, and all of this will be intuitively reflected in the market, which ultimately digests and absorbs it through price changes.
Second, the market has three types of trends. Dow categorizes trends into three types: major trends, necessary trends, and temporary trends. Major trends are like the tides of the ocean, belonging to long-term trends, similar to the cyclical nature of the cryptocurrency market, with bulls and bears cycling endlessly. Secondary trends are the waves in the tide, representing pullbacks in the major trend, generally retracing to significant Fibonacci levels of 38%, 50%, and 62%. Temporary trends are ripples, indicating slight fluctuations, which have high uncertainty and change rapidly.
Third, the major trend can be divided into three phases. The first phase is the accumulation phase, similar to yin giving birth to yang, which means that as the bear market reaches its end, even though
Everyone is bearish, but it has already fallen to the point where it can fall. At this time, the main players begin to accumulate in batches. The second phase is the bull's attack phase, where favorable news starts to appear, and most retail investors who understand some technicals gradually enter the market, and prices begin to rise step by step. The third phase is the climax sprint, where major media outlets begin to flood the market with good news, boldly predicting further price increases. Retail investors actively buy, and no one wants to sell, fearing to miss this rare opportunity to make money. But in reality, the main players who bought at the bottom have already started to sell.
Fourth, various average prices must validate each other. For example, if the joint increase of Bitcoin and mainstream coins exceeds the previous peak in the mid-trend, it can be said that a large-scale bull market has arrived! Similarly, if the joint decrease of Bitcoin and mainstream coins breaks below the neckline of the high-level consolidation phase in the bull market.
Fifth, trading volume must validate the trend. Dow believed that volume is the second priority in technical analysis. When the price develops along the major trend, trading volume should also increase accordingly.
Sixth, only after a clear reversal signal occurs can we determine that a defined trend has ended. A significant trend has inertia, generally continuing to move in the primary direction for a while longer. Therefore, we must wait for trend confirmation before considering a reversal, such as confirming a head-and-shoulders pattern breaking the neckline.
These days, I am preparing for the launch of a divine trade!!!
Comment 33, let's get on board!!!
Impermanence brings impermanence!!!
Important things said three times!!!