If you always buy high and sell low, and you tend to FOMO, it might be worth taking a moment to read this article. At least it can double your chances of winning. This method applies whether it's spot trading or contracts.
This method is a personal exploration developed during practical experience. If someone reposts or rewrites it, please remember to cite the source.
Without further ado, let's get straight to the point:
In fact, whether it's spot trading, contracts, or meme coins, no matter what indicators you use, the premise is that you must first be able to read the market. For example, you should at least master concepts like MACD golden crosses, RSI, or Fibonacci methods. Otherwise, no matter what indicators or strategies you use, it's all in vain because, in that case, you're mostly relying on luck.
The method we are discussing today, I personally call it the 'Simulation Method' (also known as the Hypothetical Method). What does it mean? It means that every time you trade, you should not rush to invest money but rather hypothetically or conditionally use the software's built-in simulation mode. For example, if I learn a new indicator or method and want to put it into practice, but I know that I have just seen a piece of news or learned a new indicator and haven't fully mastered it yet. If you rush to achieve results, your win rate will affect your confidence in trading.
So what should we do?
1. Spot and contract trading:
For spot and contract trading, you must first be able to analyze the market. Then, based on the methods you learn or the ones you already have, after completing your market analysis, remember not to trade right away. Instead, record your methods and the amount you plan to invest in a memo or notebook hypothetically. Set a time, for example: I use an indicator to analyze that BTC will start to decline at a certain point, I hypothetically plan to buy 2000 USDT or use the simulation mode for convenience. I open a 20x contract and estimate what kind of returns I might see after a specific time. Then you just leave that there. Continue finding indicators to analyze, and when the time comes, check if your analysis was correct and if the market moved according to your analysis. If not, then your analysis is likely wrong. Generally, if you analyze a token using a method ten times and five times are wrong, it indicates that your method has some merit. If more than five times are wrong, it proves your method is not viable. You should complement it with other indicators for broader market analysis.
2. For meme coins and NFT operations:
For memes and NFTs, the essence is quite similar. First, check if there are official Twitter or Telegram accounts and other social media. If there are none and it's a three-no product, it's highly likely to fail. If these conditions are met, then look at the project’s product functionality and highlights, select the meme tokens you believe have potential, and then use the hypothetical method to analyze them. Suppose you buy 1000 USDT worth of each meme coin; after three days, check which ones are still alive and which are not, and identify the ones that died in a day or just a few hours.
Therefore, you can directly exclude those meme coins with a few hours of survival rate when you encounter them in the future. Similarly, like the spot trading mentioned above, if you choose 10 meme coins and maintain a win rate of around 60%, then your analytical ability is already quite strong. At that point, when you select meme coins to buy, you will find that your win rate is much higher than when you only rushed in at the sight of CA.
For NFTs in the current market, when selecting projects during research, try to focus on NFTs with empowerment and functionality, as no one is willing to pay for PFPs in this market anymore.
I have personally verified this hypothetical method. As long as you strictly follow the procedures and analyze why your chosen option or indicator failed, if you persevere, you will develop your own trading system, which is very important in the crypto space. It can almost be said to be a small tool to help you avoid being cut off.
This is why some people can immediately tell that certain projects are not viable, while you always fail to see it. It’s because you don't have your own trading or research methodology and system.
The above content is pure practical knowledge. In the current market, surviving in the cryptocurrency world is indeed not easy. I hope it can help some newcomers and small traders. Of course, methods are just external references, and specific things still need to be explored personally; they do not apply to everyone.
Creating is not easy; I hope to get some support.
