I am 38 years old this year, have been in the market for 10 years, and have been trading cryptocurrencies to support my family for 6 years! Not choosing to major in finance in college is a significant regret in my life. I started learning about stocks/finance/foreign exchange online in my freshman year, and the red and green screens filled my life with color, captivating me. With infinite yearning for the market, I opened an account in my sophomore year, and gradually learned about the cryptocurrency space and Bitcoin. Through a classmate's introduction, I learned more and more and became very interested, marking the beginning of my investment journey.
Like most friends who have just entered the market, they are initially fascinated by technical indicators, constantly backtesting using various cryptocurrencies to find patterns; eager to enter low-priced or significantly corrected cryptocurrencies, believing they are safer. In fact, these cognitions of the market are entirely wrong.
Later, I realized that if you want to achieve quick profits in the market, you must do both short-term and medium-to-long-term compounding together!
The conclusion is: do not let the blood of profits cloud your judgment; you must know that the hardest thing in the world is how to sustain profits. You must carefully review whether it was luck or skill; a stable trading system that suits you is the key to sustainable profits.
There is a saying that impressed me deeply: 'Ideology is something you have to occupy; if you don't, others will.'
Today, I share with everyone the trading mindset that has allowed me to stand firm in the market for a long time. If you study it seriously, you will definitely gain a lot and have a revolutionary change in your understanding of trading cryptocurrencies!
Sunny day, let me first share a [Cryptocurrency Survival Guide] with everyone.
Trading cryptocurrencies is not as simple as you think; it is not just about buying low and selling high.
A qualified investor needs to have economic knowledge, pay attention to news dynamics, understand national policies, care about international situations, and deeply study the fundamentals and technical aspects of virtual currencies.
In addition, one must constantly struggle with their own fears and greed, possessing strong psychological resilience to withstand the market's ups and downs.
It can be said that those who survive in the cryptocurrency market are almost all resilient, able to resist temptation, and have undergone trials.
Three major principles of making a fortune:
Principle 1: Strictly control your position at 50% when building a position, as this allows for both defense and offense. Never operate with a full position, as a significant market drop will render a full position unable to self-rescue.
Principle 2: When the increase of the invested currency reaches 2-3 times, you should first sell half to recoup your investment. Then, you can use the remaining profits to negotiate with the operators, gradually exiting when the expected price is reached. Retaining 10% of the base position can avoid missing out on a strong surge triggered by powerful operators.
Principle 3: When the market is crazy and everyone rushes to buy, you should sell your chips in stages and batches.
Do not be deceived by the numbers in your account; only the funds that have turned into cash truly belong to you; the numbers in the account are just that - numbers.
Three major secrets of trading cryptocurrencies:
Secret 1: For small and irregular cryptocurrency trading websites, do not casually invest large amounts of money to avoid sudden disappearance of the website.
If you want to participate, choose a legitimate large platform.
Secret 2: There are many recent crowdfunding virtual currencies, please carefully distinguish. Not all projects are worth investing in, many carry risks.
Consider carefully before investing, do not rely on luck.
Secret 3: The current market is sluggish, and the overall trend is cooling down. Short-term operations should mainly be observational, with precise entry points.
For long-term investments, consider high-quality virtual currencies ranked in the top 20 globally, building positions gradually at low prices.
When entering the market, control risks and funds well. Timely add to positions or cut losses during market fluctuations, which is more conducive to profitability.
If you fail to act in time, you can still minimize losses.
The purpose of trading cryptocurrencies is to make money, so you must be fully prepared to avoid unnecessary losses.
Finally, do not blindly follow the crowd.
Many beginners, when starting to trade cryptocurrencies, are easily influenced by the crowd or others' suggestions and sell off easily, which is often the most foolish practice.
Because many times, these people either have no assets or are misleading beginners, creating panic and inducing you to sell at low prices.
Once you sell, they will buy at a low price.
Therefore, during cryptocurrency trading, others' opinions can only serve as a reference; the key is still to rely on your judgment.
A hundred days at the bottom, a moment at the top:
As the saying goes, 'A hundred days at the bottom, a moment at the top.' Many friends, when operating, often fall under psychological influence. When the currency price reaches a high point, they always think of holding on longer in hopes that the market might reach a new high, but often the result that should have been a profit turns into a high position watch. This is essentially a lack of understanding of selling points and insufficient market awareness.
Therefore, today Sunny has specially spent some time to organize 4 common, simple, and practical topping-out patterns for everyone. Learning these will help you easily judge the formation of a top, allowing you to exit and take profits at the top range in the future.
Everyone should remember these patterns in their hearts; if you can't remember, you can save them and look at them a few more times, and you will definitely gain something.
Master the heart of the market, and victory will follow.
Let me share again the most frequently used and most useful reference data and indicators I have used in my ten years of trading cryptocurrencies! I hope it helps everyone!
1. [MACD]
This is one of the most widely used indicators, and anyone with a bit of trading experience has probably heard of 'golden cross' and 'death cross,' which come from the application of MACD. For example, you can see in the two segments marked in red, the white line below crosses the yellow line from above, and the bars change from green to red, representing a classic 'death cross' pattern.
You can also see that after these two 'death crosses' appeared, the market experienced two large-scale crashes. The third red area represents the 'golden cross,' similarly to the death cross.
2. [KDJ]
This indicator is more suitable as a short-term reference indicator, such as 15M, 1H. You can see that when the indicator gradually rises into the 80-100 range, it indicates that the market is overbought, and there may be a need for a pullback, as marked by the red circles in the chart.
Conversely, entering the 0-20 range downwards indicates that the market is oversold and may have a rebound demand, as marked by the red square in the chart.
3. [BOLL]
The Bollinger Bands are used by many. The section marked with arrows is the small bull market from December to the end of February. You can see that after the market started, the K-line kept rising along the upper Bollinger Band, continued to attack after a pullback to the middle line, and finally ended this small bull market with a bearish candle piercing the middle line at the end of February. This indicator concludes that as the market develops, the K-line will always gravitate towards this middle line and subsequently move to the other side.
Also, let’s talk about [volume] and [moving averages]. The trading volume 'volume' is actually the foundation of most data indicators. The real trading volume will reflect many issues, especially during the market uptrend. [Moving averages] settings vary from person to person; just find a parameter you are comfortable with, such as 10, 15, 30, 60, 120, etc.
Learn to earn big money using the MACD indicator with the following mnemonic:
1. MACD above the 0 axis - each time a golden cross occurs, the stock price will reach a new high.
2. MACD below the 0 axis - each time a death cross occurs, the stock price will reach a new low.
3. MACD above the 0 axis - the golden cross indicates an upward bullish trend, and you can buy low and sell high to the top divergence.
4. MACD below the 0 axis - the golden cross indicates a rebound trend during a downward trend; only participate when it returns above the 0 axis.
5. MACD above the 0 axis - the more times the golden and death crosses occur, the better; it indicates a strong stock.
6. MACD below the 0 axis - the more times the golden and death crosses occur, the worse; it indicates a weak stock.
7. MACD golden or not - green bars reverse downward a second time, it must fall.
8. MACD dead or not - red bars reverse upward a second time, it must rise.
9. MACD sells small - stock price rises, and the next red bar does not exceed the previous high, it will fall.
10. MACD buys small - stock price falls or stabilizes, and the next green bar does not fall below the previous low, it will rise.
11. MACD neither here nor there - after breaking below the 0 axis trend, it will either be the third wave or the fourth wave, and it must rise.
12. MACD high position shrink - after a large rise in stock price, the MACD moves away from the 0 axis with red bars shortening; quickly cash out.
13. MACD low position golden cross - after a large drop in stock price, the MACD moves away from the 0 axis; it must rise with a second golden cross being even stronger.
14. MACD miraculous recovery - during an upward process if a washout occurs and a death cross happens, but a rapid golden cross occurs in one or two days, it must rise.
15. MACD hopeless - after rising enters a correction; after a rebound, if the MACD golden cross occurs one day later followed by a rapid death cross, it must fall.
16. MACD golden pit - after a stock price rises and corrects, if the MACD death cross occurs within 7 days with short green bars, then golden cross occurs, it must rise.
17. MACD raging fire - red bars continue for over two months, indicating a bull market.
There is a saying in the cryptocurrency circle: 'Trading cryptocurrencies by luck, 8 out of 10 will lose money; trading cryptocurrencies with skill, 8 or 9 will profit.' Whether you dare to invest in the market depends on courage and strength; whether you can make money trading cryptocurrencies relies on insight and skill. Cryptocurrency investment cannot be based on momentary impulse and grand ambitions; only by understanding effective operating procedures, mastering necessary foundational knowledge, and learning practical technical methods can you seize fleeting profit opportunities in the unpredictable cryptocurrency market.
Sunny has been struggling in the cryptocurrency circle for many years and has summarized many classic sayings, hoping to help both new and old retail investors.
First, do not hold onto positions; the profits you bring back will eventually be given back to the market due to 'holding'.
Second, do not guess tops and bottoms, as the profits from guessing will eventually be returned to the market due to 'guessing'.
Third, do not guess tops and bottoms, as it may still be halfway up the mountain.
Fourth, do not rely heavily on news, as that is just 'guessing' the top and bottom.
Fifth, do not easily exit while in profit, as you may be halfway up the mountain.
Sixth, do not get excited when you see large bearish or bullish candles, as it may be the operators 'performing' for the retail investors.
Seventh, do not think that what you see in the market is the last wave and act recklessly; as long as your capital is still there, there will always be market movements every day.
Eighth, do not trade frequently, as it will not only make you lose sight of the larger direction and increase the chance of making mistakes but also increase trading costs, making it not worth it.
Ninth, do not take counter-trend positions; if you are right, hold on tightly, if you are wrong, run quickly.
Tenth, do not buy just because the price is low, nor sell just because the price is high; do not act rashly if the trend has not changed.
Playing around in the cryptocurrency circle is essentially a battle between retail investors and operators. If you do not have frontline news or first-hand information, you can only be cut! Hello everyone! I am the Phantom Eye, and I want to layout together and harvest the operators together.
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The martial arts secrets have been given to everyone; whether you can become famous in the Jianghu depends on yourself.
The cryptocurrency journey is long and slow; if you are also a fellow traveler, you need to leverage the power to learn methods and techniques!
