Most people who just enter the cryptocurrency circle are in the secondary market.
The two major ways to play in the secondary market must be deeply understood: spot and contracts.
Note: Only trade Bitcoin or Auntie in contracts.
If it's a small amount of capital, or an amount that doesn't matter much to you if lost, like ten thousand, that converts to about 1500U.
It's recommended to first take out 100U and put it into a contract account, then open positions at only 10% each time, using 50-100x leverage, and open positions one by one.
If you have no understanding of trading, you can first use this 100U based on your feelings. Whether it's a loss or a gain depends on luck. This 100U is just to let you feel how worthless money can be.
After losing this 100U, you need to start learning technical analysis.
Any kind of technical analysis is fine, or any indicator, even naked candlesticks can work. While learning, observe the success rate of the techniques you study on the historical candlestick charts of your trading targets.
When you feel you have a further understanding of candlestick charts and indicators, switch to 100U. Based on your learning outcomes, guide your trading.
At this time, you still have both losses and gains. In most cases, you may not be able to strictly execute the learned content, but either way, you will quickly lose that 100U.
Next, you need to start learning trading psychology.
You need to improve your execution based on trading psychology, even using indicators and technical analysis to judge market sentiment.
If your learning ability is sufficient and your execution is strong enough, you can now strictly execute the technical analysis methods you have learned.
Then switch to 100U. At this point, your winning chances have greatly increased, but after a while, you still end up losing all of this 100U.
Next, you should learn some mathematical knowledge.
The biggest difference between trading and gambling is that the win rate and risk-reward ratio can be changed through subjective initiative.
Learning techniques, studying psychological analysis, and improving execution can increase your win rate, but the risk-reward ratio is the secret to making big money in contracts.
For example, Auntie's hourly line shows the lowest price in 3 days is 1300. After the price repeatedly retracts to this point and rebounds, you seize the opportunity to reduce your position at a price of 1302, with a stop loss at 1295. The historical rebound's highest price is 1389. If the market moves in your favor, it could even break the resistance level and rise above 1400+. At this point, your potential risk-reward ratio has exceeded 1:10, which is definitely a risk worth taking.
The premise of capturing the risk-reward ratio is to strictly implement stop-loss strategies.
Contracts are the best test of human nature and endurance.
For spot trading, if your capital is too small, what can you buy? If you put in 10,000, even if a bull market comes and it multiplies by 10, you only get 7 times, which is not much. It's not worth your energy. If time is limited, just buy Bitcoin or Auntie near the bottom of a bear market.
However, how many players in the cryptocurrency circle are there to earn small money?
If you have just entered the market, come find me, follow me, and I will teach you to learn while operating.
If you are already in a not-so-ideal situation, you can come to me for help. I won’t let you make the same mistakes repeatedly. If your position is stuck, I will provide reasonable solutions based on your entry point.
Because everyone gets stuck at different points, the solutions will also vary. Some are suitable for conservative traders, while others are for aggressive traders.
I will definitely use the most appropriate methods to genuinely solve your problems and assist you in exiting.
