There is only one method to make 10 million from 10,000 in a year through cryptocurrency trading: rolling positions + holding large altcoins!
Current suggestions on position management:
1. For example, if you take out 30,000U for contracts, my suggestion is to divide it into 3 parts, each part being 10,000U.
2. Use 1 part each time to open a position, a fixed amount of 10,000U, with Bitcoin no more than 10x leverage and altcoins no more than 5x.
3. If you lose money, for example, losing 1000U, you should compensate by adding 1000U from outside; if you make 1000U, you should withdraw 1000U.
4. Ensure that during this recent period, every time you open a position, you can guarantee a fixed position of 10,000U.
5. Until you make 60,000U from 30,000U in this way, raise each of your positions to 20,000U accordingly.
The benefit is: Point 1, split positions + low leverage, avoid losing all your funds due to exchange spikes.
Point 2, avoid falling into issues like this. On a bad day, if you lose everything, at most you should lose 1/3; the remaining can give you a buffer opportunity.
Point 3, maintain a fixed position. You can keep a relatively calm mindset whether you are losing or making a profit, which can help stabilize your mindset.
The secret techniques have been shared; whether you can gain fame in the market depends on yourself.
In the cryptocurrency circle, if you want to turn 10,000 into 12 million, there is only one way: rapid rolling of positions +
The riskiest methods should also be done in three phases. This means you should at least give yourself three opportunities.
For example, if the total account fund is 200,000, and the client allows you to lose a maximum of 20%, which is 40,000, then I suggest the most aggressive loss plan is: first time 10,000, second time 10,000, third time 20,000. I believe this loss plan still has a certain rationality. Because if you are right in one of the three tries, you can profit or continue to survive in the market. Not being kicked out by the market is itself a kind of success and gives you a chance to win.
2. Grasp the overall market trend; trends are much harder to navigate than fluctuations because trends involve chasing highs and cutting losses, requiring determination to hold positions, while high selling and low buying is more in line with human nature. Trading is about avoiding making money when it aligns with human nature. It is precisely because it is difficult that it is profitable. In an upward trend, every violent pullback should be an opportunity to go long. Remember what I said about probability? So, if you're not in the market, or have exited, patiently wait for a 10-20% drop to boldly buy more.
3. Set profit and loss targets. Profit and loss targets can be said to be the key to whether one can profit. In several trades, we need to ensure that total profits exceed total losses. Achieving this is not difficult; just achieve the following points: ① Each stop-loss ≤ 5% of total funds; ② Each profit > 5% of total funds; ③ Total trading win rate > 50%. If the above requirements are met (profit-loss ratio greater than 1 and win rate greater than 50%), profit can be achieved. Of course, it can also be a high profit-loss ratio with a low win rate or a low profit-loss ratio with a high win rate. Anyway, as long as total profits are positive, that's enough. Total profit = initial capital × (average profit × win rate - average loss × loss rate).
4. Remember not to trade too frequently. Since the BTC perpetual contract trades 24/7, many newcomers operate every day; with 22 trading days a month, they might trade almost every day. As the saying goes: those who often walk by the river will inevitably get their shoes wet. The more you operate, the more likely you are to make mistakes, and after a mistake, your mindset will deteriorate. Once the mindset goes bad, you may act impulsively, choosing 'revenge' style operations: possibly going against the trend or over-leveraging. This can lead to a series of mistakes, easily causing huge losses that may take years to recover.
Points to note about rolling positions:
1. Sufficient patience; the profits from rolling positions are huge. As long as you can roll successfully a few times, you can earn at least a million, so you must not roll easily; look for high-certainty opportunities.
2. High certainty opportunities refer to situations where there is a sharp drop followed by sideways consolidation, then a breakout upwards. In this case, the probability of following the trend is high, and you should get in early at the trend reversal point.
3. Only roll long positions, do not short.
So what elements are needed to become a trading expert? I believe there are three:
The first element is to be objective and neutral toward others' opinions and market news, without any thoughts. Maintain an objective and neutral stance without generating any emotions. Only act when it conforms to the rules, and refrain when it does not. When there are no market opportunities, read books or drink tea; when there are market opportunities, pay close attention and be prepared at all times.
The second element is planning trades. There is a saying: plan your trade, trade your plan. Based on our strategies, we need to create a trading plan. When the opportunity truly arises, trade according to our plan. After making the trading plan, we need to wait patiently for the final confirmation signal. When there is no trading plan, wait patiently for the plan to appear. When the confirmation signal appears, act decisively. After opening a position, patiently wait for either stop-loss or reaching the profit target.
Thirdly, no method or strategy will be 100% effective. Once we open a position, we must be prepared for the worst. You can have expectations for the outcome of the trade, but you shouldn't expect too much. When the market goes bad, having low expectations will prevent too much pain; when the market goes well and the results exceed expectations, it brings a small joy. In the end, trading is like this: no great sorrow, no great joy, facing trading calmly with a peaceful and tranquil mind. If you make money and are overjoyed, sharing the news, or if you lose money and are gloomy or even regretful, losing control of your emotions, it shows that you still have a long way to go in trading.
There are several short-term trading methods for cryptocurrency:
1. Technical Analysis: Use chart analysis, trend analysis, and other technical indicators to determine price trends, including support levels, resistance levels, moving averages, etc., to find opportunities for buying and selling.
2. News Driven: Pay attention to news and events in the market, analyze and predict their impact on the cryptocurrency market, and buy or sell quickly.
3. Day Trading: Profit from capturing short-term price fluctuations, usually completed within a single day.
4. Breakout Trading: Judge the market direction by observing changes in trading volume when the price breaks through resistance or support levels, and buy or sell at the right time.
5. Swing Trading: Utilize the characteristics of significant price fluctuations for medium to short-term buying and selling operations.
However, the cryptocurrency market is highly risky, and the operating time is short, requiring investors to have a high risk tolerance and familiarity with market conditions. In addition, short-term operations also need to control risks, setting reasonable stop-loss and profit targets to protect capital and achieve good returns.
The cryptocurrency circle is like a marathon; running fast is not as good as running steadily. Those who earn money by luck often lose it back through skill. Only by ingraining position management into your DNA can you survive in this cutthroat market. Remember: as long as you are alive, you have the opportunity to turn things around.
These insights are derived from my years of experience in trading cryptocurrencies, a profound understanding gained through trials and tribulations. I hope they illuminate your path forward.
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