In the first three years, I suffered significant losses, with debts of 8 million. After self-adjustment, I achieved financial freedom in the following seven years, with stable compound returns and monthly income in the seven figures and annual income in the eight figures!
One, Regarding Returns: Suppose you have 1 million, when returns reach 100%, assets will reach 2 million. If you then lose 50%, it means your assets will return to 1 million. Clearly, losing 50% is much easier than gaining 100%.
Two, Regarding Price Fluctuation: If you have 1 million, after a 10% increase on the first day, your assets reach 1.1 million, and then after a 10% drop the next day, your assets remain at 990,000. Conversely, if you drop 10% on the first day and then gain 10% the next day, your assets will also be 990,000.
Three, Regarding Volatility: If you have 1 million, in the first year, you earn 40%, in the second year, you lose 20%, in the third year, you earn 40%, in the fourth year, you lose 20%, in the fifth year, you earn 40%, in the sixth year, you lose 20%, your assets will remain at 1.405 million. The six-year annual return rate is only 5.83%, even lower than the five-year treasury bond coupon rate.
Four, Regarding Daily 1%: If you have 1 million, if you can earn 1% daily and exit, after 250 days, your assets can reach 12.032 million, and after 500 days, your assets will reach 145 million.
Five, Regarding 200% Annual Return: If you have 1 million, if you achieve a continuous 200% return over five years, your assets would reach 243 million after five years. However, such high returns are difficult to sustain.
Six, Regarding Ten Times in Ten Years: If you have 1 million and hope to reach 10 million in ten years, 100 million in twenty years, and 1 billion in thirty years, you need to achieve an annualized return rate of 25.89.
Seven, Regarding Averaging Down: Suppose you buy 10,000 worth of a coin at 10 yuan, and now it has dropped to 5 yuan. If you buy another 10,000 yuan, your average cost can drop to 6.67 yuan, not the 7.5 yuan you might think.
In the cryptocurrency circle with a 95% win rate (Three Axes of Trading), once learned, it can stabilize monthly income in the seven figures and annual income in the eight figures. First Axe: Essential Investment Skills in the Cryptocurrency Circle - The Six Major Moving Averages Theory of Candlestick Charts.
Core Strategy: Three Lines Determine Everything
Moving Average Survival Manual (Must-Read for Beginners)
Remember Six Key Values: 5/10/20/30/60/120 Day Moving Averages
5-Day Line: Ultra-Short Lifeline
Case: Bitcoin Bounced Multiple Times on the 5-Day Line in March This Year
Mnemonic: Don't Short Online, Don't Bottom Fish Offline
3. 20-Day Line: Key for Swing Players
If there is a breakout, it must reduce positions (Reference to April ETH Break Below 2000)
Online Pullbacks are Opportunities (e.g., May SOL Pullback to 20-Day Line Surged 40%)
4. 60-Day Line: Bull-Bear Boundary
This Year, Bitcoin's Two Touches at 60,000 Dollars Triggered Thousand-Point Rebounds
If the price breaks for more than three days, it must be cleared (Reference to LUNA Collapse Signs)
Trading Point Capture Technique
Bottom Secret: W Double Bottom + Volume Reduction
Learn and Use: Current BNB Daily Line is Building a Right Bottom
Confirmation Signal: Breakthrough Neckline + Volume Doubled
Breakthrough Strategy: Triangle Convergence Endpoint
Classic Case: PEOPLE Surged 200% in a Single Day After Breaking the Triangle in June
Stop Loss Setting: Retreat Immediately Below Breakthrough Candlestick Low
Killing Signal: 'Ground and Sky Boards' Minute Chart
Characteristic: Sharp Drop of 10% in the Morning + Recovery to Previous Closing Price in the Afternoon
Recent Case: ENS Reversed Market Trend on July 5
Six Major High-Profit Patterns (Illustrated Version)
Golden Pit (Washout Terminator)
Key Recognition Points: Recover Within 3 Days After Breakout
Best Case This Year: RNDR Trend on April 17
Bullish Cannon (Sign of Continuous Rise)
Combination: Big Bullish + Small Bearish + Larger Bullish Recent Opportunity: ARB Daily Line is Brewing Green Dragon Taking Water (Long-term Starting Point)
Characteristic: Volume Reduction Correction Above the 120-Day Average
Classic Case: TON Shape Before Launch in February
Three Lines in Bloom (Trend Accelerator)
Moving Average Combination: 5/10/20 Day Lines Rising Simultaneously
Current Eligible Coin: STX
⑤ Fishing at the Bottom (Rebound from Overselling)
Trigger Condition: RSl<30+ Volume Long Lower Shadow
Risk Warning: Limited to Mainstream Coin Operations
⑥ Dragonfly Doji (Sign of Trend Change)
Key Recognition: Long Lower Shadow Touching Key Moving Average
Recent Case: On July 8, Bitcoin Touched the 60-Day Line and Rebounded
Second Axe: Teach You How to Grasp the Best Buying and Selling Timing
Rolling Warehouse Practical: Fund Management from 10,000 to 1 Million
Position Allocation Iron Law
Total Capital ≤ 10,000: Single Coin Position No More Than 30%
.1-100,000: Diversify into 3-5 Tracks (AI+Depin+Chain Games+RWA+Public Chain)
·>100,000: Must Allocate 20% Stablecoins for Hedging
Contract Rolling Formula
① First Position Testing: 5% Position to Test Direction (Stop Loss 3%)
② Confirming the Increase: Add to Position after 10% Profit to 10%6
③ Trend Holding: Add to 15% after Breaking Key Level
4 Profit Taking Strategy: Tiered Profit Taking (30%/50%6/70%)
Pitfall Guide
Absolutely Do Not Trade: New Coins on the First Day/Midnight Market/Spike Periods
Must Set: Trailing Stop Loss (Adjust Every Hour)
Deadly Taboo: Blindly Amplifying Leverage After Profit
Third Axe: Daily Trading Checklist
08:00 Check Overnight Liquidation Data (Assess Sentiment)
09:30 Filter Top 10 Coins (DEX+CEX)
14:00 Check Position Coin News (Focus on Regulatory Dynamics)
20:00 Review Delivery Orders (Record 3 Improvement Points)
23:00 Set Overnight Orders (With Stop Loss and Take Profit)
Today Sunny Day Will Explain 'Basic Trading Indicators'
1. MACD+
2. RSI
3. Bollinger Bands+
4. EMA*
5. VWAP+
6. Volume
1. MACD
MACD measures the convergence and divergence of two moving averages of asset prices over time.
MACD Indicates the Value Separation Between Two Moving Averages with Different Calculation Periods
When the MACD line crosses the signal line from bottom to top, the trend will be bullish.
When the MACD line crosses the signal line from top to bottom, the trend will be bearish.
2. RSI
RSI is an oscillating indicator reflecting the relative strength between rising and falling trends.
RSI Indicator near 30: Reflecting Oversold Level
RSI Indicator near 70: Reflecting Overbought Level
You need to connect two, three, or more peaks of the RSI indicator, such as HH points to draw an upward trend line on the indicator.
It's the same now.
On the other hand, draw a downward line by connecting three or more peaks, which are declining.
3. Bollinger Bands
Bollinger Bands are one of the most widely used trading indicators.
Used to compare the price value of any asset and the changes in its price relative value over a period.
When these bands gradually narrow upwards to look like they are about to merge or overlap, a 'squeeze' occurs.
If the price is close to the upper limit, it indicates a bullish breakout.
If the price converges with the lower band, it indicates a bearish breakout.
4. EMA
The Exponential Moving Average (EMA) is a weighted moving average used to measure bullish and bearish trends.
EMA is used to determine whether the price is rising or falling.
EMA can also be used as support and resistance.
5.VWAP
Volume Weighted Average Price (VWAP) is a technical analysis tool that shows the ratio of asset price to its total trading volume. It provides traders and investors with a measure of the average price traded over a given period.
6. Volume
Trading volume is an indicator of market activity and liquidity over a certain period.
Higher trading volume is considered more favorable, as it indicates better liquidity and order execution.
Tips for Beginners in Cryptocurrency Trading
1. Pullback Rebound Strategy: After a significant rise or fall, a brief pullback or rebound occurs. Capturing such opportunities is a simple and easy method for stable profits. The main indicators used are candlestick patterns, requiring excellent market feel and the ability to accurately judge phase peaks or troughs.
2. Time-based Strategy: Generally, the morning and afternoon sessions have smaller fluctuations, making it easier to grasp market trends, suitable for investors with mild personalities. The downside is that the time to profit from orders is extended, requiring sufficient patience. The evening and early morning sessions have violent fluctuations, allowing for quick profits and multiple trading opportunities, suitable for aggressive investors, but the market is hard to grasp and prone to mistakes, requiring high technical skills and judgment.
3. Volatility Strategy: The market is mostly in a fluctuating pattern. During market fluctuations, buying high and selling low within the range is a fundamental method for stable profits. The indicators used are BOLL and box theory. The premise for success is to accurately identify resistance and support based on various technical indicators and patterns. The principle of the oscillating trading method is short-term trading without greed.
4. Resistance and Support Strategy: When the market encounters significant resistance or support, it often faces obstacles or support. Entering orders at these points is a common method and a general way to stabilize profits. The indicators used include trend lines, moving averages, Bollinger Bands, and parabolic indicators, requiring very accurate judgment of resistance and support.
5. Trend Breakout Strategy: After the market undergoes a long period of consolidation, it will eventually choose a direction. Entering after the market chooses direction is a quick method for stable profits. Good judgment skills for trend changes are required, along with a stable mindset, avoiding greed and fear.
6. Unilateral Trend Strategy: After the market breaks out of a range, it will choose a direction. After a unilateral trend forms, trading in the same direction is an unchanging truth. Each pullback or rebound is an opportunity to enter, guaranteeing stable profits! The technical indicators used include: candlestick patterns, moving averages, BOLL, trend lines, requiring proficiency in the above indicators.
One tree cannot make a forest; a lone sail cannot go far! In the crypto circle, if you don't have a good community or first-hand news, I suggest you follow me. I will guide you to profit, and welcome you to join the team!!!