If you find spot trading slow and boring, without patience, seeking excitement leads you to contracts +, leverage + maxed out, going all in aggressively, chasing longs when the market rises and immediately chasing shorts when it falls. You will lose as much as you invest, undoubtedly; losing everything is just a threshold of your understanding of the crypto circle!
So how to navigate the crypto circle and establish a foothold? As a veteran with 10 years of experience, Lele shares a set of his trading plan, hoping to gain support from like-minded individuals!
Master the eight key rules of practical trading in the crypto circle, start your successful journey in crypto, and share eight small tips for trading; remember to save them!
1. When deeply trapped in losses, don't panic; rationally average down to save yourself, do not let greed blind you. Protecting your capital is the true way.
2. Calm waters may hide dangers; turbulent currents await opportunities. A small bullish rebound can lure in traders, beware of huge waves swallowing up floating profits.
3. The wild rush will eventually have an end; K-line triangles reveal secrets: five waves rise followed by three waves down, confirm the pullback before laying out your strategy.
4. A bearish candle engulfing a bullish one is a good opportunity; a bullish candle with high volume is a warning signal. A true expert can operate against the trend; what others discard, I take.
5. If it doesn't push through three times, it must change direction. If it steadies after four declines, you can build positions and look for a breakout based on volume; don't enter when there are no waves.
6. The lifeline of an uptrend; if it breaks support, you must exit; look for pressure in a downtrend; enter again after a breakthrough and retest.
7. Betting everything can lead to disaster; diversifying your positions allows you to endure the ebb and flow of the market, knowing when to advance and retreat. Trend is king, and discipline is necessary.
In the battle of long and short, cultivate your inner strength; avoid greed and fear, as both are illusions. Laugh at the K-line regardless of direction.
An excellent operator, when trading in the crypto market, must maintain the right mindset. Greed and fear are our biggest enemies; avoid chasing highs and panicking during lows; always keep a calm and composed mindset to freely roam in the crypto world.
Bollinger Bands + (BOLL*) Beginner's quick version.
The Bollinger Bands (BOLL) are frequently used in crypto trading; primarily, it assesses the price's movement relative to the three bands to judge market strength. If it's more complex, consider the opening direction, the size of the opening, and the price's position within the BOLL to compare and judge future ups and downs. Today we provide a beginner's quick version that even novices can learn instantly.
Open the BOLL indicator on the trading chart, three lines will appear; the top line is called the upper band, the middle yellow line is the middle band, and the bottom line is called the lower band. The strength of the price trend is determined by the relationship between the K-line and these three lines. Once you understand this relationship, you can preliminarily determine the future trend direction.
When the price is above the middle band, represented by the green or red bars above the middle band, it indicates a strong market phase, likely in an upward trend. If the price is above the upper band, it indicates an extremely strong market, which is a low probability event, and a pullback is inevitable. This pullback will have a slowed rhythm, but the upward direction remains unchanged, generally favoring upward movement.
When the price is below the middle band, it indicates that the overall market strength is weakening, and the trend is in a downward state, primarily characterized by weak adjustments or downward movements. If the price breaks the lower band, it is also a low probability event; if it breaks the lower band, it indicates that there will be a rapid pullback in the short term, but the overall market is still in a downward trend, suitable for rebounds, but definitely not for reversals.
As long as you understand that a cylinder K-line above the middle band represents strength and below it represents weakness. As for the areas above and below the upper and lower bands, they are low probability events; short-term rapid rebounds will occur, allowing you to quickly understand the price trend. Have you learned?
Position Management:
Do not go all in; control your risks, buy in batches, and sell in batches.
For example, if you have 10,000 yuan, at most take 30%-50% to enter the market, leaving the rest to wait for better opportunities.
Take Profit and Stop Loss:
Take Profit: For example, if you made a 50% profit, you can sell a portion to secure your gains.
Stop Loss: For example, if it breaks a key support level, decisively cut your losses; do not hold on stubbornly. Protecting your capital is more important than making money!
Making money in the crypto circle = capital x volatility x time. If your capital is wiped out, no matter how big the market is, you won't get a chance to participate.
A single tree cannot make a forest, and a lonely sail cannot sail far! In the crypto circle, if you don't have a good network, and no insider information, then I suggest you follow me to help you make it, welcome to join the team!!!
