I lost money in the first two years of trading coins, but started making profits in the next 5 years!! Making money from trading is actually so simple, it just takes 3 steps!

After years of experience, I summarized 8 iron rules. The content is not extensive, but very valuable. If after reading you feel it makes no sense, say whatever you want!

1. Divide your funds into 5 parts, and only enter one-fifth each time! Control a 10-point stop loss; if you make a mistake once, you only lose 2% of your total funds; if you miss 5 times, you only lose 10% of your total funds. If you are right, set a take profit of more than 10 points. Do you think you will still be trapped?

2. How to increase the win rate again? Simply put, it's two words: follow the trend! In a downtrend, every rebound is a bait to lure buyers, while in an uptrend, every drop creates a golden pit! Do you think it's easier to make money by bottom fishing or by buying on dips?

3. Do not touch coins that have rapidly surged in the short term, whether mainstream or altcoins. It's rare for a coin to make several waves of main rising waves; the logic is that continuing to rise after a short-term surge is quite difficult. When high prices stagnate, they will naturally fall when unable to rise in the later stages. It's a simple truth, but many people still want to take a gamble.

4. Use MACD* to determine entry and exit points. If the DIF line* and DEA* cross upwards below the 0 axis and break through the 0 axis, it is a solid entry signal. When MACD forms a death cross above the 0 axis and moves downward, it can be seen as a signal to reduce positions.

5. I don't know who invented the term 'averaging down,' but it has caused many retail investors to stumble and suffer huge losses! Many people keep averaging down as they lose, and lose more as they add. This is a big taboo in trading coins, placing oneself in a dire situation. Remember, never average down when in loss but add to your position when in profit.

6. Volume and price indicators are paramount; trading volume is the soul of the crypto world. When price breaks out with increased volume at a low level during consolidation, it should be noted. When price is at a high level with increased volume but stagnating, it should be decisive to exit.

7. Only trade coins in an upward trend; this way, the odds are greatest and time is not wasted. The 3-day line turns up for short-term rises, the 30-day line turns up for medium-term rises, the 84-day line turns up for main rising waves, and the 120-day moving average turns up for long-term rises!

8. Insist on weekly reviews, check if the holding logic has changed, technically observe whether the weekly candlestick trend fits your judgment, whether the direction has experienced a trend change, and adjust the trading strategy in a timely manner!

Making money from trading is actually so simple, it just takes 3 steps!

Step one: first look at the trend

Step two: find key levels again

Step three: find entry signals

Enter the market, make profits, close positions, and leave

Isn't it simple?

Let’s elaborate on the following

Step one: first look at the trend

The state of a market

A major trend results in only three outcomes: up, sideways, down

What is a major trend?

Look at the cycle charts above 4 hours, such as 4-hour, daily, weekly

(My personal habit is to look at 4 hours)

To go long when it rises

To short when it falls

Do not trade in a sideways market

If the current market is in a sideways state

Then there is no need to go further down

Just go do whatever you need to do

Spank the kids and drink some wine. 0

If it is a one-sided upward or downward trend

Please continue to the next step

Step two: look for key levels

No matter whether the market is rising or falling

It will jump like a bouncing ball, level by level, either upwards or downwards. What we need to do is to enter at its jumping position and exit at the next landing point. How to find precise steps becomes the key.

This is what we call key levels (main support and resistance levels)

(For how to accurately find major support and resistance levels, you can check my previous articles)

The purpose of finding key levels is to distinguish which stage the current market is at: early? Mid-term? Or late?

Does the target meet your profit-loss ratio?

We do not engage in losing businesses

If the profit-loss ratio is less than or equal to 1:1 (losing only 1 dollar and winning only 1 dollar)

Then just take a break

If greater than 1:1

For example, 1:1.5 (losing only 1 dollar, winning 1.5 dollars)

Then keep looking at the third step

Step three: look for signals

Generally, if you discover the market in a large cycle

Look for trading signals in small cycles to enter the market

Everyone has different strengths in trading methods

Some are good at AK47, some at M5, some at pistols, and some at sniper rifles. 00000

Even if you excel at everything

But you can't take everything to the battlefield, can you?

So precisely one or two types of strategies

Understand thoroughly, and you can still kill the enemy

Some are good at looking at moving averages

Someone is good at trend lines

Someone is good at MACD

Some are good at Bollinger Bands

Someone is good at RSI

Someone is good at KDJ+

Some are good at naked K+

All of these are possible

As long as you find the right entry signal

For example, it is a bullish engulfing pattern

Or it could be a Pinbar

Or it could be a 2B rule breakout

Then you need to quickly formulate your trading strategy

A complete trading strategy includes

(1) Target - what to trade;

(2) Position - how much to hold;

(3) Direction - long or short;

(4) Entry point - at what level to trade;

(5) Stop loss - when to exit a losing trade;

(6) Take profit - when to exit a profitable trade;

(7) Countermeasures - how to deal with emergencies;

(8) Follow-up - operations after the trade ends.

After formulating the strategy

Next, what you need to do is execute, then wait

Be patient and strictly follow trading discipline

(For complete trading discipline, please reply 'discipline' in the public account)

Quietly wait for the market to develop towards your expected target

With the passage of time

There are only two outcomes:

Losses are normal trading costs and very normal. If you lose: summarize experiences, accumulate lessons, and become braver. If you earn, take the profit, you can add to your position or adjust your stop loss to seek more profit.

A trading process is complete; this is the famous TLS technical analysis method: trend + key positions + signals = successful trading

Step four: practical operation

Talk is cheap; let's give an example

Let's take the wave of Bitcoin from May 26 at the beginning of this month as an example

I personally captured this wave of the market successfully and made a profit! So it left a deep impression

We found on the daily chart that although the overall market is in a volatile state

But the current trend is a rapid rise

It belongs to a one-sided market

Step one of looking at the trend is complete

Then we need to look for key levels

We found a support level on the daily chart (yellow zone), two resistance levels (purple zone). The current price (36847) is very close to the first resistance level and has closed with a strong bullish candle, indicating strong upward momentum.

Then let's search for a little cycle

Is there a possibility of breaking through the resistance level?

Next comes the third step: looking for signals

We found on the 4-hour chart that at the closing time of February 3 at 20:00, it formed a rising three-method plus a bullish candlestick pattern

This indicates the performance of the early to mid-phase of the rise

And this round of upward momentum is good, with strong bulls

We have reason to believe it will reach the first resistance level 37200-38200

Plan to enter with a light position and try

Let’s calculate the profit-loss ratio



We choose to enter on a breakout at 36854

Take profit point 38192

Stop loss point 35937 (the opening price of the third line in the upward three-method structure serves as support, which is also the highest point in the pattern). Profit-loss ratio: 36854 minus 35937: 38192 minus 36854 = 917:1338

Approximately 1:1.46

Although it is not too high, it is also greater than 1:1

We decide to enter the market

The trading strategy is as follows:

(1) Target - BTC;

(2) Position - 0.1 BTC;

(3) Direction - long

(4) Entry point - 36854;

(5) Stop loss - 35937;

(6) Take profit - 38192;

(7) Countermeasures - If the closing of the next candlestick inserts more than 50% into the previous bullish candle, sell high, abandon this trade, and ensure to manually close the position while in floating profit;

(8) Follow-up - If the market stands above the first resistance level and continues to strengthen, continue holding or reduce positions slightly, depending on the specifics.

Then sleep soundly and wait for the market to provide us with feedback

The next day after getting up (February 4, 12:00, I usually sleep in the second half of the night and get up at noon)

The market successfully hit our take profit point 38192, with the highest point reaching 38288

Successfully exited

This trade does not include fees and profits

(38192-36854)*0.1=133.8USDT

It hasn't ended, etc.,

Let's see what kind of patterns the market will produce in the first resistance level area

Is it a triangular fluctuation? Or is it about to break down? Or continue to rise? 00

Oh! So it turned out to be a drop and rebound

The center of gravity has not shifted downward

And we have ruled out the possibility of a false breakout (technical points can refer to my previous articles)

We decided to try entering the market again

Speculating the profit space for the next resistance level (40000-41000)

Start looking for entry signals

Indeed

The market has given us a bullish engulfing pattern

And the following big bullish candle is almost a shooting star

If we still choose the breakout entry mode

I would place the take profit at 40471

Place the stop loss at the bottom of the current resistance level (which has turned into a support level) at 37201

Calculate the profit-loss ratio:

38291 minus 37201: 40471 minus 38291 = 1090:2180 = 1:2

A profit-loss ratio of 1:2 is still quite good

We decide to enter the market

The trading strategy is as follows:

(1) Target - BTC;

(2) Position - 0.1 BTC;

(3) Direction - long;

(4) Entry point - 38291;

(5) Stop loss - 37201;

(6) Take profit - 40471;

(7) Countermeasures - If the closing of the next candlestick inserts more than 61% into the previous bullish candle, sell high, abandon this trade, and ensure to manually close the position while in floating profit.

(8) Follow-up - If the market stands above the first resistance level and continues to strengthen, continue holding or reduce positions slightly, depending on the specifics.

Leave the remaining time to the market

We will wait and see

Indeed

The highest price reached 40849

Successfully hitting our take profit level, exiting smoothly

This time I made a profit of 2180 points, 218 USDT

Then we found that immediately followed by a large bearish candle, which proves that the price has no strength to stand above this resistance level

At least it hasn’t shown on the 4-hour level due to the inability to short in spot trading

This round of market trading concludes here

Total profit 133U + 218U

In just 2 days, the performance is quite good

So you see?

Is trading really that difficult?

Not so

As long as you clarify which wave you are following?

Your logic is very clear

100% trust the strategy you formulated

Then just execute firmly

Some might say

This is purely hindsight

I have nothing to say about this, and I am too lazy to post a trade to prove anything

If you have read my previous technical analysis articles

You won't believe this is hindsight

And you can find out why the stop loss and take profit points above are set that way.

Why is the follow-up defined this way?

Finding the major support and resistance levels?

What does it mean to break the low and rebound?

How to draw trend lines?

aanaa

What I learned before was fragmented knowledge

Today I will clarify the process of placing trades for you

Applicable at any time, on any target, in any market for easier thinking and strategy formulation

I will share a flowchart below

You can click to enlarge and save it to your phone

Every time you trade, you should set your strategy according to the process.

I believe you won't lose too badly

Forming good habits, accumulating over time, you will find the shortcomings in your trading process; work hard to change them, and you will succeed!

There is another trading method that I want to share with everyone here; hope it helps!

[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 are often influenced by psychology during operations, and when the price reaches a high, they always think they can hold on a bit longer for possibly new highs, but often the outcome is that what should have been a profit turns into standing guard at a high position. In fact, it boils down to not understanding selling points and insufficient knowledge of the market.

Therefore, today Old Nine specifically spent some time organizing four common, simple, and practical topping patterns for everyone. Mastering these will allow you to easily judge the formation of tops! In the future, you can exit at the top interval to achieve the goal of high take profit.

Everyone should remember these patterns. If you can't remember, you can save them and look at them a few more times; you will definitely gain something.

Master the heart of the market, and victory will follow

Still the same saying, if you don’t know how to act in a bull market, click on my profile, follow me, and I’ll share spot planning, contract secrets, and more for free.

I need fans, you need references. Guessing is worse than following.

Keep an eye on: $TRB FIS TON

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