Many people feel that they have no money, and coming to the cryptocurrency circle to trade is a way to make money quickly.
This is a completely wrong perception.
Suppose you only have 10,000 yuan, and you work hard in short-term trading and watch the market for a month, with a 55% win rate, a 1:1 profit and loss ratio, and you make 100 transactions, then you will only earn 5,500 yuan. This is still an ideal situation, without considering the possibility of losing money in the end.
But if you work hard in this month, even if you deliver food, you can earn at least 5-7K.
Therefore, even if you have a long-term stable and profitable trading system, if your capital is small, the best strategy is still to work to accumulate capital first, and then consider entering the market.
Every novice who wants to make a living by trading full-time will inevitably fail! The reason is that the capital is too small.
Never trade before you have capital. The first thing you need to do is to accumulate capital through various methods. I wrote about various methods of accumulating capital in yesterday’s article.
People who have no money and no resources are actually very suitable for self-media. If you don’t know how to do self-media, that’s also simple. Just start by imitating others. The more you imitate, the more you will become proficient.
With traffic, you can make some money by collecting commissions, starting a community, and selling courses.
After you have the capital, if you still want to try trading, then today I will talk about my superficial understanding of trading.
Many people tell you that the market is a random walk, and no matter what you do, the chances of winning or losing are 55-50, so you can't make money.
That’s true, but also not true.
Because the market has two states: random and non-random.
The non-random state occurs through an event, and you can predict the next short-term market conditions. For example, if there is a new listing on Binance, a large amount of liquidity will be locked in BNB, and the dealer may just spend a little money to pull up a few points to slowly distribute chips to make a profit, and then slowly absorb chips and buy them back after the event ends.
A certain token is about to be delisted from a well-known exchange. After the market has risen and fallen sharply, there will be inertia, and this inertial market is also a little profit that can be seized.
Once a coin is listed on the contract market of a major exchange, it will usually be pulled up and there will be some inertial profits.
For some air coin projects, if you analyze them carefully, you will find that the valuations are too high. Whether the market makers push up or dump the market, this is obviously a probabilistic trend rather than random.
For example, if a new coin issuance platform like Virtual rises, the market value of this token will rise, and the token AIXBT in the same sector with a low market value will definitely show the same trend. This is a non-random state. The premise is that you have played the new coin issuance on the Virtual platform and understand its usage requirements.
When the market is falling, the market is not good, and the news is not too good, some coins have not fallen, and some coins have fallen a lot, so you can ambush short orders, and vice versa. For example, AI concept coins are all hotly speculated, and NFP has a market value of 30 million and has never been speculated. So it has limited declines and a high possibility of rising, which is easy to be manipulated. If you have experience to identify the intentions of the dealer, this coin is not random to you.
There are various ways to judge the non-random state of the market, and you can slowly review and summarize them yourself.
When faced with non-random situations, you are not 100% sure to make money, but the probability is in your favor. If you persist in doing it, you will definitely make money.
There are very few time periods in non-random states. Most people trade in a random state, watching the market day and night, trading at high frequency and high leverage, and ultimately end up losing money.
This non-random state applies to a few people. Some have experience in how events affect the market, and some have information advantages. So for them, it is a non-random state. But for a newcomer, the market is a random state.
After all I have said, there is only one conclusion: when you are facing random market conditions, you have no advantage and the odds are 55-50, so you cannot make money.
If you want to make money, you have to find a non-random market to trade. You have to have enough imagination to infer the market trend from subtle information, which is of course a difficult thing to do.
Because trading is inherently difficult, this is money that is within the scope of cognition.
Want to double your account, want to eat big money, want to successfully return your investment
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