As someone with 10 years of trading market experience, I should have a say. I was born in 1990, 34 years old, with a net worth of over 50 million, of which approximately 42 million was earned in the 'cryptocurrency circle.' I also experienced losses in the early stages, but I have recovered all of them!
Anyone using 'all-in thinking' to play rolling positions is bound to pay the price before dawn. The truly lucrative rolling positions utilize **reverse intuitive position control methods to compress risk to the extreme.
1. The death red line for the first position (90% of people fall here): 1000U for the first position is strictly prohibited from exceeding 50U (5%), but 95% of people can't resist directly opening 100U.
The first order must complete two actions:
Set a 0.8% price range stop-loss (specific algorithm table can be downloaded).
Pre-embed 3 levels of supplementary orders in the trading pair (price intervals need to be calculated based on volatility).
2. Volatility tearing strategy.
When the 4-hour volatility breaks through the historical average of 200% (a common phenomenon in 2024 for SOL ecosystem coins), initiate the 'three-tiered fission add-on': first position of 50U (5%).
If you have any questions about floating y5, feel free to ask directly. When at 0%, add 150U (total position 20%).
Add positions when breaking through previous highs with 450U (total position 65%).
The third position must align with the on-chain chip concentration indicator; the identification method needs to be explained separately.
3. Fatal stop-loss discipline.
All liquidations stem from 'not leaving when you should.' My life-saving rule:
When the total profit reaches 300%, forcibly withdraw the profits of this j + 50%.
- Enable the 'Mobile Kill Line' for remaining positions: for every 10% increase, the stop-loss line moves up by 7% (the specific parameter table has been updated). Set automatic profit-taking between 1-3 am.
The skill is to understand the inner meaning of one or two technical indicators and interpret the underlying rules of the cryptocurrency market.
It organically combines with operational strategies and serves as a tool for speculation in the cryptocurrency sector.
What truly changed my destiny was a day four years ago! From then on, I reclaimed everything I had lost!
1. Timing: Enter the market when the market meets the conditions for rolling positions.
2. Open positions: Follow the technical analysis signals to find the right time to enter the market.
3. Add positions: If the market moves in your direction, gradually increase your position.
4. Reduce positions: When you have earned the predetermined profit, or when the market seems off, slowly sell.
5. Liquidation: When you reach your target price, or when the market is clearly about to change, sell everything.
After making money, consider adding more: If your investment has risen, you can think about adding more, but the premise is that the cost has already decreased and the risk is low. It's not about adding every time you make a profit, but about adding at the right moment, such as at breakthrough points in a trend, and quickly reducing once it breaks out, or adding during a pullback.
Base position + trading: Divide your assets into two parts, keeping one part untouched as a base position, and trading the other part during market price fluctuations, which can lower costs and increase returns. There are several ways to divide:
1. Half position rolling: Hold half of the funds long-term, and trade the other half during price fluctuations.
2. 30% base position: Hold 30% of the funds long-term, and trade the remaining 70% during price fluctuations.
3. 70% base position: Hold 70% of funds long-term and trade the remaining 30% during price fluctuations.
The purpose of doing this is to optimize positions while utilizing short-term market fluctuations to adjust costs.
In position management, the first step is to diversify risk; do not put all your funds into one trade. You can divide your funds into three or four parts and only invest one part each time. For example, if you have 40,000, divide it into four parts and use only 10,000 for each trade.
Today, I will teach you a simpler and more brutal way to make money.
Just remember one thing!
I have been involved in virtual currencies for over 2 years.
Overall, a win rate of over 80% can be achieved.
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Let's first look at the principle of the moving average system. Taking the 5-day moving average as an example, '5' refers to the closing prices of 5 candlestick charts, and 'day' refers to the selected candlestick chart scale, which is daily level. Similarly, the 5-hour moving average is the closing prices of 5 candlestick charts on the hourly line. The average of the 5 closing prices is taken and marked, then moved forward one candlestick, and calculated again. After recording this cycle, connecting these averages forms the moving average.
The moving average uses the average closing prices over a period of time to graphically describe the direction of price changes. Normal trading software will usually set this indicator on the market chart by default, with typical settings being 5, 10, 60, and 120 lines. The larger the number, the longer the averaging period, and the slower the response to changes.
Using moving averages as a trading system involves two steps:
(1) Judging trend direction: When long-term moving averages, such as the 60-120 period moving averages, are trending upwards, it indicates an overall market uptrend. When long-term moving averages are running sideways, it indicates that the recent trend is not obvious and is in a consolidation period.
(2) Judging buy and sell points: When the short-term moving average crosses above the long-term moving average, it is considered a bullish buy point; when the short-term moving average crosses below the long-term moving average, it is considered a bullish sell point or a bearish sell point.
For example, use the 60-day moving average as a long-term moving average to judge the trend. If the moving average is slowly rising, it indicates that the market may continue to rise, and one should go long. When the 5-day moving average crosses above the 60-day moving average, execute a buy operation. As long as the 5-day moving average does not cross below the 60-day moving average, continue to hold. Until the moment the 5-day moving average officially crosses below the 60-day moving average, execute a sell operation.
Some experts in the stock and futures markets only use one moving average, such as the 20-day moving average. Assuming the trend direction is upward, if the candlestick price exceeds the 20-day moving average, execute a buy. Hold until the price crosses below the 20-day moving average.
Taking this chart as an example, in mid-November, the 60-day line is moving up, and the 5-day moving average crosses above the 10-day moving average, so you buy. During this process, the 5-day moving average has been consistently above the 10-day moving average, so you hold. Until December 21, when the 5-day crosses below the 10-day moving average, you sell.
Doesn't it look impressive? But there is always a price to pay for the fun.
Most investment technical books stop here. They only show you the best cases and then leave you confused when you operate.
I would never do such an unethical thing because the readers of 'Coin Ma Wen' are opinionated cryptocurrency friends, and you must dig deep.
Next, let’s continue to the right. On December 21, when the 5-day crosses below the 10-day, you are holding substantial profits, thinking the moving averages are so strong, you must continue. Finally, on December 28, the 5-day line crosses above the 10-day line again, and the 60-day moving average is still rising, so you buy and open a long position, thinking there will be another wave of multiples. However, unexpectedly, the market turns immediately, and two days later, on December 30, the 5-day line crosses below the 10-day line. Fortunately, your action was quick, and you only lost 20%.
Next, on January 1, 2018, it crosses again, and you go long; on the 11th, it crosses down, and you liquidate. Looking at the account, surprisingly, you didn’t make any money.
Let me help you calculate the total account: a total of 3 operations.
(1) The first time profits are substantial, that’s the market giving it to you, pure luck. I don’t know when the next time will be.
(2) The second time, lose 20%.
(3) The third time, neither profit nor loss.
Overall success rate is 33%. Do you think the win rate is too low? In the past, I ran historical data simulations of dual moving averages using a program trading model, and the average win rate in stocks, futures, and forex was only over 41%. This means that, from a probabilistic perspective, operating with a dual moving average model is likely to lose.
How do those experts make money using dual moving averages or even single moving averages? The answer is position control. If through superb position control techniques, you can limit losses to only 10% when losing money, while making 100% when profitable, then theoretically, a speculative technique with a winning rate of only 20% can still yield stable profits. A friend of mine in the futures industry has a speculative strategy with a win rate of just over 30%, yet achieves an annualized return of 30%.
The pitfall of the dual moving average system is that the values of moving averages are calculated retrospectively, which always leads to a lagging issue. In a clearly trending market, moving averages can effectively indicate the direction. However, during volatile markets, especially during significant fluctuations after a large trend, moving averages can become chaotic. During this time, it becomes very difficult to judge tops and bottoms, and one may face confusion of selling and then seeing prices rise, or buying and then seeing prices fall. At this point, more advanced technical analysis tools are needed for assistance. Tomorrow we will continue discussing MACD, using more advanced techniques to compensate for the shortcomings of moving averages.
Once you grasp the truths of the cryptocurrency market, the goal of making 20 million is not far away!
1. Properly manage the division of your funds, which is very important. For example, if you have 100,000U, divide it into 5-6 parts and use 20,000U for each trade.
2. Use one part of the funds to buy a cryptocurrency at the current price.
3. If the coin price drops by 10%, buy another part.
4. When the coin price rises by 10%, sell one part.
5. Repeat the above steps until all funds are used up or all coins are sold. Under this strategy, once you buy, even if the coin price drops, there is no need to worry, because if the coin price drops, we will continue to buy. In fact, if all five parts of funds are used up, the coin price has likely dropped by nearly 50%.
Unless faced with a market crash, cryptocurrency prices will not drop that quickly. From a profit perspective, every time funds are sold, they can bring about a 10% gain.
For 100,000 total funds, if you use 20,000 each time, you will gain 2,000 in profit for each sale.
However, this strategy also has certain problems.
A 10% fluctuation range is relatively large and may lead to trading not being easy to execute, thus requiring longer waiting times.
This will affect the efficiency of capital usage, as funds may remain idle for a long time or be continuously occupied by individual currencies. However, this issue can be resolved by narrowing the fluctuation range.
For example, you can choose to buy stable cryptocurrencies and invest in Binance financial products when funds are idle.
This way, you can earn additional income while waiting for coin price changes.
Four major techniques for liquidating cryptocurrency positions.
(1) Strategy guidance for short-term liquidation: timeliness.
If you completely misjudge a wave of market trends, you should quickly look for an opportunity to exit and adjust your trading direction; this is very important. If you sense that the wind is not right, decisively liquidate to avoid further losses from continued one-sided price fluctuations. Cutting losses requires a certain level of wisdom; only decisively exiting can preserve your account's principal, and investors should consider comprehensively. Short-term investors in a one-sided market should also pay attention to stop-loss and take-profit strategies; sometimes, if you do not take action, the longer you hold, the greater your losses will be.
(2) Strategy guidance for long-term liquidation: patience.
When you clearly see the big trend (for example, the market looks bullish), you need to stabilize your mindset. In fact, when your position is stuck in a small trend (the market has a downward wave), you can choose to cut losses and close it. Never be too impatient for quick gains; choose to enter at a lower price to earn some degree of price difference, and potentially capture profits from the big trend, which is a favorable situation for investors.
(3) Strategy guidance for wave segment liquidation: accuracy.
Mastering the strategies for stop-loss and take-profit in cryptocurrency trading actually requires adapting to individuals and circumstances. The wave segment operation method is applicable to various trapped situations, but it needs to be used flexibly, and everyone needs to accurately judge market trends, especially in volatile markets. In simple terms, this means relying on price fluctuations to achieve profit through price differences.
(4) Strategy guidance for light position liquidation: flexibility.
Using idle funds to lower costs is also a very good method. As long as the operation is proper, one can liquidate as soon as there is a rebound opportunity.
Seven essential factors for trading cryptocurrencies in the market! A must for both new and old traders.
First, if a strong currency drops for 9 consecutive days, be sure to follow up in a timely manner.
Second, whenever a cryptocurrency rises for 3 consecutive days, it must be timely to reduce positions.
Third, if any coin rises more than 7%, the next day you can still gain a few more points.
Fourth, for strong bullish coins, wait until the pullback ends before re-entering.
Fifth, if any coin has no fluctuations for three days, observe for another three days; if it doesn't improve, switch.
Sixth, if any coin does not recover to the previous day's cost price the next day, it should be sold.
Seventh, there are always five after three rising ranks; if there are five, there must be seven. For coins that rise for two consecutive days, buy on dips; the fifth day is generally a very good selling point.
In summary, when investing, it is important to have reasonable references and a guiding direction, to take profits and stop losses in a timely manner, ensuring that profits are realized. This is a very important investment skill; at the same time, when analyzing market conditions, we should consider various aspects, integrating technical and news perspectives to improve the accuracy of market trend predictions, enabling us to operate in line with the trend and earn profits.
Words of wisdom from veteran traders - Leave a way out: Always keep 30% cash; it’s essential for bottom fishing in bear markets and survival in bull markets - Don’t follow the crowd: 'Insider news' is 90% a scam; doing your own research is better than anything - Don’t be greedy: Once you make money, withdraw a portion, and use the rest as game chips.
Gift giving.
Follow Wu Ge closely, use precise strategic analysis, and select through massive AI big data to ensure you remain unbeaten. The market never lacks opportunities; the question is whether you can seize them. By associating with experienced and the right people, we can earn more!
