Perhaps in some people's eyes, retail investors are always lambs to the slaughter!
The crypto circle is a place where the fittest survive. The barrier to entry is low, and everyone can enter the crypto circle, but not everyone can make money in it. It requires long-term accumulation and constant learning.
Many people come to the crypto circle with the dream of getting rich overnight. Of course, some people have succeeded, but in most cases, it can only be achieved through "pyramiding." Although pyramiding is a theoretically feasible path, it is by no means an easy one.
Pyramiding is a strategy suitable for use when a big opportunity arises and does not require frequent operations.
One, Judging the timing of pyramiding.
Pyramiding is not something you can do whenever you want. It requires a certain background, conditions, and high odds of winning.
Two, Position Management.
Reasonable position management includes three key steps: determining the initial position, setting position adding rules, and developing position reduction strategies.
Three, Adjusting Positions
1. Choose the timing: Enter when the market meets the pyramiding conditions.
2. Open a position: Open a position based on technical analysis signals, choosing a suitable entry point.
3. Add to position: Gradually add to your position as the market continues to move in a favorable direction.
4. Reduce position: Gradually reduce your position when the predetermined profit target is reached or the market shows a reverse signal.
5. Close Position: When the profit target is reached or the market shows obvious reversal signals, close the position completely.
Four, Risk Management
Risk management is mainly divided into two parts: control of the total position and allocation of funds. It is important to ensure that the overall position does not exceed the acceptable risk range, and to allocate funds reasonably, without investing all funds in a single operation. Of course, it is also necessary to monitor in real-time, pay close attention to market dynamics and changes in technical indicators, and flexibly adjust according to market changes, stopping losses or adjusting positions in a timely manner when necessary.
So how can small funds be made big?
Here I have to mention the effect of compound interest. Imagine if you have a coin and its value doubles every day, after a month, its value will become extremely astonishing. The first day the value doubles, the second day it doubles again, and so on, the final result will be astronomical. This is the power of compound interest. Even though it starts with small funds, it can grow to millions after a long period of continuous doubling.
For friends who want to enter with small funds now, I suggest focusing on big goals. Many people think that small funds should be used for frequent short-term trading to achieve rapid appreciation, but it is actually more suitable for medium and long-term trading. Compared to making small profits every day, you should focus on achieving several times the growth in each transaction, using multiples, exponential growth.
In terms of position management, the first thing to understand is diversifying risk. Don't concentrate all your funds on a single transaction. You can divide your funds into three or four parts and only use one part for each transaction. Furthermore, you need to make dynamic adjustments. If you lose, replenish the equivalent amount of funds from the outside. If you profit, withdraw appropriately. Just don't let yourself lose. Finally, you need to add to your position, but only if you are already profitable. When your funds grow to a certain level, you can gradually increase the amount of each transaction, but don't add too much at once. Transition slowly.
