Today I will share my trading strategies and insights with my friends in the crypto community.
There is a saying, standing on the shoulders of giants saves you ten years of struggle.
At the end of the article, I will also discuss the most important techniques and methods.
For those who are lucky enough to see this and want to improve their crypto skills, be sure to read carefully and consider bookmarking!
Survival rules:
Use 2% position for trial and error (maximum loss of 2000 on 100,000 each time).
Set automatic take profit and stop loss (don't trust your instincts).
Establish a trading log (record the emotions of each operation)
Weekly review (analyzing which operations were influenced by emotions)
Path of evolution:
▫️Beginner: Crying from market abuse (90% fall here)
▫️Intermediate: Learning to trade with discipline (6% can achieve this).
▫️Advanced: Unfazed by fluctuations (ultimate players at 0.9%)
▫️God-level: Harvesting emotions (top of the food chain at 0.1%)
The market will not punish you, but it will definitely teach you.
Some say the market is the fairest teacher. It will not punish you for your mistakes but will repeatedly give you the same lesson until you truly learn.
There is no 'secret' to trading, and there are no 'shortcuts' in the market.
Do not let temporary gains or losses break your defense; the crypto space is a game against the market as well as against yourself.
The fluctuations of K-lines in the crypto world not only represent the trajectory brought by investment funds but also record the changes in investors' mindsets. The fear of missing out causes people to buy at highs, while fear makes them sell at lows. Those who can survive and thrive in the crypto space are often those who can control their emotions and persevere.
These investors have clear trading strategies and strict entry and exit standards, which is what many people refer to as an investment system. They do not just look at immediate benefits or follow the market's short-term fluctuations. A lucky mindset might allow such people to win a bet once, but it will definitely not enable them to survive long-term in the crypto space.
Draw precise trendlines and refuse to be a victim!
One, downtrend line.
I believe many friends know about trendlines, but what is their main function? Today I will explain it. Trendlines are primarily used to determine medium to long-term trends, with the key points being: marking support and resistance levels.
Take a look at this chart: This is the BTC 4-hour cycle chart, the straight line is the downtrend line, and every time the price approaches the red circle, it falls back. Therefore, this downtrend line is currently the resistance level for the price.
From the above chart, we can see that the current price is not far from the trendline. If the price reaches near the trendline in 4 hours, without asking or thinking, it must be a short position, because this line is a downtrend line. A downtrend line is used to determine the market's downtrend.
Two, uptrend line.
Look at the chart below, this is the HT 4-hour cycle. From the chart, we can see that every time the price falls back, the lows are above the blue line. Once it touches the blue line, it will rise. Therefore, the blue uptrend line is an important support level for the price.
So if the price falls back to the uptrend line, will it receive support? Once it holds, we can consider entering a long position, aligning with the uptrend.
Three, how to draw lines.
After introducing the uptrend and downtrend lines, everyone may wonder how to draw these trendlines.
Two points make a line. This is the simplest way to draw lines! However, this method has obvious drawbacks and lacks reference significance.
To draw a high-quality trendline, a good method is to find three clearly formed points, which are the highs or lows of price fluctuations and can connect to form a clear line. For example, in the BTC 4-hour cycle chart below, we draw a line through two points in the chart.
Next, we want to verify whether this downtrend line is useful and valuable! So we need to find a third point to validate it.
By extending the trendline, we can see the third point: the green circle, which is also on this trendline. Thus, we can conclude that this blue downtrend line is effective and valuable for the current market situation!
