With two thousand yuan on hand, switch to around 300 USDT; everyone needs to find ways to increase value. The most direct and effective method is to use contract trading.
Amplify profits:
Step 1: We need to take steady steps and gradually increase our capital. Start with 100 USDT.
Go for hot coins, but remember to set profit-taking and stop-loss levels; if you earn, double it, for example, turning 100 into 200, then 200 into 400, and so on. But remember, only operate consecutively three times at most, because luck plays a small part in this. You might win several times in a row, or you could lose in one go. So take it easy.
Step 2: When our capital rolls to around 1100 USDT, we can start using more advanced strategies. At this point, let's try something different: a triple strategy at once.
1. Ultra-short trades.
Using 100 USDT for 15-minute rapid trades, run away after making a profit. Although it is fast, the risk is also not low; you need to choose stable coins like Bitcoin or Ethereum.
2. Single strategy.
Using a small position, like 15 USDT, for 4-hour level contracts requires a slow approach. Regularly invest in stablecoins each week; accumulating it can also create substantial wealth.
3. Trend trades.
This is our main focus. Once we find the market trend, we enter directly and rely on it to make big money. However, it's important to note that this also requires our ability to judge the market, so we need to plan the risk-reward ratio in advance.
Playing contracts in the cryptocurrency market is not gambling; you must have a systematic approach, reasonable position management, and strict profit-taking and stop-loss strategies. Using two thousand yuan to aim for nearly a million may sound difficult, but as long as you master these skills and do well in each trade, you can fully realize the dream of becoming a millionaire.
Friends who have traded cryptocurrencies know that trading requires buying low and selling high to make a profit.
So how do you buy when BTC drops to ten thousand at the bottom of a bear market and then hold it until it exceeds fifteen thousand in a bull market?
Some people see this and think it’s easy; isn't it just buying and selling? But this seemingly simple strategy has experienced numerous challenges and is a severe test of human nature from start to finish.
Here is a simulation of the mental journey of retail investors:
Doubt: Can Bitcoin really fall to ten thousand? I can't think of any black swan that could bring it that low.
Fear: Wow! Bitcoin has dropped to ten thousand, will it continue to fall? Blockchain scam! Don't buy!
Conservative: Bought Bitcoin at ten thousand, now it has risen to twenty thousand; take profits after doubling to secure gains.
Missed opportunity: Sold at twenty thousand, waiting for a pullback; now it's risen to fifty thousand. No choice but to re-enter.
Satisfaction: Bitcoin has reached 100,000! It feels like it should be at its peak; I will withdraw first and leave the tail-end market for you, and make a short trade.
Greed: Bitcoin has reached 150,000! Shorting leads to liquidation; now I start going long, it will definitely continue to rise! Eternal bull market! Sell the house and go all in! The transition between bull and bear markets happens quietly. Soon the cryptocurrency market will start a new round of major corrections, and those who didn’t run in time will be trapped at the peak.
Throughout the process, Bitcoin's actual increase exceeded 15 times, but many retail investors may have only made a few times, and some may have lost their modest profits due to not exiting in time.
Let’s talk about the difference between long-term and short-term:
1. Long-term trading:
Advantages: Reduces trading frequency and lowers transaction costs; focuses more on fundamental analysis, making it more suitable for those who do not have time to monitor the market frequently; usually less affected by short-term market fluctuations.
Disadvantages: Requires a large amount of capital to cope with potential long-term fluctuations; requires patience to wait for investment results; if the long-term market trend is judged incorrectly, significant losses may occur.
2. Short-term trading:
Advantages: Offers more trading opportunities, potentially higher returns in a short time; suitable for those who can frequently monitor the market and make quick decisions; can profit from short-term market fluctuations.
Disadvantages: High trading costs due to frequent buying and selling; requires strong market analysis skills and quick response capabilities; greatly influenced by market sentiment and short-term news events, resulting in higher risks.
Here are some considerations to help you decide which trading strategy is more suitable for you:
Time investment: Do you have enough time to monitor the market and trade frequently?
Risk tolerance: How much loss can you accept? Long-term trading may face long-term uncertainty, while short-term trading may face high volatility.
Capital volume: Is your capital volume suitable for your chosen trading strategy? Long-term may require larger funds to withstand fluctuations.
Market knowledge: How well do you understand the market? Are you able to conduct effective fundamental or technical analysis?
Investment goal: What is your investment goal? Is it for long-term appreciation or short-term profit?
Ultimately, there is no single trading strategy that is suitable for everyone. Investors should choose the trading method that best suits their situation and constantly learn and adjust strategies to adapt to market changes. At the same time, also pay attention to risk management to ensure that you do not face excessive financial risks due to a single trading decision.
In fact, it doesn't matter whether you do short-term, medium-term, or long-term; the level of trading is not important.
What's important is, what are you good at?
The key is whether it can help you make money. And ability is the key to making profits.
From which direction to analyze and arrange medium to long-term?
1. Analysis of market trends.
When making medium to long-term investments, it is essential to pay attention to the analysis of support and resistance.
When the overall market trend rises and then falls, the highest point it reached before the decline is the resistance in the market at that time.
Next, if the market is likely to rise, then the lowest point before the rise is the support level. Therefore, accurately judging support and resistance can better facilitate medium to long-term investments.
However, you must remember that both support and resistance are not fixed numbers; it is best to determine them based on a range to minimize risk.
2. Types of trends help you judge the right investment timing.
Among the influencing factors in medium to long-term investment decisions, trend analysis and judgment are quite important.
Usually, there are three types of trends: the upward trend, which gradually rises from a low point; the downward trend, which gradually lowers the high point; and the sideways trend, which mainly exhibits different regions and amplitudes.
Trading in an upward trend is usually easy to profit from, while trading in a downward trend requires more caution. In this case, medium to long-term investment trading cannot be prolonged; it should be concluded quickly. Sideways trends are difficult to judge, and you must have an accurate judgment before proceeding with the trade.
3. Types of channels.
There are mainly three types of channels: ascending channel, descending channel, and horizontal channel.
These three types of channels serve different purposes in medium to long-term investment trading, and investors can make different choices based on different situations.
Investors can also create different channels based on their needs to assist themselves in completing medium to long-term investment trading. Recently, due to the volatility of Bitcoin, the cryptocurrency market has also presented many short-term 'money-making' opportunities.
However, we must clarify that while gaining profits, there are also significant risks involved, just like the recent surge in Bitcoin contract liquidations.
Because the market does not continuously rise without falling; after rising, sharp drops and corrections are common. Contract trading usually has 10 liquidation points. For the recent Bitcoin market, if you chase high or go short, it's very easy to face liquidation risks.
Therefore, I have always reminded friends to set stop-losses; risk is always the first priority.
Therefore, I think it's necessary to discuss some basic short-term operation principles that we must follow.
1. Even if the selected varieties fail in 'short-term price speculation', you can still effortlessly convert to 'long-term price investment'.
That is to say, the selected short-term varieties should be very familiar to you and ones for which you are confident in their value.
Just like Li Xiaolai holding onto Bitcoin without moving, he became the current Bitcoin billionaire because he understood it thoroughly and invested heavily because he was confident.
Because he knows the trend of its future development, he can predict the future of the cryptocurrency.
2. The key to taking profits and cutting losses is to plan in advance for 'buy' and 'sell', using investment strategies to turn 'overcoming greed' into 'guiding greed'.
In simple terms, it's about when to sell and when to buy; you need to plan clearly; otherwise, you’ll miss the right moment to exit.
Greed is something everyone has; even Feng Chu is one of them. Greed is human nature; although it is unavoidable, it can be guided. Therefore, we need to learn to guide our own greed.
3. When buying in, control the funds at about one-fifth of the personal disposable investment amount.
When investing by yourself, never invest all your money. Li Xiaolai also said that a portion of your funds should be sentenced to death, meaning that this money is essentially lost, but it does not affect your normal life.
Zhang Sanjiu's view is that if you have 100,000 yuan, you can take out 20,000 yuan for investment; this way, you have risk resistance.
4. Think ahead about the 'trigger point' for selling, sell in batches, and strictly execute.
In short-term speculation under a bear market, sell half when it doubles, then sell one-third or one-fourth for every 50% increase, just based on your mood. In a bull market, sell one-fifth when it rises to five times; first secure your capital, and for every 50% increase, sell a portion. Short-term price speculation uses people's herd mentality, so there will be pullbacks.
5. Quick entry and exit, follow the trend, take profits promptly, and avoid frequent operations! These points are also major taboos, of course, they are easy to understand from their literal meanings, so I won't explain them one by one.
Many people will say that long-term is easier to succeed than short-term; what is the reason?
One is market reasons, the other is trader's own reasons.
From the market perspective, the trend of the larger cycle will be more stable. The fundamentals of the larger cycle generally do not change suddenly; changes in the fundamentals of the larger cycle usually undergo a process of gradual development. During this process, funds are gradually attracted in to drive it. To push the trend of the larger cycle or change its original trend requires larger funds.
The small cycle trend in short-term trading is more random; the smaller the cycle, the more random it is. Because small cycle trends accommodate less capital. A wave of hourly trends within a day may change the original trend with just one data point. Many major institutions can also perform technical feints in small cycles, creating false breakouts.
I have mentioned before that you need to follow the trend, and it is important to understand the three factors of following the trend: first, define what a trend is, generally based on Dow theory or moving averages.
Trend lines.
The second is the level of the trend; hourly trends have their own trends, and daily trends have their own trends. Third, clarify under what circumstances to follow small-level trends and under what circumstances to follow larger-level trends. Following the trend means not only conforming to the definition of a trend but also following the trend of larger cycles above the daily level, as this is the direction of large funds, firm and enduring.
For us technical traders, technical analysis is more effective on larger cycles and less effective on smaller cycles. For example, in futures, the daily level with a formation built over three months has a 90% probability of triggering a trend once it breaks out, while a formation built at the hourly level does not have such a high probability of triggering a trend. If we look at the minute level, the effectiveness of the formation is even smaller. The turtle trading system has a negative expectation within the day but remains a positive expectation above the daily level. Therefore, learning to trade is easier in larger cycles, while it is more difficult in smaller cycles.
From the trader's perspective, trading is a mentally exhausting activity. We need to maintain good health and ample energy to avoid tired trading, as it can lead to confusion in thought and easily trigger gambling tendencies.
Managing risk is the only way to achieve trading profits. Risks come from two sources: one is misjudging the market, and the other is triggering emotions. Since long-term trades have a longer time interval, allowing for adequate rest and deeper thinking, this aids in maintaining clear thoughts and emotional control, thus reducing trading risks. Short-term trading, however, is relatively frequent and can be very mentally exhausting. When we are tired, it is hard to control emotions, leading to random orders and triggering gambling tendencies.
Most beginners in trading like to start learning techniques with short-term trades, often struggling to grasp the trading path for a long time. If they switch to long-term trading, it becomes easier to find the trading road.
Why do most beginners prefer to start with short-term trading? Beyond human nature, there is also an underlying issue of capital threshold. Long-term trading requires a higher capital threshold.
Large funds are suitable for long-term trading. Normally, in long-term trading, stop-losses will be set relatively high, which requires lighter positions. Following the trend with lighter positions is suitable for large funds because a large fund can fully capitalize on a major trend in a larger cycle, earning 20% in a year is already good. However, for small funds, even 20% is insufficient for most market entrants, making trading less worthwhile. Small funds need to be fully utilized, which inevitably leads to heavier positions and increased trading frequency, capturing both the main wave and adjustment wave of a large cycle trend, which is suitable for short-term trading. This is why many newcomers to the market find themselves in short-term trading out of necessity. Ironically, without mastering trading, they engage in short-term trading, heavy positions, and frequent trades, which are the main reasons for beginners’ losses. But if they learn to trade, I do not believe that heavy positions and frequent trading are untouchable taboos.
The 3-step 'pullback confirmation' rule allows you to easily avoid liquidation traps, with a profit rate soaring to 90%!
In this magical realist world of cryptocurrency, some people become rich overnight, while others leave in silence. Today, we are not discussing metaphysics or 'wealth codes', but rather a hardcore technique that can instantly elevate your trading strategy—the 'pullback confirmation' rule.
Step 1: Learn to 'read the chart' and find your 'golden ratio'.
Candlestick charts in the cryptocurrency world are like ECGs, concealing countless secrets between rises and falls. The so-called 'pullback' refers to the price testing support after breaking through a crucial position, like a spring retracting. At this time, you need to closely monitor two lines: the moving average and the trend line.
Moving averages reflect the market's average cost. If the price pulls back and does not break the moving average, it's like a diver lightly tapping the springboard; after building energy, there is often a second explosion.
Trend lines are the boundary between bulls and bears; when the price pulls back to the trend line and rebounds, it indicates that the main funds are secretly laying the groundwork.
Remember, 'online bearish lines are opportunities, while offline bullish lines are traps.'
Step 2: Wait for the 'confirmation signal'; don't be an anxious leeks.
The confirmation signal after a pullback is like 'the other party is typing' during a date—teasing yet requiring patience. There are two key indicators here:
Decreased volume during pullbacks: When prices adjust, reduced trading volume indicates weakened selling pressure; the main force has not fled.
Indicator resonance: MACD golden cross.
RSI.
Technical indicators such as exiting the oversold zone synchronize to send bullish signals, which is the true 'timing and location'.
If during the pullback the market is in a state of despair, and you find that the price 'has stopped falling', congratulations, this may be the main force acting in a tragic play, just waiting for you to hand over your chips.
Step 3: Position management, be a 'playboy' type trader.
Even if the pullback confirmation is perfect, remember: 'Love will not disappear, but money will.'
Test the waters with initial positions: use 10-20% of your position to test the waters, avoiding a full investment that could lead to being harvested in the opposite direction.
Gradually increase positions: When the price moves in the expected direction, gradually add more, like eating steak, cut into small pieces and chew slowly.
Stop-loss iron rule: Set a stop-loss line of 3%-5%; once it is broken, exit immediately, don’t fall in love with the market.
Finally, let's talk about some painful truths.
There are no guaranteed strategies in the cryptocurrency world; it's all a game of probabilities. The essence of the pullback confirmation rule is to use rules to combat human nature—be calm when others are panicking, and restrain yourself when others are overexcited.