There is a dumbest method of trading cryptocurrencies that is almost 100% profitable. I made over 20 million using this method!
Many people ask me about buying strategies? There really is one! This is the phased 343 position-building method:
Having confirmed the cryptocurrency to invest in and prepared the cash, for example, initially leveraging 300,000 with 120,000 allocated to BTC.
It is to use 30% of the current funds to build a position, which is 36,000 (12 multiplied by 0.3) for the first position.
If after opening a position the price starts to rise, wait for the price to pull back; do not rush to supplement. After the price pulls back, use 40% of current funds to supplement (any rise has a pullback).
If the market declines after opening a position and starts to fall, every time the BTC price drops by 10%, supplement 10% of the remaining funds (3,600) until fully supplemented. This situation is rare; of course, even if it happens, do not be afraid because it is a phased investment, and your price has been averaged out (and there is still 40% of total funds to supplement, referring to the 4321 strategy of 4). If the price starts to rise after supplementation, also wait for the price to pull back. After the price pulls back, supplement using 30% of current funds, and at this time, phased investment will be completed.
Overcome fear, control greed!!!
If you only want to sell at the highest point, you can only be trapped because you have no concept of the highest point in your mind.
The basics of K-line trading strategies in the crypto space.
Next, let's talk about the actions of the big player. To have a correct understanding, one needs a comprehensive foundation. A tall building rises from the ground; without a foundation, your logic has no support and cannot land, so it cannot be executed. Let’s start from the simplest candlestick.
What is a candlestick? A candlestick records prices over a certain period. For example, daily candlesticks, weekly candlesticks, monthly candlesticks, and shorter periods like hourly candlesticks, minute candlesticks, etc.
Candlesticks mainly have four elements: highest price, lowest price, opening price, and closing price.
Taking the daily candlestick as an example, concentrating the price fluctuations of a day on a single line is the daily candlestick.
Opening price: the price at zero o'clock that day. Closing price: the price at 24 o'clock that day.
Highest Price: The highest price reached during the day.
Lowest Price: The lowest price reached during the day.
1 is the highest price, 4 is the lowest price, 2 is the opening price, and 3 is the closing price. The space between 1 and 2 is called the upper shadow, and the space between 3 and 4 is called the lower shadow. From these four elements, various candlestick types can be derived, such as Doji, large bearish candles, large bullish candles, hammers, and inverted hammers.
These special candlestick patterns often have different meanings in different positions.
For example, the Doji candle. To analyze the meaning it represents, you must analyze the logic of its formation. When the closing price and opening price are very close, a Doji state will appear. It represents that there was not much fluctuation in price that day. Why? Market sentiment is hesitant or watchful about this price, and the big players do not want to cause large fluctuations, quietly distributing or absorbing chips. If combined with trading volume, it will be even more intuitive. It is likely to choose a direction next. Generally speaking, when the price rises for a while and then a Doji appears, it is a signal that it may drop. If it has been horizontally consolidated for a while at the bottom and then a Doji appears, it is often a sign of an upward trend.
Hammer and Inverted Hammer:
The principle of hammer formation is that the big player distributes chips to retail investors, causing the price to fall quickly. To avoid a direct collapse, they distribute while pulling the price back little by little. This lifting action also attracts retail investors to follow suit, further facilitating distribution. In the end, a hammer shape is formed, putting strong pressure on future prices. Similarly, an inverted hammer also has the function of distributing chips; opening high and attracting more, then falling back after distribution. Generally, if this shape of candlestick appears after a price rise for a while, it indicates that the big player has started to distribute chips, representing a signal to escape. If the big player finishes distributing, the price will plunge downwards, posing a risk of being trapped. Conversely, at the bottom, the same principle applies. After a period of horizontal consolidation, if an inverted hammer appears, it indicates that the big player is absorbing chips, signaling to follow in; at this time, buying and being patient often leads to good returns.
Large Bullish and Large Bearish:
After a period of washing by the big player, a large bullish candle will be pulled out. If the previous washing was sufficient, it is for the real rise, aimed at making retail investors miss out. If the previous washing was insufficient, a large bullish candle suddenly appears, often followed by a large bearish candle the next day, aimed at washing out retail investors. If you panic and sell, then your chips are mine. When I rise again, you can only watch. In fact, if retail investors do not care about the price and buy wildly, when such a situation occurs, the big player will again carry out a washing action, hanging the retail investors who chased in on the flagpole. Thus, the appearance of a large bullish candle is a charge signal from the big player. When the large bullish candle pulls back, it is an opportunity to enter. If after entering, the price experiences a sharp drop, it is a signal of washing. Supplementing appropriately can lower costs, and the time cycle for subsequent washing will be greatly shortened, so wait for the washing to end and expect profits. The large bearish candle is the opposite.
The appearance of a large bearish candle can occur in two situations: one is a false drop, aimed at scaring away uncertain retail investors, absorbing this portion of chips to achieve the purpose of accumulation and prepare for subsequent rises. The other is a genuine drop, often occurring after the top when the big player has distributed their chips. Without the maintenance of the main force, the price will plummet. The panic caused by the decline leads retail investors to flee, further exacerbating the formation of a large bearish candle. This large bearish candle has lost the participation of the main force and is the result of retail investors competing against each other.
In summary, the judgment of candlestick shapes should be combined with the current stage, whether it is in consolidation or in a rise, whether it is in distribution or in a collapse, as different stages often have different meanings.
So the question arises: how do you judge which stage the current candlestick is in?
The tactics of big player warfare in the crypto space: hitching a ride.
Let’s first talk about a trading tactic:
In the process of rising, every drop is an opportunity to enter; in the process of falling, every rise is a signal to escape.
Let's look at a few charts for a visual feel:
First, consider a question: does such a powerful big player have weaknesses for retail investors?
Yes, this weakness is the big player's throat, and what we need to do is to strike accurately.
When a big player infiltrates a cryptocurrency pair to start collecting chips, it is highly probable that this cryptocurrency pair will not reach new lows. You will know: oh, the big player has begun to infiltrate. Even if individual rare events reach new lows, they will quickly pull back. When the main force has collected enough chips, one thing the main force must do is to initiate a rise. Even if many retail investors get on board at this time, the big player has no choice but to raise it because they already have enough chips. What we need to do at this time is to join this ride and share the gains.
The previous bottom position was precisely inserted at the throat of the big player.
So when does a trend start? When a cryptocurrency pair no longer reaches new lows, it indicates that the big player has entered, signifying that the upward trend has begun. This is the trend.
Remember, once a trend starts, every drop is an opportunity to enter; do not miss it.
During the rising process, many retail investors follow suit. The purpose of the drop is to wash out, but the reality is that often when you chase at a high point, you endure losses at low points during washing, leading to the absurd situation of seeing your trading records.
Remember, in an upward trend, every drop is just a washing operation. Don't think that every drop means the cryptocurrency is failing, about to drop to zero, or going to be delisted. It is merely a washing operation, at worst a false move; why be afraid of a false move? Even if you don't know at which point to buy or sell, as long as you have this concept in mind, you have already surpassed 80% of retail investors. At least the candlestick has a broad framework in your eyes; as long as there is a broad framework, you will feel secure, and the rest is patience.
Then someone might say, this is because the candlestick chart has formed, you can naturally draw it this way. But how do you know if it hasn't formed?
Do not be stubborn, do not get stuck in a rut; think about the logic of this process!
Some say I enter at the throats and enter when it drops, but how do I judge which place is the top and when I should exit?
It is said that those who can buy are apprentices, while those who can sell are masters. Big players often act discreetly to avoid revealing that they are fleeing. Therefore, fleeing is much more challenging compared to bottom fishing. The reality is, if you happen to walk at a high point as a retail investor, that is your luck. You cannot consume the entire range from the head to the tail of the fish; eating part of it is enough for you to digest. To secure profits, one must exit before the big player flees.
As for how to judge if it is the top, one is to look at the volume, and the other is to see if the coin price will reach new highs again. I will dedicate a later article to specifically discuss how to judge the top of the big player.
The logic of the previously mentioned tactic also contains an ultimate skill: the pin bar.
Among these washing techniques, I especially favor the pin bar, particularly the large pin. Whenever I see such a pin, I have an instinctive excitement. Because I am very clear about what the main force is trying to do at this moment, I call this pattern a slingshot: the tighter the slingshot is pulled back, the farther it will shoot. For example:
So is the pin bar scary? Not scary, even a bit cute, but only in an upward trend.
Conversely, when the coin price reaches double or even triple profits, it can even reach tenfold or hundredfold profits in the crypto space. It is not an exaggeration to say that even if you can get 50% during this process, you are already at the top of the retail investor pyramid.
Once: the price no longer reaches new highs, be careful. Remember these 12 words.
Once a collapse happens, every rise is an opportunity to escape. Do not hold hopes for another small rise; do not hesitate, or you will be trapped for a lifetime.
In this realm, there is an extremely dangerous operation: betting on rebounds. The returns are not high, but the risks are enormous, akin to taking fire from a fire. The cost is not worth it.
The most practical trick for short-term trading in the crypto space; Kuige goes straight to the essentials, sharing a set of basic skills that helped me turn my fortunes around over the past decade.
Some may say that short-term operations are speculation!
First of all, I want to say that short-term trading is not speculation. Genuine short-term operations require mastering certain market operating rules and require strong skills as an investment behavior. Short-term trading truly tests a person's skill and patience. Those proficient in short-term trading must have seen many candlestick charts, studied their trends, and summarized the general rules. The rules mentioned here can only be a concept from a probabilistic perspective; it is impossible to have completely accurate judgments because the entire market unfolds across multiple dimensions such as emotions and information, and the most difficult to predict is emotions. Therefore, we can only try to make rough judgments.
How exactly should we do it? We need to learn to summarize historical trades, noting what conditions, if met in historical trades, would lead to certain trends. In this process, the role of candlestick charts is undeniable. Besides reflecting short, medium, and long-term fluctuations, the most macro aspect is that it can indicate which projects manage their market capitalization well and which projects falter after being dumped, purely harvesting retail investors.
For example, we have mentioned multiple times before that there are many forked coins of BTC; in fact, except for BCH, other forked coins' candlestick charts are not readable.
The K-lines of these forked coins have been declining since the start, with basically no fluctuations, sliding down like a slide, giving retail investors no chance to escape. From their K-line charts, it can be seen that the big players no longer hold a large amount of coins; these coins are concentrated in the hands of retail investors, so no one is lifting the price, and they have basically become legacies. Many retail investors have traded these coins from short-term to medium-term, from medium-term to long-term, and from long-term to legacies.
As a novice in the crypto space, we should pay attention to several points:
1. Ensure the probability of success first, then consider the frequency of action. Pursue quality before quantity. In short-term trading, take it step by step; the principle is to avoid large losses.
2. Be content with profits and remain rational in losses. Trading cryptocurrencies is essentially an art of regret; we cannot set our expectations too high.
3. Practice leads to true knowledge. If there are experts to guide you, asking them will lead to faster progress.
If you can do the three points above, then at least as an investor, we will not lose direction in the crypto space.
The most practical trick for short-term contract trading in the crypto space is the 'swiftly cutting through the chaos'.
In the ever-changing world of digital currencies, short-term contract trading is undoubtedly a financial game of knife-edge competition.
Players from all walks of life seize the market pulse with lightning speed, striving to achieve wealth appreciation in a short time. However, faced with complex technical indicators, massive information, and volatile market conditions, how can one navigate smoothly and become a consistent winner in the battlefield of short-term contracts in the crypto space?
Sunny day reveals the most practical trick - 'swiftly cutting through the chaos', helping you find a glimmer of hope in chaos.
1: Precise positioning, locking in target coins.
1. Stay close to hot topics and perceive market sentiment: Short-term trading is like hunting; you need to be highly sensitive to market hotspots. Closely monitor industry trends, policy changes, major events, etc., as these can trigger violent fluctuations in market sentiment, forming good opportunities for short-term trading. Once you capture a hot signal, strike decisively to 'hit while the iron is hot.'
2. Technical analysis, grasping trend direction: Candlestick charts, MACD, RSI, and other technical indicators are the 'compass' for short-term traders. By analyzing these tools, identify key support levels, resistance levels, and trend patterns such as double tops, double bottoms, and breakouts, providing a scientific basis for trading decisions. Remember, 'A craftsman must sharpen his tools before working well.'
3. Diversify investments to reduce risk exposure: Although short-term trading seeks quick profits, 'do not put all your eggs in one basket.' Reasonably allocate funds and diversify investments in multiple potential cryptocurrencies, capturing more opportunities while effectively spreading risks, ensuring 'when the east is not bright, the west is bright.'
2: Flexible operations, mastering trading timing.
1. Quick entry and exit, following the time principle: The essence of short-term trading is 'swift battles and quick resolutions', avoiding attachment to the battlefield. Once the expected profit target or stop-loss point is reached, execute the trading plan without hesitation, and do not miss the best exit opportunity due to momentary hesitation. 'Take profit while it's good, secure your gains.'
2. Go with the flow, follow the market rhythm: The market is like a tide; those who follow will thrive, and those who oppose will perish. After clarifying the trend direction, one should adhere to the principle of 'the trend is king' and avoid opposing the market trend. Even if there are occasional pullbacks, as long as the main trend remains unchanged, one should hold firm, 'no matter how strong the winds and waves, sit steadily on the fishing boat.'
3. Dynamically adjust to respond to market changes: The market is ever-changing, and trading strategies need to be flexible. Regularly review your positions and adjust profit-taking and stop-loss points according to new market dynamics, ensuring that strategies remain in sync with the market. 'There are no constant tactics in war, nor constant shapes in water.' Only by responding flexibly can one remain undefeated in a turbulent market.
3: Mindset cultivation, firmly holding the key to profitability.
1. Calmly analyze and eliminate emotional interference: In short-term trading, negative emotions such as greed, fear, and blindly following trends often become stumbling blocks to profitability. Learn to view market fluctuations with an objective and rational perspective, not swayed by others' opinions, and truly achieve 'regardless of the winds and waves, sit steadily on the fishing boat.'
2. Set goals and adhere to trading discipline: Before each trade, set clear profit targets and stop-loss points and strictly adhere to them. No matter how tempting the market is, always stick to 'plan your trade, trade your plan', and avoid falling into passivity due to sudden impulses.
3. Continuous learning, enhancing trading literacy: Short-term trading in the crypto space is not achieved overnight; it requires long-term learning and practice. Follow industry news, read classic books, participate in online seminars, and continuously enhance your knowledge reserve and trading skills. Remember, 'Learning is like rowing upstream; not to advance is to drop back.'
Sunny day suggestion: Short-term contract trading is like an exciting financial adventure, and the tactic of 'swiftly cutting through the chaos' is a powerful tool in this adventure. By precisely locating target cryptocurrencies and flexibly mastering trading opportunities, along with the cultivation and enhancement of mindset, you can navigate the world of short-term contracts in the crypto space and achieve your dream of wealth appreciation.
Remember: 'The wise plan according to the situation, while the foolish act against reason.' In the ever-changing crypto market, may every short-term contract player become a wise trendsetter!
If you don't want to lose completely in the crypto space, what kind of mindset should you have?
In the crypto space, follow your own rhythm, do not predict rises and falls, just look at the current trend, and operate according to the plan when conditions are met. At the same time, being calm, learning, patient, self-disciplined, thinking independently, maintaining a good mindset, being decisive and brave, and being good at summarizing are all essential.
Many people rush into the crypto space with fantasies of instant wealth, but fail to realize that this urgent and profit-driven mentality is precisely the beginning of failure. The true experts in the crypto space often view holding coins as a foundation, accumulating wealth step by step.
Holding coins is a stable and visionary investment strategy. When you chat with friends during leisure time and mention your involvement in the crypto space, if you don’t have even a single valuable digital currency in your pocket, how can you confidently refer to yourself as a 'crypto big shot'? This is akin to a scholar claiming to have numerous books while their study is empty, which is hard to convince. Having a certain number of quality coins is not only a symbol of strength but also a foundation for long-term development in the crypto space.
Contract trading in the crypto space is like a double-edged sword; it can be a shortcut to high profits in the short term, but it also hides huge risks. Many are attracted by the high leverage and high returns of contracts and dive in, ultimately ending up with nothing. In comparison, holding coins is more like a long marathon; although there are no thrilling moments of contract trading, persisting often yields unexpected results. Contracts may just be a chapter on the way to wealth, while holding coins is the key path to finally reaching the wealth shore.
Still the same saying: if you don't know what to do in a bull market, click on the avatar of Kuige, follow, and get the bull market spot planning and contract password, shared without charge.
