If you plan to invest in the cryptocurrency world, you must take a few minutes to read this response thoroughly, as it may save you and your family. Countless originally happy families have faced ruin due to unrealistic fantasies of getting rich quickly in the cryptocurrency world. The high risk and volatility in cryptocurrency far exceed those in traditional investments; entering recklessly can lead to total loss. If you genuinely want to develop in the trading field for the long term, dedicated learning is essential. You must not only solidly grasp basic knowledge and deeply analyze news but also systematically study technical indicators. Without in-depth research and financial planning, your capital will ultimately be consumed in market fluctuations, leaving you with no option but to leave in disappointment. Some classic technical indicators have stood the test of time for a reason. For example, the divergence signal of MACD can help investors identify potential reversals in market trends; the overbought and oversold signals of KDJ can indicate whether the short-term market is overheating or overcooling; judging support and resistance levels can help grasp the price fluctuation range. Although these indicators cannot guarantee profits, they provide a mature quantitative analysis framework for investors, pointing out investment directions. Many people fantasize about making millions or even billions in the cryptocurrency world overnight, but investments must be grounded in reality. When you have 1 million in capital, even without using leverage, a 20% increase in the spot price can yield 200,000 in profits, which is already the ceiling of annual income for most people. Avoid unrealistic daydreaming; rational investment is the right path.
When it comes to rolling positions, one must be cautious. Currently, there are only three situations suitable for rolling positions:
Choosing direction after long-term consolidation with new lows in volatility: After a long period of sideways consolidation, once volatility decreases to a very low level, if the price chooses a breakout direction, rolling positions with the trend can capture the trend.
Buying the dip after a significant drop in a bull market: In the context of a bull market, a short-term major pullback is often a good opportunity to add positions, but the timing for buying the dip should be assessed based on the overall market trend and technical analysis.
Breaking through major weekly resistance/support levels: When the price effectively breaks through important weekly resistance or support levels, it indicates that the market trend may change, and rolling positions can effectively follow the trend to profit.
In addition to identifying the right timing for rolling positions, mastering the correct rolling method is also crucial:
Adding positions on floating profits: When a position generates floating profits, consider adding to it. However, ensure that the cost of the position decreases after adding, and do not blindly add positions just because there are profits; the timing for adding should be judged in conjunction with market trends and technical indicators.
Base position + T trading rolling operation: Allocate funds reasonably, keeping a certain proportion of the base position unchanged, while using the remaining funds for high selling and low buying operations. Depending on your risk tolerance and capital size, you can select strategies such as half-position rolling T trading, 30% base position rolling T trading, or 70% base position rolling T trading to reduce holding costs and increase returns.
Investment in the cryptocurrency world is full of temptation and risk. Only by maintaining rationality and making adequate preparations can one move steadily in the market.
