Can ordinary people change their fate through cryptocurrency trading?
Theoretically, ordinary people can change their fate through the cryptocurrency market. This is because the average annual return from cryptocurrency trading is over 10%. Long-term investment in cryptocurrencies can potentially lead to wealth due to the compounding effect. I believe that fate is what we now call freedom.
I believe that freedom = ability - desire. Even those with average abilities but extremely low desires can still feel happiness.
Ordinary people can indeed change their fate through cryptocurrency trading, but it is certainly a small number, not the majority.
Let me talk about myself! I have been trading cryptocurrencies for over ten years, from liquidation to achieving financial freedom through trading. By 2024, my funds multiplied by 50 times; if it weren't for two withdrawals to buy houses, it should have been 85 times.
Ten Essential Rules for Profiting from Cryptocurrency Trading!
1. Entry Criteria: In the cryptocurrency market, safety is always the top priority! When building positions, be as cautious as climbing stairs; the first investment should not exceed 10% of total capital and always set a stop-loss line. A stop-loss is like a lifeline, preventing significant losses at critical moments; without it, risks multiply.
2. Bottom-Fishing Techniques: When bottom-fishing, be careful not to be misled by false signals! Always combine weekly and daily validations, observing whether trading volume shrinks and if MACD shows a bottom divergence. Only confirm it’s a real bottom before acting; otherwise, you might get caught halfway up the hill.
3. Wave Trading Points: When engaging in wave trading, after the price breaks through the previous high, first lock in 30%-50% of profits to prevent retracement. If there is a sudden drop exceeding 15%, you can buy the dip in batches; during sideways phases, use a 'grid trading' strategy to repeatedly earn the price difference and improve capital utilization.
4. Position Mentality: The sideways phase is often the calm before the storm; never easily give up your chips! The market may be building strength, and a main upward wave may start at any time. If you trade frequently, you might easily miss significant upward opportunities; patient holding is the best strategy.
5. Profit-Taking Techniques: During a surge, don't let greed cloud your judgment! When profits reach 10%, first move the stop-loss to the cost price to ensure no losses. Then, for every 5% increase, adjust the profit-taking line once, allowing profits to continue running while avoiding profit retraction.
6. Top-Up Method: When prices drop, it's essential to have a strategy for topping up! Use the 'Pyramid Top-Up Method'; the first top-up should not exceed 50% of the base position, and subsequent top-up amounts should decrease while widening the price gap. This way, you can lower costs while avoiding exhausting funds too early.#币安HODLer空投ERA
7. Observational Approach: When encountering a range-bound market, do not trade blindly! You can temporarily switch funds to stablecoins or participate in DeFi mining to maintain liquidity. Wait until the trend clarifies before entering the market to avoid repeated losses in a volatile market.
8. Periodic Patterns: The market's cyclical patterns are evident! When the coin price makes a second high and RSI exceeds 80, it's often a signal of a peak, and you should decisively take profits; on the second bottom at a low, if KDJ is below 20 and trading volume expands, you can boldly buy the dip.
9. Trading Bottom Line: Trading must strictly adhere to discipline! Remember the principle of 'Do not sell on a surge, do not buy on a plunge,' and prepare a trading plan in advance to avoid being swayed by market emotions. Impulsive trading is often the root cause of losses.
10. Intraday Strategy: Intraday trading must seize key time points! Take profits during early morning surges, be wary of false breakout traps during afternoon rises, and can try light positions during late-day declines, but never panic sell during early morning drops; patiently wait for rebound opportunities.
Gains and losses often differ little; it's just a matter of thought! However, most people are still paying an intelligence tax! Today, I will tear down this layer of paper for you, waking you from your dream! From now on, let's get back what we've lost. Here are all the essentials, straight to the point:
Today, I will share how to use the EMA indicator. I personally enjoy looking at this; learning is understanding the way!
1. Core Principle of EMA Strategy
The EMA strategy mainly uses 6 moving averages: EMA10, 20, 40, 60, 120, 250.
These 6 lines represent different trading periods' views on capital:
The 10 and 20 periods are used to capture short-term opportunities, the 40 and 60 periods are suitable for medium-term operations, while the 120 and 250 periods serve as reference indicators for long-term trends.#币安Alpha上新
The logic of this strategy is straightforward: when the direction of moving averages of different periods is consistent and a consensus for an upward trend forms, it's a signal to enter.
Once the direction of long-term and short-term moving averages diverges, timely exit is necessary, waiting for the next consensus to form.
2. Indicator Diagram Explanation
Taking BTC as an example, on May 14, 2024, the first consensus was formed.
At that time, all periodic moving averages were diverging upwards, forming a signal to enter a long position. But soon, the short-term moving averages turned, creating a divergence with the long-term moving averages, which is a signal to exit.
This time, due to the trend not sustaining, there was no profit.
The next consensus occurs at this time.
During the second consensus formation, after a pullback, all moving averages once again synchronized upwards, subsequently leading to a short trend.
There has been a continuous supply-demand imbalance until a divergence occurs after a day. Following our rules, we believe that funds will exit, so we also need to exit.
According to this set of indicators, simply trading spot can yield a 6% profit; if using contract trading, the returns will be higher.
The latest market signals indicate that a new moving average bullish arrangement has appeared in the market. Although the K-line trend appears to be fluctuating, fundamentally, it is a battle of direction between bulls and bears. Once a clear consensus is formed, the market trend will become apparent. This is the core logic of the EMA strategy: capturing market consensus and divergence through moving average arrangement.
As shown, we can see that the market has formed a consensus, marked by the formation of this EMA bullish signal. From the candlestick analysis here, the market is indeed very conflicted. We can understand that many parties are in a game, watching the direction. After multiple consensus formations, some people feel it's not on the right track, leading to divergence again, and this continues to be a conflict of direction. Eventually, a breakout occurs, forming a consensus, and the direction is established.
In the candlestick chart, what we see may be individual bars, but each bar above is drawn with money by us technical investors participating in and tracking the entire market. This is a strategy that forms investment consensus - forms divergence; the underlying principle is EMA.#山寨季何时到来？
3. Why use EMA?
Because in the cryptocurrency market, EMA makes data indicators more sensitive through weighting. It is more suitable for observing our cryptocurrency market. After all, the cryptocurrency market is T+0, and funds are very free.
2. Strategy Building
First, we are building the basic parameters of this strategy: EMA, as well as its short-term, medium-term, and long-term parameters.
Step 2: We will construct the bullish arrangement signal. The method is: everyone's trend is consistent; you can see the consistent trend direction using the comparative method.
Step 3: Based on the conditions of the bullish signal, we will build alerts, making it easy for everyone to click the alert setup on the right to receive notification signals sent to their phones, computers, calls, emails, etc.
Step 4: This segment of code mainly draws the signal on the candlestick chart and places the signal above it:
// Draw on the chart
plot(ma1, title ="EMA10")
plot(ma2, title ="EMA20")
plot(ma3, title ="EMA40")
plot(ma4, title ="EMA60")
plot(ma5, title ="EMA120")
plot(ma6, title ="EMA250")
plotShape(longStart, title="EMA Bullish Arrangement Starts", shape='arrowUp', color='green', refSeries=ma3, placement='bottom', fill=true)
plotShape(longEnd, title="EMA Bullish Arrangement Ends", shape='arrowDown', color='green', refSeries=ma3, placement='top', fill=false)
Draw the indicators and the previously mentioned arrows on the candlesticks.
3. Bearish Arrangement Construction
We need to reverse the signals. This segment of code displays the bearish signals.
These are several bearish signals, alerts, and drawings.
Finally, let's add another method for automated trading. After adding this, we can use it for real trading, employing a program to assist us in trading.
In the cryptocurrency market, many retail investors easily fall into the trap of frequent trading and blindly following trends. However, the true way to succeed in trading cryptocurrencies is not about the number of trades but about rationality and patience.
First, clarify your risk tolerance. Understanding how much loss you can bear is essential for formulating reasonable position management.
Remember not to blindly chase, if your mindset is lost, no amount of money will help.
In the cryptocurrency market, it's important to avoid fixation on gains and losses, as well as feelings of regret.
Operations must be disciplined, without emotions, no 'ifs', no fear, no greed; behind every operation, there is only whether it should be done and whether it has been done.
Emotional people do not perform well in trading. Wind, forest, fire, and mountain; remain unmoved.
These are some of my views and insights. If you find them helpful, feel free to like and save them. I am Qing Tian, someone who has experienced three cycles of bull and bear markets, skilled in logically selecting coins and timing trades, only trading within my cognitive range, with each directional decision validated by the market!
No matter how diligent a fisherman is, they won't go out to sea during a storm but will carefully guard their boat. This season will pass, and a sunny day will come! Follow Yan An; I will teach you both fishing and how to fish. The cryptocurrency market's door is always open; following the trend allows for a life of success. Save this and keep it in mind!