Seven years ago, like all beginners, I watched Bitcoin rise from 789 to 19783, suffered from FOMO (Fear of Missing Out) and jumped in with all my funds, only to see it drop 40% a week later... But now my investment portfolio has outperformed the market by 470%, the key being the rolling operation method:
● Floating Profit Additions: After obtaining floating profits, you can consider adding positions. However, before adding positions, you need to ensure that your holding costs have been reduced to minimize the risk of losses. This does not mean blindly adding positions after making profits but rather doing so at the right time.
● Base Position + T Trading Rolling Operation: Divide the funds into multiple parts, keeping a portion of the base position unchanged, while the other portion engages in high sell-low buy operations.
Specific ratios can be chosen based on personal risk preferences and capital sizes. For example, you can choose half positions for rolling T, or 30% base positions for rolling T, or 70% base positions for rolling T, etc. This operation can reduce holding costs and increase profits.
There are mainly two types of what is defined as the 'right time':
1. Increase positions during convergence breakouts in trends, and quickly reduce the added positions after breaking through to catch the main upward wave.
2. Increase trend-type positions during pullbacks in trends, such as buying in batches at moving averages during pullbacks.
There are various specific methods for rolling positions, the most common being adjustments in positions held. Traders can gradually reduce or increase their positions based on market changes to achieve profitability. Traders can also use trading tools like leverage to amplify profits, but this also increases risk.
Increase Risks.
Three Factors to Note in Trading:
First, the factor is mindset.
Second, the truth of human nature.
Third, be diligent in learning and improve your cognition.
I am sharing my ten years of cryptocurrency trading experience today, and I will thoroughly analyze the iron rules and trading strategies that have withstood the test of the market's storms, hoping to illuminate the path for everyone in their investment journey in the cryptocurrency market, helping everyone avoid detours and significantly improve their chances of profit.
If investors can strictly execute these iron rules of cryptocurrency trading, combined with the actual market situation and applied flexibly, they will definitely help everyone avoid common investment traps and significantly increase the chances of making profits in the cryptocurrency market.
Seven trading techniques and insights to help you achieve profit!
Today, I will share seven trading operation techniques and insights with you; these details are also what I persist in doing daily, hoping to provide you with help!
1. Observe the market after trading stops.
Many of us retail investors are non-professional traders without a complete trading system, and our mental state is not very stable, making us easily influenced by market fluctuations.
When we focus on the market, our attention is entirely on the slight ups and downs, and even a small pullback makes us feel tense. At this point, operations can become chaotic, prematurely closing positions on previously favorable markets, and impulsively opening positions on unfamiliar markets leads to being trapped.
Looking back after trading stops, it feels like I was possessed by a ghost, trading poorly.
Therefore, I suggest that those with poor self-discipline reduce their frequency of watching the market, or even not watch it at all.
My habit is to look at the market after the closing, because it does not involve the current market ups and downs, it will not affect my mood, and I can rationally execute according to the trading plan.
When stock prices fall to low levels, enter the market after the price tests support + forms a reversal candlestick, and add positions after the price falls and forms a new reversal candlestick, then close positions using previous highs as profit targets.
2. Use limit orders more often, and market orders less.
Limit order trading is the method I use most in trading, mainly serving two purposes: one is to reduce impulsive trading, and the other is to obtain better transaction prices.
When you use limit order trading, after placing your orders, you do not need to keep staring at the market; you only need to check occasionally whether your orders have been executed. When placing limit orders, you can also simultaneously set stop-loss and take-profit orders, which saves a lot of energy.
Many people like to keep staring at the market while trading, panicking over small losses and becoming anxious about potential pullbacks when making small profits, making daily trading feel like a battle that makes one sweat.
In this mental state, it is impossible to trade well. So I often say to maintain a certain distance from the market; physically, this means reducing the time and frequency spent staring at the market, allowing your mindset to remain stable, which is more conducive to making objective judgments.
Moreover, limit order trading usually enters after market pullbacks, which means you can get a better entry price than market trading during practical operations.
Do not underestimate the price advantage of placing limit orders; a better opening price can lead to quicker profits. Traders can gain psychological advantages faster and expand their profit-loss ratios, which is very helpful for subsequent trade execution.
Although this is a very small detail, years of practice have shown it to be beneficial. Our success is built from many small details stacked together.
3. When holding positions with floating profits, use technical pullbacks for short-term trades.
Most trends operate in oscillating upward or downward ways. During the oscillating pullback, held profits will decrease, creating significant psychological pressure, leading to worries about market reversals and whether to continue holding positions. At this point, you can utilize market technical pullbacks to make opposite short orders.
For example, when holding profitable long positions, near resistance levels of the market, combine the candlestick patterns to make short positions. After entering the short position, if the market falls, the short position will generate profit, and the profit of the long position will decrease, but the overall profit will not decrease significantly. After the market pullback, close the short position near the turning point of the second market startup and continue holding the long position.
This approach can first relieve psychological pressure during pullbacks and secondly increase profits.
4. Be an Independent Trader
Trading is a serious and personal matter.
The money in the account is what we have worked hard to earn, not something picked up from the ground; we must be responsible for every cent.
Many people, when feeling uncertain about something, habitually seek help from others or consult with others to gain a sense of affirmation, which makes them more confident in their decisions. However, this is frowned upon in trading.
Because everyone has different judgments on direction, entry and exit points, position ratios, and indicators used, everyone has their own standards. Once discussions occur, your insecurity will be triggered, leading you to doubt your trading strategy, ultimately causing gains and losses in trading.
(The Crowd) has a saying: when one enters a group, their IQ will severely decrease. To gain approval, individuals are willing to abandon right and wrong, trading their intelligence for a sense of security and belonging. Therefore, when trading, do not fall into this thinking trap; try to find a relatively quiet environment where you can think independently, develop, test, and adjust your strategy independently, and finally execute it on your own.
As for the feeling of loneliness, it certainly exists, but in the face of making money, this slight sense of loneliness is nothing. Once you reach real profits, you will understand.
5. Governing Without Action
Today I saw the following piece of text and was deeply touched! What successful trading actually means is not trading at all!
We might as well look at it from the Buddhist perspective: if I were blind, there would be no difference between marrying Xishi or Dongshi.
If I were deaf, then being praised or scolded would make no difference. If I lost my sense of smell, it would not matter whether I was in a toilet or a flower garden.
If I die, whether my body is eaten by dogs or given a grand burial makes no difference.
The troubles of the world, the fluctuations of joy and anger, love and hate, are all due to one's own delusional mind making distinctions! It is the distinctions of the heart that give rise to good and evil, beauty and ugliness, right and wrong. The world knows that beauty is beauty, and thus evil is also.
Your attachment to love generates greed. When greed is unfulfilled, it leads to anger. The cycle of love and hate generates ignorance. The repeated cycle of greed, anger, and ignorance, driven by karma, ultimately leads to countless good and evil fruits, which will all be realized as your predetermined fate, cycling back and forth in causality. Heaven and earth are unkind, treating all things as straw dogs, because the Dao has no distinctions.
Therefore, the reason for perceiving colors, sounds, scents, tastes, touch, and laws through the eyes, ears, nose, tongue, body, and mind is the wonderful use of the heart. The heart perceives everything and responds to everything, but never gets contaminated or directly takes from everything, so the heart is inherently complete and can give rise to all laws.
The essence of practice is to clarify the mind. How to clarify? When you are without distinctions, unaware of both ends, you should have no attachments, and then the Bodhi mind will manifest itself.
Likewise, how to trade? When you have no trading in mind, you can naturally traverse bull and bear markets!
Cryptocurrency Market Secrets: How to Steadily Profit, Avoid Risks, and Achieve Doubling Through Rolling Positions?
In the cryptocurrency market, many investors harbor dreams of getting rich overnight, blindly following trends, only to find themselves trapped at high levels and sinking into loss. As an experienced investor, I want to tell you that those who can achieve stable profits in the cryptocurrency market are not those who pursue short-term windfall gains but those who possess rational thinking and tread steadily. Today, I will share how to invest steadily in the cryptocurrency market, how to use rolling strategies and reasonable position management to achieve long-term stable profits.
Below, I will share the basic concepts of the cryptocurrency trading system, market analysis, investment strategies, risk management, technical tools, ecological applications, and regulatory policies.
I hope to provide everyone with a comprehensive overview of cryptocurrency trading knowledge, hoping that stock friends can find suitable methods they want to learn from.
Overview of the Cryptocurrency Trading System:
I. Basic Concepts of Cryptocurrency
II. Cryptocurrency Market Analysis
III. Cryptocurrency Investment Strategies
IV. Cryptocurrency Risk Management
V: Cryptocurrency Technical Tools
VI: Cryptocurrency Ecological Applications
VII: Cryptocurrency Regulatory Policies
I. The Mindset of Cryptocurrency Investment: Control Emotions, Avoid Greed
In the cryptocurrency market, successful trading relies not only on technical analysis but also on good emotional control. Many investors make irrational decisions due to emotional fluctuations, such as impulsively chasing high prices when they see a surge or panicking and selling when prices drop. This emotional trading is one of the main reasons retail investors incur losses.
As an investor, you need to remain calm and rational. Especially in the face of significant market volatility, you need to stick to your investment strategy and avoid blindly chasing highs and selling lows. Do not be influenced by short-term price fluctuations; instead, base your judgments on long-term market trends and rationally determine the timing of buying and selling.
II. Position Management: Reduce Risks, Ensure Steady Profits
Position management is one of the most important parts of investing. Especially in the cryptocurrency market, where volatility is severe, reasonable position management can help you retain funds during market pullbacks and quickly profit during market rises. Here are my personal position management suggestions:
1. Split Position Management to Reduce Risks
The core principle of position management is to diversify risks and not put all funds into one trade. If you have 30,000 USDT, you can split your positions as follows:
Divide the funds into 3 parts, each with 10,000 USDT.
Use one part of the funds for each opening. This way, even if a loss occurs, it will not affect all your funds.
Specific Leverage Settings: For major currencies (like Bitcoin), use no more than 10x leverage; for altcoins, leverage should not exceed 5x.
2. Operations for Increasing and Decreasing Positions
When in profit, consider adding positions. Especially when the market trend is clear and the situation is good, adding positions can expand profits. However, before adding positions, ensure that your costs have been lowered to avoid blindly adding positions leading to greater risks. One misconception to avoid is that floating profits are not a reason for unlimited position additions; you must ensure that the market trend is still moving in a favorable direction.
3. Set Stop-Loss and Take-Profit to Avoid Excessive Greed
Setting stop-loss and take-profit is a basic operation that every investor needs to establish. If the stop-loss point is not set properly, you may miss the opportunity to exit due to small fluctuations, resulting in significant losses; if the take-profit point is unreasonable, you may miss profit opportunities during price reversals. A reasonable stop-loss and take-profit strategy can help protect profits and avoid emotional interference from chasing highs and selling lows.
III. Rolling Strategies: Capturing 'Big Opportunities' in the Market
Rolling strategies achieve compound interest effects by increasing positions in a major trend. Many investors misunderstand rolling as blindly adding positions, but in fact, rolling is a method that emphasizes timing and strategy. It is only suitable to roll positions when market trends are clear and signals are strong.
Three Main Applicable Scenarios for Rolling Operations:
1. Choosing a Direction after Long-term Consolidation: When the market enters a sideways consolidation phase, price fluctuations decrease, usually signaling that a breakout will occur in the future. At this time, if the market breaks above or below key support levels, rolling operations can be executed.
2. Pullback after a significant rise in a bull market: A pullback in a bull market is often a good buying opportunity. When a 20%-30% pullback occurs after a significant rise, it is suitable to add positions and wait for the market to recover.
3. After Breaking Key Resistance Levels: When the market breaks through long-term key resistance or support levels, it usually means that prices will enter a new rising cycle. At this time, rolling positions can bring significant returns.
The specific operation methods for rolling positions:
Floating Profit Additions: If you have floating profits after a market rise, you can consider adding positions, but the premise is that you have reduced your holding costs to ensure minimal risk.
Base Position + T Trading Rolling: Divide the funds into two parts, keeping one part as the base position unchanged, while the other part engages in high sell-low buy rolling operations. This not only reduces losses but also allows profits to be gained during volatility.
IV. Risk Management: Staying Calm Amid Volatility
In the cryptocurrency market, risk control is key to determining long-term profitability. The market is highly volatile, and rapid price fluctuations often damage investor emotions, leading to wrong decisions. Therefore, maintaining a good risk control mechanism is essential.
1. Establishing Risk Tolerance:
Psychological Preparation: The pullback in the cryptocurrency market is usually significant, so you must be mentally prepared to withstand a 30%-50% pullback. Only with a stable mindset can you achieve maximum gains amidst market volatility.
Diversified Investment: Do not concentrate all funds in one trade. Diversifying investments can effectively reduce the risks brought by single market volatility.
2. Avoid excessive speculation with high leverage:
The high leverage characteristics of the cryptocurrency market can easily lead investors to develop an overly speculative mentality, but there are huge risks behind high leverage. When engaging in leveraged trading, be sure to act within your means, control the leverage ratio reasonably, and ensure that risks are manageable.
V. Conclusion: Rational Investment, Stay Away from 'Get Rich Quick' Fantasies
Through reasonable position management, rolling strategies, stop-loss and take-profit settings, and market trend analysis, you can achieve stable profits in the cryptocurrency market. However, remember that the cryptocurrency market is not a place for overnight riches. Investors should maintain rationality, avoid blindly pursuing short-term windfalls, and focus on long-term planning. The market's high volatility and short-term temptations may lead you to lose your rationality, but only by maintaining a calm mindset and scientific investment methods can you steadily navigate this turbulent market.
Those who want to plan together and harvest from the manipulators can come to me! The community group provides daily market strategy analysis, quality coin recommendations, and will also recommend coins with favorable news, allowing for early positioning. If you have questions, feel free to consult in the group for the best answers!!!#Strategy增持比特币 #山寨币突破 $BTC