I've been in the crypto market for a few years now. From being a small retail investor with 50,000 yuan, I have struggled through the crypto market to now achieving tens of millions. Today, I will share my personal experience.
First, let's talk about fund management; don't throw all your money in at once. I prefer to operate in batches, so even if I incur losses, it won't be too severe. I set a rule for myself: once I lose to a certain extent, I decisively withdraw, regardless of market conditions. This way, even if I incur losses several times in a row, it won't be too damaging, but if I make a profit, the returns can be quite considerable. Even if I'm stuck, I can maintain my mindset.
Following the market trend is always correct. When the market is down, don’t always think about bottom fishing; it's unrealistic. When the market rises and pulls back, that's the right opportunity, and buying low at this time is much safer than stubbornly trying to catch the bottom.
Choosing coins requires insight; those coins that suddenly skyrocket, whether mainstream or altcoins, need to be approached with caution. Rapid rises often come with rapid pullbacks, making it easy to get stuck.
In terms of technical indicators, I often use MACD. When the DIF line and DEA line cross below the zero axis and then break above it, that's a buying signal. If they cross above the zero axis and start to go down, it's time to reduce your position. Don't easily attempt to average down; if you lose, don't average down. Many people end up losing more by averaging down, ultimately losing all their capital. Remember, losses need to be cut, and profits can be added to positions.
Trading volume is also crucial. When the coin price breaks out at a low level, if the trading volume increases, it could be a big opportunity.
The key is to go with the trend and seize the trend. Combine daily and monthly lines for comprehensive judgment; when a line turns upwards, you'll know how to operate.
In short, trading coins carries risks but also opportunities. I hope my experience can help everyone, but I must remind you to invest cautiously!
The basic principles of Dow Theory applied to the crypto market can be summarized in the following six points:
First, average prices encompass and digest all factors. Fundamentals, policies, news, and capital can all affect supply and demand, and all these will be directly reflected in the market, with the market ultimately digesting and absorbing these price changes.
Second, the market has three types of trends. Dow categorized trends into three types: primary trends, necessary trends, and short-term trends.
The main trend is like the tides of the sea, belonging to a long-term trend, similar to the cyclical seasons in the crypto market, where bulls and bears cycle endlessly.
Secondary trends are the waves in the tides, representing pullbacks within the main trend, usually pulling back to the 38%, 50%, and 62% Fibonacci levels. Short-term trends are ripples, referring to minor fluctuations which are highly uncertain and change rapidly.
Third, the major trend can be divided into three phases. The first phase is the accumulation phase, similar to the yin giving birth to the yang, meaning that at the end of a bear market, even though everyone is bearish, prices have dropped to a point where they can't fall further, and the main force begins to accumulate in batches.
The second phase is the bull market attacking phase, positive news starts to appear, and most retail investors with some technical knowledge gradually enter the market, with prices beginning to rise.
The third phase is the climax sprint, at which point major media begin to flood the market with positive news and boldly predict further price increases. Retail investors actively buy in, as no one wants to sell, fearing they will miss this rare opportunity to make money. However, in reality, the main force that bought at the bottom has already started to offload.
Fourth, various average prices must mutually verify each other. For example, both Bitcoin and mainstream coins must have a joint increase that exceeds the previous mid-trend peak to be called a large-scale bull market! Similarly, if Bitcoin and mainstream coins both drop below the high-level fluctuation phase's neckline position in a bull market.
Fifth, trading volume must verify the trend. Dow believed that volume is second in technical analysis; when prices move along the major trend, trading volume should also increase accordingly.
Sixth, only after a definite reversal signal occurs can we determine that a given trend has ended. A significant trend has inertia and generally will continue to move in the main direction for a while, so you must wait for the trend to confirm its reversal, such as the head and shoulders pattern confirming a break of the neckline to be deemed a trend reversal.
Dow Theory is a macro technical analysis system whose purpose in actual trading is to capture the most significant segment of important market movements, essentially the finest part in the belly of the fish.
Its advantage lies in successfully identifying major trends of bulls and bears, but its disadvantage is also obvious; the signals are usually delayed, and generally, it will miss 20%-25% of the profit space.
Sharing insights on trading coins:
1. Regularly invest in mainstream coins and leading coins. Regular investment is better than investing all at once; buying with a full position has a higher probability of making money. If you buy in full and the price drops afterwards, it becomes harder to average down. Seeing low prices, you can't just stock up on coins, which can be particularly painful, missing opportunities to lower costs. Even in a bull market, your gains will be significantly less.
2. Enhance your ability to make money outside the market.
In the market, the main focus is on buying coins and accumulating them. If you want to hold onto coins, you also need to enhance your ability to make money outside of the market. Your ability to earn money depends on the work you do. If you have a lot of time, invest more in yourself, learn more things, acquire more skills, and follow me to become a Twitter KOL to turn traffic into cash.
3. Invest more in areas you are familiar with.
Invest more in areas you are familiar with, as this allows for better risk control. Investing in things you do not understand can lead to greater losses. Investing in areas you are familiar with increases cash flow; with cash flow, you can achieve more returns, and you won't have to sell your valuable coins just because prices drop.
4. In-depth research on the skills of speculative trading.
Familiarize yourself with the development trajectory of historical 100x coins. You need to establish your own profitable trading strategy and continuously optimize your coin selection and timing in practice.
Revealing some little tips for learning to trade coins:
1. Invest with spare money; do not borrow money or take loans to trade coins - invest money + invest energy.
2. Strictly filter valuable coins and create a reasonable fund allocation plan that conforms to reality - Sunny Investment Method.
3. Margin call - It's normal to have pullbacks after entering the market, so you need to allocate your funds reasonably and enter in batches.
4. Refuse to go all in; allocate your positions reasonably. Don't put all your eggs in one basket to effectively reduce risk.
5. Keep an eye on all sides - watch crypto news and the latest financial and economic information; knowing early allows for better insights and early profits.
6. Reverse thinking: don't go against the market or the operators; go with the flow and follow the trend.
7. Open contracts, not full positions, leverage below 5x, and avoid using 100x leverage lightly. It's best not to touch leverage; rather than seeking overnight wealth, aim for stable profits.
8. Manage your own holdings well - managing your positions is more important than anything else. If you are unsure, don't trade easily. Not trading means no risk and therefore no losses. Spend more time checking your assets to see if they are being managed and whether management is reasonable.
9. The bottom is in your mind, the top is in your mind, don't be afraid, the crypto world will only make you grow; mindset is more important than operations. Remember the trading methods, and you won't worry about not making money!
Investment is not a competitive game but a personal life practice.
In fact, there is another saying: every penny you earn is a realization of your understanding of the world.
Spend an evening organizing six iron rules for trading coins. The content is not extensive, but it's full of valuable insights. If you don't plan to leave the crypto market in the next three years, these six rules will assist you greatly!
As long as you can unwaveringly practice the five major financial rules listed above, I firmly believe you can surpass over 90% of participants in the market.
In the world of digital currency, adhering to these five major principles will help you ride steadily through the bull market and achieve stable wealth growth. Only by accurately capturing the market pulse and adhering to rational investment principles can you broaden your path in investment.
Can retail investors rely on 'contracts' to reverse their fate in a bull market? The answer is: Yes!!!
Although cash trading is possible, the real class leap for retail investors can only be achieved through contracts!
I just don't recommend contracts for beginners.
So regarding whether you can rely on contracts to change your fate. My answer is: Yes!
Use periods to do contracts: the larger the period you look at, the higher your winning chances. Essentially, the crypto market is a global financial market; you're playing a trading game with people from all over the world. Now you need to take money from their wallets. How to do it? Use slow money to earn quick money, and use smart money to earn from the foolish.
The vast majority of people in this world are impatient, lack strategies, and are reckless; most people rely on a 'brute force' approach to open trades, rarely paying attention to their positions, timing of entry, or risk levels.
They only focus on how to make quick profits, so they enter and exit quickly, aiming for big gains, leading to liquidation.
They make trades with gains and losses of just a few points. If you extend your trades a bit, targeting 200 points for gains and losses, your chances of winning will increase. Your capital will absorb such capital, and this is not due to how smart or patient you are.
In fact, you are utilizing a very critical factor - 'period'.
There are several short-term trading methods for trading coins:
1. Technical analysis: Use chart analysis, trend analysis, and other technical indicators to judge price movements, including support levels, resistance levels, moving averages, and so on, to find buying and selling opportunities.
2. News-driven: Pay attention to market news and events, analyze and predict their impact on the cryptocurrency market, and buy or sell quickly.
3. Day trading: Profit by capturing short-term price fluctuations, usually completed within a day.
4. Breakout trading: Judging market direction by observing changes in trading volume when prices break through resistance or support levels, and buying or selling at the right time.
5. Swing trading: Utilizing the characteristics of significant price fluctuations for medium to short-term buying and selling operations.
How to find your footing in the contract market.
Operate with low positions and low leverage to maintain the safety of your funds and avoid liquidation risk.
Reduce trading frequency, avoid emotional trading, and make calm decisions.
Control your emotions, avoid counter-trend trading, and face market fluctuations rationally.
Avoid small coins, operate steadily, and avoid losses due to high risks.
Contract trading is not a game of quick wins, but requires long-term patience and skill accumulation. Only by staying calm can you stand out in the ocean of crypto and gradually achieve wealth appreciation. Remember, staying alive gives you the chance to earn more profits.
A detailed explanation of the mindsets needed in the crypto market and a guide to avoiding pitfalls.
People are not confused by the things themselves, but by their views on things - Ancient Greek philosopher.
A book states: "Mediocre generals, when faced with complex environments, will list a bunch of problems and questions for themselves, becoming flustered and unable to find direction. True talents, however, cut through chaos with a sharp knife, seeing the essence and crucial points from seemingly ordinary situations, and act decisively." This is actually similar to making investment decisions; excellent investors are adept at identifying main contradictions and can see the whole from the details, ultimately forming logical decision-making points.
What is mindset? Simply put, mindset is your attitude toward facing things. There's a more advanced version that says mindset is just being a bit more open-minded.
The importance of mindset to a person is self-evident; mindset determines destiny. People with a good mindset often have better opportunities, are psychologically healthier, and tend to be happier; while those with a poor mindset, filled with grievances, also miss many opportunities.
The most important point when entering the crypto market is to control your mindset, followed by technical analysis, fundamentals, and news. If your mindset collapses, you are destined not to make money, and it will greatly affect your life and mental state. Most retail investors have fragile hearts, and only a few can truly grasp this!
Exploring the world of digital currency is like understanding the essence of life. Once you grasp the wisdom of life, the mysteries of the crypto world will also become clear. The path of simplicity lies in the integration of knowledge and action, which allows you to navigate smoothly and secure victory!
Opportunity has come; assets double! Follow Biao Ge closely to easily make big money.
Continuously pay attention to: DIA, CFX.