#币安HODLer空投TREE Let me tell a story. When I lost the most, I faced a liquidation of 2 million in three days, burdened with debt, nearly losing everything, and almost life itself. However, the cryptocurrency world is so magical; by chance, I received guidance from a master. In the stormy night, I realized the true way to start from scratch, becoming a full-time trader, delving into techniques, studying for thousands of days and nights!
The journey in the cryptocurrency world is long; I hope everyone takes fewer detours and experiences fewer tragedies!
Having achieved financial freedom, I continue to create content on Zhihu. Many people do not understand why, having achieved financial freedom and hit several small goals, I still need to do this.
I have also asked myself the same question in the process of finding my original intention. On one hand, it is for my dream of becoming a hero; I have devoted everything to trading, honing extraordinary skills, and I don’t want to go unnoticed!
On the other hand, I want to provide a path for those willing to learn. What I gained in the market is now a process of giving back to the market. The way of nature reminds me of the time when I struggled for half a year due to excessive leverage.
There is no reference path for learning; you can only analyze the K-line repeatedly, day after day, night after night. Having crawled and rolled to this point, I understand deeply the difficulties faced by novice retail traders in the cryptocurrency world and can empathize more!
In the cryptocurrency world, what should your Bitcoin trading system include?
Let me emphasize two points about the importance of a trading system.
To survive in this brutal market of trading, we need to focus on solving two key problems as follows:
1. How to find the non-random parts in highly random market price fluctuations
2. How to effectively control one's psychological weaknesses and implement rational decision-making.
The significance of establishing a trading system is to define our trading behavior, not to trade based on emotions, but to do high-probability things as much as possible.
A trading system should include several parts:
1. Target
2. Position size
3. Direction
4. Entry points
5. Stop loss
6. Take profit
Before any trade, you need to clearly consider these few questions. Each of these six points is very important, especially 4/5/6. Those with trading experience know these three points are quite complex. It takes a long time to summarize trading to master them. Watching tutorials shows very standard and beautiful signals, but in actual trading, there are many variations and noise, making signals not very standard. At this time, whether to enter or not.
Needs to be summarized by yourself.
Many trading courses available in the market can be evaluated using the above points; it’s clear which are superior or inferior. The above serves as a general outline. When actually establishing a trading system, you also need to consider the following points:
1. What is your principal amount?
2. Will this capital be used in the short term?
3. How much capital loss can you tolerate?
4. What is your expected return in the future?
Based on the above points, consider issues related to capital management, whether to invest in short, medium, or long term. What risks can you tolerate, small or large, are you risk-averse or a risk-taker?
Stable profit strategies for cryptocurrency trading, trend trading system.
Looking at the K-line chart, simply divided, there are two states.
- One is the trend state, represented by a diagonal line on the K-line, whether it's an upward trend or a downward trend.
One is the sideways state, represented on the K-line as almost a horizontal state.
Regarding the sideways state, you can also see whether it is a sideways movement in an upward trend or a downward trend. The most important thing in trading is to choose trend trading. In technical analysis literature, there is a survey conclusion.
Of the 10 traders, two who consistently profit are trend traders.
Therefore, generally speaking, when trading, it is essential to choose trend trading. Combined with the previously discussed trading system, it can absolutely achieve stable profits.
This has been explained very clearly; visually defining trading norms for beginners. Even if you are a novice, if you follow this method and still can't profit, then perhaps it’s time to reconsider participating.
Next, I will present the core strategies of trend trading. This part is the essence, and I cannot elaborate too much; I will keep some key insights to myself.
The framework of trend trading is as follows:
1. What is a trend and how to judge a trend?
Everyone has different criteria for judging trends
Let me briefly share my thoughts.
For example, a breakthrough of the M60 moving average is considered the start of a trend.
For example, according to the trend standards defined, a peak is higher than a previous peak, and simultaneously, a trough is also higher than the previous trough.
2. Ways to enter trend trading
There are generally two common ways to enter trend trading:
One is to enter at support levels, which means entering at a pullback position. The key question is how to determine if this position is a pullback turning point. Commonly used indicators include trend line support levels and Fibonacci retracement levels.
The second is to enter on breakouts, the most common being breaking previous highs, and a higher winning rate can often be found after long periods of sideways movement.
Advanced points, focus more on high win-rate support and breakout points. This is the third part of the trading system, outlining the direction of traders' cultivation to become trend traders. The key points of trend trading, as mentioned above, are to remember to combine these with the points of the trading system, namely capital management and risk control. In practice, refine and summarize to correct your trading system. What is truly expensive is whether you dare to use extreme focus to turn every penny into a bullet targeting the wealth bullseye.
One must have a broad perspective. What is a broad perspective? Many excellent investors around me possess a broad perspective; they do not care about short-term gains and losses. Even if temporarily trapped, they remain calm, believing they can recover their investment, thus their mindset is not anxious. Such a mindset often leads to calmer operations, making it easier to profit.
Trading cryptocurrencies is not a sprint but a marathon. Don't rush; remember to bookmark and follow after reading. You will receive more valuable insights. You will definitely gain something.
Having navigated the market for many years, I am well aware of the opportunities and traps. If your investments are not going well and you feel regret over losses, leave behind 999 for a share of the advancing code.
