Using the simplest trading method repeatedly can grow from 5000 to 1 million. Can you believe it?
In the cryptocurrency world, a mysterious realm full of opportunities and challenges, some become wealthy overnight while others lose everything.
When you grow from 10K to 100K, you will touch upon some ideas and logic for making big money, and your mindset will become much steadier.
From then on, continuously replicate successful experiences.
Phase I: The initial trial with 100U
In the initial stage, only invest 100U each time, precisely locking onto hot cryptocurrencies to start the gaming journey. During this process, it is crucial to strictly set take-profit and stop-loss points. Our goal is to complete a triple jump: 100U→200U→400U→800U. The maximum number of attempts is set to three, based on the high volatility and uncertainty in the cryptocurrency market. An aggressive gambling strategy means that even with nine profitable trades, one liquidation can wipe out all previous efforts. If one can successfully pass these three stages, with capital growing smoothly from 400U to 1100U, they can advance to the next stage.
Take-profit strategy
Use a fixed profit target ratio method. When the price of a hot cryptocurrency rises by 20%, decisively take profit, successfully converting 100U of principal into 120U. Even if the price continues to climb afterwards, there is no need to regret, as the established profit target for this trade has been achieved. Through this approach, gradually accumulate and achieve steady growth from 100U to 200U, then to 400U and 800U. For example, if the initial price of the hot cryptocurrency is 1U, when the price rises to 1.2U, decisively sell to reap a 20% profit.
Stop-loss strategy
To effectively control risk, set a strict stop-loss ratio of 10%. Once the price of a hot cryptocurrency drops by 10%, immediately stop-loss, even if the price recovers later, do not look back. For example, if invested 100U, when the price falls to 90U, execute the sell operation without hesitation to avoid greater losses. Small funds are already fragile in the cryptocurrency market, and a single large loss may lead to an inability to continue trading.
When choosing hot cryptocurrencies, one can use the Relative Strength Index (RSI) from technical analysis. When the RSI of a cryptocurrency rises rapidly in the short term and breaks through the overbought line of 70, accompanied by a significant increase in trading volume, it usually indicates a higher possibility of that cryptocurrency becoming a hot topic. However, it is important to note that if the RSI remains too long in the overbought area, it may also signal a forthcoming price pullback, and investors should combine other indicators for comprehensive judgment.
Phase II: Triple strategy collaboration
After the principal successfully accumulates to 1100U, activate the combination mode of the following three strategies to comprehensively enhance investment efficiency and safety.
Ultra-short position: Quick strikes
Trading level: 15 minutes.
Trading targets: Only choose Bitcoin (BTC) and Ethereum (ETH). These two mainstream cryptocurrencies have strong market liquidity, active trading, and relatively frequent price fluctuations, providing more opportunities for ultra-short trading.
Advantage: Potentially high returns. Within 15 minutes, the price of Bitcoin and Ethereum can sometimes fluctuate by 10% or even more, allowing for quick profits if managed properly.
Risk: Relatively high risk, suitable for participation with small positions, investing 10%-20% of the principal each time.
Take-profit method
When Bitcoin (BTC) or Ethereum (ETH) shows a price increase of 10% on the 15-minute chart, take profit. For example, if you invest 110U (10% of the principal), after earning 11U, close the position to secure profits. At the same time, technical indicators can assist in judgment, such as when a clear reversal signal appears on the 15-minute K-line chart, such as a top divergence. When the price hits a new high, but the corresponding MACD indicator fails to achieve a new high, forming a top divergence pattern, one can consider taking profit early, even if the price has not reached the 10% take-profit target, to lock in profits.
Stop-loss method
Set the stop-loss ratio at 5% to prevent losses from significant price reversals. When the price drops by 5%, quickly stop-loss. If invested 110U, when the price falls to 104.5U, decisively sell to protect the remaining funds. Additionally, pay attention to key support levels on the 15-minute K-line chart, such as when the price breaks below previous lows or important moving averages (like the 20 moving average on the 15-minute cycle); even if the 5% stop-loss ratio has not been reached, one should stop-loss promptly.
Strategy position: Steady returns
Trading level: 4 hours.
Leverage usage: 10 times leverage, with each investment amount controlled at around 15U.
Investment strategy: Use the profit portion to regularly invest in Bitcoin (BTC), with fixed weekly investments.
Advantage: Risks are within controllable limits, helping to gradually accumulate principal. Through regular investment, costs can be averaged to some extent, reducing the impact of market fluctuations on investment returns.
Take-profit method
Set long-term profit targets. When the overall profit of the regularly invested Bitcoin (BTC) reaches 50%, partially take profit, for example, sell 50% of the invested position to lock in profits. At the same time, adjust the take-profit point based on market conditions and technical indicators of the 4-hour level. When the MACD indicator on the 4-hour level shows a death cross, meaning the fast line crosses below the slow line, and the histogram starts to turn from red to green, this is often a signal that the price is about to drop. One can appropriately take profit in advance to avoid profit reversal.
Stop-loss method
Given the use of 10 times leverage, the risk is relatively high; set the stop-loss at 20% of the investment amount. When the loss reaches 3U (20% of 15U), immediately close the position to stop-loss and prevent further losses. At the same time, combine with key support levels on the 4-hour K-line chart, such as when the price effectively breaks below important moving averages (like the 60 moving average on the 4-hour cycle), to stop-loss in advance. If the price oscillates repeatedly near key support levels and cannot quickly recover after breaking below support, one should decisively stop-loss, even if the 20% stop-loss ratio has not been reached, to avoid greater losses.
Trend positions: Medium to long-term layout
Trading level: Daily or weekly level.
Investment strategy: Patiently wait for suitable entry points, setting a high profit-loss ratio (e.g., 1:3).
Advantage: Once the market trend is captured, returns can be substantial, especially suitable for operations during major market movements. On the daily or weekly level, once a trend is formed, it often has strong continuity, generating considerable profit potential.
Take-profit method
Due to the high profit-loss ratio set (e.g., 1:3), when profits reach the target set by the profit-loss ratio, such as a price increase of 30% (corresponding to a stop-loss of 10%), execute take-profit. On daily or weekly levels, combine price movements and technical indicators to identify top signals. If a head and shoulders pattern appears, meaning the price first rises to form the left shoulder, then pulls back, then rises to form the head above the left shoulder, followed by another pullback, and finally rises to form the right shoulder below the head, when the price breaks below the neckline, this is a clear top reversal signal, and one can take profit in advance. Additionally, using a phased take-profit strategy, when profits reach a certain level, first sell part of the position to lock in profits, while holding the remaining position for higher returns. For example, when profits reach 20%, sell 30% of the position; when profits reach 30%, sell another 30% of the position, and continue to observe the remaining 40% position. If the price continues to rise, hold; if a reversal signal appears, sell everything.
Stop-loss method
Strictly execute according to the set stop-loss point. When the price drops by 10% (corresponding to a profit-loss ratio of 1:3), decisively stop-loss. On daily or weekly charts, if the price effectively breaks through key support levels, such as an upward trend line, even if the stop-loss ratio has not been reached, one should decisively stop-loss to avoid greater losses. For example, on the daily chart, if a certain cryptocurrency is in an upward trend, connecting its pullback lows can draw an upward trend line. When the closing price effectively breaks below this trend line, one should immediately stop-loss to prevent significant losses from trend reversals.
Strategy summary
The core of this strategy lies in achieving rapid snowball growth with small funds while effectively diversifying risks through a triple strategy. In actual operations, investors must always remember to control their positions reasonably, strictly execute take-profit and stop-loss disciplines, and avoid greed. At the same time, continuously learn and pay attention to the latest developments, changes in technical indicators, and shifts in market trends in the cryptocurrency world, constantly optimizing their investment strategies. Only in this way can one improve the probability of investment success and achieve steady asset appreciation in this challenging and opportunity-filled market.
Trading cryptocurrencies means repeating simple actions, persisting with one method over time until it is mastered. Trading cryptocurrencies can be like other industries, where skill comes with practice, allowing you to make decisions effortlessly.
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