I have been trading coins for ten years, and in just three years, I went from significant losses to earning 40 million because I wanted to change my fate. You must try trading in the crypto space; if you can't make money in this circle, ordinary people will have no opportunity in their lifetime.
I believe that an excellent trader must be patient to endure prosperity! 'Five poor, six absolute' is the norm; according to cycle theory, in a year, which months can you trade coins? 'Five poor, six absolute, seven is not necessarily a turnaround.' Every year in May, June, July, and August, I mostly remain in cash. Occasionally, I trade small positions!
So when is the right time to enter the market and trade coins?
1. Enter the market at the end of August and clear positions by the end of November.
2. Enter the market before the Spring Festival and clear positions in April.
3. Implement the above two iron rules; of course, the behavior of individual small-cap coins controlled by the main players is not counted.
Next, you need to learn how to find hundred-fold coins, and during a bull market, that means getting rich.
So how do you trade coins effectively? Once a person enters the financial market, it's hard to turn back. If you are currently losing and still confused, but plan to treat coin trading as a second career, you must understand the 'Naked K Strategy - Pinbar Strategy'. Understanding it thoroughly can save you from many detours. This is based on personal experience and feelings; it is recommended to save and ponder repeatedly!
I have used this strategy for many years and it has proven effective; I still use it frequently today.
1, Find the candlestick.
The first step.
You must first learn to find a golden candlestick that represents the wealth code.
We name this type of candlestick Pinbar.
Here is the picture!
1. Pinbar has no requirements for color, and the body should not be too long.
2. The length of the shadow in the opposite direction must be more than twice the body; otherwise, it does not constitute an effective Pinbar.
3. Of course, in actual trading, there will also be some deformed candlesticks that meet these criteria, such as shown in the image below.
The other end of the candlestick can have a shadow in the same direction, but it must be very short!
At this point.
The first step is completed.
For easier memory, we give the above two types of candlestick patterns names.
From now on, tell yourself:
In the future, only enter trades when you find shooting stars and hammers in candlesticks; otherwise, just wait and observe. Your win rate will greatly increase!
Do not think that you will miss a lot of trading opportunities; often, the simpler methods yield more profit when you lack skills.
Please note: Regarding finding Pinbar patterns, the two conditions mentioned above are necessary; do not force it. If you deliberately look for candlesticks to trade, you will find a bunch of Pinbars, but 80% of them are fake!
2, Find the position.
Although there are no color requirements for a single Pinbar candlestick, it has very high position requirements; if the position is wrong, the effect is null!
Therefore, the Pinbar must be at the correct position to have an excellent effect.
Please be sure to remember the following two points.
A shooting star must be at the very top of a rising market; a hammer must be at the very bottom of a downward market.
Pinbar must be at a critical point (main support or main resistance).
Regarding the second point, you must first learn to find critical points; specific methods can refer to my previous articles.
Next, let's learn the first point.
A shooting star must be at the very top of a rising market.
A hammer must be at the very bottom of a downward market.
We will look for several easy-to-understand examples in practical trading.
(Figure 2-1 Bitcoin 4-hour chart 2021-01-04 16:00)
This hammer candlestick appears in a small retracement downtrend, and the lowest point of this hammer is also the lowest point of this downtrend. After several subsequent candlesticks, none have broken below the low point of the Pinbar, and the market quickly reverses and rises, reaching new highs. This Pinbar belongs to an effective candlestick.
(Figure 2-2 Bitcoin 4-hour chart 2021-01-22 08:00)
The position of this hammer is simply a textbook example.
(Figure 2-3 Bitcoin 4-hour chart 2021-02-22 22:15)
If you are doing intraday trading and frequently look at minute charts, it is equally applicable.
(Figure 2-4 Ethereum daily chart 2021-02-28)
Of course, this method is not limited to Bitcoin; it is also applicable to other cryptocurrencies, stocks, foreign exchange, futures, etc.
Let's continue to find practical examples of shooting stars.
(Figure 2-5 Bitcoin 15-minute chart 2021-03-15 12:00)
As shown in the figure, in a not-so-rapid upward market, a shooting star Pinbar appeared, and the market quickly began to reverse, plunging.
(Figure 2-6 Ethereum 4-hour chart 2021-03-03 20:00)
3, Develop a trading strategy.
Once you learn how to find Pinbars, the next step is to learn how to enter trades and make money! The one who knows how to buy is a student, while the one who knows how to sell is a master.
A complete trading system includes assets, positions, direction, entry point, stop-loss point, take-profit point, countermeasures, and follow-up...
Let's discuss one by one.
Assets, positions, direction, I don't need to say more.
Let's focus on how to quickly seize entry opportunities when we discover an effective Pinbar pattern.
There are generally two types.
Breakthrough entry, reverse break signal stop-loss, retracement exceeds 50% of the signal stop-loss, take profit at a position equidistant from the Pinbar or move the stop-loss.
Retracement signal 50% entry, reverse break signal stop-loss, take profit at a position equidistant from the Pinbar or move the stop-loss.
Examples explained separately:
. We can verify this in the first part of the actual trading.
So when should you take profits?
Remember two points.
Profit-loss ratio greater than 1:1.5.
At least capture the amplitude from the highest to the lowest point of the Pinbar.
What does it mean for the profit-loss ratio to be greater than 1:1.5?
I only want to lose 1 yuan when I invest my principal in trading, but I want to earn at least 1.5. This is a 1:1.5 ratio.
If you encounter an excellent bullish entry opportunity, with an entry price of 2000 and a stop-loss price of 1900, your take-profit should be at least above 2150.
As long as your profit-loss ratio is strictly maintained above 1:1.5 over the long term, you only need a 40% win rate to guarantee that you will make money 100% of the time, especially with the high win rate strategy I taught you today, which reaches 90%.
I know you may have a bit of knowledge about the techniques, knowing that Pinbar is further divided into engulfing patterns, harami patterns, hanging man, graveyard doji, dragonfly, morning star, evening star, etc. However, my title states that my strategy is suitable for beginners, and you don't need to remember so many details or make it complicated. The essence is simplicity.
This pattern is indeed uncommon; for example, with Bitcoin, there are 1-2 occurrences a week, which aims to reduce your trading frequency. If your skills are not good and you trade frequently, you are likely to suffer significant losses!
How should the second point be understood?
At least capture the point of the amplitude of the single Pinbar candlestick.
As shown in the above figure.
After calculation, the amplitude of a single candlestick = highest price - lowest price.
This Pinbar has an amplitude of 4833 points, so if you go long here, you need to capture at least 4833 points upwards.
But the real situation in this case was an upward movement of nearly 10,000 points.
The above two take-profit methods are quite common, and the market will most likely reach the target.
Another situation is that the market sometimes surprises you. You clearly only want to capture 2000 points, but the market gives you 5000 points; however, you have already taken profits and often feel regret. For such situations, you can learn a more advanced take-profit method: the three-line take-profit method! (Trailing stop-loss)
I am worried that too much useful information may affect digestion; after all, reviewing requires time. We won't discuss the three-line take-profit strategy today; I will explain it in detail in a separate article later. I hope you can pay attention to this public account to notify you as soon as possible.
Of course, there is no holy grail in the trading market. The Pinbar strategy I discussed today will also have failures, so entering the market carries risks; trade cautiously!
But I believe it is sufficient for beginners, and strict stop-loss must be enforced.
If you are also a technical enthusiast, you might want to take a look at the following image:
Finally, I will present a set of stable profit-making methods: a practical blockchain contract trading strategy.
Want to achieve stable profits in crypto contract trading?
1. Selection of trading assets: Prioritize mainstream: focus only on BTC and ETH to avoid distractions from altcoins. Liquidity advantage: mainstream coins have strong liquidity and lower operational risks, making them more suitable for high-buy low-sell strategies.
2. Short strategy: Opening position: focus on key moving average resistance on the 4-hour chart, such as MA60. When MA60 continuously suppresses the price, you can build short positions in batches near that moving average. Stop-loss setting: set the stop-loss at the price spike's previous high position after the price falls back. For example, if the resistance level is at 2440, and the price spikes to 2450 and then falls back, the stop-loss can be set above 2450.
3. Long strategy: Opening position: choose support levels of the same or larger scale to enter long positions in batches. Stop-loss setting: set it at the previous low position after the price spikes back. For example, if the support level is at 2320, and the price briefly falls to 2310 and then rebounds, set the stop-loss below 2310, like around 2300.
4. Capital management: Daily stop-loss control: daily maximum loss should not exceed 20% of the total principal. If it reaches 20%, trading should be paused for that day. Single trade stop-loss: limit single loss to within 10% of the principal to avoid affecting the overall account. Balanced positions: maintain consistent positions across all openings to avoid increased risk due to excessive leverage.
5. Trading discipline: Hot coin trading: when market trends are good, focus on hot coins, but still strictly control risks. Profit-loss ratio setting: it is recommended to set the profit-loss ratio to 3:1 to ensure profits far exceed losses. Daily drawdown limit: if the daily loss reaches 10%-15%, pause trading and maintain rational operation.
6. Response to market crashes: Maintain cash positions: do not blindly catch the bottom in extreme markets; patiently wait for clear market signals. Rational waiting: if there are no suitable opportunities, it is better not to trade to avoid unnecessary losses due to emotional fluctuations.
7. Take-profit and stop-loss strategy: Break-even stop-loss: If the candlestick pattern stabilizes after opening a position, you may not need to set a break-even stop-loss; if the pattern is disrupted or adverse signals appear, promptly adjust the stop-loss to the break-even point. For example, set a break-even stop-loss after ETH gains 20 points; after BTC gains 350 points, set a break-even stop-loss. Trailing stop-loss: Use 3/5 minute candlestick levels to dynamically adjust take-profit and lock in floating profits. For example, start the trailing stop-loss strategy after ETH gains 35 points and BTC gains 500 points.
8. Trading mentality: Stay away from all-in: pursue stable profits rather than overnight wealth. Overcome greed: remain calm and operate rationally; do not let momentary greed lead to liquidation.
💎 Summary: This blockchain contract trading strategy combines technical indicators, risk control, and capital management, suitable for stable trading of mainstream coins (BTC, ETH). Market volatility is inevitable, but as long as you strictly adhere to trading discipline and take-profit/stop-loss strategies, you can steadily profit amidst the fluctuations. Want to become the next crypto expert? Start with stable trading and seize every profit opportunity!
Finally, remember:
The crypto world is a marathon; stability is far better than quick wins. Gains obtained by luck will eventually be lost due to lack of skill. Only by integrating position management into your instincts can you survive in a brutal market.
Remember: as long as you are alive, you are qualified to wait for the next turnaround.
Even the most diligent fisherman would not go out to sea in a stormy season but would carefully protect his fishing boat. This season will pass, and a sunny day will come! Follow me, and I will teach you both fishing and how to fish. The door to the crypto world is always open; only by going with the trend can one have a life that flows with the tide. Save it and keep it in mind!