My account is less than 1 million, but I want to make money in the crypto world in the short term? There’s a timeless ‘fool’s strategy’ that retail investors can use with just a glance, pure dry goods!
Don't worry about not being able to learn - the opportunities I can seize, you can too. I'm not a genius, just an ordinary person. The difference between you and me may just be this method. As long as you take it seriously, you can earn at least 3%-10% more every day!
1. Invest in batches, add to position when it drops, and lock in profits when it rises.
Split funds: For example, if you have 10,000 yuan, divide it into five parts, using only 2,000 yuan for each trade.
Test the waters first: Use 2,000 yuan to buy a coin (like Bitcoin or Ethereum).
Add to position when it drops: If the coin price drops by 10%, use another 2,000 yuan to add to your position.
Take profits when it rises: If it rises by 10%, quickly sell part of it to lock in profits.
Cycle operations: Repeat buying and selling until the money runs out or the coins are sold out.
Benefits: Even if the coin price drops, you won't panic - buy more to lower the cost when it drops, and earn directly when it rises.
2. Only play with 'big coins' and 'tokens'
Don't touch small coins: Altcoins are gambling, you lose 90% of the time! Just focus on Bitcoin (BTC) and Ethereum (ETH).
3. When to short (bearish)?
Find resistance levels: Look at the 4-hour chart's yellow moving average (MA60). If the price is being held down by this line, it indicates a potential drop.
Sell in three parts: For example, if the price rises to around 2400, sell 1/3 first, then sell more as it rises.
Set stop-loss: If it suddenly spikes to 2450 and then drops, set the stop-loss at 2455, and accept that loss.
4. When to go long (bullish)?
Find support levels: Look for previous levels where it didn’t drop on the daily chart (for example, 2300).
Buy in three parts: Buy 1/3 first, and then buy more as it drops.
Set stop-loss: If it drops to 2280 and then bounces back, set the stop-loss at 2275.
5. Manage money this way
Daily loss limit: The maximum loss per day is 20%. If you reach that, turn off the machine and go to sleep. Don't hold on stubbornly.
Single position control: Each position should not exceed 5% of total funds (for example, if you have 10,000 yuan, only use 500 yuan).
Avoid late night: Do not open new positions after 2 AM, and avoid trading on weekends (this is when the market manipulators like to cut retail investors).
6. How to chase a big rise?
Chase the top three: Only chase the top three coins that have risen the most that day.
Earn 3, lose 1: For example, if you risk 100 yuan, run away after earning 300 yuan.
Move stop-loss: After making money, adjust the stop-loss, for example, after earning 200 yuan, withdraw part of it for every 50 yuan drop.
7. What to do in case of a crash?
Keep cash for bottom-fishing: Keep 30% cash untouched, and wait for a drop of more than 8% before taking action.
Split bottom-fishing into three times: Buy at intervals of 3% (for example, if it drops from 2300 to 2230, buy in three parts).
8. When should you stop?
Lock in profits: Lock in Ethereum profits at 20% and Bitcoin profits at 350 points.
5-minute line to break even: After earning 500 points, withdraw part of it for every 50 points drop.
Daily profit limit: If you earn 15% in a day, call it a day, don't be greedy.
Must-remember painful lessons
Stay calm after losing money: Don't trade within 12 hours after losing money, it's easy to get emotional.
Don't go all in: No matter how optimistic you are, only use 20% of your funds.
Stop-loss first: Set a stop-loss before going to the bathroom, otherwise, you might blow up your account in minutes.
Avoid late night: Don't open new positions from 2 AM to 8 AM.
Real example: Shorting ETH with 10,000 dollars
First position opening: Use 500 yuan (5%) to open a short position.
Set stop-loss: Set the stop-loss 5 dollars above the resistance level (for example, if the resistance level is 2400, set the stop-loss at 2405).
Add to position strategy: If the direction is right, add 500 yuan for every 2% drop.
Daily loss limit: The maximum loss for the day is 2,000 yuan (20% of total funds).
Lock in profits: After earning 60 dollars, adjust the stop-loss to the cost price (to break even).
Reduce position signal: After earning 105 dollars, if the 5-minute line breaks the previous low, withdraw part of it.
Final reminder: Trading contracts is not gambling; it’s a discipline competition! Controlling your actions is 100 times more important than skills!
I am Wenhua, a professional analyst and teacher, a mentor and friend on your investment journey! As an analyst, the most basic thing is to help everyone make money. I will help you clear confusion and resolve issues, speaking with strength. When you lose direction and don’t know what to do, follow me, and Wenhua will guide you.
