Do not regard stability as some kind of supreme myth. I have immersed myself in the trading field for ten years, with full-time engagement for eight years, enjoying a carefree lifestyle that is almost insulated from stress. The profits brought by this stability are far beyond what ordinary office workers can reach, but to be realistic, it also has its limits and is certainly not the infinite wealth that some people fantasize about.

After eight years of ups and downs, I have gradually explored a trading approach that suits me under the guidance of a wise person. While I can't claim to be among the wealthy, steady profits are already in my pocket, allowing me to easily surpass over 90% of my peers.

Long ago, I realized the tremendous help that an excellent trading system provides to investors. At the same time, I also understand that blind investment without systematic guidance is no different from repeatedly losing at a gambling table. However, constructing an effective trading system is no easy task. A truly excellent trading system often goes against human nature; it requires you to abandon greed and fear, remain calm and decisive, reject subjective speculation, and strictly execute established strategies.

Look at the market with a perspective of development.

This is an infinite state.

In the last session, we talked about what it means to ignore levels in discussing trends, and also introduced two solutions. The first is to fix a set play, such as a trend cycle plus a trading cycle; the second is to forget about the concepts of levels and cycles. Look at the market with a perspective of development! What specifically needs to be done? This is also what we will discuss in the tenth golden phrase. Looking at the market with a perspective of development is an infinite state.

How should this sentence be understood? In plain language, it means whenever I have time, I can open the computer screen to see if I can make a trade to earn some money. For example, now I randomly open a trend without prior preparation, and I don't have any trend cycle or trading cycle; I just want to go in and out quickly. I want to scalp a bit, so right now I'm opening a five-minute chart randomly, as shown:

(Image one)

If I consider five minutes as my trading cycle, I now want to open the trend cycle of 20 minutes to see what the market is doing!

As shown in the image, if we split at the blue line, what is circled in the image is the largest level of the central point. The specific level of the rise is not important. What I follow now is this momentum! #Bitcoin ancient whale continues to clear out.

It is either after a decline, or after a bullish breakout above the previous high. So now I go to the five-minute chart to focus on the decline and see if it will give me a long opportunity.

As shown in the image, there was an entry K line that didn't look good (Image three), so I gave up the trade.

(Image three)

We will continue to wait for signals to support effectively again. Then I think there is a small double bottom here, and this decline may be finished.

(Image four)

Then if I need to stop loss, I can place a needle below and re-enter. So I directly enter at market price. If I need to stop loss, it’s okay; I can place my T1 here, I can place my T2 here, or even I can pull my T1 directly to the previous high.

(Image five)

Then we will see how it goes next. It’s okay if I stop loss. Now I want to prepare for a revenge trade, but this one seems to be a morning star, but actually, this morning star has not broken the high of the first K line, right?

(Image six)

We say that a beautiful morning star is best when the third K line breaks the high of the previous K line. This is similar to what we learned in Chen theory, where the top and bottom formations are referred to as beautiful formations. The bottom formation breaks the high of the first K, while the top formation is best when the third K line breaks the low of the first K. Since it hasn't broken, I want to wait a bit longer.

This point is indeed a potential buy, but the signal K line for entry is not valid, so because it is revenge, there is only one bullet left, so caution is required. I will wait patiently. #Trump removes Fed Governor Cook

(Image seven)

Alright, here a piercing line appears. The high of this doji is ineffective; it continues to move. Here, the signal is still relatively strong because it can be seen as a deformed engulfing pattern. The most important thing is that this divergence is incredibly beautiful, as shown in the image. This is the largest level of the central point, this is the small A segment, this is the small B segment, so we decide to complete our revenge here.

The profit-taking plan is the same as before; that transaction at 22.8, then upwards to this position, and this is our revenge plan. (As shown in the image) T1 profit-taking, T2 also profit-taking.

(Image eight)

Look at how we prepared to make the first trade, which is at 12 o'clock, or from when we started watching the market at 11 o'clock, until the trade is finally secured with T1 and T2 both achieving profit-taking at 7:30 in the evening. That’s not even 8 hours! #Domestic concept coins collectively explode.

This means that whenever I have time, I can open the market. Today, I have time, so I can open the screen at any time and see if I can earn some money! So it doesn't matter if it's trending or counter-trending; I will take whatever segment I see first. This is a state without levels; I don't have any trend cycles or trading cycles. This is about viewing the market with a perspective of development, which is an infinite state. This is the first interpretation.

Let's talk about investment strategies for short, medium, and long-term trading in the cryptocurrency market. For traders, the strategies in market games are ever-changing, but they can generally be divided into short-term, medium-term, and long-term trading based on time. Each type of trading corresponds to different market cycle changes and investment methods.

Generally speaking, an investment (including buying and selling) completed within a day, or within 3-5 days or 1-2 weeks, and no longer than one month, is considered short-term trading. Short-term trading is a typical buy low, sell high strategy and tests the investor's ability to monitor the market throughout the day, which is also the operational method of most people in the market.

Medium-term trading usually lasts 2-4 weeks to 1-3 months, and longer trends can extend to 6 months. Medium-term traders are not concerned about short-term price movements but focus on periodic market trends, using the current market to predict future trends and prepare in advance.

Long-term trading refers to holding for at least 6 months, or over 1 year, to gain substantial profits through long-term market trends.

From the perspective of trading methods, short, medium, and long-term trading are merely methods and strategies; there is no distinction between superiority and inferiority, only the ability to apply them flexibly. For investors in the market, individual differences are significant; for the same coin, there may be different opinions. Some believe it can be a long-term investment, while others think it can only be traded short-term, and some believe it shouldn’t be touched at all. Therefore, it cannot be generalized, and one must differentiate based on their understanding and analysis of the project, selecting strategies that suit them.

Many people in the market lose money by chasing highs and selling lows, buying high and selling low, and not understanding profit-taking and stop-loss strategies; many of these issues arise from timing strategies. They may hold onto a mediocre coin believing they have found a treasure and refuse to sell when they have decent profits as the price rises, ultimately resulting in not only losing their paper profits but also getting stuck in their principal, making even cutting losses futile. There are also excellent coins that they fail to recognize the value of, buying at low prices and selling at the bottom, only to regret as the price rises.

In the current cryptocurrency market, it is small, imperfect, lacks regulation, and the quality of projects varies greatly. Therefore, there is a basic principle:

Long-term trading means holding only Bitcoin and Ethereum; medium-term trading focuses on mainstream or popular coins; many altcoins can only be traded short-term; do not have faith, and do not hold coins in a Buddhist way waiting for death.

For medium and long-term trading, the best strategy is to choose coins with strong certainty and then invest regularly during the mid to late stage of a downtrend cycle to reduce the average holding cost as much as possible and increase the holding volume, gradually unloading during the uptrend cycle.

This is also shared in a graphical way! Hope it helps everyone!

Finally, I will share a set of iron rules for trading cryptocurrencies:

1. When entering the market, don't just focus on the K line! Especially for short-term trades, the 30-minute K line and the overall market stabilization are crucial. Sometimes a K line with a long upper shadow seems to have no opportunity, but the next day it could have a big rise or even hit the limit, and by watching the 30-minute K line, you can discover the subtleties.

2. If the trend and order are not correct, absolutely do not look! You must go with the trend; the order of the rise must not be chaotic; violating it will be dangerous.

3. Do not dabble in hot spots or potential hot spots in short-term trading; it’s better not to trade at all. Capture hot spots to have more profit potential.

4. Refuse to enter impulsively! Trade your plan, plan your trade. Acting according to the plan can reduce errors.

5. Others' opinions are only for reference; you must think carefully and analyze thoroughly. After all, the money is yours, and the decision must be reliable.

6. First lock in the direction, then carefully select a coin. If the direction is right, the effort will be doubled; if the direction is wrong, the effort will be halved.

7. Invest in coins that are currently rising. Guessing the bottom is a big taboo; stock prices often move towards 'small resistance levels.' Choose coins that are on the rise, as they have less resistance and potentially greater returns.

8. After a big profit or a big loss, you must go to cash. Reassess the market and yourself, clarify the reasons before taking action. Years of experience tell me that going to cash after a big profit or loss has a probability of making the right decision over 90%.

Finally, remember:

The cryptocurrency market is a marathon, where stability is far more important than quick wins. Gains made by luck will ultimately be lost to skill. Only by integrating position management into instinct can one survive in a brutal market.

Remember: as long as you are alive, you have the right to wait for the next turnaround.

No matter how diligent a fisherman is, he will not go out to fish during stormy seasons but will carefully guard his fishing boat. This season will eventually pass, and a sunny day will come! Follow Lao Chen, who teaches you both to fish and fishing skills. The cryptocurrency door is always open; only by going with the trend can one lead a life in flow. Save this and keep it in mind!

$ETH $BTC #加密市场回调