Can ordinary people change their fate through cryptocurrency trading?
Theoretically, ordinary people can rely on the crypto sphere to change their fate. Because the average annual return on cryptocurrency investment is over 10%. Long-term investment in the crypto sphere, based on the compound interest effect, can potentially lead to wealth. Moreover, I believe that fate is the degree of freedom we talk about now.
I believe that freedom = ability - desire. Even if a person's ability is average but their desire is extremely low, they can still feel happiness.
Ordinary people can indeed change their fate through cryptocurrency trading, but it is certainly a very small number, not the majority.
Let me talk about myself! I have been trading cryptocurrencies for over a decade, from liquidating my assets to achieving financial freedom. I support my family through crypto trading, and by 2024, my capital had multiplied by 50 times. If it weren't for two withdrawals to buy a house, it would have been 85 times.
Cryptocurrency trading profits: The top ten practical rules that cannot be overlooked!
1. Entry Criteria: In the crypto sphere, safety is always the top priority! When building positions, be as cautious as climbing stairs; the first investment should not exceed 10% of total funds, and a stop-loss line must be set. A stop-loss is like a lifeline; it can prevent significant losses at critical moments. Without it, risks will multiply.
2. Bottom-fishing Techniques: Do not be misled by false signals when bottom-fishing! Always combine weekly and daily validations and observe whether trading volume shrinks and if MACD shows a bottom divergence. Only confirm a true bottom before acting, otherwise, you may easily end up stuck halfway up the mountain.
3. Key Points of Swing Trading: When engaging in swing trading, after the price breaks through the previous high, first lock in 30%-50% of profits to prevent a pullback. If a sharp drop exceeds 15%, one can buy in batches; during the sideways phase, adopt a "grid trading" strategy to repeatedly earn price differences and improve capital utilization.
4. Positioning Mindset: The sideways phase is often the calm before the storm. Do not easily give up your positions! The market may be gathering strength, and a main upward wave may start at any time. Frequent operations may instead lead to missing significant rising opportunities; patient holding is the best strategy.
5. Profit-taking Techniques: Do not let greed cloud your judgment during a surge! When profits reach 10%, first move the stop-loss to the cost price to ensure no losses. After that, for every 5% increase, adjust the profit-taking line to let profits continue to run while avoiding profit retracement.
6. Averaging Down Methods: When averaging down during a decline, strategy is essential! Use the "Pyramid Averaging Method"; the first averaging down should not exceed 50% of the base position, with subsequent averaging amounts decreasing and widening the price gap. This way, it can lower costs while avoiding exhausting funds too early. #Binance HODLer Airdrop ERA
7. Observational Methods: When encountering a sideways trading range, do not trade blindly! You can temporarily convert funds into stablecoins or participate in DeFi mining to maintain liquidity. Wait for the trend to clarify before entering to avoid repeated losses in oscillations.
8. Periodic Patterns: The market cycle patterns are evident! When the coin price peaks a second time and the RSI exceeds 80, it is often a signal to take profits; while during the second bottom at a low point, if KDJ is below 20, and trading volume increases, one can boldly buy the bottom.
9. Trading Bottom Line: Trading must strictly adhere to discipline! Remember the principle of "Do not sell at highs, do not buy at lows". Prepare a trading plan in advance to avoid being swayed by market sentiments. Impulsive trading is often the source of losses.
10. Intraday Strategy: Intraday trading must seize key time points! In the early session's rapid rise, take profits first, and be wary of false traps during afternoon rallies. In the late session's decline, one can try small positions, while during early session's sharp drops, do not panic and cut losses; patiently wait for rebound opportunities.
The difference between profit and loss is often not much, just a matter of mindset! But most people are still paying the IQ tax! Today I will break this layer of glass for you, so you wake up from the dream! After this, retrieve all that was lost. The following are all valuable insights, straight to the point:
Today, I will share with you how to use the EMA indicator. Personally, I really enjoy looking at this. Learning it is like understanding the way!
1. Core Principles of the EMA Trading Strategy
The EMA trading strategy mainly uses 6 moving averages: EMA10, 20, 40, 60, 120, 250.
These 6 lines represent different trading cycles' views on capital:
The 10 and 20 periods are used to capture short-term opportunities, 40 and 60 periods are suitable for medium-term operations, while 120 and 250 periods are reference indicators for long-term trends. #Binance Alpha New Release
The logic of this strategy is very simple: when the directions of moving averages of different periods align and form a consensus for rising, it is an entry signal;
Once there is a divergence in the direction of long-term and short-term moving averages, it is necessary to exit in a timely manner and wait for the next consensus to form.
2. Indicator Diagram Explanation
Taking the BTC indicator as an example, on May 14, 2024, the first consensus formed.
At that time, all period moving averages were diverging upwards, forming a signal to enter long. However, shortly after, the short-term moving averages turned, diverging from the long-term moving averages, which was the exit signal.
This time, due to the trend not being sustained, there was no profit.
The next consensus will happen at this moment.
And when the second consensus formed after a pullback, all moving averages synchronized upwards again, leading to a short-term trend market.
A situation of persistent supply not meeting demand continued until a divergence occurred one day. After the divergence, according to our principles, we believe funds will exit, so we also need to exit.
According to this set of indicators, simply trading spot can achieve a 6% return, and if using contract trading, the return will be even higher.
The latest market signals show that a new bullish arrangement of moving averages has appeared in the market. Although the K-line trend seems to fluctuate repeatedly, it essentially reflects the battle of direction between bulls and bears. Once a clear consensus is formed, market trends will emerge. This is the core logic of the EMA trading strategy: capturing market consensus and divergence through moving average arrangements.
As shown in the figure, we can see that the market has formed a consensus, marked by this EMA bullish signal. From the K-line analysis here, the market is actually very conflicted. We can understand it as many parties are competing, looking at the direction. After multiple consensuses, some people feel it is not the right path, leading to divergence again, and this continues to entangle the direction. Eventually, there is a breakthrough point, forming a consensus together, and the direction emerges.
On the K-line chart, what we see may be bars, but every bar above is drawn by the technical investors participating, following the money of the entire market. This is a set: forming investment consensus - forming a divergent investment strategy, with the underlying principle being EMA. #When will the altcoin season come?
3. Why use EMA?
Because in the cryptocurrency market, EMA makes data indicators more sensitive through weighting. It is more suitable for observing our cryptocurrency market. After all, the cryptocurrency market operates on a T+0 basis, allowing for more fluid capital.
2. Strategy Building
First, we are establishing the basic parameters for this strategy: EMA, along with its short-term, medium-term, and long-term parameters.
Step 2: We construct the bullish arrangement signals. The method is: when everyone's trend is consistent, the trend direction can be seen through comparison.
Step 3: Based on the conditions of bullish signals, we construct alerts to facilitate everyone in clicking on the alert on the right, so that reminder signals can be sent to everyone’s mobile phones, computers, telephones, emails, etc.
Step 4: This piece of code mainly draws the signals on the K-line. And draws the signals above:
// Draw onto the chart
plot(ma1, title ="EMA10")
plot(ma2, title ="EMA20")
plot(ma3, title ="EMA40")
plot(ma4, title ="EMA60")
plot(ma5, title ="EMA120")
plot(ma6, title ="EMA250")
plotShape(longStart, title="EMA Bullish Arrangement Start", shape='arrowUp', color='green', refSeries=ma3, placement='bottom', fill=true)
plotShape(longEnd, title="EMA Bullish Arrangement End", shape='arrowDown', color='green', refSeries=ma3, placement='top', fill=false)
Draw the indicators and those arrows just mentioned on the K-line.
3. Constructing Bearish Arrangements
We need to reverse the signals. This code shows the bearish side.
These few are bearish signals, warnings, and drawings.
Finally, create an automated trading method; with this addition, we can use this for real trading, allowing a program to assist us in trading.
In the crypto market, many retail investors easily fall into the trap of frequent trading and blindly following trends. However, the true path to successful cryptocurrency trading lies not in the number of trades but in rationality and patience.
First, clarify your risk tolerance. Knowing how much loss you can bear is essential for formulating reasonable position management.
Remember not to blindly go all in; if your mindset is lost, no amount of money will matter.
In the crypto sphere, operations should avoid concerns about gains and losses, and feelings of regret.
Operations must have discipline, without emotions, without ifs, without fear, and without greed. Behind every operation, there should only be whether it should or should not be done, and whether it was done or not.
Emotional people do not do well in trading. Wind, forest, fire, and mountain—calm and unmoving.
The above are some of Yan An's views and insights. If you find them helpful, you can like and save them. I am Lao Chen, someone who has experienced three cycles of bull and bear markets, skilled in logical coin selection and technical timing, only trading within my knowledge range. Each direction has been verified by the market!
No matter how diligent a fisherman is, he will not go out to fish in the stormy season but will carefully guard his fishing boat. This season will eventually pass, and a sunny day will come! Follow Lao Chen, who will teach you both how to fish and how to fish wisely. The door to the crypto world is always open. Only by going with the trend can one have a life that flows with it. Save this and remember it!
$ETH $BTC #现货黄金创历史新高
