I am 38 years old this year. 12 years ago, I jumped into the cryptocurrency market with only 90,000 as my initial capital, and since then, I have embarked on a career in trading cryptocurrencies. Now, my assets have exceeded 30 million. There is a seemingly 'clumsy' method of trading that can capture most profits, and it requires slow exploration and learning.
How did I achieve wealth accumulation? Actually, just seizing three opportunities that can increase tenfold can earn you 10 million. There is a basic logic here: in one’s lifetime, as long as you accurately bet on three cryptocurrencies that can rise tenfold, it is enough to achieve financial freedom and lay back in peace.
The specific operation is divided into three steps. The first step is to prepare 10,000 as the starting capital.
Then follow this path to advance: 10,000 to 100,000, 100,000 to 1 million, and 1 million to 10 million.
Break down the goal of earning 10 million yuan into three 10x growth phases. During the first, second, and third 10x growth phases, look for investment opportunities with corresponding capital levels. Repeat the profitable operating model 100 times in each 10x growth phase. Following this approach, earning 10 million yuan is essentially a piece of cake. Of course, this method applies not only to earning 1 million yuan, but even 100 million yuan; the underlying methodology remains the same.
With this method, my total position has increased sixfold! Many people become more and more confused as they trade, not because of their poor skills, but because they have too many routines.
[Step 1] Coin selection: only select “main rising trend coins”
The principal cannot be scattered, and you must concentrate your firepower on betting on the "trend + control" currency: breaking through the previous high and starting with large volume: For example, when SOL broke through $25, it increased five times before retail investors reacted.
Leaders in the sub-sectors: MEME, AI, Layer2, avoid pseudo-hotspots that are "old wine in new bottles"
Small circulation, easy to pull up: The market capitalization is between 100 million and 1 billion U, the dealer is easy to control the market, and it is easy to pull up the market.
[Step 2] Rollover strategy: only use profits to increase positions, and the principal only increases and never decreases
500,000 U does not seek to double overnight, but only seeks to proceed step by step:
First transaction: 200,000 trial position, the signal must be clear - breakthrough + large volume (such as PYTH breaking through 0.6)
Stop loss: Cut losses when you lose 10%, don’t talk about feelings, save money
After the profit reaches 50%, increase the position: invest another 300,000 (principal + profit) to catch the main rising wave
After doubling, roll in the whole position: 1 million U will impact 3-5 times, do not be greedy, do not hesitate, take half of the profit when it retreats 15%, and hold the rest to the end
Key discipline: Never increase your position when you are losing, only increase your chips when you are winning.
[Step 3] The Iron Rule of Warehouse Control: Increase your profits 20-fold by controlling yourself, not by being brave
A single coin should not exceed 40% of the total position: at any time, you cannot bet everything on one thing.
Withdraw the principal when the profit doubles: When the profit reaches 1 million from 500,000, withdraw 500,000 as the minimum first, and the stop loss for each transaction shall not exceed 5-10% of the total position: if it falls to the expected position, you will win if you cut it.
Those who truly reach 10 million are never the best at reading candlestick charts, but rather those who can resist temptation and control their hands. The market provides opportunities, but profits belong only to those who have a system, are disciplined, and are ruthless.
You can also roll over your position, but ask yourself: It's not whether you have $500,000, but whether you have the patience and determination to see it through. If you don't want to keep spinning in circles, then let -- lead you in rolling over your position. The current market is a great time to recover and roll over your position.
The right approach + stable execution + a good team leading the charge is far superior to just hustling around on your own! Anyone looking to turn things around will definitely find me.
The following proven cryptocurrency trading model has a winning rate of up to 98.8%. Once mastered, it can help you avoid most pitfalls and make your journey from 100,000 to 10 million more stable.
1. Separate funds and strictly control risks
Divide your funds into five parts, and only use 1/5 of your position at a time. Set a 10-point stop-loss. Even if you make a single mistake, you'll only lose 2% of your total funds. Five consecutive mistakes will only result in a 10% loss. If you're right, set a take-profit of more than 10 points to fundamentally reduce the risk of being trapped.
2. Go with the flow and improve your chances of winning
To further improve your winning rate, the key is to "follow the trend." In a downtrend, every rebound is often a trap to lure investors into buying; in an uptrend, every dip is often a golden opportunity to buy low. Compared to the extremely risky bottom-fishing, following the trend and buying low offers a much higher chance of profit.
3. Avoid currencies with short-term surges
Whether mainstream or altcoins, few can achieve multiple major upward waves. After a short-term surge, it's extremely difficult for prices to continue rising. When prices stagnate at high levels, subsequent price increases are inevitable and will inevitably fall. This simple truth is often overlooked by some who enter the market with a "gamble" mentality, ultimately leaving them trapped.
4. Use MACD to determine entry and exit signals
Use MACD to assist in decision-making: When the DIF line and DEA form a golden cross below the 0 axis and break through the 0 axis, it is a stable entry signal; when MACD forms a dead cross above the 0 axis and runs downward, you need to decisively reduce your position to avoid profit taking.
5. Refuse to cover losses, only add to profits
"Adding to a position" has pitted countless retail investors—the more they lose, the more they add, and the more they add, the more they lose, ultimately driving them into a desperate situation. Remember the iron rule: never add to a position when you're losing money. Only add to a position when you're profitable. Let profits roll in, not let losses escalate.
6. Volume and price are the key, follow the capital flow
Trading volume is a barometer of capital flow in the cryptocurrency market, a more reliable indicator than simply observing K-line charts. When a cryptocurrency breaks through a low level during consolidation, pay close attention. When high prices experience stagnation, it indicates a lack of capital to absorb the market, prompting a decisive exit.
7. Only trade in the upward trend and don’t waste time
Prioritize upward-trending currencies for higher odds and greater efficiency. A 3-day moving average turning upward signals a short-term uptrend; a 30-day moving average turning upward signals a medium-term uptrend; a 84-day moving average turning upward signals a high probability of a major uptrend; and a 120-day moving average turning upward signals a long-term uptrend.
8. Keep reviewing and adjust strategies in a timely manner
After each day's trading, you must review your trading strategy: check if your holding logic has changed, verify whether the weekly K-line trend is consistent with your predictions, and determine if the trend direction has shifted. Adjust your trading strategy based on the review results to continuously optimize your operations and avoid repeating pitfalls.
Let me share with you a set of practical strategies that I have used for many years. The average winning rate has reached 80%, which is a rare achievement in the cryptocurrency trading world.
A trading strategy with a 95% winning rate in the cryptocurrency world (trend line drawing). Once you learn it, you can earn a stable monthly income of 7 figures and an annual income of 8 figures!
It can be said that this chapter is very important and very detailed. It may be a bit difficult to study it for the first time. I hope you can read it repeatedly.
Let's first explain how to draw a line, mainly based on the following three steps:
Confirm the trend, determine the highs and lows, and draw the lines correctly
Let’s look at the first one first, confirming the trend. We have said before that not all structures can use the Fibonacci tool. At least we don’t use it in a volatile market. We only use this tool in a trending market.
So how do you confirm the trend?
Of course, you can use the previous trend line lessons to help you identify a trend. If you can draw a line through two points and have it verified at the third point, then this trend line is a valid trend line.
At this time, you can also confirm this trend with the help of trend lines, which is also a method.
Of course, you can use other tools to judge the trend, such as moving average. There is really no unified standard for this. Today we will use another method to confirm the trend, which is more concise, that is, using EMA200.
EMA (Exponential Moving Average), also known as MA, is simply the sum of the daily closing prices and divided by the number of days.
EMA is different. It has weight. The meaning of weight is that yesterday's price has a more important impact on today, and the price of the day before yesterday also has an impact on today, but the impact is not as powerful as yesterday's price. Then the impact of the price of the day before yesterday on today is smaller than that of yesterday and the day before yesterday.
EMA is smoother than MA, and I personally prefer EMA. Of course, we will explain the detailed usage and differences between MA and EMA in the moving average section.
We use EMA200 to judge the market trend. Let's first look at the following Figure 2.4-17.
Figure 2.4-17
We can see that the price dropped from high point A to low point B, and then rose to high point C. However, C did not break through the previous high point A. At this time, the price reached position D. How should we draw it? Should we draw it based on the high and low points AB or BC?
At this time, it is very simple. We add the EMA indicator and change the parameter to 200. As shown in Figure 2.4-18, it represents the setting of EMA200.
Figure 2.4-18
If the price is circling around EMA200, as shown in Figure 2.4-19,
Figure 2.4-19
Then we believe that the current market is a volatile or disorderly market, and we will not participate in this type of market.
If the price is above EMA200, then we believe that the current market trend is mainly upward, as shown in Figure 2.4-20.
Figure 2.4-20
At this time, we should draw the Fibonacci retracement line based on the high and low points to observe the price reaction when it pulls back to the 0.382-0.618 area, so as to make corresponding strategies.
If the price is below EMA200, then we believe that the current market trend is mainly downward, as shown in Figure 2.4-21.
Figure 2.4-21
At this time, we should draw Fibonacci retracement lines based on the high and low points to observe the price's reaction to the 0.382-0.618 area so that we can formulate a corresponding strategy. After confirming the trend, we move on to the second step, which is to identify the high and low points.
Because drawing Fibonacci areas is relatively subjective, if you define the high and low points differently, then your Fibonacci areas will definitely be different, which will inevitably lead to different support and resistance areas, which may cause misjudgment. So how should you find the high and low points?
Let's assume that the market is rising, as shown in Figure 2.4-22. What should we do?
Figure 2.4-22
First, we can't directly connect the high and low points of the BC wave and then draw the Fibonacci. The price has fallen from the high point C to point D. At point D, it could be either a decline or an increase. Let's assume a decline. Then, we need to draw the Fibonacci based on the previous high point A and the previous low point, and then see if point B falls within the 0.382-0.618 Fibonacci retracement range.
If area B is in the callback area of 0.382-0.618, as shown in Figure 2.4-23,
Figure 2.4-23
At this point, a secondary test of the swing low, point B, may occur—that is, a retest of the previous low, B, forming a double bottom pattern, followed by a direct upward move. Remember, double tops and bottoms are more powerful when they follow the trend. In other words, we need to look for double bottoms in an uptrend and double tops in a downtrend. Therefore, we need to draw a horizontal support line from point B, as shown in Figure 2.4-24. When the price reaches this area, we can observe whether the price behavior will form a double bottom.
Figure 2.4-24
If area B is not in the callback area of 0.382-0.618, but above 0.382, that is, above the mild callback, as shown in Figure 2.4-25,
Figure 2.4-25
At this time, we also need to draw the horizontal support line at point B. The price may test the low point B for the second time, forming a double bottom pattern, and then rise directly. It is also possible that it will fall below the support area to point D, forming AB and CD with equal distances, and D will just pull back to the Fibonacci 0.382-0.618 area, and then continue to rise, as shown in Figure 2.4-26.
Figure 2.4-26
In other words, this pullback isn't a simple one, but rather a two-stage, equidistant pullback. This is because traders who shorted at point C will, based on the principle of equidistant lines AB and CD, immediately close their positions at point D. Short sellers will then be depleted, allowing bulls to continue their upward trend. Of course, a three-stage pullback is also possible, with prices continuing to rise. However, as long as the trend remains intact, we should follow the trend and trade with it. If area B isn't within the 0.382-0.618 range, but instead lies below 0.618, this indicates a deeper pullback, as shown in Figure 2.4-27.
Figure 2.4-27
That indicates a deep pullback, which means that the upward momentum is insufficient and the buyer's power has become somewhat weak. At this time, the seller will also realize this situation, so the seller may intervene in the market. At this time, we also need to draw the horizontal support line at point B. We can pay attention to the reaction when C falls back to the horizontal support position, as shown in Figure 2.4-28.
Figure 2.4-28
As we've mentioned many times before, we should follow the trend before a market reversal occurs, as it's always the easiest way to make money. If point B is broken, a range-bound consolidation pattern may emerge. At this point, we'll need to focus on the price performance of the horizontal support area drawn by the previous low point, B. This will be covered in detail in subsequent lessons; here, we'll focus on identifying swing highs and lows.
The above figures discuss the situation where the CD segment does not stop falling after reaching point D, and continues to fall. What if there is no decline at point D, but an increase, how should we draw the high and low points of the band? As shown in Figure 2.4-29,
Figure 2.4-29
At this point, we should draw a horizontal resistance line at the previous swing high A and wait for the price to break through the previous swing high A. If the price breaks through the previous swing high A and then creates a new swing high E and then falls, we can draw a Fibonacci zone with the swing low B and the swing high E and observe the price action between 0.382 and 0.618, as shown in Figure 2.4-30.
Figure 2.4-30
If the horizontal resistance line just drawn at point A is also within this area, a regional resonance will form, and this area should be closely monitored. Of course, when the price breaks through the previous high point A, it may encounter resistance and fall back, and then break through again, forming a dense range, as shown in Figure 2.4-31. At this time, it is a position where momentum is waiting for an explosion.
Figure 2.4-31
The most important thing is to see if it can eventually break through and form a new swing high. Once it breaks through, we can then identify the highs and lows and draw Fibonacci zones. So, the above is the entire process of identifying swing highs and lows in an uptrend. Now, let's assume the market is falling, as shown in Figure 2.4-32. What should we do?
Figure 2.4-32
First, we cannot directly connect the high and low points of the band BC and then draw the Fibonacci. At this time, the price has fallen from the high point C to point D. At this point, it is possible to rise or fall. Let's first consider the assumption of rising. How should we draw the Fibonacci area? At this time, we need to draw the Fibonacci area based on the previous band high point A and the previous band low point B, and then observe whether the position of point C is in the 0.382-0.618 position area of this Fibonacci retracement. If the position of C is in the rebound area of 0.382-0.618, as shown in Figure 2.4-33,
Figure 2.4-33
At this point, a secondary test of the swing high, C, may occur, meaning it will retest the previous high, forming a double top pattern, followed by a direct decline. This is what we said before: we need to look for double bottoms in an uptrend and double tops in a downtrend, and we must remember to trade with the trend. Therefore, we need to draw a horizontal resistance line from point C, and then wait for the price to reach this area, observing the price behavior to see if a double top pattern appears, and then decide how to enter the market, as shown in Figure 2.4-34.
Figure 2.4-34
If area C is not in the 0.382-0.618 range, but above 0.382, that is, above the mild rebound area, as shown in Figure 2.4-35, what should we do at this time?
Figure 2.4-35
At this time, we also need to draw the horizontal resistance line at point C. The price may be the same as above, and conduct a second test at the high point C of the band, forming a double top pattern, and then directly fall, as shown in Figure 2.4-36.
Figure 2.4-36
It is also possible to break through the resistance area to position E, forming equidistant BC and DE, and the rebound position of E just reaches the Fibonacci 0.382-0.618 area, and then continue to fall, as shown in Figure 2.4-37.
Figure 2.4-37
In other words, the rebound at this time is not a simple rebound, it is a two-stage equidistant rebound.
Because traders who short-term long positions at point D will directly close their positions at point E based on the principle of equidistant lines BC and DE, bullish momentum will be exhausted, bearish momentum will continue, and prices will continue to fall. Of course, there is also the possibility of a three-stage rebound followed by further decline, but as long as the trend is not broken, we should follow the trend and trade with it.
If the position of C is not in the 0.382-0.618 area, but below 0.618, that is to say, it belongs to a deeper rebound, as shown in Figure 2.4-38,
Figure 2.4-38
This indicates that there has been a deep rebound in the decline, which reflects the lack of seller power and may cause market fluctuations or reversals.
At this point, we draw the horizontal resistance line at point C. We can pay attention to the reaction when the price rebounds to the horizontal resistance position, as shown in Figure 2.4-39.
Figure 2.4-39
As mentioned many times before, if the market has not reversed, we should follow the trend, because following the trend is always the easiest way to make money. We should pay attention to whether it will form a double top, as shown in Figure 2.4-40.
Figure 2.4-40
Therefore, it is possible that it will form a double top at the resistance line drawn at the high point C and then continue to fall. Of course, it is also possible that it will directly break through this resistance line. If point C is broken, we will focus on the band high point A, draw a horizontal resistance line through A, and then observe the price reaction near this resistance line, as shown in Figure 2.4-41.
Figure 2.4-41
It could be consolidating, reversing, or continuing to fall after consolidation. These are unpredictable, so we need to pay close attention. The above charts mainly assume several scenarios where the price rises at point D. If the price does not rise at point D but continues to fall, as shown in Figure 2.4-42, how should we find the high and low points of the band?
Figure 2.4-42
At this time, we should draw a horizontal support line with the band low point B, wait for the price to fall below the band low point B, and then create a new band low point E. At this time, we can draw the Fibonacci area with the band high point C and the band low point E, and observe the price behavior reaction between the 0.382-0.618 area, as shown in Figure 2.4-43.
Figure 2.4-43
If the horizontal support line just drawn at point B is also within this area, a regional resonance will be formed, and this area should be closely monitored. Of course, when the price falls below the previous low point B, it may rebound from support and then fall below it again, forming a dense range, as shown in Figure 2.4-44. At this time, it is a position where momentum is waiting for an explosion.
Figure 2.4-44
The most important thing is to see if it can eventually break through, forming a new swing low. This is how we can draw the Fibonacci zones. The above is the entire process of finding the highs and lows of a downtrend. Now that we've determined the trend and the highs and lows, how do we draw them correctly?
It's very simple. If it's an upward trend, the rule for drawing lines is to first find the low point of the band, then the high point of the band, that is, draw from bottom to top. At this time, we can see that 1 is at the bottom and 0 is at the top. If you find the high point of the band first, then the low point of the band, the numerical display of the graph you draw will be different, as shown in Figure 2.4-45.
Figure 2.4-45
Obviously, the left side is correct, and the right side is the opposite. Some people don't pay attention when drawing, and draw very casually, which will lead to bad drawing habits. So in the early stages of learning, try to learn the correct habits, otherwise it will be difficult to change them later.
If it is a downtrend, the line drawing rule is to find the high point of the band first, then find the low point of the band, that is, draw from top to bottom. At this time, we can see that 0 is at the bottom and 1 is at the top. If you find the low point of the band first, then the high point of the band, the numerical display of the graph you draw will be different, as shown in Figure 2.4-46.
Figure 2.4-46
Obviously, the left side is correct, while the right side is reversed. The above is the detailed process for drawing Fibonacci lines. A question arises: when connecting high and low points, should we connect the shadows or the bodies? My personal understanding is that when connecting the highest and lowest points, we connect the shadows, not the bodies. Finally, let's look at the explanation of the actual market chart to deepen our understanding, as shown in Figure 2.4-47.
Figure 2.4-47
The blue line in the chart is the EMA200. We see high point A and low point B. At this point, when the price is above the EMA200, we only go long and not short. We draw a purple horizontal resistance line from high point A. If we see the price subsequently break through A and reach high point C, we draw the Fibonacci zone using low point B and high point C, and then observe the price's performance when it returns to the 0.382-0.618 range, which is the light green area on the chart.
We see that the price forms a double bottom in the area marked by the red arrow, and at the same time forms a small dense range at the bottom on the right. We can enter the market directly when it breaks through the top of the range. Of course, you can also choose other entry methods. Let's look at another chart, as shown in Figure 2.4-48.
Figure 2.4-48
The blue line in the chart is the EMA200. We see low point A and high point B. At this time, the price is below the EMA200, so we only go short and not long. We draw a green horizontal support line at low point A. We see that the price subsequently falls directly below A to reach low point C. We draw the Fibonacci zone at high point B and low point C, and then observe the performance of the price returning to the 0.382-0.618 price range, which is the light green area on the chart.
We see that the price forms a double doji (DD) signal in the 0.5 area of Fibonacci, at the position marked by the red arrow. At the same time, it forms a miniature double top with a small high point on the left. This is an entry signal. Of course, you can also choose other entry methods. The above is about the drawing method of Fibonacci. I hope you can practice more and master it.
I am Axin. If you don’t know what to do in a bull market, click on my avatar and follow me. I will share the bull market spot planning and contract password for free.
