Starting with 1000U at 10x leverage, holding a position worth 10,000U; starting with 2000U at 5x leverage, holding a position worth 10,000U. The values are the same, but the liquidation prices are different. Therefore, do not focus on the liquidation price when trading; the important thing is to set stop losses.
The true masters of cryptocurrency trading believe in simplicity. Repeating simple tasks, this short-term trading model has a win rate as high as 98.8%. Learning this process can help you easily grow from 100,000 to 10,000,000, focusing solely on this one model.
I met a friend from Fujian who enjoys short-term trading and is particularly enthusiastic about various techniques. In just a few years, he has grown from small to large and now makes a living from cryptocurrency trading. I have modified his 'technique' through my own improvements, and after less than a year of practice with a capital of 170,000, he has already achieved 40,000,000. I hope this sharing will be helpful for everyone!
I have been trading cryptocurrencies for 10 years and made 60 million. If you want to change your destiny, you must try the cryptocurrency circle. If you cannot get rich in this circle, ordinary people will have no opportunity in their lifetime.
Cryptocurrency trading methods:
1. Buy mainstream value coins with large positions, hold the spot (do not trade contracts), regardless of whether they rise or fall, just hold them for the medium to long term, based on the entry price, and use rolling position strategies (add or reduce positions)
When encountering a sharp market decline, do not panic if the four-hour chart does not break the twenty-day line, for several reasons:
a. Exploding contracts: If you don't have the right tools, don't easily play with contracts; it is completely different from spot data. Protecting your capital is essential to continue enjoying the benefits of a bull market!
b. Pullback demand: After the mainstream value coins surge, they generally need to pull back to the five-day line, or even the ten-day line, before they can gather momentum to continue rising!
C. Cutting leeks: Retail investors like to chase highs and kill lows. After retail investors chase high prices, the big players will quickly drive prices down to scare retail investors into selling their positions.
2. For profitable swing trades, reduce positions in advance or sell in batches at high points to lock in profits;
3: Pre-set buy orders at the 5-day, 10-day, and 30-day lines on the daily level in batches to buy at low prices.
4: Use the lifeline strategy + judge the trend of rising and falling. If the trend changes and effectively breaks, pull back to the lifeline and reduce positions in time.
5. When there is a surge, be aware of risks and do not blindly chase high prices. When there is a sharp decline, be aware of opportunities and buy in batches at low prices.
6: For profitable positions, moderately reduce positions to avoid rollercoaster trading. For bottom-fishing trades, it is recommended to set a stop loss to protect capital.
7: If the direction is unclear, it is better to miss out than to make a mistake. Protecting your capital allows you to smile longer.
Without further ado!
Share my trading strategies and insights with friends. There is a saying, standing on the shoulders of giants, can make you work less for ten years. If you are lucky enough to see this,
Friends who want to improve their trading skills must watch more and study carefully.
Viewing the market with a developmental perspective on trading cryptocurrencies is an infinite state.
How should this sentence be understood?
In plain language, it means whenever you have time, open your computer and see if you can make a trade to earn some money.
Previously, I introduced day trading and short-term trading, which gained the love of many short-term enthusiasts; but some forex friends feel that day trading requires frequent chart checking, which is too exhausting and taxing.
They want to hold a trading position for a long time but do not want to constantly check the charts; they want to set larger profit targets while limiting losses to a smaller range. So, is there such a trade?
The answer is yes, that is swing trading.
Swing trading is a very popular trading type that brings the least pressure to traders, but offers very considerable returns, especially for part-time traders. It is the perfect trading type.
But before introducing swing trading, I need to emphasize one point:
Regardless of the trading style, traders are fighting alone in the market, responsible for their own account funds, and cannot blame others for losses. It cannot be said which one is better; it can only be seen which way you prefer and which way suits you better.
Take the forex swing trading expert I want to share with you today as an example. He has been in the industry for over ten years, tried various trading types and strategies, but still frequently blew up accounts.
Until he discovered through swing trading: for him, swing trading is the best trading type, and the daily chart can provide him with the most accurate trading signals.
Therefore, to achieve stable profits in forex trading, the first step is to find a trading style that suits you, and then refine your trading strategy, rather than blindly imitating others.
01 Advantages and disadvantages of short-term and swing trading
Since you want to find a trading style that suits you, you must first understand the advantages and disadvantages of each style. Let's first take a look at the advantages and disadvantages of short-term trading and swing trading:
The advantages and disadvantages of short-term trading are as follows:
There are many short-term trading opportunities in the market, with many trading opportunities at entry points with 1-minute, 5-minute, and 15-minute cycles.
Day trading patterns can effectively lock in short-term trading targets, making trading have clear pursuits and assessment indicators.
Day trading can lock in risks. Forcibly stop loss within the day according to funds and points, allocate operational proportions, quantify positions, and implement risk control more effectively.
Disadvantages:
Frequent trading carries a higher risk probability.
Staring at the market for long periods consumes energy, creates considerable pressure, and is not good for health.
The advantages and disadvantages of swing trading
Advantages:
. Will choose trades with higher profit potential;
. Less pressure than day trading, no need to focus on the chart all day; · Trading costs are lower than day trading.
Disadvantages:
. Long holding time brings overnight risk;
, requires more patience and stronger principles.
The potential profit of day trading is greater, while swing trading offers more flexibility and less pressure. In terms of profitability, any trading method can allow traders to profit, but the key lies in personal temperament, skills, and knowledge.
Here I will share this swing trading expert's understanding of swing trading and detail his six steps for swing trading.
02 What is swing trading?
Short-term trading was introduced in last week's article, so I will not repeat it today. Friends who haven't read it can check the past articles you may have missed at the end. Today we mainly focus on swing trading.
Swing trading (Swing Trading) is a strategy that attempts to catch a large wave of upward or downward movement, with holding periods ranging from a few days to a few weeks.
Swing traders, while using technical analysis to find trading opportunities, also rely on fundamental analysis to analyze price trends and patterns.
Swing trading mainly consists of two parts—swing and fluctuation points. As shown in the chart below:
03 How to swing trade?
Next, I will introduce the six steps of swing trading.
1 Pay attention to the daily chart
Observe the daily chart more, as the daily chart provides the most comprehensive price trends and more reliable price signals.
But be aware: not all daily charts are worth paying attention to.
I mainly use the New York closing price daily chart. Because the trading session closes every 24 hours at 5 PM Eastern Standard Time, this is also known as the 'market closing time' in the forex market.
Therefore, I recommend that swing traders best use the daily chart. If you have already made a profit using the daily chart, you can try starting with the 4-hour chart.
In summary, generally speaking, a higher time frame means more reliable price action signals.
2 Draw key support and resistance level lines
Draw key support and resistance level lines. This is the most important part of the entire process. For swing traders, if key support and resistance levels are not found, it is impossible to profit.
Now I will introduce two important horizontal lines:
1. Support and resistance lines
Support and resistance are points on the chart that withstand continuous upward or downward pressure. Support levels are usually the lowest points in all chart patterns, while resistance is the highest point (peak) on the chart.
In addition, support and resistance levels are usually not "exact" levels; it is best to treat them as a zone.
2. Trend line
Although trend lines are one of the most common methods in technical analysis, not all traders will use trend lines, possibly because most traders cannot draw accurate trend lines.
Generally, an uptrend line connects the low points of each fluctuation, while a downtrend line connects the high points of each fluctuation.
3 Judge fluctuations
If you have learned to mark support and resistance zones on the daily chart, the next step is to use swing highs and swing lows to determine fluctuations.
There are mainly three types of fluctuations: uptrend, downtrend, and range trend.
1. Uptrend
Higher highs and higher lows, the chart below is a typical uptrend:
In the above chart, each swing high is higher than the previous one, and it is a buying opportunity in this bullish trend.
2. Downtrend
Lower highs and lower lows, the chart below is a typical downtrend:
In the above chart, each swing high is lower than the previous one, indicating a selling opportunity.
3. Range trend
Horizontal movement, also called consolidation, is shown in the chart below:
Range trends are the most common type of trend. Although the above chart does not show a bullish or bearish trend, swing traders can still profit within this range, and it may even be easier to profit than in the other two fluctuating trends.
What should we do?
Use support and resistance levels. As shown in the chart below, pay attention to the two pin bars in the chart:
4 Look for price action signals
Through the above three steps, you have identified the current fluctuations on the daily chart.
1. If the market is in an uptrend, then you should start paying attention to buy signals at key support levels, as shown in the chart below, where a bullish pin bar appears at the key support level.
The bullish pin bar in the above chart is a buy signal, indicating we can profit in a sustained bullish trend.
2. If the market is in a downtrend, pay attention to sell signals at resistance levels, as shown in the chart below:
We can use the bearish pin bar in the chart as a sell signal.
In fact, for swing traders, capturing the entire swing is very difficult. What we can do is pay as much attention as possible to swing changes and patiently wait until we confirm the price trend before entering a trade.
5 Determine exit points
Determining exit points has an important prerequisite: determine take profit and stop loss before entering. This is because once you enter, your emotions will be influenced by market changes.
So, how do we determine exit points?
It's simple; it still relies on support and resistance levels, as shown in the chart below:
The above chart is a GBPUSD daily chart: it is clearly an uptrend, and the price has exceeded our set profit target.
When this happens, don't be upset; we have captured most of the upward trend. Remember, in trading, do not be too greedy.
Let's take a look at the AUDNZD daily chart again: we can also determine take profit, that is, exit points based on support and resistance levels. As shown in the chart below:
In summary, support and resistance zones and trend lines are the foundation of all trading setups. Once these are determined, the entry and exit points become clear.
6 Calculate and manage risk
Currently, risk is usually calculated using the R multiple, for example, setting a 100-point stop loss and a 300-point take profit is 3R. If your capital is $100 and you profit $500, the risk-reward ratio is 5R.
Risk management essentially involves stop loss and take profit:
Stop loss: The best stop loss level is at the top or bottom of the pin bar.
If a bullish or bearish engulfing pattern appears, the stop-loss should be set 10 to 20 points above or below the candle.
Take profit: Take profit is still related to key support and resistance levels. For swing traders, the key to profitability is capturing fluctuations between support and resistance levels.
If the market is showing an uptrend and a bullish pin bar forms at the support level, then set take profit at the next key resistance level.
I am A Xin, if you don't know how to trade in a bull market, click on my avatar, follow me, and I will share spot planning, contract passwords, free of charge.
