Summary of Novice Trading Tutorials and Technical Articles---Continuous Update
This article will continue to be updated to include some trading technology teaching summaries that are helpful to novices, so that everyone can directly query the problems.
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Homepage Public account and introduction 📖📖📖Trading Classroom 7📖📖📖 1. 认识k线, the starting point of all transactions 2. 量价关系, the fundamental reason for market fluctuations 3. 技术指标, tools to assist trading 4. 趋势识别, identify the ups and downs of the market 5. 图表形态, how to use different K-line patterns to predict future market ups and downs
What are Left-side Trading and Right-side Trading?
In the market, left-side trading and right-side trading are two completely different trading strategies, representing the basic logic of how investors enter and operate in the market. These two strategies are very important in technical analysis and directly affect your holding strategy and risk management. 💡 Let's break down the differences and application scenarios of these two trading methods in detail. 🎯 Left-side Trading Left-side trading is a **counter-trend trading strategy**, usually conducted when market prices reach extreme areas or certain key technical indicators. Traders believe the market is about to reverse, so they enter ahead of time.
Spot trading (Spot) is a basic mode in cryptocurrency trading, suitable for beginners. In simple terms, spot trading is directly buying and selling ownership of cryptocurrencies. Regardless of price fluctuations, the amount of coins you hold will not change.
Core features: No leverage: You buy and sell assets with the amount of capital you invest; Immediate settlement: The asset immediately belongs to the buyer after the transaction, and can be withdrawn to a personal wallet;
Risk controllable: There is no risk of liquidation, and the maximum loss is limited to the principal. Spot trading is like shopping at a supermarket. You bring cash (like USDT), choose a product (like BTC), and after paying, the product belongs to you. You can take it home and wait to sell it when it appreciates.
Posted a week ago, it still seems that Category 1 is once again building the central point B to complete the trend movement. What should happen next after it is completed?
秋伍柒
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As mentioned before, the two cases are Case 1 and Case 2
Trading volume, as the name suggests, is the quantity of transactions completed in a certain time period in the market. It can be the trading volume of a specific cryptocurrency or the total trading volume of the entire market. It is one of the important indicators of market activity and buying and selling power.
If we consider the market as a 'milk tea shop', the trading volume is the total amount of 'milk tea' sold during this period. 📋 Next, I will introduce two changes that trading volume can generate: Volume Decrease
Form: The trading volume has significantly decreased compared to the previous period. Essence: The views of buyers and sellers are tending to be consistent, which can be divided into two situations.
In this lesson, we will discuss position management. To achieve continuous and stable profits, with small losses and large gains, position management is the most core foundation.
As shown, when we use the same strategy to trade in the same market, we can have a hundredfold difference in returns.
📖The only difference lies in the different position management. It's very simple. If we participate in a guessing game, where guessing correctly doubles our bet and guessing incorrectly loses our bet, how should we control each bet amount X to maximize profits?
Can we earn the money sent by the game? In fact, upon careful consideration, it is not difficult to find that the essence of making money lies in how we place our bets. Suppose our betting position each time is x, total profit is y, correct guesses are n, and wrong guesses are m, then we can derive the following formula yᵢ₊₁ = yᵢ (1 + 2x)ⁿ (1 - x)ᵐ. Simplifying further, if we assume our correct guess win rate is 50%, then both n and m can be considered as 1 time, which transforms into the quadratic equation we are most familiar with.
In this class, we will discuss chart patterns, which are the 'visual language' of technical analysis in trading. By observing the shapes on price charts, you can find signals for trend continuation and even early warnings of trend reversals!
🧐 What are Chart Patterns? Chart patterns are specific shapes formed by prices on candlestick charts, reflecting the behavior and psychology of market participants. They are usually divided into two main categories:
Common Trend Patterns:
📖 Chart Patterns and Psychological Struggles Each chart pattern reflects the psychological struggle of market participants, such as:
Why are you consistently losing money? Don't worry, I'll help you analyze where the problem lies. In fact, it's easier to lose money than to make money in trading because most people overlook the essence of trading and their own mistakes. Below, we will gradually break down the reasons and see if you have fallen into these 'pits'.
📖 So how can we avoid consistently losing money? Let's initially compare the various stages of transitioning from consistently losing money to consistently making profits, and identify the skills we need.
📌 How should we master these skills? Let's simplify it into 5 stages, where we can see that the essence of making money still lies in position management. The position management we need to master at each stage is different. How we efficiently utilize our funds is the essential difference that determines whether we make stable profits and how much we earn.
In this class, we will discuss the core concept of trends in trading. 🧐 Think about what a trend is? In trading, a trend refers to the main direction in which the price moves over a period of time. You can think of a trend as the direction of the water flow in a river—where the water flows, the price goes.
🎈 Why is the trend important? Following the trend is the core principle of trading As the saying goes, "The trend is your friend" If the market is rising, going long (buying) is more likely to be profitable; if the market is falling, going short (selling) may be more profitable. Trading against the trend is not only tiring but also risky.
As mentioned before, the two cases are Case 1 and Case 2
秋伍柒
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Let's analyze the big pie. In summary, the recent rise has the potential to be complete and may turn into a pullback at any time. The first scenario is a consolidation for about a week like last time, followed by continued upward movement. The second scenario is that it will definitely pull back to the 85000 position to build a new buy opportunity.
Today let's talk about support and resistance, which are two very important concepts in trading. 🧐 What are support and resistance? Imagine you are jumping on a trampoline: Support levels are like the mesh of a trampoline; when you jump down, the mesh bounces you back up, preventing you from falling lower. Resistance levels are like the ceiling; when you jump up, the ceiling blocks your head, preventing you from jumping higher.
In trading, a support level is the 'bottom' of the price, which could be a good buying opportunity; a resistance level is the 'top' of the price, which could be a good selling opportunity.
In this class, we will discuss a very core concept in trading: technical indicators. In technical analysis, technical indicators are important tools that help traders identify potential buying or selling opportunities. They analyze market trends and determine the timing of buy or sell actions through mathematical calculations of historical market data (such as price, volume, time period, etc.). In this issue, we will introduce the most basic technical indicator: Moving Average (MA), which is also the foundation for many complex technical indicators. MA is mainly divided into 3 categories:
Let's analyze the big pie. In summary, the recent rise has the potential to be complete and may turn into a pullback at any time. The first scenario is a consolidation for about a week like last time, followed by continued upward movement. The second scenario is that it will definitely pull back to the 85000 position to build a new buy opportunity.
Trading Class 2 -- Relationship between Volume and Price
Today we will discuss a very core concept in trading: the relationship between volume and price.
🔑 A vivid explanation of the volume-price relationship: The war between bulls and bears In the financial market, the relationship between price and trading volume is like a 'war' without gunpowder, with participants divided into bulls (longs) and bears (shorts). Bulls want to 'capture cities and lands' to push prices up; meanwhile, bears attempt to 'defend and counterattack' to lower prices. Trading volume serves as the 'military supplies' of this war, determining the scale and outcome of the conflict. 📊 What is 'volume'? (Trading volume)
In this class, we will talk about candlestick charts, which are indispensable in trading. This is a widely used technical analysis tool in financial markets (such as cryptocurrencies, stocks, futures, etc.). ——————————————————————————————————————— 🤔 What is a candlestick? The core of the candlestick is to describe the price changes in the market over a certain period using four data points: opening price, closing price, highest price, and lowest price. It can reveal the overall market trend and reflect changes in market sentiment.
In trading, the trading level refers to the strategy and operation cycle chosen by traders based on the time frame. Different trading levels suit different trading styles, risk preferences, and market conditions. Understanding trading levels helps in formulating a trading plan that suits oneself and improves trading efficiency.
Trading levels are usually categorized based on time frames and can be divided into the following main categories:
🚀🚀 How to choose a trading level that suits you?
Choosing the right trading level requires a comprehensive consideration of the following factors: 1. Time Investment: If you can monitor the market full-time, ultra-short-term or intraday trading may be more suitable.