Whether you can make money depends on whether your understanding is sufficient! Moreover, in this field, you don't need a background, connections, or resources; you just need to elevate your understanding to a certain level!
Today, let's discuss whether the reasons most people fail to make money are like this?
One, not daring to buy in batches when the market drops: many people lack confidence during market downturns and hesitate to buy in batches at low points, missing the opportunity to buy at lower prices and feeling regretful.
Two, even if you bought at a low point, if you lack the patience to hold during market fluctuations, you may panic sell when the market dips slightly, missing the opportunity for an increase.
3. Funds are too dispersed: investments in too many tokens lead to a lack of concentration in holding quality assets during a bull market, resulting in scattered and limited gains.
4. Those who frequently jump in and out, chasing highs and cutting losses: constantly chasing higher prices during market rises and cutting losses during declines, frequently changing positions, ultimately missing out on the main upward trend of a bull market.
5. Blindly chasing highs in a bull market with large positions can lead to significant losses when the market experiences a major correction, which cannot be sustained short-term, ultimately forcing you to cut your losses.
6. When the bull market comes but you hesitate to go all-in, you miss the best buying opportunity at the beginning of the bull market; yet after the bull market ends, you still hold a large position without adjusting, leading to losses.
Remember: Every market decline is an opportunity to position yourself. Don't wait until the price rises to chase high. Boldly position yourself during every decline, especially in popular sectors.
This year I am 38 years old, with a net worth of over several million. Over the years, I have summarized six iron rules that have led me through thick and thin, crossing through bull markets!
1: Learn to take profits and cut losses.
The market changes rapidly; you must learn to take profits and cut losses. This may sound difficult, but it's not. Taking profits controls your greed; a coin won't rise indefinitely, nor will it fall continuously; there are cycles. Thus, taking profits becomes particularly important. Don't always worry about closing too early and missing out on future profits! You must remember that the money in the crypto market cannot be exhausted, but the money in your account can be wiped out.
Stop-loss is about giving up sunk costs, which is very difficult. Don't always think that if you hold on a little longer, the market will reverse in the next second. Never think this way. If you're wrong, you're wrong; admit it. Standing tall while being beaten is painful, but it can save your life.
2: Do not trade frequently.
A big taboo is not to always think about eating both sides at once. Wake up, very few people can achieve that. If you can profit on one side, be content. Another point is the transaction fees; low leverage is fine, but high leverage can be painful. You lose 1-2 points of profit just by opening a position, so ensure that this position can make money; otherwise, it is meaningless to open it, as all your profits go to the market maker as fees!
3: Learn to go flat.
When you can't understand the market, don't blindly open positions. At this point, you might say that missing out on a rising market is uncomfortable. So, let me ask you: is it more uncomfortable to miss out or to incur losses? Not understanding the market and blindly opening positions is no different from gambling! Trading relies on a probabilistic advantage; no one can accurately predict whether it will rise or fall. The market changes too quickly; we can only say that it is highly likely to rise or fall.
4: Gradual progress.
Don't always think you can become a big shot in one go; you can't eat hot tofu in a hurry!
The crypto market does not guarantee instant wealth; for example, if you start with 100 and leverage 10 times, your position is 1000. A one-point rise earns you 10, and two points earn you 20, which is breakfast money. Nowadays, working in a factory earns 15 an hour, and if you make three or four trades a day with a 60-70% win rate, it's more comfortable than working in a factory.
5: Do not go all-in.
Absolutely do not go all-in, as unexpected events can lead to significant losses. For example, if the market is expected to rise but suddenly turns sharply downward due to a major news event, and you haven't set a stop-loss, then you're finished! Therefore, do not rush; always go in with a light position, prioritize stability, and remember that the crypto market is not short of opportunities, and they will always be there, at least for the next 10 to 20 years. So do not be deceived by the illusions in front of you!
6: One must be unified in knowledge and action.
This point is indeed quite difficult, including sometimes I can't fully achieve it. Human weaknesses are hard to grasp!
I was once a novice too. I didn't understand these basic issues at first, blindly opening positions without a plan! After being in the industry for a while, I realized that the crypto market can truly change your fate! The prerequisite is that you must have a mindset far beyond others, the courage to take risks, the decisiveness to cut losses, and the determination to survive by any means necessary! Otherwise, you will never become one of the 1% destined for greatness!
The market is cruel, so we must develop strong skills to survive! Success is not accidental, and opportunities are also reserved for those who are prepared. Follow Mei Jie, a master of combining medium and short-term wave arbitrage, here. No matter how the market goes in the future, I will accompany you all the way.
Let me share a practical strategy that I have developed over many years, achieving an average win rate of 80%, which is quite a rare achievement in the crypto trading world.
It can be said that I have tried 80% of the methods and techniques in the market. The most practical one in practice—MACD trading method—is one of the essential skills for short-term trading and swing trading, and it is also the simplest and most practical short-term trading method, which is equally useful in contracts.
A profit of 30%-50% in a month. It never fails!
Market meaning.
1. The meaning of double moving averages in the market.
1. Position meaning.
1. When the double lines are above the 0 axis, it represents a bullish trend, and below the 0 axis, it represents a bearish trend.
2. Double lines crossing above and below the 0 axis serve as a basis for judging the current market trend.
2. Double line crossover.
Cross death crosses appearing too frequently in shorter time frames should not be used alone.
2. The market meaning of volume bars.
1. Bull-bear watershed: The 0 axis is the bull-bear watershed, above which is bullish and below which is bearish.
2. Bullish trend: Volume bars above the 0 axis increase, indicating a bullish trend, with the market showing an upward trend.
3. Bullish correction: The volume bars above the 0 axis gradually decrease, indicating a bullish correction, with the market showing an upward trend adjustment.
4. Bearish trend: The volume bars below the 0 axis increase, indicating a bearish trend, with the market showing a downward trend.
5. Bearish rebounds: The downward volume bars below the 0 axis decrease, indicating a bearish rebound, with the market showing a downward trend adjustment.
Comprehensive meaning.
1. Bull-bear equilibrium.
Moving averages are close to the 0 axis, oscillating up and down, and the volume bars show scattered small volume distributions. At this time, the market is likely to show volatility.
2. Divergence.
Divergence is a signal of momentum exhaustion. Effective divergence refers to simultaneous divergence of the double lines and volume bars.
3. Trend continuation.
An uptrend with volume bars consistently above the 0 axis indicates a continuation of the upward trend; a downtrend with volume bars consistently below the 0 axis indicates a continuation of the downward trend.
"MACD" 8 major entry points.
1. Chande theory.
First and second type of buying and selling points.
First type of buying point.
Trading principles:
Bottom divergence + golden cross as a buying point; top divergence + death cross as a selling point.
Second type of buying point.
Trading principles:
1. The double lines first run above the 0 axis.
2. The first correction of the double lines brings them near the 0 axis.
3. The first golden cross forms above the 0 axis.
2. Trend judgment trading method.
Trading principles:
Long cycle trend judgment; short cycle entry.
From analyzing the weekly and daily charts, the longer cycle is bullish, while the daily chart indicates a short-term correction. Our trading strategy is that if we short on the daily chart, it can only be for a correction, or we wait until the daily chart shows weakness to go long according to the weekly chart.
We can find entry points from shorter time frames, such as 1 hour or 4 hours.
3. Energy bar position trading method principles:
1. Moving averages are close to the 0 axis, oscillating up and down;
2. Volume bars show scattered small volume distributions.
3. Enter when there is a price breakout.
The MACD indicator shows that the volume bars are shrinking, and the moving averages are hovering near the 0 axis, indicating that bulls and bears are in a state of equilibrium, which is consistent with the K-line consolidation and fluctuation. This is a pattern of energy accumulation and preparation.
Thus, when the shape of the MACD volume bars aligns with classic K-line shapes, such as triangles and flags, which indicate narrow range consolidation, once this narrow-range volatility is broken, it often presents a good opportunity.
4. Key position trading method principles:
1. Key support and resistance levels.
2. K-line shows piercing needle signals.
3. The volume bars shift from positive to negative, indicating a sell.
4. Volume bars shift from negative to positive, indicating a buy.
5. Secondary red-green reversal trading method (in-air refueling signal).
Trading principles:
1. The first wave of rising volume bars should not be too large or too small, corresponding to the K-line price shape, and ideally should be in an attacking shape.
2. The first wave of positive volume bars gradually increases and then gradually decreases, but it does not become negative at a certain extent; instead, it continues to expand positively and forms a gradually expanding pattern.
6. Buddha hand upwards.
Trading principles:
1. After the double lines golden cross, they rise with the price of the commodity, followed by a price correction.
2. After the double lines return to near the 0 axis, the DIF line immediately turns upward, forming an upward Buddha hand pattern.
7. Main upward trend trading principles during a downward main upward trend:
1. The MACD volume bars are consistently above the 0 axis, indicating a sustained price rise.
2. The MACD volume bar first appears below the 0 axis, and the price corrects during wave 1.
3. The volume bar of wave 2 is less than that of wave 1.
4. During wave 2 correction and MACD volume bars shortening or expanding for the second time, enter a short position for wave 3.
The upward main upward trend is similar.
8. Divergence + pattern trading method.
Trading principles:
MACD diverges; trend breaks.
Divergence does not necessarily mean a reversal; it can also indicate a buildup. After a divergence, there can be another divergence, so using divergence to enter or exit can easily mislead you. However, we can use MACD + price trend to judge market turning points.
The crypto market has never been a place to rely on luck; it is a test of human nature and wisdom. These experiences may not make you rich overnight, but at least they can help you survive longer and go further in this harsh market. Remember, on the path to wealth, stability is more important than aggressiveness, and survival is more important than making money. When you truly understand and practice these principles, you will find that the crypto market is no longer a battlefield filled with fear, but a stage for achieving financial freedom.
I am Dong Ge, nice to meet you all. Dong Ge focuses on Ethereum contracts and spot trading. The team still has positions available, bringing you to become a market maker and also a winner.