I have been struggling in the cryptocurrency field for 10 years, and it wasn't until 6 years ago, under the guidance of a wise person, that I gradually understood and built a trading strategy that fits my own style. Although I have not yet achieved financial freedom, I can at least achieve stable returns and easily surpass the market average.
From the moment I entered the investment world, I understood the importance of an efficient trading strategy. It is like a compass on a nautical chart, guiding investors to move forward steadily. Conversely, lacking strategic guidance and relying solely on intuition and impulse often leads to losses. However, refining a truly effective trading strategy is much more difficult than one can imagine.
This strategy is considered 'excellent' precisely because it challenges human nature, requiring us to overcome greed and fear, maintain calmness and decisiveness, discard subjective assumptions, and strictly execute the established plan.
As a flesh-and-blood investor, sticking to the bottom line of a strategy in a volatile market is undoubtedly a difficult practice. Moreover, a truly excellent trading strategy is not mere theory; it undergoes countless practical tests and gradually improves through continuous trial, error, and refinement. I spent a full six years polishing this strategy from its initial form to a relatively mature stage.
Even so, I still cannot assert that this strategy has reached perfection. It may just be a somewhat mature semi-finished product, with many details still needing further refinement and optimization through more practical applications. After all, the market is ever-changing, and trading strategies must evolve with the times, continuously adapting to new market environments. This is a long and never-ending journey, and I am firmly walking this path.
Some people make a fortune, while others lose everything.
Where there are tears, there will be laughter; where there are losses, there will be gains.
That's how the market is!
Why do most people still incur losses during a bull market? The reasons are mainly the following three!
1. The chosen coins are incorrect.
In this bull market, altcoins are not hopeless, but among all assets, only a minority will rise. When one lacks understanding of the industry's development and has insufficient awareness, they can only pick up the leftovers. If one does not understand the coins they purchase, even if luck is on their side and they buy those that rise well, they only invest a small position, while most of their capital remains in loss.
2. The timing of buying is incorrect.
Choosing the wrong coins and lacking understanding of the fundamentals can at least allow you to increase your winning rate and reduce the probability of losses through technical analysis. When optimistic about a coin that is rising well, you can also observe the market to see if you can still enter without buying at a high position.
3. Being able to buy but not sell.
There are few coins that can rise, and it does not rule out that some people are lucky enough to encounter good rises. However, struggling with selling means either taking a small profit and running or foolishly holding on when the market peaks, failing to seize good opportunities. The heavens provide opportunities, but if one does not work hard to improve, they lack the ability to seize them.
A must-read for beginners! A guide to cryptocurrency trading:
Stepping into the alluring yet risky field of digital currency, do you, as a beginner, feel confused? Don't worry, today I will unveil the veil of cryptocurrency trading for you, helping you to get started easily!
First, let us unveil the mystery of digital currency. In brief, digital currency is a virtual currency born from the internet, with well-known names like Bitcoin and Ethereum being its representatives.
So, how do you buy and sell digital currencies? At this point, cryptocurrency exchanges come into play. Just as stock trading cannot be separated from stock exchanges, cryptocurrency trading also requires professional trading platforms. But remember, it is crucial to choose a legitimate and reliable exchange; otherwise, it could lead to total loss!
Next, let’s talk about 'wallets.' The wallet here is not the physical wallet you carry every day, but a virtual tool used to store digital currencies. Wallets are divided into hot wallets and cold wallets; hot wallets are convenient but slightly less secure, while cold wallets are safer but relatively cumbersome to operate.
Now, let’s discuss 'K-line charts,' which are an important reference in cryptocurrency trading. Through K-line charts, you can clearly see the trend of price fluctuations, which helps you make wise trading decisions. For example, a bullish candle indicates a price increase, while a bearish candle indicates a price decrease.
Additionally, always remember that cryptocurrency trading is highly risky! The price volatility is astonishing, with daily fluctuations often reaching dozens of percent. Therefore, do not blindly follow the crowd; the funds you invest must be within your capacity to bear losses.
For example, a beginner friend initially knew nothing about digital currencies and recklessly entered the market, resulting in heavy losses. However, after seriously studying the basics, he gradually got back on track.
In summary, as a beginner in cryptocurrency trading, if you want to carve out a niche in this field, you must first solidify your foundational knowledge and act cautiously to have a chance to reap your wealth!
The cryptocurrency market is beloved and pursued by many investment enthusiasts for its profitability and excitement. However, for newcomers, how much money is needed to trade cryptocurrency contracts?
(1) In fact, many investors start by investing a certain amount. This is not because they have little capital, but for safety reasons, and then gradually increase their investment as the situation allows until they reach an appropriate capital ratio.
(2) A widely recognized saying in the financial world is that contract investment assets should not exceed 20% of total investment assets. That is, if a person plans to invest 1 million, then the amount used for contract operations should ideally not exceed 200,000.
Can contracts make money? The three important experiences of contract operations!
Experience 1: Reasonably control your position. Only by reasonably controlling your position can you have a stable opportunity for profit; otherwise, your account will only face failure. Generally, invest 20% of your funds in the market. If your account has only 50,000 USD and the margin is 1,500 USD per contract, then your standard position size should be 6-7 contracts each time, regardless of whether it is long or short.
In a favorable market situation, if your entry trades are profitable, you can gradually increase your position, but do not exceed 40%. Conversely, if your entry trades are at a loss, do not average down, unless you have substantial funds to support it.
Experience 2: Set stop-loss before entering the market. Generally, 50-100 points is advisable, or just below support and above resistance. Not setting a stop-loss means that each trade you make could lead to account death.
Experience 3: Recognize the nature of the market; do not guess the peak.
Many investors are accustomed to looking at daily charts, weekly charts, and short-term trades, treating the long-term price trend of BTC as a short-term trading opportunity, while viewing the short-term fluctuations of BTC as long-term trades, completely ignoring the difference between short-term and long-term trading. This is incorrect; if this continues long-term, the future losses will only grow larger.
Through the above analysis, we understand what skills beginners need to master when operating in the digital currency contract market; the above skills are only part of it. When choosing a platform, one must also choose a legitimate platform, and so on.
The above is a summary of my 10 years of practical experience and skills in trading. It may not be applicable to everyone; each person needs to combine it with their own practice to use the summary effectively. For traders, the most terrifying thing is not that you have technical problems, but that your understanding is insufficient, leading you to fall into these trading traps without realizing it! There is no invincible trading system, only invincible users of the trading system! This is the truth; trading systems ultimately return to the individual!
In the past few days, I am preparing to launch a divine order!!!
Comment 777, let's get on the train!!!
Impermanence brings impermanence!
