A while ago, I met a friend from the crypto circle for coffee. She is from Hunan, born in the 2000s, works in the Greater Bay Area, is stunning, and has solid values. The most impressive part is her trading skills; in five years, she went from a beginner to earning an eight-figure income annually. During our chat, she casually mentioned that making money isn't that complicated; just solidify the basics. I took note of her practical experience, filling up two pages with valuable insights, which I am sharing today with those who are destined to find it useful. Whether you are a newcomer just entering the circle or an experienced trader who has stumbled before, it's worth keeping and reviewing.
First, a warning: If you don't understand these basic concepts, don't enter the market. Many people rush into crypto, focusing solely on making money while overlooking the basic rules.
In the end, they either get their profits eaten away by transaction fees or stumble due to a lack of understanding of risks. Trading hours are 7 days a week, 24 hours a day, without a break. You can place orders after work, but fluctuations can happen at any time.
Beginners shouldn't expect to earn passive income; trading rules are flexible, but leverage is a double-edged sword. Without the ability to judge, it's easy to get liquidated. Don't underestimate transaction fees.
Frequent trading could eat up your profits. The T+0 model should not be manipulated arbitrarily. Beginners' mentalities can easily get chaotic with frequent trading. There are no limits on price fluctuations, which increases risk.
Beginners shouldn't force their way in. Before starting formal trading, you need to do four things: follow the news without blindly following trends, study moving averages, KDJ, and other basic indicators.
Make trading plans based on logic, not feelings. Control risks by setting stop-loss and take-profit levels; do not over-invest. Candlestick analysis is a must-learn course. You can understand it in three steps: first, grasp the basic logic. In the crypto world, red means a drop while green means a rise. A single candlestick consists of an upper shadow, body, and lower shadow. The longer the body, the stronger the momentum for price movement; the longer the shadow, the greater the resistance in the opposite direction.
There's no need to memorize 14 different patterns. Focus on the meanings of the headless and footless large bullish and bearish candlesticks, long upper and lower shadows, and the cross star. A V-shaped reversal is a signal to pick up money, but wait for the trend to be confirmed before entering.
Position management is more important than technique. Choose among eight methods of increasing positions to minimize losses and maximize gains, such as the olive-shaped pyramid, inverted pyramid, and equal probability trading methods.
Beginners should start with simple strategies. Increasing positions should be accompanied by stop-loss and take-profit measures. If you don’t have much capital, don’t bet on a single strategy; diversifying risks is more important.
Lastly, here are ten practical tips: with a capital of 200,000, you can catch the main upward wave once a year. Don’t earn money outside of your understanding. Start with a simulated account. Major good news should be sold on the next day’s high. Reduce positions in advance during holidays. Keep cash for medium to long-term rolling operations.
For short-term trading, only deal with active coins and avoid bottom-fishing during slow declines. If you buy incorrectly, stop-loss immediately. For short-term trading, look at 15-minute candlestick charts. Master 1 to 2 technical indicators like KDJ, and that's enough. The crypto world is not about luck; find the right methods and have someone guide you. Even in the toughest situations, you can turn the tables. @阿二说币
