加密-币赢哥
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How should we play in the current market?
In the past, the cryptocurrency world had opportunities several times a year, or even once a month, leading to the saying that one day in the crypto world is like ten years in the human world. However, now the opportunities in the cryptocurrency market are visibly decreasing, with even just one opportunity a year. But currently, the cycle pace is still faster than traditional financial markets. In today's market environment, patience has become incredibly important; reducing trading and waiting for significant opportunities will be the core content of trading in the future. How should we play in a market where the dividends have disappeared?
1. The era where you could make money by simply lying down is over. Now, if you want to make money from the market, the requirements for personal ability have increased significantly. You need to read more, learn more, and gain more experience, while also learning from outstanding people and mimicking how successful individuals operate;
2. For small funds, large coins cannot be touched anymore, and it is almost impossible to risk small amounts for large returns; you can only play with altcoins;
3. You should appropriately increase leverage, maintaining at least 2-3 times leverage in full positions, and at most around 5 times leverage for trading altcoins;
4. You need to maintain greater patience because the cycles have slowed down significantly. Greater patience will allow you to wait for potentially high returns and worthwhile coins to trade, rather than frequently trading a bunch of worthless coins;
5. Most altcoins are also worthless now; the all-around bull market has ended. You need to learn to pick worthwhile coins to trade. The coins worth trading are those that most people are playing on big platforms. You should pick from the rise rankings, hot rankings, and new coin rankings.
The above are my personally immature suggestions. Of course, if you believe that the dividends are still there, feel free not to take a look.
$BTC
In the past, the cryptocurrency world had opportunities several times a year, or even once a month, leading to the saying that one day in the crypto world is like ten years in the human world. However, now the opportunities in the cryptocurrency market are visibly decreasing, with even just one opportunity a year. But currently, the cycle pace is still faster than traditional financial markets. In today's market environment, patience has become incredibly important; reducing trading and waiting for significant opportunities will be the core content of trading in the future. How should we play in a market where the dividends have disappeared?
1. The era where you could make money by simply lying down is over. Now, if you want to make money from the market, the requirements for personal ability have increased significantly. You need to read more, learn more, and gain more experience, while also learning from outstanding people and mimicking how successful individuals operate;
2. For small funds, large coins cannot be touched anymore, and it is almost impossible to risk small amounts for large returns; you can only play with altcoins;
3. You should appropriately increase leverage, maintaining at least 2-3 times leverage in full positions, and at most around 5 times leverage for trading altcoins;
4. You need to maintain greater patience because the cycles have slowed down significantly. Greater patience will allow you to wait for potentially high returns and worthwhile coins to trade, rather than frequently trading a bunch of worthless coins;
5. Most altcoins are also worthless now; the all-around bull market has ended. You need to learn to pick worthwhile coins to trade. The coins worth trading are those that most people are playing on big platforms. You should pick from the rise rankings, hot rankings, and new coin rankings.
The above are my personally immature suggestions. Of course, if you believe that the dividends are still there, feel free not to take a look.
$BTC
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In two years, from 50,000 to around 20 million yuan, there is a very clumsy but practical cryptocurrency trading method that allows you to 'earn forever'! I entered the crypto world with 50,000, made a profit of 10 million, then went into debt of 8 million, then made a profit of 20 million, and now I have achieved financial freedom. Over the nearly two years from December 23, 2021, to August 6, 2023, I managed to achieve a return of 418134.86% with less than 500,000, resulting in over 29 million. I want to provide some practical and useful advice for those who just entered the crypto world! My trading method is very simple and practical; I reached an 8-figure income in just one year, relying on 11 types of chart patterns to trade. I only enter the market when I see a clear opportunity, and I don't trade without a pattern. I have maintained a win rate of over 90% for five years! I spent five years checking 400 charts every night, turning 11,000 into 18 million, all thanks to 11 types of chart patterns, with an astonishing win rate of 100%, winning every battle. Through my own practice, I also achieved a win rate of 100%. I have organized these insights over the past few days and am now sharing them with those destined to learn and master them, worth keeping! $BTC
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How to Learn to Read Candlestick Charts in the Cryptocurrency Market?
1. Look at the Bullish and Bearish Candles. Bullish and bearish candles represent the direction of the trend. Most exchanges and analysis software in the cryptocurrency market use green to represent bullish candles and red to represent bearish candles. A bullish candle indicates that the price will continue to rise, while a bearish candle indicates that the price will continue to fall. Taking the bullish candle as an example, after a period of struggle between bulls and bears, if the closing price is higher than the opening price, it indicates that the bulls have the upper hand. A bullish candle suggests that the next phase will continue to rise, at least ensuring that the initial stage of the next phase will have an upward momentum. Conversely, the downward momentum of the bearish candle is the same.
2. Look at the Size of the Body. The size of the body represents the inherent momentum. The larger the body, the more evident the momentum of the rise or fall; conversely, the momentum is less evident. For a bullish candle, the body is the portion where the closing price is higher than the opening price. The larger the body of the bullish candle, the greater the inherent upward momentum it represents, and this upward momentum will be greater than that of a smaller-bodied bullish candle. Similarly, the downward momentum of the bearish candle is the same.
Observe the Length of the Shadows. The shadows indicate reversal signals. The longer the shadow in one direction, the less favorable it is for the price to move in that direction. Specifically, a longer upper shadow is less favorable for price increases, while a longer lower shadow is less favorable for price decreases. Taking the aforementioned trend as an example, after a period of struggle between bulls and bears, if the bulls experience a downward trend, regardless of whether the candlestick is bullish or bearish, the upper shadow portion has already formed resistance for the next phase. The probability of price adjusting downward is relatively high.
$BTC
$ETH
1. Look at the Bullish and Bearish Candles. Bullish and bearish candles represent the direction of the trend. Most exchanges and analysis software in the cryptocurrency market use green to represent bullish candles and red to represent bearish candles. A bullish candle indicates that the price will continue to rise, while a bearish candle indicates that the price will continue to fall. Taking the bullish candle as an example, after a period of struggle between bulls and bears, if the closing price is higher than the opening price, it indicates that the bulls have the upper hand. A bullish candle suggests that the next phase will continue to rise, at least ensuring that the initial stage of the next phase will have an upward momentum. Conversely, the downward momentum of the bearish candle is the same.
2. Look at the Size of the Body. The size of the body represents the inherent momentum. The larger the body, the more evident the momentum of the rise or fall; conversely, the momentum is less evident. For a bullish candle, the body is the portion where the closing price is higher than the opening price. The larger the body of the bullish candle, the greater the inherent upward momentum it represents, and this upward momentum will be greater than that of a smaller-bodied bullish candle. Similarly, the downward momentum of the bearish candle is the same.
Observe the Length of the Shadows. The shadows indicate reversal signals. The longer the shadow in one direction, the less favorable it is for the price to move in that direction. Specifically, a longer upper shadow is less favorable for price increases, while a longer lower shadow is less favorable for price decreases. Taking the aforementioned trend as an example, after a period of struggle between bulls and bears, if the bulls experience a downward trend, regardless of whether the candlestick is bullish or bearish, the upper shadow portion has already formed resistance for the next phase. The probability of price adjusting downward is relatively high.
$BTC
$ETH
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In two years, I transformed 50,000 into around 20 million with a clumsy but practical trading method that allows you to 'earn forever'!
I entered the cryptocurrency market with 50,000, made a profit of 10 million, then went into debt of 8 million, then profited 20 million, and now I am financially free. In the past two years, from December 23, 2021, to August 6, 2023, I managed to achieve a return of 418134.86% with less than 500,000, ending up with over 29 million. I want to provide some practical and useful advice to newcomers in the crypto space!
My method for trading cryptocurrencies is very simple and practical. In just one year, I turned my investment into eight figures, relying solely on 11 chart patterns to make trades. I only enter the market when I see an opportunity, and I don't trade without a pattern. For five years, I have maintained a win rate of over 90%!
My method for trading cryptocurrencies is very simple and practical. In just one year, I turned my investment into eight figures, relying solely on 11 chart patterns to make trades. I only enter the market when I see an opportunity, and I don't trade without a pattern. For five years, I have maintained a win rate of over 90%!
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How can a novice enter the crypto space without losing money?
When I first entered the crypto space, the first piece of 'advice' I heard was: guard your coins as if guarding a widow. I even shamelessly said so, but in the following years, I not only did not guard my coins with that mindset, but instead invested in countless garbage coins.
Today, I send this phrase back to everyone because the path to greatness is simple, and ultimately we will realize how valuable this phrase is many years later. If I reflect on it, I would like to talk to you as someone who has been there about how newcomers can avoid losing money in the crypto space.
First principle: Risk management
Today, I send this phrase back to everyone because the path to greatness is simple, and ultimately we will realize how valuable this phrase is many years later. If I reflect on it, I would like to talk to you as someone who has been there about how newcomers can avoid losing money in the crypto space.
First principle: Risk management
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Principal is always the most important
If you accidentally make a wrong move and get stuck, it is crucial to preserve your principal as much as possible. During a market crash, it's important to cut losses in a timely manner to preserve most of your principal and maintain a basic foundation. There is still hope for a comeback. Be patient and wait for the market to hit rock bottom before using the remaining principal to buy in. Don't get stuck and go down with the market; often, selling a trapped asset before a crash results in a maximum loss of 50% of the principal. If you ignore the situation and hold on, by the time the asset hits the bottom, the remaining principal will have almost no chance of recovery.
#美国加征关税 #加密市场反弹
If you accidentally make a wrong move and get stuck, it is crucial to preserve your principal as much as possible. During a market crash, it's important to cut losses in a timely manner to preserve most of your principal and maintain a basic foundation. There is still hope for a comeback. Be patient and wait for the market to hit rock bottom before using the remaining principal to buy in. Don't get stuck and go down with the market; often, selling a trapped asset before a crash results in a maximum loss of 50% of the principal. If you ignore the situation and hold on, by the time the asset hits the bottom, the remaining principal will have almost no chance of recovery.
#美国加征关税 #加密市场反弹
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More patience, less impulse
After buying in a bear market, you need to patiently wait to sell in a bull market; do not make trades during the fluctuations, and the waiting period requires patience.
After selling in a bull market, patiently wait for the bull market to collapse and enter a bear market. This may take one to two years. Do not impulsively try to buy at the halfway up or down the mountain; patiently wait for the moment it falls to the valley bottom.
After making money from selling in a bull market, do not give in to the temptation to impulsively invest in altcoins. If you really want to take a gamble, only use at most 10% of your funds.
#Metaplanet增持比特币 #加密市场反弹
After buying in a bear market, you need to patiently wait to sell in a bull market; do not make trades during the fluctuations, and the waiting period requires patience.
After selling in a bull market, patiently wait for the bull market to collapse and enter a bear market. This may take one to two years. Do not impulsively try to buy at the halfway up or down the mountain; patiently wait for the moment it falls to the valley bottom.
After making money from selling in a bull market, do not give in to the temptation to impulsively invest in altcoins. If you really want to take a gamble, only use at most 10% of your funds.
#Metaplanet增持比特币 #加密市场反弹
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Don't gamble in a bull market
There are many opportunities in a bull market, especially in the later stages, with altcoins flying around. Many altcoins surge multiple times, making one envious. The urge to jump in impatiently or to impulsively choose certain promising but yet to explode altcoins for heavy investment, while feeling confident and waiting for a massive increase, is a mindset to avoid. This is purely gambling, completely unrelated to investing.
Every bull market sees the birth of many altcoins that exploit investors. These altcoins have strong hype, appear to have robust backgrounds, and demonstrate fierce growth. Please resist the temptation; only when the tide recedes do we see who is swimming naked. When BTC crashes and the bear market arrives, these altcoins are often halved, decimated, or even approach zero.
If you absolutely cannot resist the temptation, only use a very small amount of funds to play around. Even if you make a small profit, do not get carried away and heavily invest. Never, never, never do that. This is gambling, and you cannot always rely on luck. It’s not about making a hundred times; it’s about losing just once and losing all your capital to start over. Do not fantasize about heavily investing in an altcoin and then getting rich; this is akin to dreaming about winning the lottery, a super, super low probability event. Small amounts of fun can be considered entertainment, but treating it as an investment is a grave mistake.
There are many opportunities in a bull market, especially in the later stages, with altcoins flying around. Many altcoins surge multiple times, making one envious. The urge to jump in impatiently or to impulsively choose certain promising but yet to explode altcoins for heavy investment, while feeling confident and waiting for a massive increase, is a mindset to avoid. This is purely gambling, completely unrelated to investing.
Every bull market sees the birth of many altcoins that exploit investors. These altcoins have strong hype, appear to have robust backgrounds, and demonstrate fierce growth. Please resist the temptation; only when the tide recedes do we see who is swimming naked. When BTC crashes and the bear market arrives, these altcoins are often halved, decimated, or even approach zero.
If you absolutely cannot resist the temptation, only use a very small amount of funds to play around. Even if you make a small profit, do not get carried away and heavily invest. Never, never, never do that. This is gambling, and you cannot always rely on luck. It’s not about making a hundred times; it’s about losing just once and losing all your capital to start over. Do not fantasize about heavily investing in an altcoin and then getting rich; this is akin to dreaming about winning the lottery, a super, super low probability event. Small amounts of fun can be considered entertainment, but treating it as an investment is a grave mistake.
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How Small Funds Can Achieve Big Leaps in the Crypto Space?
It's been a while since my last update, and many coin friends have privately messaged me asking how to trade with small funds to grow big. I believe many of you started with small funds; no one starts with a large amount of money or all their savings to trade coins.
Next, I will talk about this knowledge point — rolling positions.
How to roll positions:
In the crypto space, you must find a way to first earn 1,000,000 capital. There is only one way to earn 1,000,000 capital from tens of thousands.
That is rolling positions.
Once you have 1,000,000 capital, you will find that your whole life seems different, even if you don't use leverage; just holding spot trading will increase.
Next, I will talk about this knowledge point — rolling positions.
How to roll positions:
In the crypto space, you must find a way to first earn 1,000,000 capital. There is only one way to earn 1,000,000 capital from tens of thousands.
That is rolling positions.
Once you have 1,000,000 capital, you will find that your whole life seems different, even if you don't use leverage; just holding spot trading will increase.
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June 16 Bitcoin market analysis, rebound high short, cautious to chase long!
The weekend market remains generally calm, with Bitcoin fluctuating between 104800 and 105500 USD, the trend is as expected. Personally, I choose to watch and do not rashly open positions amid geopolitical conflicts. Although the situation was stable on Trump's birthday, US-China trade remains uncertain. Although the release of rare earths is a positive signal, China has yet to make a statement, and whether it can be implemented still needs observation. This week's market focuses on three aspects: first, the likelihood of Japanese interest rates remaining unchanged; second, the US will announce May retail sales data, expected to be negative, reflecting a slowdown in consumption and economic pressure; third, the Federal Reserve's monetary policy meeting is approaching, and although there is little suspense that interest rates will remain unchanged, the dot plot and Powell's speech will directly affect expectations for the interest rate cut path. Bitcoin has closed with star lines for two consecutive weeks, with both upward and downward pin bars washing out positions. Although the fluctuations are not particularly large, many longs and shorts have been shaken out. (Star lines mainly reflect a temporary balance between bullish and bearish forces in the market and often appear at trend reversal points.) From the daily level, the recent rebound touches MA30 and starts to pull back. If it cannot break through and stabilize above 106500 in the short term, it will face a second pullback, with the target reference being the support price of MA60 around 101600.
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Why do some people say that trading contracts with cryptocurrencies is not advisable?
I've seen many answers, but is it true that your contracts only have options for 100x and 125x, which can easily lead to liquidation?
How large is the liquidation spike? In fact, high-leverage contracts are purely gambling. Of course, if you're playing with a few hundred dollars, it's not a big deal. But if you go all in with high leverage, that's purely a self-destructive behavior. To put it simply, contracts are meant to increase your capital utilization.
The cost of perpetual contracts is funding fees, while the cost of spot contracts is the premium. Of course, this cost can be zero or even negative. I won't elaborate on that here. Many people do not have their own trading system and have a low risk tolerance. They lack strict trading rules and prefer to hold positions. Therefore, they might think that losing 30% in spot trading is not a problem for them, while a threefold contract could wipe them out. This is completely wrong.
First of all, being able to tolerate a 30% loss indicates that you do not have strict trading discipline and are purely gambling in the market. You might claim to be a long-term investor, but long-term trading should not involve contracts because there are costs and increased risks.
If you have a strict stop-loss, being able to tolerate the loss from a wrong position is your reason for trading contracts. For example, if you have 100,000, and the current price of BTC is 100,500, you believe 100,000 is an important support level that won't break. If it breaks, you will stop-loss. The loss you can tolerate is 10,000, and you are willing to take that risk. You can consider using 20x leverage, as this keeps your losses within your tolerance. However, if you do not have a stop-loss, when it drops to 95,000, you will have been liquidated and lost everything. So do you understand? When trading contracts, you must know what your maximum loss is and ensure it is within your tolerance. Alternatively, if you aim to increase capital utilization during a known bull market where all cryptocurrencies are rising and large corrections are unlikely.
In that case, to enhance capital utilization, it is reasonable to use leverage greater than 3x to allocate to different cryptocurrencies. Personally, I believe that contracts should not exceed 2x leverage; anything beyond that is purely gambling!!
#以色列伊朗冲突
#加密市场回调
#美国加征关税
I've seen many answers, but is it true that your contracts only have options for 100x and 125x, which can easily lead to liquidation?
How large is the liquidation spike? In fact, high-leverage contracts are purely gambling. Of course, if you're playing with a few hundred dollars, it's not a big deal. But if you go all in with high leverage, that's purely a self-destructive behavior. To put it simply, contracts are meant to increase your capital utilization.
The cost of perpetual contracts is funding fees, while the cost of spot contracts is the premium. Of course, this cost can be zero or even negative. I won't elaborate on that here. Many people do not have their own trading system and have a low risk tolerance. They lack strict trading rules and prefer to hold positions. Therefore, they might think that losing 30% in spot trading is not a problem for them, while a threefold contract could wipe them out. This is completely wrong.
First of all, being able to tolerate a 30% loss indicates that you do not have strict trading discipline and are purely gambling in the market. You might claim to be a long-term investor, but long-term trading should not involve contracts because there are costs and increased risks.
If you have a strict stop-loss, being able to tolerate the loss from a wrong position is your reason for trading contracts. For example, if you have 100,000, and the current price of BTC is 100,500, you believe 100,000 is an important support level that won't break. If it breaks, you will stop-loss. The loss you can tolerate is 10,000, and you are willing to take that risk. You can consider using 20x leverage, as this keeps your losses within your tolerance. However, if you do not have a stop-loss, when it drops to 95,000, you will have been liquidated and lost everything. So do you understand? When trading contracts, you must know what your maximum loss is and ensure it is within your tolerance. Alternatively, if you aim to increase capital utilization during a known bull market where all cryptocurrencies are rising and large corrections are unlikely.
In that case, to enhance capital utilization, it is reasonable to use leverage greater than 3x to allocate to different cryptocurrencies. Personally, I believe that contracts should not exceed 2x leverage; anything beyond that is purely gambling!!
#以色列伊朗冲突
#加密市场回调
#美国加征关税
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Is it too late to enter the cryptocurrency world?
BTC has a history of 15 years, and there have only been two significant waves of increase. One wave was in 2013, when it rose from 10 to 1000, and the other was in 2017, when it rose from 300 to 19000. It is incredible that both of these increases happened within a year, specifically in the year following a halving.
You can compare this to housing prices at the end of 2017, when BTC was priced at 19000. Now BTC is just over 40000, and its increase is even less than that of housing prices.
BTC is an old friend to many, but it is also something new, as people's understanding gradually improves. Just like when the internet first emerged, many called it an internet scam or a bubble. Most people only thought about investing when they found themselves surrounded by the internet and realized they couldn't live without it; by then, stock prices had already skyrocketed, like Apple's 3 trillion market value.
How many users does BTC have? Less than 50 million, which is negligible compared to Apple's billions of users. However, these fewer than 50 million users have created nearly a trillion in market value, which precisely indicates that there is still tenfold or hundredfold potential for growth in the future.
So entering the cryptocurrency world is never too late, as long as you are earlier than your neighbor.
#以色列伊朗冲突
#加密市场回调
#币安Alpha上新
BTC has a history of 15 years, and there have only been two significant waves of increase. One wave was in 2013, when it rose from 10 to 1000, and the other was in 2017, when it rose from 300 to 19000. It is incredible that both of these increases happened within a year, specifically in the year following a halving.
You can compare this to housing prices at the end of 2017, when BTC was priced at 19000. Now BTC is just over 40000, and its increase is even less than that of housing prices.
BTC is an old friend to many, but it is also something new, as people's understanding gradually improves. Just like when the internet first emerged, many called it an internet scam or a bubble. Most people only thought about investing when they found themselves surrounded by the internet and realized they couldn't live without it; by then, stock prices had already skyrocketed, like Apple's 3 trillion market value.
How many users does BTC have? Less than 50 million, which is negligible compared to Apple's billions of users. However, these fewer than 50 million users have created nearly a trillion in market value, which precisely indicates that there is still tenfold or hundredfold potential for growth in the future.
So entering the cryptocurrency world is never too late, as long as you are earlier than your neighbor.
#以色列伊朗冲突
#加密市场回调
#币安Alpha上新
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Is the cryptocurrency world exploding again?
Suddenly surging past 110,000, the cryptocurrency world has exploded!
Now the screen is filled with fervent emotions; some people are already imagining a handshake between China and the U.S. after Trump takes office, with trade doors wide open, as if a bull market perpetual motion machine has been activated.
But don’t just daydream. This place in the cryptocurrency world has always been a real battle of wits. Recently, there was a fierce showdown between Liangxi and James; one was stubbornly shorting, while the other aggressively went long. In the end, the bears were defeated, but will the market really follow someone’s lead?
At this critical juncture on the 13th, who dares to guarantee there won't be any surprises? Remember, regardless of up or down, the market maker's scythe is always hanging overhead.
Now the screen is filled with fervent emotions; some people are already imagining a handshake between China and the U.S. after Trump takes office, with trade doors wide open, as if a bull market perpetual motion machine has been activated.
But don’t just daydream. This place in the cryptocurrency world has always been a real battle of wits. Recently, there was a fierce showdown between Liangxi and James; one was stubbornly shorting, while the other aggressively went long. In the end, the bears were defeated, but will the market really follow someone’s lead?
At this critical juncture on the 13th, who dares to guarantee there won't be any surprises? Remember, regardless of up or down, the market maker's scythe is always hanging overhead.
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📉 Today's Market Analysis | The Market is Delicate, Respond with Caution!
Today's market movement is quite interesting, with a continuous decline during the day. After the CPI data was released, there was a brief surge, but after the US stock market opened, it peaked and then fell back, returning to a downward trend.
🔍 Key Observation Points:
1️⃣ Is the rebound trustworthy? It currently seems more like a false breakout; pay attention to the 107000 support level on the 4-hour chart.
2️⃣ Trading volume is shrinking, prices are rising but buying pressure is insufficient; beware of the risk of a trap!
3️⃣ The MA30 moving average is flat; if it continues to close bearishly, the MACD may form a death cross, and the double top structure may be confirmed.
4️⃣ Greed Index at 78; historical highs are often accompanied by market shifts, so be cautious of the risk of a pullback.
💡 Operational Advice:
Exercise caution in the short term; if it breaks below 105000, the trend may turn bearish; however, if the pullback is in place, there may be an opportunity to position.
🤔 Are you trapped? Or are you preparing to buy the dip? Feel free to leave a comment with 168 in the comment section, and let's discuss market trends together!
#市场回调，观望还是上车？
Today's market movement is quite interesting, with a continuous decline during the day. After the CPI data was released, there was a brief surge, but after the US stock market opened, it peaked and then fell back, returning to a downward trend.
🔍 Key Observation Points:
1️⃣ Is the rebound trustworthy? It currently seems more like a false breakout; pay attention to the 107000 support level on the 4-hour chart.
2️⃣ Trading volume is shrinking, prices are rising but buying pressure is insufficient; beware of the risk of a trap!
3️⃣ The MA30 moving average is flat; if it continues to close bearishly, the MACD may form a death cross, and the double top structure may be confirmed.
4️⃣ Greed Index at 78; historical highs are often accompanied by market shifts, so be cautious of the risk of a pullback.
💡 Operational Advice:
Exercise caution in the short term; if it breaks below 105000, the trend may turn bearish; however, if the pullback is in place, there may be an opportunity to position.
🤔 Are you trapped? Or are you preparing to buy the dip? Feel free to leave a comment with 168 in the comment section, and let's discuss market trends together!
#市场回调，观望还是上车？
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Remember this logic, and the next Cullinan might just be parked downstairs from your home.
1. Understand stop-loss and take-profit. Trading cryptocurrencies is to make profits, not to hold indefinitely. When your position moves in the wrong direction, sell decisively to avoid unnecessary losses. Do not be greedy when making money in the crypto world, and do not hesitate when facing losses.
2. Do not pursue absolute highs and lows. The market always has lower lows and higher highs, which are difficult for ordinary people to grasp accurately. We just need to buy in the bottom area and sell in the top area to catch the big trend.
3. Volume and price must match perfectly. Rising with low volume or achieving new highs with low volume often signals that the main force is unloading or that the rise is exhausted. It’s better to miss out than to chase, to avoid becoming the one left holding the bag.
2. Do not pursue absolute highs and lows. The market always has lower lows and higher highs, which are difficult for ordinary people to grasp accurately. We just need to buy in the bottom area and sell in the top area to catch the big trend.
3. Volume and price must match perfectly. Rising with low volume or achieving new highs with low volume often signals that the main force is unloading or that the rise is exhausted. It’s better to miss out than to chase, to avoid becoming the one left holding the bag.
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Why is liquidation so easy?
The fundamental reason for forced liquidation of contracts is that market price changes exceed users' expectations and risk tolerance, resulting in insufficient margin to support the contract position.
Inches.
Due to the leverage effect, the risk of contract trading is very high. When the price is unfavorable to you, you need to close your position in time to prevent further losses.
Large. If you do not close your position in time, your margin will gradually decrease until it eventually reaches the liquidation line. If your margin falls below the...
If the position is calculated, your position will be forcibly liquidated, and all funds will be settled.
Specifically, there are several common situations:
Inches.
Due to the leverage effect, the risk of contract trading is very high. When the price is unfavorable to you, you need to close your position in time to prevent further losses.
Large. If you do not close your position in time, your margin will gradually decrease until it eventually reaches the liquidation line. If your margin falls below the...
If the position is calculated, your position will be forcibly liquidated, and all funds will be settled.
Specifically, there are several common situations:
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Contract Explosion Prevention Guide
● Risk Management. Contract trading is a high-risk investment activity. Before engaging in contract trading, you need to develop a detailed risk control plan.
Capital Management. Proper capital management/allocation can effectively reduce risks and avoid contract liquidation.
Control Leverage Ratio. Controlling the leverage ratio is one of the important methods to avoid contract liquidation.
Timely Stop Loss. Stopping loss is harder than taking profit.
● Risk Management. Contract trading is a high-risk investment activity. Before engaging in contract trading, you need to develop a detailed risk control plan.
Capital Management. Proper capital management/allocation can effectively reduce risks and avoid contract liquidation.
Control Leverage Ratio. Controlling the leverage ratio is one of the important methods to avoid contract liquidation.
Timely Stop Loss. Stopping loss is harder than taking profit.
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From self-awareness to strategy refinement, achieving a long-term stable path
The famous investment philosopher Van Tharp once said: "What you trade is not merely the market, but your understanding and beliefs about the market." This
refers to your investment operating system - a unique set of market interpretations and action guidelines you possess. But building such a
practical system is easier said than done.
Before constructing a recent strategy system, you need to clarify your investment philosophy and gain a deep understanding of yourself. This includes your interests,
goals, knowledge accumulation, skill mastery, and the boundaries of your abilities. Only by truly understanding yourself can you find the path that suits you. Additionally,
you need to be clear about when to enter and exit the market, which targets to choose, and how to allocate positions. Furthermore, you need to be prepared to deal with mistakes. When the market trend does not conform to your expectations, how should you respond? This does not mean you should choose extreme measures, but rather learn to draw lessons from failures and continually refine your system.
You may find this path challenging. However, playing with cryptocurrencies is not an easy task that can be accomplished overnight; it requires continuous learning, practice, reflection,
and adjustment. Establishing and validating a complete investment operating system often requires enduring the trials of two bull and bear cycles. In the stock market, this may
take 6 to 10 years; while in the cryptocurrency space, although the recognized bull and bear cycles are shorter, about 4 years, it still means you need at
least 8 years to continuously refine and validate your system.
This may sound daunting, but you should know that this is a marathon, not a sprint. However, I must also admit that not everyone realizes the importance of establishing an investment operating system. Some retail investors may spend their entire lives blindly following trends, chasing highs and selling lows, without ever truly building their own strategy system.
The famous investment philosopher Van Tharp once said: "What you trade is not merely the market, but your understanding and beliefs about the market." This
refers to your investment operating system - a unique set of market interpretations and action guidelines you possess. But building such a
practical system is easier said than done.
Before constructing a recent strategy system, you need to clarify your investment philosophy and gain a deep understanding of yourself. This includes your interests,
goals, knowledge accumulation, skill mastery, and the boundaries of your abilities. Only by truly understanding yourself can you find the path that suits you. Additionally,
you need to be clear about when to enter and exit the market, which targets to choose, and how to allocate positions. Furthermore, you need to be prepared to deal with mistakes. When the market trend does not conform to your expectations, how should you respond? This does not mean you should choose extreme measures, but rather learn to draw lessons from failures and continually refine your system.
You may find this path challenging. However, playing with cryptocurrencies is not an easy task that can be accomplished overnight; it requires continuous learning, practice, reflection,
and adjustment. Establishing and validating a complete investment operating system often requires enduring the trials of two bull and bear cycles. In the stock market, this may
take 6 to 10 years; while in the cryptocurrency space, although the recognized bull and bear cycles are shorter, about 4 years, it still means you need at
least 8 years to continuously refine and validate your system.
This may sound daunting, but you should know that this is a marathon, not a sprint. However, I must also admit that not everyone realizes the importance of establishing an investment operating system. Some retail investors may spend their entire lives blindly following trends, chasing highs and selling lows, without ever truly building their own strategy system.
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How to establish a robust contract trading system to cope with market volatility?
Why are many people still hesitant and reluctant to buy recently? After in-depth analysis, I found that different individuals have their own unique insights, but more voices reveal the following mindsets:
First, "out of ammunition", lack of funds makes them unable to re-enter the market.
Second, doubts about "endless decline", fearing the market will continue to drop after buying.
Third, the mindset of "fear of loss and desire for gain", afraid of losses while wanting to pursue victory, thus falling into the trap of chasing highs and cutting losses.
Fourth, "waiting and watching", missing good opportunities in hesitation.
Fifth, "lack of courage and determination", feeling fear of the unknown in the market, unable to take decisive action.
These mindsets are common in the cryptocurrency space, acting as an invisible barrier that fills the market with panic. After in-depth analysis, I found that the first four reasons mostly stem from a lack of understanding of contract investment. Only when you have an in-depth understanding and sufficient awareness of the market can you overcome these obstacles and have the courage and determination to cope with market fluctuations.
The two main reasons for the market's slump after a significant drop in cryptocurrency: first, the inherent fear instinct of humans, and second, insufficient understanding of contract speculation. Apart from these psychological factors, I believe it is even more crucial to establish a personal contract trading system.
Why are many people still hesitant and reluctant to buy recently? After in-depth analysis, I found that different individuals have their own unique insights, but more voices reveal the following mindsets:
First, "out of ammunition", lack of funds makes them unable to re-enter the market.
Second, doubts about "endless decline", fearing the market will continue to drop after buying.
Third, the mindset of "fear of loss and desire for gain", afraid of losses while wanting to pursue victory, thus falling into the trap of chasing highs and cutting losses.
Fourth, "waiting and watching", missing good opportunities in hesitation.
Fifth, "lack of courage and determination", feeling fear of the unknown in the market, unable to take decisive action.
These mindsets are common in the cryptocurrency space, acting as an invisible barrier that fills the market with panic. After in-depth analysis, I found that the first four reasons mostly stem from a lack of understanding of contract investment. Only when you have an in-depth understanding and sufficient awareness of the market can you overcome these obstacles and have the courage and determination to cope with market fluctuations.
The two main reasons for the market's slump after a significant drop in cryptocurrency: first, the inherent fear instinct of humans, and second, insufficient understanding of contract speculation. Apart from these psychological factors, I believe it is even more crucial to establish a personal contract trading system.
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How to avoid liquidation in contract operations?
In fact, I have tried to build multiple operating systems. I have meticulously designed valuation models for cryptocurrencies, criteria for buying and selling, strategies for filtering cryptocurrencies, and plans for holding periods. Whether in the stock market or the foreign exchange market, I have invested my efforts into operations. Now, I bring these experiences to the cryptocurrency space, hoping to find my own path to success here.
In the past six months, I encountered five liquidations in contract operations. This was undoubtedly a heavy blow for me and a miraculous experience in my cryptocurrency career. After each liquidation, I tried to find various reasons and explanations, just like many retail investors, complaining about the market's volatility.
But one day, I suddenly realized as if enlightenment struck me. I began to realize that an overly complex operating system may not be what I truly need. I started to think about whether there is one strategy that could help me break free from the troubles of liquidation and allow me to navigate the cryptocurrency space more calmly.
Thus, I found my answer - stringent position management. Although this approach is simple, it contains profound investment wisdom. It allows me to remain calm in the face of market fluctuations and avoid falling into difficulties due to excessive leverage or heavy positions. I believe that as long as I can strictly implement this strategy, I will be able to go further and more steadily on the road of investment.
In fact, I have tried to build multiple operating systems. I have meticulously designed valuation models for cryptocurrencies, criteria for buying and selling, strategies for filtering cryptocurrencies, and plans for holding periods. Whether in the stock market or the foreign exchange market, I have invested my efforts into operations. Now, I bring these experiences to the cryptocurrency space, hoping to find my own path to success here.
In the past six months, I encountered five liquidations in contract operations. This was undoubtedly a heavy blow for me and a miraculous experience in my cryptocurrency career. After each liquidation, I tried to find various reasons and explanations, just like many retail investors, complaining about the market's volatility.
But one day, I suddenly realized as if enlightenment struck me. I began to realize that an overly complex operating system may not be what I truly need. I started to think about whether there is one strategy that could help me break free from the troubles of liquidation and allow me to navigate the cryptocurrency space more calmly.
Thus, I found my answer - stringent position management. Although this approach is simple, it contains profound investment wisdom. It allows me to remain calm in the face of market fluctuations and avoid falling into difficulties due to excessive leverage or heavy positions. I believe that as long as I can strictly implement this strategy, I will be able to go further and more steadily on the road of investment.
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