In a bull market, altcoins may indeed show a crazy surge, bringing substantial returns to investors. However, this feast is not one that everyone can enjoy until the end. Only through rational analysis and cautious operations can one steadily reap their own wealth in the tide of altcoins. Remember, the true essence of investing is always: 'Bull markets are common, but rationality is not.'
After struggling in the cryptocurrency space for a full 8 years, I have experienced three cycles of bull and bear markets. From an initial principal of 60,000 yuan to achieving financial freedom today. Along this journey, I have almost stepped into every pitfall, but it is these experiences that have helped me develop my own stable profit system.
And the nine rules of the circle, understanding them can save you three years of detours.
Do not easily sell low-priced chips: Stay firm in your belief and be wary of market manipulation through coordinated selling. Hold onto your low-cost chips.
Chasing highs and selling lows is a major taboo: Avoid operating with full positions. When the overall trend is positive, building positions in batches is less risky than chasing high prices, with lower costs and greater profits.
Reasonable Profit Distribution: Make good use of funds to maximize profit release, rather than just increasing positions blindly. Maintain a good mindset: do not speculate, do not be impatient, do not be greedy, do not be fearful, and avoid unprepared battles.
Grasp Market Rhythm: Early ambush in low-priced coins or private placements relies on experience and bets on the project's future, while the subsequent secondary market games rely on technology and news. Do not overturn the fundamentals, leading to chaotic conclusions.
Segmented Position Building and Selling: Gradually widen the price range to reasonably control risk and profit ratios.
Understand the Linkage Effect: Pay attention to the cryptocurrency market trends when trading, and be mindful of other trends. The market linkage is complex; using tools for in-depth analysis helps better grasp market opportunities.
Reasonable Position Allocation: The positions in hot coins and value coins need to be reasonably matched to maintain balance. Being too conservative may miss opportunities, while being too aggressive poses high risks. Value coins are primarily stable, while hot coins are volatile, which may double overnight or drop to zero.
Investing idle money ensures safety: Maintain idle money investments, reasonable positions, and sufficient account funds to ensure a stable investment mindset, risk control, and finance.
Proper allocation is key to success.
Three years to enter the industry, five years to understand it, ten years to master it. Trading is not about getting rich in one go, but about achieving reasonable profits that are long-lasting, stable, sustainable, and have a high probability, allowing oneself to continuously acquire wealth.
Today, I want to share this 'smart money' strategy in the cryptocurrency circle, which has achieved an average win rate of 80% after years of practical verification. This is quite a remarkable achievement in the cryptocurrency trading field.
First, I want to emphasize that no trading strategy can guarantee a 100% win rate, and a high win rate does not mean high returns. Risk and reward coexist. However, if you can reasonably control risk and strictly follow trading rules, this strategy can undoubtedly become a sharp tool in your trading toolbox.
Price action is a very simple yet practical technical analysis technique that seeks to find the current dominant forces in the market by reviewing the exchange of bullish and bearish positions behind the price. In recent years, some Western traders have refined price action using the concept of 'smart money', marking a milestone innovation in price action analysis.
The so-called 'smart money' refers to some institutional investors or large individual investors who often conduct more thorough research before making decisions, and even possess certain insider information that can have a significant impact. Therefore, they are referred to as 'smart money'. In the smart money strategy, the fair value gap (hereinafter referred to as FVG) is a core concept that plays a very important role in confirming breakthroughs, pullbacks, etc., in price action. In today's article, I will introduce the logic behind FVG and its practical applications.
Finally, a word! How to set stop loss and take profit in trading!
1. Define Investment Goals: Before entering any trade, clarify your investment goals and risk tolerance, which will help you determine reasonable stop loss and take profit points.
2. Technical Analysis: Use technical analysis tools, such as support and resistance levels, moving averages, chart patterns, etc., to assist in setting stop loss and take profit points.
3. Capital Management: Based on your capital situation, decide the amount of capital for each trade. It is generally recommended that the capital for each trade should not exceed 1-2% of the total capital.
4. Dynamic Adjustment: Market conditions are constantly changing, so stop loss and take profit points should also be dynamically adjusted based on market changes.
5. Psychological Preparation: Be prepared to accept stop losses and take profits; do not let temporary emotions affect your trading decisions.
Professional Strategy Suggestions.
1. Proportional Stop Loss Method: Set a loss percentage based on your investment goals and risk tolerance, such as 2% or 5%. When the loss reaches this percentage, it automatically triggers a stop loss.
2. Time-Based Take Profit Method: Set a reasonable time limit, such as one week or one month. If the expected profit is not achieved within this timeframe, consider closing the position.
3. Target Price Take Profit Method: Based on market analysis, set a reasonable target price. When the price reaches or exceeds this target price, trigger a take profit.
In a bull market, we must not miss any opportunities to ensure continuous profits. If you desire to double your investment, yearn for big profits, and want to recoup losses, follow me for daily layouts and comments. 333 Get on board.