Some friends asked me about my trading ideas, so I'll briefly share my personal trading strategy.
My view on altcoins in the crypto world is simple. No matter how popular or hot an altcoin is, it’s hard for it to stay hot until the next bull market. Therefore, the value consensus of altcoins lasts only a few months or a year. I hope everyone is clear on this. Don’t think that altcoins have high-value consensus or quality targets.
My approach to opening trades is simply the left-side and right-side trading rules, which are simple and practical trading strategies.
For left-side trading, I like to focus on value assets. Those who have seen my trades know that I generally prefer value coins and have always looked down on some obscure altcoins that suddenly surge. Of course, there are some big players who thrive in altcoins with high leverage, but I don't have that capability. From what I see and hear, most people pursue high volatility and end up getting liquidated. So I focus on value assets, at least when they rise or fall, I can't think of a reason at the moment, but later I can figure out a bit of the rationale. It's not that I can't understand anything; I just know it surged without reason. It's okay to make money slowly. If I don't have the ability to ambush those sudden surges in altcoins, I will stick to coins that have a consensus on value. Many projects in the crypto world are just a bunch of rich people running a show. It's not uncommon for a suddenly popular altcoin to be acquired by institutions. I can't find such coins. Simply put, left-side trading is still a relatively straightforward trading scheme, suitable for beginners. It's just about buying when it drops and going short when it rises. Since the process is simple, what matters is the coin selection strategy. The coin selection strategy is difficult to describe in just a few words. If I have the chance, I can make a video or do a live broadcast to focus on my coin selection strategy.
Right-side trading is an advanced process, chasing highs and cutting losses. When I do right-side trading, I particularly enjoy breakout trades. I am quite confident when making breakout trades; for such targets, I usually rely on robot alerts plus manual observation. The coin selection strategy for the right side still focuses on value assets, but I pay more attention to value consensus. I don't want to participate in low-volume junk altcoins, no matter how good their breakout patterns are. In the crypto world, K-line charts are just one of the directional references. In fact, for me, the patterns of K-line charts are not the main reference for opening trades. K-line charts have developed over time, and there are more and more trading indicators. A coin's K-line pattern can fit this indicator or that one; today it fits this indicator and tomorrow it fits that one. Which indicator should I trust? So for right-side breakouts or chasing highs and cutting losses, I pay more attention to trading volume.
Earlier, I mentioned K-lines and trading volume. I want to share some views on K-lines in the crypto world. I often see various analysis masters making all kinds of simple analyses on K-lines, and I just want to laugh when I see all the things you write. In a market where manipulators seriously control the game, do you think you can track their movements through K-lines? Do manipulators use the same indicators as you? Or is there any indicator that is universally applicable? Among them, wave theory is used to judge major trends. Using a 1-hour chart to judge the overall market trend is really in line with my saying: use whichever indicator fits, just pick a few indicators, and when one fits, you say that indicator is valid. I believe that K-line analysis is most important for judging support and resistance levels and analyzing the trends of high-market-cap altcoins. If you want to talk to me about using K-line indicators to analyze altcoins, I hate to say it, but if you can use K-lines to judge short-term altcoins in the crypto world, you really should go work on Wall Street or directly become a stock god in your own country and get a lot of people to invest in you. Why bother mixing in the crypto world? Another important point is trading volume. Personally, I highly appreciate trading volume indicators. In the crypto world, the capital manipulators need is not as much as you think. Taking an ordinary altcoin as an example, let's say it has a daily trading volume of 5 million USD. The manipulator only needs to use 10% of the trading volume, which is 500,000 USD, to influence the price movement of that day. Many people can afford to invest that amount to manipulate a junk altcoin’s movement. What is truly lacking is the dynamic awareness of trading volumes and orders. Additionally, with no regulation in the crypto world, there is only one real manipulator of an altcoin, and that is the project party. Without the project party's permission, who dares to influence the altcoins under their name? They will lose everything. Speaking of K-line indicators, K-lines were originally used in the stock and futures markets. With the strict regulations today, manipulators doing as they please is essentially courting death. So in a way, retail investors can influence market sentiment, and retail investors can more easily detect market trends using K-lines. Bringing the rules of a highly regulated financial industry into a minimally regulated one is like trying to teach your pet to eat slowly and wash their hands after using the bathroom. Isn’t that a bit overestimating yourself? Just because you made a couple of good trades doesn’t mean you’re a master trainer. Strictly speaking, K-line indicators are only applicable to high-market-cap assets like BTC and SOL. To some extent, BTC indeed has no manipulators, or if there are, they are rule-makers. K-line indicators can analyze short-term emotional price trends only for these coins. In the case of altcoins, if you are used to using K-lines to trade, any profits you make are basically the manipulators' leftovers. Perhaps you and the manipulators are using the same indicators; I generally use K-line indicators for altcoins to judge the direction of manipulator accumulation and distribution by observing previous trading behaviors to predict potential price movements. My use of K-line indicators for altcoins stops there.
Trading is not as complicated as you think. In the crypto world, it’s just about buying up or buying down. As long as you are not in a hurry, I don’t think you can lose much money in the crypto market. Of course, when opening contracts, few are not greedy. I have also made large orders before, but I am willing to learn from my lessons and not repeat the same mistakes. The volatility in the crypto market is extreme, and anything is possible. Therefore, what we need to do is to have more patience and courage. Be patient while waiting for trading opportunities to arise, and when they do, bravely trust your own judgment. During the bear market, a friend of mine bought Bitcoin at 40,000 and sold off at 30,000, while I waited for Bitcoin to drop to 20,000 before buying in. In a bull market, I wait for opportunities every few days; in a bear market, I wait for opportunities every few months. The more anxious you are, the faster you lose money. Take your time, and you might even lose less. Don’t think of yourself as that one in a million trading genius. Don’t fantasize about achieving class crossover through contracts. The crypto world is a raw jungle of capital. If you make money, it’s because you ate the leftovers of others. Those leftovers may be a delicacy to you and me, but to the jungle hunters, they are just scraps. Each time we profit is a sign of a successful alliance. The wealth created by contracts has attracted many people, but the strangulation by capital leaves one helpless. In the jungle of capital, only rule-makers can strangle their prey, and the change of identity is the transformation of classes in the crypto world.