Let's first take a look at my tearful self-reflection after I lost 1 million in debt: I realized a truth, there is only one kind of person who gets rich by speculating in cryptocurrencies!
One day in the cryptocurrency world is like one year in the stock market. People who are addicted to cryptocurrency trading will no longer have any interest in stock trading. The all-day trading of cryptocurrencies and the unlimited price fluctuations satisfy many people's dreams of getting rich overnight. This is one of the reasons why virtual currency is the most popular, and it is also a very normal phenomenon in the cryptocurrency world.
Every investor who comes to the cryptocurrency circle will experience major losses, position exits, and profit-to-loss experiences in his or her trading career. There is only one kind of person who gets rich among the large number of cryptocurrency speculators, and that is those who have experienced bankruptcy and then summed up their experience with a big mentality.
If you have never experienced a margin call or a major loss, you will never know what stop loss is; if you have never experienced the transition from profit to loss, you will never be able to understand the change of mentality from a thought to heaven or a thought to hell.
Survival is the first principle
Sun Tzu said: Those who were good at fighting in the past first made themselves invincible, waiting for the enemy to be defeated. It is very simple to avoid big losses. Survival is the first principle. When there is a danger of hindering this principle, abandon all other principles. Because no matter how many 100% excellent results you have had in the past, if you lose one 100% now, you will have nothing.
Once your funds are wiped out, you are doomed to be eliminated. If you want to play this game well and achieve ultimate victory in it, all systems and rules must be based on the principle of preserving the principal.
With proper fund management, every success will only allow you to take a small step forward, but a failure will make you take a big step back, which will prevent the accumulation of funds. The accumulation of funds requires opportunities and time. Human nature is always like this: the pain of losing 1,000 yuan is far greater than the happiness of getting 1,000 yuan. The loss of a large amount of funds can easily affect an investor's mentality. A 50% loss of 1 million yuan becomes 500,000 yuan. It takes 100% profit to increase the value of 500,000 yuan to 1 million yuan. It takes an hour to walk from the first floor of the Empire State Building to the top floor, but it only takes 30 seconds to jump from the top of the building and return to the bottom. You cannot control the direction of the market, so there is no need to waste energy and emotions in situations that you cannot control. Don't worry about how the market will change, but worry about what countermeasures you will take to respond to market changes. It is not important to judge right or wrong. What is important is how much profit you make when you are right, and how much loss you can bear when you are wrong.
Every time in the crowd in the market, I see many people who can bargain with the merchants for half a day over the price of a piece of clothing, or go shopping for half a day, but investors will not think about the purchase they want for more than a few minutes. This is a common feature of many people, and it is definitely not the behavior of someone who wants to make a big splash in the investment market. If you want to make big money in the market, investors must be cautious and guard their accounts very carefully.
There is a clear operating system when entering the market:
(1) How much money do you plan to make in this market trend?
(2) What is the maximum loss I can accept? If the market retreats, I must exit immediately at that loss;
(3) I must pocket a certain percentage of the profit from each operation.
(4) Gradually increase positions to avoid full-position trading. As profits rise, continuously increase the profit stop loss level to never allow existing profits to turn into losses.
(5) Always give yourself one more chance to trade and strictly follow your own trading system.
Trend is your best friend
The biggest enemy of trading is waiting patiently for a clear market trend and over-trading. The bull market does not end in one day, and the bear market is the same. I have seen trading in the cryptocurrency circle. It is a place where I have not opened for three years, but opened for three years. As long as you have patience, wait for the market trend to come clearly, find the leading stocks, and hold them until the end of the entire bull market, and do not over-trade, you can get unexpected profits. When the trend comes, respond to it and follow it. When there is no trend, observe it and stay calm.
Excessive trading is also the enemy of investment. Those traders who run the spread can only earn a little sweet profit, but not a lot of money. Let's calculate the fees for excessive trading: the current virtual currency exchanges are calculated based on 0.2% for buying and selling, and the completed transaction is 0.4%. If a trader trades once a day, and a year is calculated as 365 days, then the trader loses 4/1000*365=140% due to the fees. You didn't see that it is 1.4 times, think about Buffett working hard for 30%, and your annual transaction fees are 140%; there is another trader who often ignores that the more frequently a person enters and exits the market, the more likely he is to change his mind frequently. As the saying goes, the more you do, the more mistakes you make, the less you do, the fewer mistakes you make, and if you don't do anything, you will miss the big market due to excessive trading;
Make plans before taking action. Determine the arrival of a trend based on the obvious price breakthrough points, popularity, trading conditions, and capital inflows provided by the market. Keep a broad view of market trends and don't be confused by short-term fluctuations.
Psychological quality is the core
Trading is against human nature. This is a game that determines that only a few people can make a profit, while the vast majority of people are just playing with money. In trading, you need to have a strong psychological quality, and you must have a pattern and mentality of a bursting universe. If you enter the market with 10,000 yuan, and your mind is thumping for the rise and fall of 100 yuan, then I advise you to leave the market as soon as possible, which also guarantees your personal safety. If you have a big mentality of wanting to make 100 million, then the rise and fall within 1 million will not affect your mentality, because what I ultimately want is 100 million, and 1 million is not within my consideration. Only in this way can you have the opportunity to make a big profit.
Trading is not only a game with big institutions, dealers, and retail investors, but also a game with yourself. As the ancients said: Fighting against the sky is fun, fighting against the earth is fun. The highest level of struggle is to fight against yourself. Speculation is a process of psychological struggle all the time. You have been asking yourself, should I sell or keep it at this price? What should I do? This has always been a process of psychological game, which requires strong mental quality. In addition to good mental quality, you must also ensure that your physical condition is good. Good physical condition is the key. Why do people live? Living is nothing more than having a healthy body and coming to the world to constantly temper your soul.
The right trading method for you
Tao represents the logic of things, and Shu represents the methods. As the saying goes: If you have Tao but no Shu, you can still find Shu; if you have Shu but no Tao, Shu will be useless. The birth of a trading Tao represents the composition of a person's knowledge, insight, and courage. By constantly experiencing ups and downs in the market, you can finally figure out the basic logic of trading, which is in line with the law.
The biggest enemies of investors are: hope, fear and greed. Having your own trading method also requires overcoming the weaknesses of human nature: hope, fear and greed. When the market is about to fall, investors should be full of fear, but they feel that there is nothing to hope for. When the market is rising and they are afraid of a correction, they should have the greatest hope in the world, but they begin to be full of fear. This is the reason why traders cannot make big money. Having your own trading method, forming a trading system, helping yourself to overcome the weaknesses of human nature, letting profits run when the market comes, and stopping losses when funds are losing money is the fundamental way for a person to gain great wealth.
Finally: There are only this kind of people who make money in the cryptocurrency market. It does not depend on what technology or method you use, but on your self-discipline. Sometimes, market trading is not a battle of strategy but a battle of time and patience.
There is a dumbest way to trade cryptocurrencies, which allows you to keep making money forever, and make 30 million!
A new round of bull market in cryptocurrency is ready to take off, and the goal of this round is to achieve true financial freedom.
Advice from a cryptocurrency tycoon after losing tens of millions: Eight things you must know
1. Stay rational and avoid emotional trading
suggestion
Control your emotions: When the market is volatile, stay calm and avoid making impulsive trading decisions out of fear or greed
Make a plan: Develop a clear investment strategy and plan, and strictly implement it without being disturbed by short-term fluctuations.
2. Continue to learn and research
suggestion
In-depth learning: Continuously learn relevant knowledge about blockchain + and cryptocurrency, and understand technical principles, market dynamics and project background.
Follow authoritative information sources: Follow authoritative cryptocurrency news websites, blogs and social media accounts to get the latest market information.
3. Diversify your investments to reduce risk
suggestion
Diversify your investments: Don’t invest all your money in one project, spread your investments across multiple promising projects and asset classes.
Regular adjustments: Regularly evaluate and adjust the investment portfolio based on market changes and project developments.
4. Do a good job of risk management
suggestion
Set a stop loss point: Set a reasonable stop loss point for each transaction, stop loss in time to avoid further losses.
Control investment ratio: avoid investing too much money in high-risk projects, reasonably control investment ratio and ensure fund safety
5. Choose a safe trading platform and wallet
suggestion
Choose a reliable platform: Choose a trading platform with high popularity, strong security and good user reviews for trading.
Strengthen security measures: Use hardware wallets to store assets, enable two-step verification and other security measures to protect your funds
6. Focus on long-term value and avoid short-term speculation
suggestion
Long-term investment: focus on projects with long-term development potential, formulate long-term investment plans, and avoid frequent short-term speculation.
Hold patiently: For potential projects, remain patient and wait for their value to be gradually realized.
7. Maintain a good attitude and a healthy lifestyle
suggestion
Balance your life: Don’t pay too much attention to market fluctuations, and maintain a balance between work, life, and investment.
Relax appropriately: exercise, rest and have fun, maintain a good mental state, and avoid excessive anxiety and stress
8. Review regularly and summarize lessons learned
suggestion
Regular summary: Regularly review and summarize your investment experience, analyze the reasons for success and failure, and continuously optimize investment strategies. Learn from others' experience: Learn from other experienced investors, draw on their successful experiences and lessons, and improve your own level. Thinking back to when I first entered the trading market, I tried every possible way to find knowledge about this on the Internet, hoping to learn everything as soon as possible, so that I can start actual combat as soon as possible and start making money.
When I first started learning technical analysis, in addition to understanding the basic K-bar, I began to explore the moving average.
Although the concept of moving average is simple, there are many techniques that can be applied. It is a very basic and important technique in stock market technical analysis. This article will explore what the moving average is, how to read it, and what common applications it has. I hope that explorers will have a basic concept of moving average.
What is Moving Average (MA)?
Moving Average (MA) is a commonly used indicator in technical analysis, which is composed of the average closing price over the past period of time.
For example, 5MA means a line formed by the average closing prices of the past five days. The calculation method is to add the closing prices of the past five days - 5 (number of days). The smaller the number in front of MA, the shorter the period of the moving average.
The moving average itself is composed of price facts, but how to interpret it is affected by human factors. For example, some people think that the moving average represents the average holding cost of entering the market during this period.
In my experience, moving averages with shorter periods can show price trends earlier, but because the periods are too short, they are also very sensitive to price changes, so their accuracy is lower than that of moving averages with longer periods.
Relatively speaking, the long-term moving average is not as sensitive to prices as the short-term moving average. The trend may have arrived for a while, but the long-term moving average is only reflected now. However, it is not as sensitive to price fluctuations, so its trend is relatively smoother and its accuracy is higher. By using the relative relationship between the short-, medium- and long-term moving averages, we can also try to predict price trends and further analyze price trends.
For example, the often-heard golden cross, death cross, above the moving average, below the moving average, etc., are all extended concepts of the moving average. However, it is easy to miscalculate by simply using the moving average to predict the market, so it is usually combined with indicators such as trading volume for analysis.
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