☞Repost: Is it better to do Cryptocurrency Trading for the long term, short-term, or intraday?

On the road of Cryptocurrency Trading, I started as a small investor with 5000 yuan and finally made a comeback to become a middle-class with 25 million!
Today, I would like to share with everyone the insights I have gained along the way.
The most important thing about Cryptocurrency Trading is capital management; don't invest all your money at once. I usually divide my funds into five parts and only use one part for each operation. This way, even if I incur losses, I won't be too heavily burdened.
Moreover, I set a rule for myself: if I lose 10%, I will withdraw immediately, regardless of how the market is doing. If I lose 10% five times in a row, it’s only a 50% loss, but if I make a profit, the gains will be much more than that. Even if I get stuck in a position, I can maintain my composure.
Cryptocurrency Trading Survival Guide: Revealing Super Practical Trading Techniques (Purely Useful Information)
In the cryptocurrency trading space, your trading strategy is your "secret weapon". The following mnemonics are the crystallization of practical experience, so be sure to save them!
- Entry Section: Test the waters in the coin circle, prepare to proceed; enter steadily, refuse to rush.
- Sideways Market: Low-level sideways movement creates new lows, it's the right time to buy in heavily; high-level sideways movement reaches new highs, decisively sell without hesitation.
- Volatility Section: Sell at the peak, buy quickly during the drop; observe during consolidation, reduce trading. Consolidation means holding steady instead of falling, hold onto your assets, and a surge might come in the next second; during a rapid surge, be wary of a crash and always be ready to take profits; a slow decline is a good opportunity to gradually add to your position.
- Buying and selling timing: don't rush, don't sell; Don't dive, don't buy; Flat, not trading. Buy on the yin line, sell on the yang line, reverse operation, in order to stand out. If you fall sharply in the morning, you need to buy, and if you rise sharply in the morning, you need to sell; Don't chase high in the afternoon, and buy the next day in the afternoon; Don't cut the meat in the morning, don't go up or down, and rest; It is not advisable to be overly greedy in order to protect the capital.
- Risk Awareness: A calm lake can suddenly have high waves, and there may be big waves ahead; after a significant rise, there must be a correction, with K-lines showing a triangle over several days. In an upward trend, look for support; in a downward trend, look for resistance. Over-leveraging is a major taboo; acting stubbornly is not a viable strategy. In the face of uncertainty, know when to stop and seize the opportunity to enter and exit. Cryptocurrency Trading is essentially about managing one's mindset; greed and fear are formidable enemies; chasing prices and selling at lows requires caution, staying calm ensures peace of mind.
In addition to the mnemonic, I have also organized several super practical trading methods that can benefit both beginners and experienced players.
Oscillation Trading Method: Most market conditions are in an oscillating pattern, and utilizing high selling and low buying within the range is the basis for stable profits. Using the BOLL indicator and box theory, combined with technical indicators and patterns to identify resistance and support accurately. Follow short-term trading principles and avoid greed.
Breakout Trading Method: After a long period of consolidation, the market will choose a direction, and entering after the breakout can yield quick profits. However, one must have precise judgment on the breakout, maintain a stable mindset, and avoid greed and fear.
Unilateral Trend Trading Method: After the market breaks through the consolidation, it will form a unilateral trend. Trading with the trend is the key to profit. Enter trades during pullbacks or rebounds, using indicators such as candlesticks, moving averages, BOLL, and trend lines. Proficient use of these tools is essential for ease in trading.
Support and Resistance Trading Method: When the market encounters key support and resistance levels, it often faces obstacles or receives support, making this a common strategy for entering trades. Utilize trend lines, moving averages, Bollinger Bands, and parabolic indicators to accurately determine support and resistance levels.
Pullback Rebound Trading Method: After a significant rise or fall, there will be a brief pullback or rebound, seizing the opportunity for easy profits. The main basis is to judge according to candlestick patterns, and good market intuition can help you accurately grasp high and low points.
Trading Strategies by Time Period: The morning and afternoon sessions have low volatility, suitable for conservative investors. Although the time to profit from placing orders is long, the market conditions are easier to grasp; the evening and early morning sessions have high volatility, suitable for aggressive investors who can profit quickly but face higher difficulty, requiring strict technical and judgment skills.
The tips for the coin market are as follows:
Tip 1: If you don't rush higher, don't sell, don't buy if you don't dive, and don't trade when you're sideways. Insist on buying yin without buying yang, selling yang without selling yin, and going against the market to be a hero. If you encounter a high and low consolidation, you may wish to wait for a while. After the high sideways and then rush higher, be sure to seize the opportunity to sell quickly; The low is sideways and a new low, and it is an excellent time to buy cross. We hope you find these tips helpful.
Tip 2: Consider buying when there is a significant drop in the morning, and sell when there is a significant rise. Do not chase after gains in the afternoon when there is a significant rise; consider buying the next day after a significant drop in the afternoon. Do not cut losses during a significant drop in the morning, and take a break when there is no significant movement.
The four shortcuts to losing everything are:
1. Blindly chasing the rise and killing the fall;
2. Involved in futures leverage;
3. Conduct financing and coin borrowing;
4. Frequently engage in short-term miraculous operations.
The four avenues to the peak of life are:
1. Work diligently;
2. Invest with spare money;
3. Buy at the bottom and hold for the long term;
Make money when prices rise, earn coins when prices fall.
As long as you hold it and don't sell, you won't incur losses.
Always remember: never go all in.
No more nonsense!
Share my trading strategies and insights with my friends. There is a saying, standing on the shoulders of giants, can save you ten years of hard work. If you are destined to see this,
Friends who want to improve their Cryptocurrency Trading skills should definitely read more and study carefully, and it's recommended to save this!
Viewing the market with a developmental perspective in Cryptocurrency Trading is a state of infinity.
How should this sentence be understood?
What I mean is whenever I have time, I can open my computer and check the market to see if I can make a trade and earn some money to spend.
Many traders recognize the importance of stop-loss, but they do not know how to set stop-loss points. Here are two stop-loss strategies: one is a simple and practical mobile stop-loss strategy widely used by experienced traders - channel stop-loss; the other is a stop-loss strategy that tightly captures the market high - "hanging lamp stop-loss."
As of today, in addition to judging trends and expected returns, the most important action for every investor entering the market is to set a stop-loss line. Many "experienced traders" use the method of "trailing stop-loss," which involves setting instructions to follow the latest price by setting a stop-loss at a certain number of points when entering the profit stage, triggered as the exchange rate moves in a favorable direction for the position.
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The most commonly used and simplest trailing stop strategy is the "Channel Stop Loss"—investors use the recent X candlestick's lowest or highest points as a reference for stop loss points in both bullish and bearish directions. All these highs and lows form a band-like area resembling a channel, which is why we call it a "Channel." This method is actually derived from a popular market entry strategy that triggers a trade when breaking through those previously mentioned highs and lows. The stop loss is more of an exit strategy, and mostly only one boundary is used; it’s simply named this way out of habit.
Assuming an investor chooses a 20-day channel as the stop-loss point for their trading system, they must continuously measure the lowest point over the last 20 days and use this as the stop-loss point. As the price moves in the direction of their trade, the recent 20-day low also rises, so this strategy can not only "track" the trend but also protect the profits that are continuously accumulating.
However, the "20 days" is not fixed; the selection of "X number" of K lines depends on the level of volatility that investors can tolerate. The more K line counts used to determine the stop-loss point, the greater the flexibility for trading changes. Conversely, using closer highs or lows will trigger the stop-loss faster. Here, we analyze a trend in gold from December 16 to March 10 this year.
It can be seen that the recent upward trend of gold has continued from December 16 to February 27, reaching a peak of $1263.74 per ounce, after which it began to reverse. During the rise, gold prices experienced several minor pullbacks, with two occasions breaking below the 5-day stop-loss line.
If an investor constructs a stop-loss point using 5 K-lines, then he will close his position on January 25 and can only catch a trend where the gold price rises to around 1220 USD/ounce, still over 40 USD away from the peak. However, if a longer-term period is selected, such as using the low points of 20 K-lines as a stop-loss point, then the stop-loss will not be triggered until March 7, allowing the investor to fully capture the increase from around 1122 USD/ounce to 1260 USD/ounce.
However, some readers must have already seen the flaws in this strategy. The longer the time period used by the investor, the more profit they can catch, but the more profit they can take once the stop loss is triggered. In the above trend, the gain from the 20-day candlestick stop-loss point is much higher than that of the 5-day candlestick. The greater the return, the greater the risk, which is an eternal law in the financial circle.
In this regard, an effective countermeasure is to use a long-term channel stop-loss strategy at the beginning of futures trading, once the trade has made a considerable profit, or after a very strong trend movement, investors should gradually reduce the channel period to a very short period in order to give back only a very small part of the huge floating profits.
Again, take this trend as an example. The lowest point in the first wave of the big pullback is the low of the past 13 days, that is, as long as the investor uses more than 13 candles to build a channel stop loss, he can avoid this stop loss and meet the next wave of uptrend. In the same way, the lowest point of the second pullback is the low of the last 7 days, and investors can also avoid premature stop-loss exit if they adopt a cycle of more than 7 days.
Next, continue to shorten the channel period. It can be seen that on the second trading day after this major trend began to reverse, the price dropped to the lowest point in nearly 5 days. If investors had shortened the channel period to within 5 days at that time, they could have exited as the downward trend just began, which means they completely captured the profits from the previous entire round of increases.
The last point to consider is a very important weakness of channel stop-losses. The channel breakout method is so popular that it triggers a large number of stop-loss or entry orders at previous lows or highs, resulting in noticeable price slippage when you use these techniques in futures trading. In this case, setting some distinctive stop-loss points is a better approach, at the cost of having to bear a slightly larger loss.
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Another stop-loss solution on the market - "Chandelier Stop Loss", can effectively compensate for this defect by dynamically quantifying the magnitude of the fluctuations.
The chandelier stop-loss strategy often sets the trailing stop-loss point below the highest price (or highest closing price) within a range of the market. This highest price (or highest closing price) is calculated from the time we enter the market, and the stop-loss point generated by this strategy resembles a chandelier hanging down from the "ceiling" of the market's highest price, hence the name.
So how do we choose the position that hangs down from the high point? Generally, experienced "veterans" will consider ATR (Average True Range). This indicator is mainly used to understand the amplitude and rhythm of price oscillation. Typically, the amplitude of price fluctuations will remain within a certain norm, but when there are inflows and outflows of major funds, the price volatility often intensifies. In addition, when the price consolidates horizontally and the volatility decreases to an extreme point, it often leads to a trend reversal. The ATR indicator is designed based on this principle, and its calculation formula is:
TR = the greater of (High - Low), (Today's High - Yesterday's Close), (Yesterday's Close - Today's Low);
ATR = N-day simple moving average of TR.
However, in general, investors do not need to calculate the ATR indicator, as most software platforms provide it ready-made. In practical applications, since there are generally 22 trading days in a month, most traders will choose the 22-day ATR indicator as a parameter. With the ATR parameter, the stop-loss line can be calculated, and the method for calculating this dynamically changing stop-loss line is as follows:
The chandelier stop-loss point (uptrend) = 22-day high - ATR(22) x 3
Next, let's see how this method is specifically applied. Taking the rise and reversal of gold from December 21 to March 10 as an example in the following figure, the first 22-day high point appeared on January 9, starting the calculation.
Some people may wonder why from January 12th to January 16th, the highest point is moving up, but the stop loss point is falling. In fact, this is the biggest advantage of this stop-loss strategy. It is important to know that the market is bound to fluctuate, and the previous stop-loss indicators tend to leave the market prematurely due to violent fluctuations. The chandelier stop loss is different, due to the consideration of the true volatility, this stop loss level will also be dynamically adjusted according to the volatility of the market, here we use the volatility is more typical of the 5-day period to measure.
The K-line chart is very intuitive, before the gold price reached the highest point of the first wave in the trend on January 17, there was a relatively violent rise, resulting in an increase in the real volatility of the day; Until another high was reached on February 27, the price had been rising steadily, with relatively little volatility. It can be seen that when using this method to calculate the stop loss level, the former tolerates a larger range of fluctuations, which can avoid premature exit; The market moves from steady to volatile and may come out of the big market, so the latter is a little less tolerant.
Let's take another look. When using the channel stop-loss strategy, different periods represent different volatility ranges. Setting the stop-loss point based on a long period allows for greater tolerated volatility, but also results in more profit being given back when the stop-loss is triggered, and vice versa. Therefore, investors must choose the right period before applying it and continuously adjust during the process. In chandelier stop-loss, the use of the ATR indicator has already factored in volatility, so investors do not need to think too much and can leisurely make money.
Of course, this method can be used not only for long stop losses, but also for short losses. It's just that at this time, the calculation method of the chandelier stop loss point becomes (22-day low + ATR * 3). For example, in the November 2016 gold price downtrend, after finding the first 22-day low, the stop loss level will continue to move down as the price falls.
The martial arts manual has been given to everyone, whether one can become famous in the Jianghu depends on oneself. #BTC