SCIENTIFIC SPECULATION
Rothschild Principle: With an asset of known value, buy when others want to sell, and sell when others want to buy.
Daniel Drew Principle: Cut losses early, but don't rush to take profits, it will be very uncomfortable to cut losses by 3%, easily lose patience and violate the rules.
Jay Gould Principle: Anticipate the future, commit to yourself, execute the plan with extreme patience.
TWO METHODS TO MAKE PROFIT
Method 1
Focus on coins that fluctuate strongly during the day, apply early stop loss orders.
Follow current trend.
Guess the trend if correct and continue to profit until there is a reversal or the target is reached
Correct guess = incorrect guess => sure answer
Method 2 (DCA)
Determine the value of a genuine coin, Choose a good coin
Plan to buy and hold, buying equal amounts when the price drops by i%.
Evaluate long-term trends using PTKT indicators
Review the selected Coin position compared to recent fluctuations.
If the market increases, wait for a decrease of 5-10% compared to the peak before buying
If the market drops, increase 5-10% from the bottom to sell
Hold long enough, be patient until the target is reached, or sell when there is a reversal.
Have enough money to buy while the price is still low
DOW'S THESIS
You should observe the general trend of the market through the AVERAGE index, because this index better reflects the general trend of the market than the price of a coin.
You should closely observe a limited number of coins (Dow recommends 2 or 3) to know the fluctuation habits and other important information from which to determine:
Direction of movement, amplitude of oscillation
Time to buy
If the long-term trend is up, then declines are opportunities and vice versa.
A bullish market is a market where the next peak is higher than the previous peak, and conversely, a bearish market is when the next peak is lower than the previous peak.
Need to pay attention to 3 things after buying:
Coin value being purchased
Long-term trend
Mid-term fluctuating trend
METHODS FOR READING THE MARKET
Reaction theory: Observation shows that, in each increase/decrease, there will always be an increase/decrease in the opposite direction with at least 3/8 of the previous increase/decrease points.
Method of buying according to the leading coin: Calculate the correlation of coin X with the leading coin, based on the increase of the leading coin, then buy coin X
Value perspective: Market price will tend to approach value in the near future
STOP LOSS
Stop orders should be used when trading futures with high leverage (usually x3 or more).
Day trading
Trade with rapidly fluctuating coins
Set STOP LOSS as soon as you determine the entry point and take profit
Should not be used with HOLD command (DCA depends on individual time)
