There is a very foolish way to trade cryptocurrencies, but this method can almost eat away all the profits, so learn slowly.
First of all, when trading cryptocurrencies, never do three things:
The first thing is to never buy during an uptrend; be greedy when others are fearful, and be fearful when others are greedy. Make it a habit to buy during a downtrend.
The second is to never place large orders.
The third is to never go all-in; being all-in makes you very passive, and the market is never short of opportunities. The opportunity cost of being all-in is very high.
Now let's talk about the six rules for short-term cryptocurrency trading:
The first is that after the price consolidates at a high level, there will usually be a new high. And after consolidating at a low level, there will typically be a new low again, so wait until the direction of the trend change is clear before taking action.
The second is to avoid trading during sideways movements; most people lose money in cryptocurrency trading because they can't adhere to this simplest point.
The third is when choosing candlesticks, buy when there are bearish candles, and sell when there are bullish candles.
The fourth is that when the decline slows down, the rebound will also be slow, and the decline will accelerate the rebound.
The fifth is to build positions using the pyramid buying method; this is the only unchanging principle of value investing.
The sixth is that when a cryptocurrency continues to rise or fall, it will inevitably enter a period of consolidation. At this time, there is no need to sell everything at the high, nor is it necessary to buy everything at the low. Because after consolidation, a trend change will inevitably occur. If the price changes downward from a high point, timely liquidation is necessary; in any case, it is important to act promptly.
Daily trading, continuously making profits. For friends who are currently confused about trading and want to make back their losses, comment with 111 to get a ride 🚗