The Dumbest and Steadiest Method of Cryptocurrency Trading: The Secret to Always Earning
There is a seemingly 'dumb' yet extremely stable method of trading cryptocurrencies that can almost eat up all profits. Below are the core principles and six mantras for short-term trading to help you achieve success steadily.
1. Three Don'ts of Trading Cryptocurrencies
Do not buy in when prices are rising: Remember, be greedy when others are fearful, and fearful when others are greedy. Develop the habit of buying when prices are falling to avoid chasing highs.
Do not make large bets: Do not stake everything on a single cryptocurrency, diversifying risk is key to long-term profits.
Do not go all in: Going all in makes you very passive; market opportunities are limitless. Leave some room to seize opportunities when they arise.
2. Six Mantras for Short-Term Cryptocurrency Trading
After a high-level consolidation, there is often a new high; after a low-level consolidation, there is often a new low. Only act once the direction of the trend is clear to avoid entering blindly.
Do not trade during sideways markets. Most people lose money because they cannot adhere to this principle. Watch and wait for the trend to become clear during sideways movements.
Buy on bearish candles, sell on bullish candles. Buy when the daily candle closes bearish, sell when it closes bullish; contrarian trading is safer.
As declines slow, rebounds slow; as declines accelerate, rebounds accelerate. Gauge the strength of rebounds based on the speed of declines and respond flexibly.
Pyramid-style position building. Buy in batches to lower costs, diversify risks, which is the core idea of value investing.
After continuous rises or falls, there will inevitably be a consolidation phase. After a cryptocurrency has been rising or falling continuously, it will enter a sideways phase. At this time, there is no need to sell everything at a high or buy everything at a low; wait for the signal of a trend change before acting.
The core of cryptocurrency trading is stability and patience. By following the 'Three Don'ts' and 'Six Mantras', and avoiding emotional trading, one can survive and profit in the market in the long run. Remember, the market is not short of opportunities; what is lacking is the patience to wait for opportunities and the ability to seize them!