I know an elder who entered the crypto space with 100,000 yuan, and it's now worth 42 million. He once told me a sentence that enlightened me. He said: "The crypto market is filled with a crowd of people; all you need to do is control your emotions, and this market will be an ATM!"
In the crypto world, your trading strategy is your 'secret weapon.' The following rules are the crystallization of practical experience, so be sure to save them!
Entry section: Test the waters in the crypto world, prepare first; enter steadily, refuse to rush.
Sideways section: Low position sideways creates new lows, it's a good time to buy heavily; high position sideways and then surges, decisively sell without hesitation.
Volatility section: Sell at highs, enter quickly at lows; observe during sideways, reduce trading. Sideways means to replace falls with horizontal movements, hold tight to your positions, and the rise may be just a second away; during rapid rises, be cautious of sharp drops and always be ready to take profits; slow declines are the best time to gradually average down.
Timing section: Don't chase highs, don't sell; don't dive, don't buy; in a sideways market, don't trade. Buy on bearish candles, sell on bullish candles; reverse operations will help you stand out. Buy when there's a significant drop in the morning, sell when there's a significant rise; don't chase highs in the afternoon when there's a big rise, and buy on the next day after a significant drop; don't cut losses when there's a significant drop in the morning, and rest when there's no rise or fall; for locked positions, averaging down to seek to break even is essential, excessive greed is not advisable.
Risk awareness section: A calm lake can suddenly have high waves, and there may be big storms later; after a significant rise, there must be a correction, and the K-line often shows a triangle for many days. In an uptrend, look for support; in a downtrend, look for resistance. Full position trading is a big taboo; acting arbitrarily is not feasible; in the face of uncertainty, know when to stop and seize the timing to enter and exit.
Trading cryptocurrency is essentially trading mindset; greed and fear are the greatest enemies; be cautious in chasing highs and cutting losses, maintain a calm mind for true freedom.
Aside from the rules, I have also organized several super practical trading methods that can benefit both newbies and experienced players.
Oscillation trading method: Most market conditions are in an oscillating pattern, using high sell and low buy between boxes is the foundation for stable profits. Utilize the BOLL indicator.
With the box theory, combine technical indicators and charts to find resistance and support. Follow the short-term buying and selling principles, and avoid greed.
Breakout trading method*: After a long period of consolidation, the market will choose a direction. Entering after the breakout can yield quick profits, but requires precise breakout identification.
Unilateral trend trading method*: After the market breaks through the range, a unilateral trend will form; trading with the trend is key to profit. Enter trades during corrections or rebounds, referencing K-line, moving averages, BOLL, trend lines, etc., to master the skills.
Resistance and support trading method*: When the market encounters key resistance and support levels, it often faces obstacles or gains support, entering trades at this time is a common strategy.
Use trend lines, moving averages, Bollinger Bands, parabolic indicators, etc., to accurately determine resistance and support levels.
Retracement and rebound trading method: After large fluctuations, there will be a brief correction or rebound, seize the opportunity for easy profits. Mainly based on K-line patterns, a good market sense can help you accurately grasp high and low points.
Time-based trading method: The morning and afternoon sessions have small fluctuations, suitable for conservative investors. Although the time for profit is long, the market is easier to grasp; the evening and early morning sessions have large fluctuations, suitable for aggressive investors, allowing for quick profits but with high difficulty and strict requirements for technical and judgment skills.
