I used the dumbest method to trade cryptocurrencies, and my win rate is close to 100%! (A must-read for all cryptocurrency traders)
1. Do not buy during an uptrend. Remember: be greedy when others are fearful, and be fearful when others are greedy. Develop the habit of buying during downturns to avoid chasing highs.
2. Do not place all your bets at once. Do not bet heavily on a single cryptocurrency; diversifying risk is key to long-term profitability.
3. Do not go all in. Going all in makes you very passive; the market is never short of opportunities. Leave some room to seize opportunities when they arise.
Short-term trading six rules:
1. After high-level consolidation, new highs often follow; after low-level consolidation, new lows often follow.
Wait until the direction of the market change is clear before acting to avoid blind entry.
2. Do not trade during sideways movement.
Most people lose money because they cannot adhere to this principle. Observe during sideways movement and wait for a clear trend.
3. Buy on down days, sell on up days.
Buy when the daily candle closes down and sell when it closes up; contrarian trading is safer.
4. Slowing down on the downside means slow rebounds; accelerating declines mean fast rebounds.
Judge the strength of rebounds based on the speed of declines and respond flexibly.
5. Pyramid-style building positions is the core concept of value investing; buy in batches to lower costs and diversify risk.
6. After continuous rises and falls, there must be sideways movement. After a cryptocurrency has been continuously rising or falling, it will inevitably enter a sideways state. At this time, there is no need to sell all at a high or buy all at a low; wait for a signal of change before acting.
The core of trading cryptocurrencies is stability and patience. By following the "three don'ts" and "six rules," 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!
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