After struggling in the cryptocurrency world for a few years and experiencing countless ups and downs, I have summarized my insights from these years into eight maxims.
1. Skillfully use morning market trends: In the morning, the cryptocurrency market sentiment is the purest; if the price plunges significantly, don’t panic, as it might be a good opportunity to 'pick up bargains.' If the morning sees a strong rally, don’t be greedy; take the opportunity to sell for profit and lock in your gains.
2. Grasp the afternoon strategy: When there is a sudden surge in the afternoon, don’t get carried away and blindly follow the trend to buy in, as it is mostly just a false rally; buying at high positions can easily leave you stuck. Conversely, if there is a significant drop in the afternoon, it’s better to remain calm, observe for a while, and find the right low point to enter the market the next day, often allowing you to acquire chips at a low price.
3. Maintain a stable mindset during declines: If you wake up in the morning to see a significant drop in coin prices, don’t rush to cut losses; the market changes rapidly, and early morning fluctuations are often just a 'smokescreen.' If the market is stagnant with no waves, don’t be anxious; it’s better to take a break, conserve your energy, and wait for opportunities.
4. Strictly adhere to trading principles: If the coins in your hand haven’t risen to the expected high position, don’t sell them lightly; earning less is still a loss. If it hasn’t dropped to your psychological price, hold back and don’t rush to buy, to avoid catching the bottom halfway. As for the sideways phase, where the trend is chaotic and directionless, trading at this time is undoubtedly like a blind person trying to touch an elephant, so it’s better to observe from the sidelines.
5. Operate based on candlestick patterns: Buy on bearish candles, sell on bullish candles, which is a classic strategy. A bearish candle indicates a price correction, making chips cheaper, which is a good time to enter; a bullish candle indicates a short-term upward trend, so sell high to secure profits.
6. Break the deadlock with reverse thinking: To stand out in the cryptocurrency world, sometimes you need to do the opposite of what others are doing. When everyone is eagerly chasing, keep a cool head; when others are panicking and selling, be bold and dare to operate in reverse, to find niche opportunities for wealth outside the mainstream.
7. Endure the agony of consolidation: When prices consolidate at high or low levels for a long time, it can be very frustrating. At this time, do not let anxiety drive you to act rashly; be patient and calm, and wait until the trend becomes clear, whether it is going up or down, before making a full commitment.
8. Seize the tail of the surge: After a long period of consolidation at high levels, when there is a renewed upward push, don’t hesitate, as this is likely the last frenzy. Sell in a timely manner to secure your profits; otherwise, they may slip away, and the cooked duck could fly.