There is a very foolish method for trading cryptocurrencies, but this method can almost consume all profits, so take your time to learn. First, we should never do three things when trading cryptocurrencies.

The first thing is to never buy when prices are rising; be greedy when others are fearful and fearful when others are greedy. Make it a habit to buy during price drops.

The second is to never place large orders.

The third is to never go all-in; being fully invested makes you very passive, and the market is never short of opportunities. The opportunity cost of being all-in can be very high.

Now let's talk about the six maxims for short-term trading.

The first is that after the price of a coin has consolidated at a high level, it usually reaches a new high. Conversely, after consolidating at a low level, it often reaches a new low again. Therefore, we should wait for the direction of the trend to become clear before taking action.

The second is to not trade during sideways movements; most people lose money trading cryptocurrencies because they cannot adhere to this simplest principle.

The third is when selecting candlesticks, buy when a bearish candle closes and sell when a bullish candle closes.

The fourth is that when a downtrend slows, the rebound will also be slow, and when a downtrend accelerates, the rebound will quicken.

The fifth is to build positions using the pyramid buying method, which is the only unchanging principle of value investing.

The sixth is that after a cryptocurrency has been steadily rising or falling, it will inevitably enter a consolidation phase. During this time, we do not need to sell everything at a high point, nor do we need to buy everything at a low point. Because after consolidation, there will inevitably be a trend change. If it changes downwards from a high point, we must promptly liquidate our positions. In any case, we must act promptly.