The Most Stable Profit Rule for Cryptocurrency Trading: Three Don'ts and Six Musts, This Set is What Market Makers Hate!
If you want to survive in the cryptocurrency world, you need to learn to use simple methods. The strategy I'm sharing today is so simple that it's hard to believe, but it can indeed lead to steady growth in your account.
【Three Major Taboo】
1. Don't Follow the Crowd and Chase Prices
90% of losses come from chasing highs. Remember, when the aunties in the market are discussing Bitcoin, it's time to be cautious. Real opportunities often arise during market panic.
2. Don't Go All In on a Single Cryptocurrency
Putting all your money on one coin is like putting all your eggs in one basket. Keep 30% cash so you have the capital to buy the dip when the market crashes.
3. Don't Operate with Full Margin
Always leave some room. Those who operate with full margin are like being tied up, unable to seize opportunities even when they see them. Proper position management is the key to longevity.
【Six Major Rules】
1. Consolidation Must Change
Be cautious of false breakouts during high-level consolidation, and beware of the last drop during low-level consolidation. When the direction is unclear, it's most important to hold back.
2. Horizontal Consolidation is a Trap
Data shows that 80% of liquidations happen during consolidation periods. This is when patience is most tested.
3. Buy on Down Days and Sell on Up Days
Buy when others are fearful, and sell when others are euphoric. This contrarian strategy, while simple, is very effective.
4. There Will Be a Rebound After a Sharp Drop
The sharper the drop, the stronger the rebound. Be ready with funds to wait for opportunities when encountering waterfall-style drops.
5. Pyramid Building Strategy
Increase your position every time there is a 10% drop to effectively average down your costs. This is a common method used by institutions.
6. Exit Before the Trend Changes
Withdraw your capital after a sharp rise and consolidation; decisively cut losses after a sharp drop and consolidation. Protecting your capital is always the top priority.
Remember, in the cryptocurrency world, surviving longer is more important than making quick profits. Using simple methods often allows you to go further.