Three Core “Never” Rules of Crypto Trading
1. Never buy when prices are rising (avoid FOMO)
Buy when others are fearful, sell when others are greedy.
This aligns with Warren Buffett’s wisdom—contrarian investing often provides better entry points.
2. Never place large bets
Keeps your risk exposure low and avoids catastrophic losses. Small, calculated positions help preserve capital.
3. Never go all in
Full allocation limits flexibility and increases vulnerability. Markets offer endless opportunities—capital preservation is key.
---
Six Rules for Short-Term Crypto Trading
1. Wait for breakout after consolidation
High-level consolidation → new high; low-level → new low.
Don’t guess—wait for the market to show its hand.
2. Avoid trading during sideways movement
Chop zones (range-bound markets) are unpredictable and lead to frequent losses.
3. Candle-based entry strategy
Buy on bearish candle close, sell on bullish candle close.
This tactic can help you catch short-term reversals and avoid chasing price.
4. Understand the speed of price movements
Slow decline → slow rebound; fast decline → sharp rebound.
Use momentum to your advantage, especially during panic phases.
5. Pyramid buying strategy
Add to positions gradually as confirmation builds.
This mimics how value investors average into positions and reduces downside risk.
6. Sideways movement follows strong trends
After a strong move (up or down), expect consolidation.
You don’t need to perfectly time tops or bottoms; act when trend reversals become clear.
---
In essence: Trade with caution, patience, and rules. Let price action confirm your decisions, protect your capital, and don't fall prey to impulsive behavior.#TradeLessons
