Experience gained from trading in the past few years shared for free
Common problem of retail investors: counter-trend trading
He pointed out that the common problem among retail investors worldwide is: holding on to losses without selling, but eagerly selling as soon as there is a small profit. The correct approach is precisely counter-trend trading—holding on to profits and letting them run; decisively cutting losses when in the red to control losses. The principles he formulated for taking profits and cutting losses are simple and clear.
Trend is king, go with the trend
He emphasized that once a trend is established, there's no need for excessive analysis; just follow the money. A simple method to judge the trend is to observe moving averages: bullish when moving averages are upward, bearish when they are downward. Short-term traders focus on daily moving averages and follow up during volume breakthroughs; medium- to long-term traders pay attention to weekly moving averages, enter during volume breakthroughs, and decisively exit when they break below. Going with the trend and not opposing it is the wise choice in cryptocurrency trading.
Control losses, master the methods
He reminded us that having the courage to admit mistakes and control losses in a timely manner is fundamental for survival in the market. This importance far outweighs temporary profits. Regardless of the methods used, as long as one masters a particular approach, one can establish themselves in the cryptocurrency circle. When trading short-term, he suggests not to overly rely on short-cycle candlestick charts but to combine indicators like KDJ and OBV to find entry and exit points for the day and judge the intentions of major players. The difference between washing and selling is in volume decrease and increase; strong coins that are aggressively pushing up, even when facing risk warnings, often have a volume decrease indicating consolidation, with new highs expected.