After several years of navigating the cryptocurrency market and experiencing countless ups and downs, I have summarized my insights from these years into eight rules to help you see through the market's dynamics:
1. Skillfully use morning trends: In the morning, market sentiment is at its purest. If prices drop sharply, don't panic; this could be a great opportunity to buy at a low price. If the morning sees a strong upward surge, don't get greedy; take the chance to sell and lock in profits.
2. Master afternoon strategies: If there's a sudden surge in the afternoon, don't get carried away and follow the crowd into the market; most of the time, this is just hype, and buying at high prices can lead to losses. Conversely, if there's a significant drop in the afternoon, stay calm, observe for a while, and look for a low point to enter the market the next day, often allowing you to acquire cheap assets.
3. Maintain a steady mindset during declines: If you wake up in the morning to see a significant drop in prices, don't rush to cut losses. The market changes rapidly, and early fluctuations can often be misleading; if the market is stagnant and shows no signs of movement, 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 cryptocurrency you hold hasn't reached your expected high price, don't sell easily; making a small profit is still a loss. If it hasn't fallen to your psychological price level, hold back from impulsively buying to avoid catching a falling knife. During sideways trading phases, when the price movement is chaotic and direction unclear, trading is akin to blindfolded guessing, so it’s better to observe from the sidelines.
5. Operate based on candlestick patterns: Buying on bearish candles and selling on bullish candles is a classic strategy. A bearish candle indicates a price correction and cheaper assets, making it a good time to enter; a bullish candle signals a short-term upward trend, suggesting you should sell at a high to secure profits.
6. Breakthrough with contrarian thinking: To stand out in the cryptocurrency market, sometimes you need to go against the grain. When everyone is fervently buying, maintain a sense of calm; when panic selling occurs, be bold and dare to take contrarian actions to find niche opportunities for significant profits outside the mainstream trend.
7. Endure the agony of consolidation: When prices consolidate at high or low levels for an extended period, it can be quite torturous. During this time, don’t let anxiety overwhelm you and act impulsively. Be patient and wait until the trend clarifies, whether it's an upward move or a downward probe, then strike with full force.
8. Capture the tail end of a surge: After a long period of consolidation at high levels, once the price makes another upward move, don't hesitate; this is likely the final frenzy. Sell in time and secure your paper profits, or they may slip away in an instant.