Insights from the Cryptocurrency World
After several years of navigating the crypto market and experiencing countless ups and downs, I have summarized my insights from these years into eight maxims.
1. Skillfully Use Morning Trends: In the morning, market sentiment is at its purest. If prices plummet significantly, don’t panic; it might be a good opportunity to buy at a low price. If prices soar high in the morning, don’t be greedy; take the opportunity to sell and lock in profits.
2. Master Afternoon Strategies: If there’s a sudden surge in the afternoon, don’t be swept away by the excitement and follow the trend; it’s often just a false alarm, and buying at high levels can lead to losses. Conversely, if there’s a significant drop in the afternoon, it’s wise to stay calm, observe for a while, and enter the market at a low point the next day, which often yields cheaper assets.
3. Maintain Composure During Declines: If you wake up in the morning to see a sharp drop in prices, don’t rush to cut losses. The market changes rapidly, and early morning fluctuations are often just a smoke and mirrors game. If the market is stagnant and without waves, don’t be anxious; take a break, conserve your energy, and wait for opportunities.
4. Strictly Adhere to Buying and Selling Principles: If the cryptocurrency you hold hasn’t reached your target price, don’t sell it easily; a small gain can also be a loss. If prices haven’t dropped to your psychological price point, hold your hand and avoid buying rashly to prevent buying at an unfavorable point. During sideways trading phases, when the trend is chaotic and direction is unclear, trading is like a blind person trying to feel an elephant; 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 signifies a short-term upward trend, suggesting it’s time to sell and secure profits.
6. Breakthrough with Contrarian Thinking: To stand out in the cryptocurrency world, sometimes you need to go against the grain. When everyone is enthusiastically buying, stay calm; when others are in panic selling, be more decisive and dare to take a contrarian approach to find niche wealth opportunities outside the mainstream trends.
7. Endure the Pain of Consolidation: When prices consolidate for a long time at high or low levels, it can be frustrating. During this time, don’t let anxiety drive you to act impulsively; be patient and calm. Wait until the trend becomes clear, whether it’s an upward surge or a downward dive, and only then make your move with full force.