Cryptocurrency Trading Secrets! 1. Trend is King: Learn to refer to the monthly and weekly trends, this is very important. Use 5x leverage, maintain a 10% position, and always trade contracts in terms of the cryptocurrency itself.
2. Buying and Selling Strategies: The simplest method for beginners is to hold short-term above the 5-day moving average, sell if it breaks below the 5-day line; for medium-term, use the 20-day moving average as a benchmark, exit if it breaks below. To succeed in trading, you need to persist and find an investment method that suits you.
3. Judging and Acting on Major Uptrends: When a major uptrend forms without significant volume increase, enter decisively; if there is a volume increase with a price rise, hold and observe; if there is a volume decrease with a price drop and the trend remains intact, continue to hold. If there is a volume increase with a price drop that breaks the trend, reduce your position accordingly.
4. Short-Term Trading Principles: If there is no fluctuation within three days after buying, consider exiting; if the price drops after buying, limit losses to 5% and decisively stop-loss.
5. Opportunities for Oversold Rebounds: When a cryptocurrency has dropped 50% from its high and has fallen for 8 consecutive days, it may enter an oversold channel, consider following in to capture rebound profits.
6. The Charm of Leading Coins: When trading cryptocurrencies, the first focus should be on leading coins, as they are the leaders of market fluctuations, showing strong resistance. Therefore, don’t be afraid of missing the opportunity; in the leading coin short-term trading market, buying high and selling at a higher point is key.
7. Follow the Major Trend: Don’t assume that going long at lows and shorting at highs is very safe; also look at the recent major trend. Learn to go with the trend, remember not to buy blindly, and look for opportunities.
8. Maintain a Calm Mind: Don’t let the joy of profit cloud your judgment. Sustained profits require careful review and judgment on whether it’s luck or skill. A stable trading system that suits you is the guarantee for continuous profits.
9. Learn to Stay Out of the Market: Don’t trade just for the sake of trading. In uncertain situations, do not force a position. Staying out of the market is a skill; sometimes waiting patiently for better opportunities is more important than frequent trading.
10. The Core of Trading: Trading is not about pursuing frequency, but about pursuing success rates. Before each trade, the first consideration should be how to protect your capital. Only a sustained success rate can bring real profits.