I have been trading cryptocurrencies for more than 10 years. I suffered huge losses in the first three years and was in debt of 5 million. After self-adjustment, I have achieved financial freedom in the last 6 years, with stable compound interest, a monthly income of 7 figures, and an annual income of 8 figures!
If you are currently losing money on cryptocurrency trading, take a few minutes to read this article and you will find the answer!
Please first take a look at my tearful self-reflection after I lost 8 million yuan and was in debt: I realized one thing: there is only one kind of person who gets rich by speculating in cryptocurrencies!
One day in the cryptocurrency world is like one year in the stock market. People who are addicted to cryptocurrency trading will no longer have any interest in stock trading. The all-day trading and unlimited price fluctuations of cryptocurrency trading satisfy many people's dreams of getting rich overnight. This is one of the reasons why virtual currency is the most popular. This is also the reason why losses in the cryptocurrency world have become a very normal phenomenon.
It is better to teach a man how to fish than to give him a fish. Whether a novice or an expert, cryptocurrency investors can gain not only financial gains but also growth in investment knowledge and experience.
During the investment process, it will not only provide investors with market analysis ideas, basic knowledge of market analysis, and methods of using various investment tools, but also bring you wonderful interpretations of fundamentals, sorting out the chaotic international situation, and identification of various investment forces.
Let you become both a winner and an expert in investment!
After ten years of ups and downs in the cryptocurrency world, from huge losses to rich returns, I have summarized the following cryptocurrency trading disciplines and experiences
Every investor who comes to the cryptocurrency circle will experience major losses, liquidation, and profit-to-loss in his trading career. There is only one kind of people who make a fortune in the cryptocurrency trading army, and that is those who have experienced bankruptcy and then summed up their experience with a big mentality. If you have not experienced liquidation and major losses, you will never know what stop loss is; if you have not experienced profit-to-loss, you will never be able to experience the change of mentality from one thought to heaven to one thought to earth.
1. Avoid highs and go for lows, don’t chase the rise. Stay calm about the fluctuation of the currency price, let it rise and fall freely, and don’t be easily tempted.
2. There is no absolute coin, only timing matters. If you choose the right time to buy, it is a good coin; otherwise, no matter how popular the coin is, it is nothing. Patiently waiting for the best time and investing in potential coins is the right way.
3. Attitude is king, restraint is paramount. Knowing that it is not a good time to buy but still wanting to buy is a taboo in cryptocurrency trading. Only with a stable mentality can you control the market.
4. Analyze calmly and ignore emotions. Do not favor any currency, just act based on market signals. Those with strong skills and sufficient funds should be more flexible in their operations, regardless of the timing.
5. Self-reflection comes first. The market is innocent. All mistakes are due to one’s own fault. Quickly learn lessons and avoid repeating the same mistakes.
6. Both technology and mentality are important. Blindly following the trend is foolish, and only wisdom and insight can reveal the truth.
7. The size of the capital is not the key, the strategy execution determines the outcome. Buy and sell accurately, and you will be the "wolf" in the market.
8. Operate calmly, with funds in hand, why worry about not having good money?
9. The market will not tolerate your luck. Only by making a radical change can you defeat the market.
10. The desire for quick success and instant benefits is the biggest enemy of cryptocurrency trading. Only by controlling the inner demons can you gain a long-term foothold. Investors often become playthings of the market because of their unbalanced mentality and become puppets of longs and shorts.
11. Good habits are the foundation of survival in the cryptocurrency world. Temporary gains may be a fluke, but long-term survival depends on good habits. Opportunities are always there, and the ability to grasp them determines success or failure.
12. Cryptocurrency trading is not gambling. Only by making long-term profits can you show your true skills. The best strategy is to be cautious and take every step carefully.
13. Only by patiently nurturing coins can you achieve great success. Frequently changing coins will make it difficult to achieve great success. Only by focusing on one area and working hard can you accumulate small victories into big ones.
14. Follow the market and dance with it. Only by grasping the rhythm can you be at ease. Abandon greed and fear, listen to the voice of the market, and no one can stop you.
15. Cryptocurrency trading is like spiritual practice, you need to be clear about the natural law and human desires. The buying and selling points are the combined force of the market, and only by following the rules can you proceed step by step.
16. The magic of compound interest cannot be ignored. With a good attitude and technology, compound interest will come naturally, and the wealth snowball will grow bigger and bigger.
17. The market is ruthless, both ups and downs are fierce. Based on technology, you should take action when it is time to take action. Missing the selling point is also a mistake.
18. Sell high and buy low, cost is king. Don’t predict, just respond. Build positions at a large level, adjust positions at a small level, reduce costs, and win.
19. Be cautious in good times, the market is risky. If the currency is not converted into cash, it is nothing but floating clouds. Chasing the rise and selling the fall is tantamount to digging your own grave.
After more than 10 years of cryptocurrency trading, I have learned the following lesson: Only by truly mastering the key points and strategies of stop loss and take profit can you truly form a stable profit system in the cryptocurrency circle. I will share it with you today. If you also want to make stable compound interest in the cryptocurrency circle, please read this article carefully!
For investors and traders, timing the entry and exit means determining the best price to buy or sell an asset by predicting the market price. It is extremely important to grasp the timing of exiting the market, and the take-profit and stop-loss points are crucial at this time.
1. The importance of take-profit and stop-loss points (newbies must know)
The take-profit and stop-loss points are the prices set by traders in advance. Self-disciplined traders often use them as part of their exit strategy to avoid emotional trading, which is very important for risk management. The stop-loss and take-profit functions are key concepts in trading risk management. A deep understanding of their principles and mechanisms is the basis for successful trading. Stop-loss is an instruction sent to the broker to automatically close a position. The principle of take-profit is similar. It can lock in profits at a specific price and be used to exit the market at the right time.
2. Open a stop loss order (advanced for experienced operators)
1. The meaning and use of stop loss
Stop loss is the amount of money you are willing to risk per trade by placing a stop loss order. On the IQ Option trading platform, this amount is usually calculated as a percentage of your initial investment. Knowing when to stop loss is a key skill for a successful trader, and professional traders adjust their stop loss based on market conditions, rather than just the amount they are prepared to lose. It is also necessary to consider technical analysis, and most traders agree on the importance of knowing when to exit a trade before opening it.
(II) Methods for determining the best stop loss point 1. Percentage stop loss
The stop loss position is determined based on the amount of money you are willing to risk at a specific moment, which depends largely on the total capital and investment amount. Experts recommend that the risk of a single transaction capital should not exceed 2%. 2. Chart stop loss
This method focuses on technical analysis. Support and resistance levels can help determine the best stop loss/take profit points. Set the stop loss beyond the support/resistance level. When the market exceeds these areas, the trend may be unfavorable and the remaining investment should be withdrawn. 3. Volatility stop loss
Assets vary significantly in volatility, and understanding their volatility can help determine the best stop loss point. High volatility assets may require higher risk tolerance and stop loss levels.
Please note that after applying for stop loss/take profit, you do not have to wait until the predetermined price, and you can end the transaction at any time. At the same time, avoid emotions affecting transactions. Stop loss is not only an exit point, but also the "failure point" of the trading strategy.
3. Open a take-profit order (Advanced for experienced operators)
Stop loss and take profit work in a similar way, but the levels are determined differently. Stop loss is designed to reduce losses from unsuccessful trades, while take profit allows traders to profit at the peak of their trades.
Taking profits at the right time is just as important as setting the best stop loss signal. The market is volatile and trends can change in an instant. Some people think it is good to get a good payout in time, while others think it is not good to close a trade too early or wait too long.
Choosing the right moment and closing the trade before the trend reverses is the art of profit taking. Technical analysis tools such as Bollinger Bands and Relative Strength Index can help determine the reversal point. Some traders recommend a 1:2 risk/reward ratio, but there is no universal rule and you need to find a ratio that suits your strategy.
4. Things to remember (both for newbies and veteran operators)
Stop loss/take profit is one of the tools in your trading portfolio, but trading skills are more than that. Don't rely on automated systems to control your trading and emotions. Learning the basics of stop loss/take profit takes time, and mastering them will improve your trading skills.
5. Stop loss point and take profit point (newbies must know)
The stop loss point is lower than the current price of the asset, and the position is closed when it reaches the stop loss point; the take profit point is also the predetermined price, and the position is closed when it reaches the stop profit point. Traders can preset the price to trigger automatic selling. Binance Futures has this function, and the system determines the take profit or stop loss based on the trigger price, etc.
6. Why do we need to set take-profit and stop-loss points (newbies must know) 1. Conduct risk management
The take-profit and stop-loss points reflect market dynamics. Determining the optimal value can clarify one's own risk level and grasp trading opportunities, which plays a key role in maintaining and expanding the investment portfolio. Prioritizing transactions with low risks can protect assets and prevent losing all the money. Therefore, many traders use it as a risk management strategy.
Emotions affect decision-making. Preset strategies can help you avoid trading under stress, fear, and other emotions. Learn to identify the timing of closing positions to avoid impulsive trading and be more strategic. 3. Calculate the risk-return ratio
Stop loss and take profit points are used to calculate the risk-reward ratio of a trade, which measures the risk taken for potential reward. Generally, it is better to enter a trade with a low risk-reward ratio. The formula is: (Entry Price - Stop Loss Price) / (Take Profit Price - Entry Price)
7. How to calculate stop loss and take profit points (advanced for experienced operators)
Traders can use a variety of methods to determine stop loss and take profit points, which can be used alone or in combination to make more informed decisions on when to close a position.
1. Support and resistance levels
Support and resistance levels are familiar concepts to technical traders. They are areas on price charts where there is a high probability of an increase in volume, including both buying and selling volume. Support levels indicate a pause in price declines when buying volume increases, while resistance levels indicate a pause in price increases when selling volume increases. Traders usually set take-profit points above support levels and stop-loss points below resistance levels.
2. Moving Average
Filter out market noise and smooth price action data to present trends. Traders can draw short-term or long-term moving averages, track crossovers to seize buying and selling opportunities, and usually set the stop loss point below the long-term moving average.
3. Percentage method
Some traders use fixed percentages to determine the take-profit and stop-loss points, such as closing the position when the asset price is 5% higher or lower than the entry price. This method is simple and suitable for traders who are not familiar with technical indicators.
4. Other indicators
There are also indicators such as the relative strength index, Bollinger Bands, and exponential moving averages. The relative strength index indicates whether an asset is overbought or oversold, the Bollinger Bands measure market volatility, and the exponential moving average uses the exponential moving average as data points.
Summary (for both novice and experienced operators)
Many traders and investors use the above method to calculate stop loss and take profit points. These points are technical exit signals, prompting you to abandon losing positions or realize potential profits. However, each trader's points are different, and they do not constitute a profit guarantee. They are only for decision-making guidance. Assessing risks is a good trading habit.
After 10 years of cryptocurrency trading, I have basically fallen into all the traps in the market, missed many opportunities, and also seized many opportunities. Only then did I mature and find my own way to make stable profits. No one is born an expert.
There are four mistakes that 100% of newcomers to Bitcoin will make.
Today I have summarized for you the first mistake which is hesitating to buy.
What does it mean? It means that after coming from outside the circle and learning about Bitcoin, it sounds good, but I am a little hesitant and don’t want to buy it, or I don’t really want to buy it.
Many novices hesitate because they don’t fully understand the product and feel they must fully understand it before they dare to buy. In fact, this is a mistake.
If someone you trust introduces this to you as a good thing, you should listen to his professional experience and invest some money. If you don't have a penny in A shares, you don't understand the actual situation of the Chinese economy.
The second mistake is buying too little the first time.
Many people only buy a small amount for the first time and don’t really buy enough. They may only spend two thousand yuan.
When I introduce Bitcoin to novices and ask them to buy it, no matter how much they buy, whether it is 300 yuan, 3,000 yuan, or 30,000 yuan, I tell you that sooner or later you will regret it because you didn't buy enough today.
They didn't believe it at first, but after two months when the price went up, they all regretted it and told me that you were right and they regretted not buying more at that time. I can only say that at least I told you and I was not irresponsible to you.
The third mistake is to sell it before it goes up much.
Many people compare Bitcoin with stocks and real estate. If real estate and stocks rise by 30%, 50%, 100% or 200%, it would be very impressive and they would probably sell them.
But the price of Bitcoin has increased by 200%, which is three times, but it is actually not impressive at all, because we are greedy.
I'm telling you the truth, we who invest in Bitcoin are actually greedy, we want it to grow 100 times, 1,000 times, we're not satisfied with just a two- or three-fold increase.
If my money only doubles or triples, I will invest in something else with lower risk.
Why should I invest in high-risk Bitcoin?
I want it to increase 100 times, 200 times, 500 times, 1000 times.
So I remind those new players, don’t think of Bitcoin as stocks or real estate that can only double or triple in value. You must wait until it increases 100 times.
The fourth mistake is to sell in a panic.
In the past 16 years, Bitcoin has experienced many bull markets and bear markets, many optimistic news, and many pessimistic news, including the collapse of MT.Gox in 2014, China's regulatory ban on Bitcoin, and many other rumors.
Bitcoin occasionally experiences some big drops, some of which are due to market factors, some are due to negative news, and some are due to regulatory issues. At that time, many people panicked.
But from my point of view, I believe in the long term because it is decentralized, cannot be restricted, and cannot be controlled by any government.
After these bad news came out, it actually did not affect Bitcoin itself, but only people’s impression of it. If people have a bad impression of it, it will fall, and fall sharply, but you must not sell it at that time, because it would be very bad if you sold it at that time.
Giving roses to others will leave a lingering fragrance on your hands. Thank you for your likes, attention, and forwarding! I wish you all financial freedom in 2025!
The backtesting shows that the winning rate is as high as 91%! Breakout + retracement + RSI create a perfect trading exit combination
Anyone who has ever traded knows that the Relative Strength Index (RSI) is a popular technical indicator, but have you fully utilized its potential for exiting a trade? While many traders focus on the RSI for entry signals, it is equally valuable in timing exits.
Whether you’re looking to lock in profits or minimize losses, an RSI-based exit strategy can provide a data-driven basis for your decision making.
Understanding the Basics of RSI
As a momentum indicator, RSI is usually calculated over a 14-day period to measure the speed and magnitude of price changes. If you want to use RSI effectively, you must understand its basic principles and interpretation methods.
The RSI fluctuates between 0 and 100, with readings below 30 indicating oversold conditions and above 70 indicating overbought conditions. These levels are often viewed as potential reversal points to help guide your exit decisions.
The calculation formula of RSI is: RSI = 100 – [100 / (1 + RS)], where RS represents the ratio of average increase to average decrease, which is the basis of the indicator.
Understanding overbought and oversold conditions is crucial to optimizing your exit strategy. When the RSI is over 70, it means that the asset may be overvalued and it is time to consider closing your long position. Conversely, when the RSI is below 30, it may indicate that the price is about to rebound and it is a good time to exit your short position.
In addition, divergences between the RSI and price action can also provide valuable information. A bullish divergence occurs when prices make new lows but the RSI does not make new lows at the same time, which can indicate a buying opportunity and a signal to close short positions. The above chart shows a bearish divergence. Bearish divergences often occur when prices make new highs but the RSI fails to follow suit.
RSI and Market Momentum
After mastering the basics of RSI, we can further understand how it reflects market momentum and can be used for exit strategies. RSI works by comparing the average gains and average losses over a specific period (usually 14 days).
When the RSI value rises, it indicates that the market is in a bullish momentum, while when the RSI value falls, it indicates that the market tends to be in a bearish trend.
Effective use of RSI for market momentum analysis:
Identifying overbought and oversold conditions
Identifying overbought and oversold conditions is crucial to optimizing your trade exit strategy. The RSI is a very powerful tool in this regard, providing clear signals when the market reaches extreme conditions.
When the RSI exceeds 70, it indicates that the market is overbought and may be about to fall, which is a signal to consider closing long positions.
When the RSI is below 30, it indicates that the market is oversold and may be about to rise, which is an opportunity to exit short positions.
Ways to optimize your trade exit strategy:
Continuously monitor RSI levels
Watch for divergences between price action and the RSI
Use RSI in conjunction with other technical indicators for signal confirmation
When you observe that the RSI crosses above 60 or below 40, it is usually a good time to exit your position in a trending market. This strategy can help to significantly increase your profitability.
RSI divergence signals
RSI divergence signals are very powerful indicators that can help you identify potential trend reversals and optimize the exit timing of your trades.
As a momentum oscillator, the relative strength index (RSI) can reveal discrepancies between price action and underlying momentum, providing traders with valuable insight.
Understanding RSI Divergence:
◔ Bullish Divergence: When price makes a new low but the RSI does not simultaneously make a new low, it indicates a possible buy signal.
◔ Bearish Divergence: When price makes a new high and the RSI fails to follow suit, it could be a selling opportunity.
How to use RSI divergence to develop an exit strategy:
◔ Confirmation Signals: Don’t rely solely on divergence signals; use other technical indicators or market context to validate your decisions.
◔ Watch for regular RSI trends and divergence patterns: This comprehensive approach helps capture changes in market momentum.
◔ Combine with other technical indicators: Historical analysis shows that combining RSI divergence with other complementary tools can significantly improve the accuracy of trade exit timing and the performance of the overall strategy.
Customize RSI settings for exit strategies
Personalizing your RSI levels can be a game-changer when you’re looking to fine-tune your exit strategy. By adjusting the traditional 70/30 levels, you can better set your exit threshold based on current market conditions and your trading style.
You may consider the following adjustments:
Exit long positions when the RSI crosses above 60.
Exit short positions when the RSI falls below 40.
This setup allows you to capture more price action while still following the core principle of selling when overbought and buying when oversold.
You can also set the RSI calculation period to be longer than the traditional 14-day period to slow down the indicator's reaction speed. Especially on lower timeframe charts, it is worth testing a strategy to consider using a 21-period or 28-period RSI as an exit reference.
Using RSI with other indicators
You will find that using the RSI in conjunction with other technical indicators can significantly improve the effectiveness of your exit strategy.
Consider using the RSI-MACD crossover strategy, which combines the strengths of both indicators to confirm trend reversals and ideal exit points.
Additionally, combining the RSI with Bollinger Bands creates a powerful synergy that allows you to identify potential price exhaustion and divergence signals, thereby optimizing your exit timing in different market conditions.
RSI-MACD Crossover Strategy
This approach uses the strengths of both indicators to improve trading decisions, especially when it comes to timing exits.
By using both the RSI and MACD together, you can filter out most of the false signals and confirm potential trend reversals.
Here’s how it works:
The effectiveness of this strategy lies in its ability to confirm changes in momentum. For example, after a golden or dead cross in MACD, RSI can further verify whether the market momentum has really shifted.
Historical backtesting shows that this combined approach leads to a higher win rate and better profitability than using either indicator alone.
The synergy between Bollinger Bands and RSI
When traders are working on optimizing their exit strategies, using Bollinger Bands in conjunction with the RSI is a very effective practice. This combination improves the efficiency of exits by combining the strengths of both indicators.
◔ Bollinger Bands provide a visual representation of price volatility.
◔ RSI identifies overbought or oversold market conditions.
When the price hits the upper band and the RSI is above 70, it usually constitutes an ideal sell signal. The main disadvantage of this strategy is that the profit margin may be small.
This combination is particularly effective in confirming price reversals, such as when a bearish divergence occurs – when price makes a new high but the RSI does not rise in tandem.
To further optimize the exit point, consider using the Bollinger Bands to set a dynamic stop loss and adjust it in combination with the RSI signal. This method can more effectively lock in existing profits when the price retraces.
Backtesting results show that strategies that combine Bollinger Bands with RSI are often better than strategies that use either indicator alone, with a higher win rate and lower drawdown.
Backtesting the RSI Exit Strategy
Given the critical role that exit strategies play in trading success, backtesting your RSI exit strategy is essential to improving your trading performance. By analyzing historical data, you will be able to discover the most ideal exit thresholds, thereby significantly improving your trading results.
A typical example is setting the RSI exit thresholds at 60 (for long positions) and 40 (for short positions), which is a widely adopted practice that works well in practice.
Considering the superior performance of the 2-period RSI strategy, which had a 91% win rate and an average gain of 0.82% per trade, these results highlight the importance of precise exit timing.
When backtesting your RSI exit strategy, you should focus on the following key performance indicators:
Net Profit
Sharpe ratio (one of the most commonly used indicators for evaluating the performance of an investment or trading strategy, used to measure the excess return per unit of risk.)
UPI Ulcer Performance Index (a risk-adjusted return indicator used to evaluate the performance of investment strategies, with a particular focus on the impact of drawdowns on investor psychology.)
These indicators will help you evaluate the effectiveness of different exit thresholds. Historical data shows that exiting trades when the RSI breaks above 60 (for long positions) or below 40 (for short positions) can significantly increase profitability.
To optimize your strategy, you should continue to perform backtesting and sensitivity analysis. This process of repeated verification can ensure that your exit strategy can adapt to market fluctuations and strengthen your risk management system.
FAQ
What is the entry and exit strategy for RSI?
Consider entering the market when the RSI shows an oversold state (usually below 30), which is a typical buy signal. Exit signal: When the RSI crosses above 60 in a long position, or below 40 in a short position. When executing this strategy, be sure to combine it with the current market trend.
2. What is the RSI 30/70 strategy?
The RSI 30/70 strategy is used to identify overbought and oversold states of the market: RSI > 70 indicates overbought, and there may be a risk of price correction; RSI < 30 indicates oversold, and there may be a price rebound opportunity. You will buy when the RSI crosses 30 from the bottom up, and sell when the RSI crosses 70 from the top down.
3. What is the RSI 14 strategy?
The RSI 14 strategy uses the 14-period RSI to identify overbought/oversold conditions in the market. This strategy combines RSI divergence analysis, time period selection, and trend confirmation. You will enter the market when the RSI reaches extreme levels and exit when the RSI crosses key thresholds, thereby enhancing the accuracy of entry and exit timing.
4. What is the RSI 5 strategy?
The RSI 5 strategy uses a 2-period RSI, buying when the RSI falls below 5 and selling when the RSI breaks above 95. You can combine RSI divergence, trend confirmation, and multi-timeframe analysis to improve the effectiveness of short-term trading.
in conclusion
By using the above techniques, you will greatly improve your ability to time your market exits. Remember, the RSI is not a one-size-fits-all tool and should be used in conjunction with other technical indicators and price action analysis. As you continue to refine your exit strategy, be sure to continually backtest and dynamically adjust your approach to adapt to the changing market.
I have been trading cryptocurrencies for 10 years. From big losses to big profits, I have summarized 10 iron laws and give a piece of advice to all retail investors! If you want to play in the cryptocurrency circle for a long time, please read this article carefully! Newbies must keep them in mind to be able to navigate the market with ease.
The cryptocurrency world is a world full of opportunities and risks. Especially for novices, how to survive and make profits in a volatile market is a science that requires continuous learning and practice.
Hot coins in the bull market fell the fastest
Those coins that are hyped up, especially those with serious market control, often burst quickly. The more a coin attracts retail investors to chase the rise, the greater the risk. Just like blowing a balloon, the bigger it is, the faster it bursts. Hot coins in a bull market are often the favorites of short-term speculators, but they are also the traps that are most likely to make people lose all their money.
Recommendation: Don’t blindly chase the rise, especially those currencies that have seen huge gains in a short period of time. Stay calm and avoid becoming a “bag holder”.
The tricks of altcoins are similar. The trick of altcoins is usually to smash the market first to create panic, then slowly increase the price to attract retail investors, and finally change the way to continue harvesting. This trick works every time, and novices can easily be cut off. Suggestion: For altcoins, you must be mentally prepared, don't be confused by short-term gains, and don't easily hold a large position.
The long-term market trend is upward. Although the cryptocurrency market has experienced sharp fluctuations in the short term, the overall trend is upward if we look at the long-term trend. The historical trends of mainstream currencies such as Bitcoin and Ethereum have proven this. Suggestion: If you are a long-term investor, don’t be scared by short-term ups and downs. Hold high-quality assets patiently and time will pay you back.
No one hypes up the potential coins. The real potential coins are often unknown at the bottom and few people mention them. And those coins that are hyped up are often used by the dealers to harvest. Low-key coins may quietly explode at some point. Suggestion: pay more attention to those projects with solid technology and reliable teams that have not yet been hyped by the market. They may be the dark horses of the future.
Be careful with newly launched coins. Newly launched coins on exchanges, especially those that have skyrocketed or plummeted, are often traps designed by market makers. These coins usually have no actual value support and are purely for profiteering. Suggestion: For new coins, especially those that have huge fluctuations in the early stage of listing, be vigilant and do not enter the market easily.
It is normal for prices to rise and fall after you buy them, and rise after you sell them. This is normal in the cryptocurrency world. The market is extremely volatile, and short-term rises and falls cannot fully reflect the value of a project. Suggestion: Keep a good attitude and don't panic because of short-term fluctuations. Develop your own investment strategy and strictly implement it.
The strongest rebound does not represent potential. The most violently rebounding coins are often not truly potential, but speculative. The rise of such coins usually lacks fundamental support, and they rise quickly and fall quickly. Suggestion: Don't be confused by short-term surges. The real potential coins usually fluctuate more steadily and have an upward long-term trend.
Be careful of being cut off in sudden pullbacks If the coin you bought rises for a while and then suddenly pulls back, this may be a signal that the dealer has started to sell. The dealer usually attracts retail investors by raising the price and then sells at a high price. Suggestion: When encountering a sudden pullback, stop profit or stop loss in time to avoid becoming the dealer's "taker".
Coins that explode in the second half In a bull market, coins that performed mediocrely in the early stage may explode several times or even more in the second half. These coins are like marathon runners, accumulating strength in the early stage and exerting strength in the later stage. Suggestion: Don't ignore those coins that performed mediocrely in the early stage but have solid fundamentals, they may be dark horses in the later stage of the bull market.
Coins that have been sideways for several months may explode In the bull market, some coins may go sideways for several months after experiencing several times of increase. This sideways movement is usually the result of the dealers accumulating strength and waiting for the next opportunity to explode. Suggestion: Keep an eye on the coins that have been sideways for a long time, as they may be the protagonists of the next round of market.