Today, I took a day off to summarize my insights from these years. So today, A Gui shares eight insights with friends who just entered the industry.
1. Do not hold onto hot coins; when altcoins reach a certain profit, you should swap them. Trying to ride them from start to finish is bound to be futile. The reasoning is simple: altcoins cannot always rise indefinitely. After trading, you must swap; otherwise, if they drop back to the original point, it will have been a waste of effort, like last year's FIL and LUNA.
2. High-level consolidation before another rise, seize the opportunity to prepare to sell; low-level consolidation with a new low likely indicates a good opportunity. When the coin price creates a new high after consolidating at a high level, be wary of the main force inducing more buying, and do not hesitate to reduce positions or exit; when the coin price creates a new low after consolidating at a low level and quickly recovers, it is likely the main force's last shakeout, at which point remain steadfast and resolute.
3. When the market environment is poor, coin prices may rise against the trend, and minor upward movements can lead to significant increases. When the market environment is good, coin prices consolidating against the trend may experience slight declines, and minor downward movements can lead to significant drops.
4. Only increase positions when making a profit, do not average down on losses. This may break many people's understanding. Our position should be increased when the coin price breaks through previous highs, not when it's continuously falling, as this will only lead to more losses. You must cut losses and let profits run.
5. As long as you identify the bottom price, there will generally be a gain of 2 to 1. At this time, do not doubt; generally, significant surprises follow, especially during trend-driven rises, where prices rise while shaking out positions. Do not exit lightly.
6. Top players first look at sectors, second-tier players only look at individual coins, third-tier players look at indicators, and bottom-tier players only gamble. This means that when we want to buy a certain coin, we should first look at the sector. Only by participating in hot sectors can popularity and success rates be high. Next, look at the tokens. Those who only consider indicators are beginners, while those who look at everything are gamblers.
7. Indicators change with volume and price, so volume and price are the roots of indicators. If you trust indicators without considering volume and price, trading cryptocurrencies will be challenging. Indicators are calculated based on coin price and transaction volume, so true technical analysis requires looking at volume and price; price increases require substantial capital support.
8. In an upward trend, look for support; in a downward trend, look for resistance. When the coin price is in an upward trend, operating based on support lines has a high success rate, providing opportunities for low purchases on pullbacks. In a downward trend, operating based on resistance lines has a high success rate, providing opportunities to short or exit.
