I know an old veteran who invested 100,000 yuan in the crypto market, and now has over 30 million. He once told me something that enlightened me. He said: 'This market is filled with a crowd of fools; you just need to control your emotions, and this market will be an ATM!'
In the crypto world, trading strategies are your 'secret weapon'. The following mnemonics are the crystallization of practical experience, make sure to save them!
Entry Strategies: Test the waters in the crypto world, prepare to go first; enter steadily, refuse to rush in.
Sideways Trading: Low-level sideways movement creates new lows, it's the right time to buy heavily; high-level sideways movement breaking higher, decisively sell without hesitation.
Volatility: Sell on a spike, enter on a dive; observe during sideways movement, reduce trading. Sideways means using sideways to replace drops; hold tight onto your assets; a rise may be just the next second away; be alert for a crash during a rapid rise, always be ready to cash out; a slow decline is a good time for gradual averaging down.
Timing for Trading: Don't chase highs, don't sell; don't dive, don't buy; if it's sideways, don't trade. Buy on bearish candles, sell on bullish candles; contrarian trading is the key to stand out. Buy on a big drop in the morning, sell on a big rise in the morning; don't chase highs in the afternoon if there's a big rise, buy on a big drop in the afternoon the next day; don't cut losses on a big drop in the morning, if there's no rise or drop, just rest; averaging down when trapped to seek break-even, excessive greed is not advisable.
Risk Awareness: A calm lake may stir up high waves, and there may be great turmoil ahead; after a significant rise, there must be a retracement, and the candlestick patterns may show a triangle for several days. In an upward trend, look for support; in a downward trend, look for resistance. Full position trading is a major taboo; stubbornness is not feasible; know when to stop in the face of uncertainty, and grasp the timing to enter and exit.
Trading cryptocurrencies is essentially trading mindset; greed and fear are the greatest enemies; be cautious with chasing highs and killing lows, and remain calm for peace of mind.
Besides the mnemonics, I've also compiled several super practical trading methods that can benefit both newbies and seasoned players.
Oscillation Trading Method: Most market conditions are in an oscillating pattern; utilizing high selling and low buying within boxes is the basis for stable profits. Use BOLL indicators.
Combine box theory with technical indicators and charts to find resistance and support. Follow short-term trading principles, and avoid greed.
Breakout Trading Method*: After a long period of consolidation, the market will choose a direction; chasing in after the breakout can yield quick profits, but requires precise identification of the breakout.
Unidirectional Trend Trading Method*: When the market breaks out of a range, it often forms a unidirectional trend; trading in the direction of the trend is key to profit. Enter during retracements or rebounds, referring to candlesticks, moving averages, BOLL, trend lines, and other indicators, and practice skillfully to handle it with ease.
Resistance and Support Trading Method*: When the market encounters key resistance and support levels, it often gets blocked or supported; entering at this time is a common strategy.
Use trend lines, moving averages, Bollinger Bands, parabolic indicators, etc., to accurately judge resistance and support levels.
Retracement Trading Method: After significant rises and falls, there will be a brief retracement or rebound; seize the opportunity for easy profits. Mainly based on candlestick patterns, a good market sense can help you accurately grasp highs and lows.
Time-Based Trading Method: The morning and afternoon sessions have small fluctuations, suitable for conservative investors; although the time to profit from orders is long, the market is easier to grasp; evening and midnight sessions have large fluctuations, suitable for aggressive investors; they can profit quickly but it's difficult, requiring strict technical and judgment skills.
I also want to remind my brothers and sisters that the crypto market is full of uncertainty and challenges, but it also contains potential opportunities. Investors should fully understand the relevant risks, remain calm and rational, and adopt a steady strategy to cope with market changes!
