Seven Golden Rules of Cryptocurrency Trading
1. When the price rises: If the price rises steadily, a pullback is an excellent opportunity to enter. It's like driving; you need to wait for the green light before stepping on the gas. A pullback is to gather momentum for the subsequent sprint.
2. When the price falls: When the price drops, a rebound is a warning to escape. Once the trend turns negative, it may take several months to reverse. Don't stubbornly hold on; evacuate in time.
3. Investment vision: Short-term fluctuations are based on the present, while long-term movements depend on the overall situation. Don't be misled by small fluctuations; focus on the long term and pay attention to fundamentals.
4. Bottom judgment: Your guess of the bottom is often wrong; it may just be halfway down the mountain. The real bottom should be judged in conjunction with market sentiment and capital flow; blindly trying to catch the bottom can lead to being trapped.
5. Utilizing news: Don't always think about making money from good news; real market trends are driven by expectations. Most of the time, the news you hear is what others have already played; even if it's true news, by the time you know it, the market may have already ended.
6. Leverage usage: Easily increasing leverage won't make you win more; it will only make you lose worse. Once you can’t hold on, it’s game over.
7. Stop loss and take profit: Set clear stop loss and take profit points for yourself. Cut losses decisively when it drops to a certain level, and sell promptly when it rises to a certain level. Don't chase too long; many people lose money in a bull market just because they don't know when to take profits.
Understanding cryptocurrency trading is a similar process, from seven losses and two breaks even to one profit, the key is to remain focused, not to be greedy for various profit models, and to firmly execute a trading system. Over time, this system will become your cash machine.
