91782951452 Must-Read for Retail Investors! 6 Ultimate Trading Principles to Navigate the Volatile Market

In the ever-changing cryptocurrency world, many retail investors are keen on short-term trading. Below are practical trading principles carefully compiled for you to accurately seize opportunities in market fluctuations:

1. High-level consolidation holds uncertainties; low-level oscillations hide crises: When prices fluctuate repeatedly at high levels, it may signal a brewing new breakout trend; whereas, when lingering at low levels, one must be wary of the risk of new lows. At this point, it is crucial to avoid blind operations. Wait for the trend to clarify before taking action to effectively avoid risks.

2. Maintaining calm during sideways movement is key: The market's sideways phase tests traders' patience. Many rush in due to impatience and end up failing. Only by keeping a calm mind and patiently waiting for clear signals can one stand out in trading.

3. K-line Yin and Yang discern timing: K-line patterns hide mysteries; when the daily line closes in the red, if accompanied by shrinking volume and other signals, it may be a good opportunity to build positions at low prices; when the daily line closes in the green, one should consider taking profits based on market heat and personal holdings, closely following market rhythms.

4. Downward trends dictate rebounds: The pace of decline is closely related to the rebound potential. If prices decline slowly, the bullish forces may struggle to gather quickly, leading to weak rebounds; if faced with a sharp drop, it is often accompanied by overselling, resulting in higher probabilities and intensity of subsequent rebounds, and one should seize the opportunity to capture price differences.

5. Pyramid-style position control: When building positions, follow the 'Pyramid Rule', starting with small positions to test, and gradually increasing after confirming the trend, lowering costs while controlling risks. Trade time for space, patiently awaiting value growth.

6. Price fluctuations hide opportunities: After sharp rises and falls, the market often enters a consolidation phase. At this point, there is no need to rush to liquidate or bottom-fish because consolidation is often accompanied by trend changes. If prices break down from highs, decisively stop-loss and exit, preserving capital to wait for new opportunities.

The trading journey is long and arduous. To achieve long-term stable profits in the cryptocurrency world, the key lies in the word 'stability'. It is essential to eliminate impatience and greed, and through the accumulation of experience and rational operation over time, gradually build your own trading system.