1. Wait for the trend to clarify before taking action.
High-level consolidation often leads to new highs, while low-level consolidation likely leads to new lows.
Don't rush to trade blindly during the consolidation phase; wait for the price to break through key positions before acting.
2. Don't force trades in a sideways market.
The reason most people lose money is that they always want to find opportunities during sideways trading. Remember: the market is just 'waiting for the big move.' Instead of being a victim, it's better to wait for the trend to clarify.
3. Look at candlestick patterns in reverse.
Seeing a large bearish candlestick close (bear market K-line)? It might be a buying signal.
Seeing a large bullish candlestick close (bull market K-line)? Consider taking some profits.
(Simply put: Don't panic when a bearish candle closes, don't be greedy when a bullish candle closes.)
4. Don't touch rebounds in a downtrend.
When the market is in a downtrend, rebounds are often just a 'flash in the pan' and may accelerate the decline. At this time, rather than buying at high levels, it is better to wait until the trend completely deteriorates before acting.
5. Build positions in batches, pyramid strategy.
Don't buy all at once; when the price is lower, you can buy more, and when the price rises, buy less. For example: Buy 10% the first time, if it drops 5%, buy 20%, and if it drops again, add more... This way, you can lower your average cost and avoid betting the wrong way all at once.
6. Liquidate in time when the trend reaches its peak.
Whether rising or falling, when the price persists to extremes, it will inevitably enter a consolidation phase. At this time,
Don't cling to high positions: Sell when it has risen significantly, don't wait for a pullback and then regret it.
Don't rush at low levels: Wait for the trend reversal to confirm before buying, and don't be fooled by short-term fluctuations.
If the price starts to decline wave by wave from a high point, quickly liquidate -- the trend may be about to change!
Summary: Trading is a game of patience.
Remember: Trading is not gambling, but a game of probabilities.
First avoid those three 'pits'; preserving your capital is most important.
Short-term trading requires discipline: Once rules are set, follow them; don't let emotions take over. Don't think about 'making all the money'; capturing a few certain opportunities is enough.
To be frank: The market never lacks opportunities; what it lacks are people who can calmly seize those opportunities.
If your account is below 1 million and you want to make money in the short term in the cryptocurrency space, there is indeed a time-tested method for trading. Retail investors can understand it with just a glance. This year, I personally tested a method with a principal of 50,000 yuan, which has also repeatedly proven to be the 'fool's technique' that achieved over 18 million!
Don't worry about whether you can learn; I can seize this opportunity, and so can you. I'm not a god, just an ordinary person. The difference is that others have overlooked this method. If you can learn this method and value it in your future trading, you can earn at least 3 to 10 percentage points more every day.
1. Invest in batches: Assume you have 10,000 yuan, divide it into five parts, and only use 2,000 yuan for each trade.
2. Test water investments: Start with 2000 yuan to buy a coin and test the waters.
3. Add more when it drops: If the price drops by 10%, invest another 2000 yuan.
4. Take profits when it rises: If the price rises by 10%, sell part of it to lock in profits.
5. Repeating cycles: Constantly buy and sell until you run out of funds or coins.
6. Strategic advantage: The benefit of this strategy is that even if the price drops, you can remain calm. By buying in batches, you avoid the risk of a one-time investment. Even if the price drops by half, you are only gradually increasing your position. Each time you sell, you can lock in a 10% profit. For example, if you have 100,000 yuan, invest 20,000 yuan each time, and you can earn 2,000 yuan each time.
Main techniques include:
1. Technical analysis: Use charts and indicators to identify trends.
2. Fundamental analysis: Pay attention to news and macroeconomic factors.
3. Risk management: Set stop-loss orders and diversify investments.
4. Trading strategy: Determine entry and exit points and use different strategies.
5. Psychological factors: Maintain discipline and patience.
6. Practice and learning: Simulated trading and continuous learning.
7. Choose a reliable trading platform.
Short-term trading in cryptocurrency carries high risks; be sure to conduct research and risk assessment before trading.
No matter how diligent a fisherman is, he won't go fishing in a stormy season; instead, he will carefully protect his boat. This season will pass, and sunny days will come! Follow me, and I will teach you both how to fish and how to fish sustainably. The doors of the market are always open; going with the trend is the way to live a life of ease. Save this for future reference and keep it in mind!