The Eight Golden Rules of Cryptocurrency! Those who understand them are guaranteed to profit
The cryptocurrency market is ever-changing. Master these eight practical rules to avoid 90% of the pitfalls! It is recommended to save and study repeatedly 👇
1. Averaging down to preserve capital; greed for profit is a folly
When you're stuck with positions, don't fantasize about "buying the dip to turn it around". Gradually average down to control losses; preserving your capital is key. Chasing highs and cutting losses will only worsen your losses!
2. A calm surface hides a big wave ahead
A unilateral rise without volume is a danger signal! It is recommended to set a trailing stop to lock in profits and be wary of sudden sell-offs by major players.
3. After a big rise, there will be a correction; K-line patterns show a triangle after several days
90% of explosive rises are followed by corrections! When the K-line forms a converging triangle, the battle between bulls and bears is fierce. At this time, hold back and wait for clearer direction before acting.
4. Buy on the dips, not on the rises; sell on the rises, not on the dips
Buy when there's a stabilizing bearish candle during a downturn, and sell when there's a stagnant bullish candle during an upturn. Use counter-trend operations to avoid chasing highs, and combine with volume indicators for more accuracy.
5. Don’t sell on highs, don’t buy on dips, don’t trade in sideways markets
Don't take profits without a breakout of resistance, and don't buy the dip without a breakdown of support! In sideways markets where direction is unclear, it’s safer to observe or test with light positions.
6. In an uptrend, watch for support; in a downtrend, watch for resistance
In an uptrend, keep a close eye on moving average support; if it breaks, reduce your positions promptly. In a downtrend, pay attention to resistance; if a bounce meets resistance, you can short.
7. Full positions are a big taboo; know when to stop amid constant changes
Always keep 30%-50% cash on hand! Set proper stop-loss and take-profit levels. If the market isn’t right, exit decisively and save your bullets for opportunities.
8. Trading cryptocurrency is about mindset; greed and fear are the greatest enemies
Chasing highs and cutting losses stem from human weaknesses! Formulate a trading plan in advance, use discipline to combat FOMO emotions, and rational decision-making is the key to winning in the end.
The cryptocurrency market is like a battlefield; these rules are your compass!
