There is a very foolish way to trade cryptocurrencies, but this method can almost eat away all profits, so learn slowly. First of all, when trading cryptocurrencies, we should never do three things.

The first thing is to never buy when the price is rising. Be greedy when others are fearful and be fearful when others are greedy. Get into the habit of buying when prices are falling.

The second is to never place large orders.

The third is to never go all-in. Going all-in makes you very passive, and this market is never short of opportunities; the opportunity cost of going all-in is very high.

Now, let's talk about six key rules for short-term trading.

The first is that after the price of a cryptocurrency consolidates at a high level, it usually makes a new high. Conversely, after consolidating at a low level, it typically makes a new low. So, wait for the direction of the market change to become clear before taking action.

The second is to avoid trading during sideways movements. Most people lose money in cryptocurrency trading because they cannot follow this simplest rule.

The third is when selecting candlesticks, buy when a bearish candlestick appears, and sell when a bullish candlestick appears.

The fourth is that when the decline slows down, the rebound also slows down, and when the decline accelerates, the rebound accelerates.

The fifth is to build positions using a pyramid buying method; this is the only unchanging principle of value investing.

The sixth is that when a cryptocurrency continues to rise, after a sustained decline, it will inevitably enter a sideways state.

At this time, we don't need to sell everything at the peak, nor do we need to buy everything at the low. Because after consolidation, there will inevitably be a market change. If the market changes downward from the high point, we need to clear our positions in a timely manner; in any case, we must act promptly.

Follow us for continuous sharing of money-making methods.