The dumbest way to trade cryptocurrencies is often the most effective.
But on this path, 90% of people cannot persist.
To be honest, over the years, I've seen too many people get liquidated, exit, and leave with their heads hanging low,
not because they lack talent, but because they keep making three fatal mistakes:
First, chasing after rising prices.
When a coin rises, they get greedy, thinking "this wave can soar," but as soon as they buy, it crashes,
while when there's real panic selling, no one dares to buy.
Only those who can make "buying on the dip" a habit are truly reaping the benefits of the cycle.
Second, over-leveraging.
Thinking that if the direction is right, they can earn big, but then they get shaken out by the big players, getting hit with a few spikes, and get completely wiped out.
Third, going all in.
When emotions rise, they go All in, even if they guess the trend right,
they can no longer flexibly adjust their positions, missing out on real opportunities while watching helplessly.
Ultimately, the cruelest aspect of the crypto world is:
You don't lose to the market, but to your own habits.
I've summarized a set of "six-character principles" for short-term trading; the simpler the principle, the more it's overlooked:
1. High-level consolidation is not complete; new highs are often still ahead; low-level sideways movements have no bottom, easily creating new lows. Don't act before a trend change.
2. Stay still during sideways movements; absolutely do not enter the market. Most people lose their patience in volatility.
3. Buy on daily bearish closes and sell on bullish closes. Following the emotions is much better than thinking randomly.
4. Slow declines don't bounce high; fast declines lead to sharp rebounds. If you can see the market rhythm clearly, you can spot opportunities.
5. Build positions in a pyramid style, enter in batches, and always leave some bullets.
6. After big rises or falls, there must be consolidation; after consolidation, there will definitely be a trend change. Don't go all in at highs, and don't all in at lows; wait for signals before making decisions.
The market never lacks opportunities; what it lacks are those who can remain steady, endure, and survive.
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