The dumbest way to trade cryptocurrencies is often the most effective, but 90% of people can't stick with it on this path.
To be honest, over the years I've seen too many people get liquidated, leave the market, and walk away in shame.
It's not that they lack talent, but rather they've been making three fatal mistakes:
First is buying the dip.
When the currency rises, they get greedy, thinking "this wave can soar," only to buy in and then crash,
while no one dares to buy when panic selling truly happens.
Only those who can make "buying on the dip" a habit are truly reaping the benefits of the cycle.
Second is over-leveraging.
They think that being on the right side will lead to a big profit, but then they're shaken by the main players, hit by a few needles, and get cleared out.
Third is going all in.
When emotions rise, they go All in, and even if you guess the trend right,
there's no way to flexibly switch positions or adjust the portfolio, missing out on real opportunities while just watching helplessly.
Ultimately, the cruelest aspect of the crypto world is:
You’re not losing because of the market, but rather losing to your own habits.
I’ve summarized a set of six principles for short-term trading; the simpler the principle, the more it gets ignored:
1. When a high-level consolidation isn't finished, new highs are often still ahead; when a low-level sideways movement has no bottom, it can easily create new lows. Don't act before the market changes.
2. Stay put during sideways markets, and never enter the market. Most people lose their patience during fluctuations.
3. Buy on daily bearish closes, sell on bullish closes. Following the emotions is much better than guessing randomly.
4. If it falls slowly, it won't bounce high; if it falls quickly, there will be a sharp rebound. Only by clearly seeing the market rhythm can you spot opportunities.
5. Use a pyramid-style position building, enter the market in batches, and always keep some bullets.
6. After a big rise or fall, there must be consolidation, and after consolidation, a change will definitely happen. Don’t go all in at highs, and don’t go all in at lows; wait for signals before determining your fate.
The market never lacks opportunities; what it lacks are those who can remain steady, endure, and survive.
If you can do these, the path to trading cryptocurrencies will only get broader.
You always think that experts are just lucky, but in fact, they apply simple methods with enough determination.