Eight Essential Rules of Cryptocurrency Trading, A Must-See!
Only masters in the crypto space understand wealth knowledge; these eight essential rules should not be missed.
1. When trapped in a position, average down to protect your capital; seeking profits is greed.
In crypto trading, there will always be a few coins that get you trapped. At this time, remember not to fantasize about turning losses into profits; being hasty for quick gains will only deepen your predicament. Honestly averaging down to protect your principal is the way to go for sustainable growth.
2. A calm surface can hide a big wave behind.
The crypto market may seem calm on the surface, but there are undercurrents. Do not be misled by small price increases; stay alert and beware of upcoming volatility.
3. After a big rise, a correction is inevitable, and the K-line often forms a triangle over several days.
When the price of a coin skyrockets, do not get overly excited. Because a correction is bound to follow. Look at that K-line, isn't it just an equilateral triangle drawn over several days?
4. Buy on the way down, not on the way up; sell on the way up, not on the way down; acting against the trend is heroic.
When buying coins, choose the time of decline; when selling coins, do so during an uptrend. Going against the trend can lead to unexpected success.
5. Don’t sell when prices are high, don’t buy when prices plunge, and don’t trade during sideways markets.
When prices surge, don’t rush to sell; don’t rush to buy when prices drop. During sideways movements, it’s essential to hold back and observe.
6. In an uptrend, watch for support levels; in a downtrend, watch for resistance levels.
When prices are rising, pay attention to support levels to prevent pullbacks. When prices are falling, watch for resistance levels to know when to buy.
7. Overtrading is a major taboo; stubbornness is unwise; know when to stop amid constant changes; be flexible in and out while observing opportunities.
Never overtrade or go all-in. The crypto market is unpredictable; learn to take profits when you can and be flexible in your trades. Observing the changes allows you to seize the best opportunities.
8. Trading cryptocurrencies is about mindset; greed and fear are major harms.
Be cautious when chasing price movements; maintain a calm and composed demeanor. Trading is crucially about mindset. Greed and fear are our greatest enemies; avoid chasing highs and selling low, and keep a peaceful mindset.